A Service Organization Control is considered a suite of reports drafted after the company’s audit gets executed. Service organizations in Texas make use of these reports to provide validated reports that concern the information system’s internal control. These reports are provided to those individuals who make use of these services.
As per the rules, only a CPA (Certified Public Accountant) who is approved by the American Institute of Certified Public Accountants has the power and is permitted by the government to execute SOC audit Texas.
A SOC audit is mandatory in order to inform the people that a financial audit has taken place in the company, and it also examines whether it is conducted according to the rules or not.
There are different types of SOC audit reports which we will discuss in this article:
SOC 1 Report
The SOC 1 report is used for addressing the internal control of a particular company over its financial audit. This report is related to the check-and-limits applications. SOC 1 is considered as the audit which is done on a third-party vendor to examine its financial and accounting controls. The report shows how efficiently a company frames and stores its books of accounts. There are two types of SOC reports SOC 1 Type I and SOC 1 Type II. SOC audit Texas report sometimes prefers to make such SOC 1 type reports, and this decision entirely depends on the company’s requirements at that point in time.
SOC 2 Report
It is mandatory to prepare SOC 2 reports when the company is dealing with IT vendors. The report is considered the most sought after report. This report is concerned with service organization’s controls examination using one or more trust service criteria, i.e., privacy, processing integrity, confidentiality, availability, and security. This report also has two types, which are Type I and Type II. Type I report is responsible for addressing the existence of the control. In contrast, Type II is accountable for addressing the existence of the control as well as its functioning, which is proving effective.
SOC 3 Report
The SOC 3 report is considered the summarized version of the SOC 2 Type II report. Thus it is clear that this report is not as informative as SOC 2 Type II report. It is basically framed like a summary with fewer details in order to give a faster interpretation to the readers. This is the smaller version of the technical audit report, more like a summary to give a quick idea of the company’s performance. These audit reports are easy to understand and can get finished faster as compared to the others.
The Bottom Line
SOC audit Texas report is essential for every company that is operating in Texas.
Because this ensures that there is enough control in the workplace and the work is running effectively without any interruptions, this report helps to keep an eye on the efficiency and defects of the workforce.