GLASIAOUS has obtained the internal control evaluation report, 'SOC1 Type2 Report'!
On December 23, 2022, GLASIAOUS, the cloud-based international accounting ERP service, has received the 'SOC1 Type2 Report', a report on the status of internal controls of the entrusted company. This follows the 'Type1 Report' received in the spring of 2022, and the companies using GLASIAOUS can streamline their internal control evaluation tasks during audits by using this report.
１．What is a 'SOC (System and Organization Controls) Report'?
A 'SOC Report' is an 'assurance report on internal controls related to outsourced operations,' issued by an independent auditor in accordance with the standards set by the AICPA (American Institute of Certified Public Accountants).
When a company undergoes an internal control audit, if part of the audited operations is outsourced, or if a system developed externally is used, these services and systems are also included in the scope of the internal control audit. In other words, a procedure for 'confirming the internal control situation of an external contractor' (the vendor company) is necessary. However, it is not efficient for the user company to perform this procedure concurrently within a limited time, as it would involve a lot of effort.
In such cases, if there is a report that proves the vendor's internal control situation, the user company can use it to smoothly carry out the internal control audit.
Especially in cloud systems, unlike on-premise types, the user company cannot manage the environment internally, so a 'SOC Report', which is highly reliable and evaluates the situation concretely and objectively, is considered crucial.
２．What is the difference between Type1 and Type2?
The 'Type2 Report' that we have received this time describes the results of verification over a certain period regarding the appropriateness of internal control design and the effectiveness of internal control operations. It can be said to be more reliable than the 'Type1 Report', which evaluates a specific day.
３．Benefits for companies using GLASIAOUS
In the SOC report, it assures not only the company-wide internal controls of Business Engineering Corporation, the developer of GLASIAOUS, but also the appropriateness of the development system related to GLASIAOUS service, application, and change management related to infrastructure. Therefore, you can use it with more peace of mind.
Furthermore, in the 'Type2 Report' we received this time, unlike the 'Type1 Report', it discloses the evaluation scope and procedures in detail. Therefore, it is generally expected to significantly reduce the evaluation procedures that the contracting company or its auditor should originally perform.
While Type1 required understanding the design of the controls and considering the necessity of evaluation and the actual evaluation, with the receipt of this Type2 report, users and their auditors will be able to carry out the evaluation of internal controls more efficiently, as most or all of the evaluation is covered by the SOC1 report.
４．Future Plans
Going forward, we aim to obtain the 'SOC2 Report' that evaluates controls such as system security and availability, and we will continue to make improvements towards that goal.。
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