A Type I SOC 1 is what many consider to be the entry level. This report only covers one day in time, it is similar to a balance sheet or a picture. The report contains an opinion that your controls were placed in operation on a specific date. There is no assurance that those controls were being performed the day before or after our on-site visit. Therefore, the Type I report is limited in application. In fact, many of your clients may not accept a Type I report, we suggest you communicate with your clients your intentions prior to engaging your auditor.
A Type I report is intended to provide information about the controls at a service organization that may be relevant to a user organization’s internal control as it relates to an audit of financial statements. The Type I report however, does not allow a user auditor with a basis for reducing their assessment of control risk below the maximum in the financial audit of your customers.
Our approach consists of three phases, with an overriding theme of cooperative teamwork with your organization. Although, we are the auditor – we do not practice an “us vs. them” mentality. We will work closely with your team in order to reduce their headaches and tension normally associated with auditors.
Phase 1: Assess and Define the Scope – consists of defining the scope of services to be included in the examination, confirm the objectives to be tested, identify the control policies and procedures that are in place and work with management to finalize the scope.
Phase 2: Design and Test the Controls – most of this phase is performed on-site as we plan and execute tests of control design, plan and execute observation of controls in place and develop recommendations for control improvements. We will observe your controls, review documentation and perform inquiries in order to determine if the controls were adequate and in operation.
Phase 3: Report Preparation and Delivery – consists primarily the finalization of the report, preparation of quality control workpapers and checklists, second person review of the report and drafting recommendations to management.