SOC for Service Organizations (SOC 1 & 2) – Memphis, TN

SOC 1 and 2 Reports – Memphis, TN

Companies rely on effective internal controls to safeguard financial reporting, enhance operational efficiency, ensure compliance with regulatory requirements, and protect against fraud or financial misstatements. SOC reports—whether SOC 1 or SOC 2—play a key role in establishing and verifying these controls. 

A System and Organization Controls (SOC 1 or 2) report demonstrates accountability, compliance, and reliability in handling both financial and data-related responsibilities. They not only reduce risks but also enhance trust among clients and give you a competitive advantage in the marketplace. 

The Importance of SOC Reports

Many companies in Memphis and across Tennessee face increased scrutiny over how they manage financial and sensitive client information especially, in major industries like hospitality, manufacturing, and healthcare. In fact, many clients and business partners expect to see a SOC 1 or 2 report before initiating or continuing business engagements. Failure to comply with industry standards can result in significant financial penalties, data breaches, and loss of client trust. 

SOC 1 Reports

A recent survey shows that almost 40% of CFOs worldwide do not fully trust the accuracy of their financial data. SOC 1 reports are critical for organizations that handle financial data, as they assess the internal controls over financial reporting processes. These reports help businesses demonstrate compliance with financial regulations, like Sarbanes-Oxley, and provide assurance to clients and partners that their financial data is managed securely and accurately. Without a SOC 1 report, companies risk financial misstatements, penalties, and loss of client trust. 

SOC 2 Reports

The global average cost per data breach was $4.88 million in 2024, underscoring the growing risks associated with cybercrime. Many companies and organizations provide services that require the updating and processing of sensitive, personally identifiable information (PII), making them more susceptible targets of data breaches. This sensitive information may include social security, bank account, credit card numbers, home address, and more. Ensuring adequate protection with a SOC 2 report is critical not only to prevent breaches but also to assure clients of the strength of your cybersecurity controls. 

SOC Experience

Our team has significant experience conducting SOC 1 and 2 examinations for Memphis companies. Specifically, we can assist with: 

• SOC 1 Reports: Prepared in accordance with SSAE 18. They are specifically intended to assist your clients in evaluating the effect of the internal controls at your organization on their financial reporting. A SOC 1 examination allows you to demonstrate to your clients that your internal controls are fairly presented, have been properly designed, and have operated effectively throughout the period under review. These reports are intended to be used by management, your clients and their auditors. 

• SOC 2 Reports: Prepared for service organizations for which a detailed understanding and assurance around internal controls at the organization is necessary. 

• SOC 2 Plus : These examinations include one to all five of the Trust Services Categories and Criteria, plus additional criteria for frameworks such as HITRUST, PCI, ISO 27001, NIST or other established control frameworks. Depending on the need, Calvetti Ferguson can conduct a SOC 2 Type I or SOC 2 Type II examination. The main difference between the two is that a Type I report covers a specific period, whereas Type II reports cover a minimum six-month period.