Santa Monica, CA (PRWEB) January 17, 2013
The SOC 1 vs. SOC 2 debate is raging strong in the world of reporting on controls for service organizations. Businesses that provide critical outsourcing functions for other entities are being required to become SOC 1 SSAE 16 and SOC 2 AT 101 compliant. But which reporting option should organizations opt for, and what are the similarities and differences between SOC 1 and SOC 2? NDB Accountants & Consultants, a nationally recognized PCAOB CPA firm specializing in Service Organization Control (SOC) reporting, answers these questions, while providing in-depth information for assisting service organizations in understanding the SOC 1 vs. SOC 2 debate. View and download the comprehensive white paper on SOC 1 vs. SOC 2 at the official SSAE 16 Resource Guide, developed exclusively by NDB.
5 Important points to know about regarding SOC 1 vs. SOC 2 are the following:
1. Service organizations have changed. Service organizations in today's business world are dynamic, ever-changing, and often heavily dependent on information technology for their day-to-day operations. Because of this, the AICPA completely revamped third-party reporting, resulting in the Service Organization Control (SOC) framework, consisting of SOC 1, SOC 2, and SOC 3 reporting options.
2. SOC 1 and the ICFR Concept. SOC 1 SSAE 16 was actually intended for service organizations having a clear nexus with a concept known as Internal Control over Financial Reporting (ICFR), but it’s now being used much like that of the historical SAS 70 auditing standard.
3. SOC 2 and the Trust Services Principles. Say hello to a great reporting option for many of today’s technology oriented service organizations, such as data centers, Software as a Service (SaaS) entities, managed services providers, and others.
4. SSAE 16 and AT 101. The two (2) professional standards for which SOC 1, SOC 2 and SOC 3 reports are technically issued under are now becoming very well-known, thanks to the new AICPA SOC framework, but there’s still much to learn about them.
5. The crystal ball. So what will become of SOC 1 vs. SOC 2? How did SSAE 16 even come about? Learn about these issues and much more at the official SSAE 16 Resource Guide, developed by NDB Accountants & Consultants.
Contact Christopher G. Nickell, CPA, at 1-800-277-5415, ext. 706, to learn more about NDB's competitive, fixed-fees for SOC 1, SOC 2, and SOC 3 compliance. Additionally, visit the official SSAE 16 Resource Guide, developed exclusively by NDB.