Any organization that provides services impacting their clients' financial statements may require a SOC 1 audit. This includes businesses in industries like payroll processing, data hosting, financial services, and other outsourced service providers. A SOC 1 report is typically requested by clients to ensure that the service organization's controls are designed and operating effectively.

A SOC 1 Type I report provides an assessment of the design of controls as of a specific date. It evaluates whether the controls are suitably designed to achieve the desired objectives.
A SOC 1 Type II report goes further by evaluating both the design and operating effectiveness of those controls over a defined period, usually 6 to 12 months. Type II provides greater assurance to clients as it shows how well controls were functioning during that period.

SOC 1 audits are typically performed annually, especially for organizations that provide critical financial services or have client contracts requiring regular compliance. Annual audits ensure that the organization consistently maintains effective internal controls and complies with client and regulatory expectations.
The time it takes to complete a SOC 1 audit depends on the type of audit (Type I or Type II) and the complexity of your controls. A SOC 1 Type I audit can usually be completed within a few months, as it assesses the design of controls at a specific point in time. A SOC 1 Type II audit, which evaluates the operating effectiveness of controls over a period (typically 6 to 12 months), requires more time to complete due to the extended testing period. The readiness of your organization and the thoroughness of documentation also impact the audit timeline.

As a licensed CPA firm, AuditVisor provides comprehensive SOC 1 audit services. Our experienced auditors help you through the entire process, from readiness assessment and gap analysis to remediation support and issuing the final SOC 1 attestation report. We also offer ongoing compliance reviews and control testing to ensure your organization remains compliant year after year.

Preparation is key to a successful SOC 1 audit. Organizations should:
Conduct a readiness assessment to identify gaps in internal controls.
Implement or enhance controls based on SSAE 18 standards.
Document control processes thoroughly.
Train staff on their role in maintaining and executing controls.
AuditVisor can assist with these preparations through our SOC 1 readiness services, helping you build a solid foundation for a successful audit.