For many companies, completing the SOC 1/SOC 2 audit or other compliance standards can be a difficult task that is being required by another party (i.e. their customer). This can make completing the audit feel like a chore and “check the box” exercise.
Understanding the benefits of conducting a SOC 1 /SOC 2 or other compliance audit (outside of satisfying your customer) may help the process feel a bit more palatable. Some benefits are detailed below.
- Competitive Differentiation – You may being do this to pacify one of your current customers but user (i.e. customer) trends are requiring these audits. It’s likely you’ll often see this question on requests for proposal. Have you completed a SOC 1/SOC 2 audit? Proactively completing an audit allows you to answer yes and often may give you a leg up on your competitors bidding for the same work.
- Improved control environment – Security breaches are constantly all over the news. Even smaller businesses are consistently targeted by third parties looking to disrupt your operations and steal information/data. Having lapses in your control environment provide the gateway for bad actors to do this. While you have an internal team, going through the third party SOC 1/SOC 2 audit provides another data point to your team. This just might help close any of these “holes” and prevent a breach.
- We are all incredibly busy and things tend to lapse. Going through an annual audit forces your team to take security seriously on a very consistent basis. This is a great way to mitigate risk in your business.
- Increased business valuation – Having a well-defined control environment and successfully completing a SOC 1/SOC 2 audit requires an appropriate organizational structure and infrastructure and demonstrates your commitment to these items. When being acquired (if in your plans) having completed current SOC 1/SOC 2 audit is value added. Buyers look to acquire companies with solid management and processes/procedures and pay a premium for well run businesses. Having this audit in hand validates you are this type of business.
These are just a few of the benefits of conducting a SOC 1/SOC 2 or other compliance audit. Our team also consists of experts in ISO27001 and HITRUST®. Please reach out to us to learn more! firstname.lastname@example.org
ABOUT THE AUTHOR – CHRIS FAMEREE, MANAGING PARTNER
Chris Fameree is the founding partner of Assure with nearly 15 years of combined public accounting and industry experience. He has led and participated in numerous engagements including SOC 1 & SOC 2 engagements, due diligence engagements, financial statement audits and other advisory projects.
Prior to founding Assure, Chris was a Senior Manager in the Transaction Advisory Services Group and Audit Group of a large regional CPA firm. During this time, Chris participated in numerous business combinations and due diligence assignments. These transactions ranged from $10 million to over $100 million in value. Chris also worked at a national CPA firm, where he served lead roles on engagements from international Fortune 500 companies to closely held private manufacturers.
Chris received his Bachelor of Business Administration in Accounting from the University of Wisconsin. He is licensed as a Certified Public Accountant in North Carolina and Wisconsin.