SOC readiness FAQ: Examining the basics and complexities

SOC readiness is a consulting project that evaluates an organization’s preparedness to undergo a SOC 1® or SOC 2® examination. The objective of SOC readiness is to understand the organization’s operating environment and develop a road map for the future SOC examination. The level of readiness will establish the organization’s posture and determine whether the existing controls are suitably designed and operating effectively to meet the applicable objectives (SOC 1) or trust services criteria (SOC 2) of the organization. The readiness will define the controls that should be in the organization’s SOC report and outline any controls that require remediation before the examination period begins.

You can expect Baker Tilly to provide you with the following final deliverables:

• An inventory of the SOC reports in scope systems, tools and technologies
• A control matrix that outlines details of the in-scope control activities, including the frequency of required actions, control owners and anticipated control evidence
• The comprehensive list of controls identified in the control matrix:
• For SOC 1 readiness: the controls are mapped to control objectives that we assist your organization in developing
• For SOC 2 readiness: the controls are mapped to the applicable in scope trust service criteria (TSC)
• The gaps that were identified through the readiness assessment, as well as recommendations for remediation activities
• An outline of the system description for the future SOC examination report

SOC readiness assessments provide significant value by helping your organization identify and finalize the scope of your future assessment. Customer contracts are reviewed to validate that the scope addresses required risks and applicable service commitments or system requirements. A readiness assessment can help organizations address compliance gaps, mitigate risks, improve processes and prepare for future SOC examinations. By undergoing a thorough assessment, you’ll ensure that any control gaps or remediation needs are identified and addressed, so you can be ready for your SOC examination.

To maximize your success in undergoing these assessments, you can implement leading practices, such as:

• Perform a self-assessment prior to engaging a CPA firm to conduct a full readiness assessment
• Ensure you begin the readiness assessment early enough to provide ample remediation time before your examination period begins
• Dedicate resources to the effort
• Take a crawl/walk/run approach to SOC examinations: After the readiness assessment, start with a Type 1 examination, before moving into a Type 2 examination.

While SOC readiness assessments are essential for preparing organizations for SOC examinations and compliance, they can also be susceptible to various pitfalls. Here are some common pitfalls associated with SOC readiness assessments:

• Incomplete definition of scope: Failure to accurately define the scope of the readiness assessment can lead to incomplete assessments. Organizations may miss key systems, processes, or controls that are within the scope of the SOC examination, resulting in gaps in compliance readiness.
• Lack of policies and procedures: Policies and procedures provide a structured framework for operations, governance, and continuous improvement, contributing to the overall effectiveness and success of the organization. Without formally documented policies and procedures, organizations are at risk of deficiencies due to lack of understanding and/or accountability.
• Lack of evidence: The inability to produce the evidence supporting that controls are in place leads to gaps, and sometimes needing to implement alternative controls for which evidence can be produced.
• Completeness and accuracy of populations: While interviewing personnel and reviewing documentation is essential as part of the assessment, the organization needs to ensure that populations can be validated as complete and accurate.
• Immature vendor management: This can impact financial performance, operational resilience, and regulatory compliance. Establishing robust vendor management practices is essential for mitigating risks, ensuring compliance, and driving a reliable control environment.
• Developer access to production: Introduces significant risks to security, compliance, and can undermine the stability and reliability of the production environment. Access to production may violate compliance requirements or regulatory standards that mandate strict controls over access to sensitive environments and data and can create concerns over data loss or corruption.

Working with experienced professionals can help ensure effective readiness assessments that adequately prepare your organization for future SOC examinations.