Role of A SOC 1 Report and A Freight Payment Service
Formerly known as an SAS 70 report, a SOC 1 report is prepared by an independent accounting firm reviewing the internal control structure of a freight payment provider. The accounting firm is guided in its review by the SSAE 16 standard.
The SOC 1 report is of most important to those companies subject to the Section 404 provisions of Sarbanes-Oxley. The report is a critical part of a customer's effort to showing continuing due diligence over internal control even when he outsources certain functions.
When a customer evaluates potential freight payment providers it is important for the customer to know what an SOC 1 report does and does not do for the customer:
What a SOC 1 report does for a freight payment customer:
- Goes a long way to satisfying internal control requirement of Sarbanes-Oxley
- If it is a Type 2, it provides assurance that internal controls are operating.
- Provides a view into the internal control structure at the freight payment company.
What a SOC 1 report does not do for a freight payment customer:
- It does NOT relieve a customer from making a judgment as to the appropriateness of the controls.
- It does NOT provide any assurance as to the financial stability of the freight payment company.
- If it is a Type 1 it provides no assurance that controls have been tested to discover if they are operating.
Read more about this topic: Freight Payment Service
Famous quotes containing the words role of, role, report, freight, payment and/or service:
“The role of the intelligence—that part of us which affirms and denies and formulates opinions—is merely to submit.”
—Simone Weil (1909–1943)
“Whether or not you have children yourself, you are a parent to the next generation. If we can only stop thinking of children as individual property and think of them as the next generation, then we can realize we all have a role to play.”
—Charlotte Davis Kasl (20th century)
“rather then men shall say we were hange’d,
Let them report how we were slaine.’”
—Unknown. Johnie Armstrong (l. 51–52)
“Admire a small ship, but put your freight in a large one; for the larger the load, the greater will be the profit upon profit.”
—Hesiod (c. 8th century B.C.)
“Latin America is very fond of the word “hope.” We like to be called the “continent of hope.” Candidates for deputy, senator, president, call themselves “candidates of hope.” This hope is really something like a promise of heaven, an IOU whose payment is always being put off. It is put off until the next legislative campaign, until next year, until the next century.”
—Pablo Neruda (1904–1973)
“Civilization is a process in the service of Eros, whose purpose is to combine single human individuals, and after that families, then races, peoples and nations, into one great unity, the unity of mankind. Why this has to happen, we do not know; the work of Eros is precisely this.”
—Sigmund Freud (1856–1939)