Trust and security are more important than ever, and when it comes to your company’s ESOP, this is especially true. Employees and stakeholders must know that their data is safe and that related reporting processes are managed rigorously.
SOC 1 and SOC 2 reports, produced by an independent certified public accounting firm following a comprehensive evaluation of an organization’s internal controls, provide this assurance. The Menke Group undergoes rigorous annual SOC 1 and SOC 2 compliance audits, signifying our commitment to excellence, continuous improvement, data privacy, and security.Â
While SOC 1 and SOC 2 reports are essential for technical and compliance teams, they are equally significant for business leaders. Here’s a summary of what this Menke milestone means to our clients.
What Are SOC 1 and SOC 2?
SOC stands for Service Organization Control, and the term refers to a set of reports developed by the American Institute of CPAs (AICPA). These reports assess and validate the controls and processes of service organizations such as the Menke Group, ensuring we meet high standards of security, availability, processing integrity, confidentiality, and privacy. They provide valuable insights for both Menke and our clients, ensuring that risks are managed and compliance is maintained.
- SOC 1: Focuses on internal controls. It ensures that they are designed and operating effectively.
- SOC 2: Evaluates how well an organization manages data according to five “trust service criteria”—security, availability, processing integrity, confidentiality, and privacy.
What is Included in a SOC Report?
Description of the system: details services provided, system design, its components, and boundaries.
Control Objectives and Activities: describes specific controls in place to meet the objectives (for SOC 1) and trust service criteria (for SOC 2).Â
Independent Auditor’s Opinion: assesses the effectiveness of controls and provides an opinion about their adequacy. There are two types of reports: Type I and Type II. Type I looks at the organization’s system and the suitability of the controls’ design at a specific point in time, while Type II also examines the operational effectiveness of the controls over a specified period.
Why SOC 1 Matters
SOC 1 is critical for organizations that handle financial data for their clients. Menke has undergone a rigorous SOC 1 Type II compliance assessment, which examines the effectiveness of our internal controls used in delivery of our third-party administration (TPA) services.
Menke’s clients can rest assured that appropriate measures were taken to design controls that support the accuracy and security of its plan consulting, compliance, and reporting services.
Why SOC 2 Matters
SOC 2 is essential for any organization that manages customer data, and Menke is no exception. In an era of increasing cyber threats, data security is a top concern for businesses of all kinds. A SOC 2 report verifies that our organization has robust measures in place to protect your data from breaches and unauthorized access.Â
You can be confident that Menke is committed to protecting the financial data and privacy of your company, as well as your employees’ data and privacy. In fact, the process of achieving SOC 2 Type II compliance leads to improved internal processes and controls and a culture of continuous improvement, enhancing overall operational efficiency and reducing the risk of internal errors.
Our Commitment to You
Undergoing the annual SOC 1 Type II and SOC 2 Type II audits is part of our ongoing commitment to excellence, continuous improvement, and transparency. The Menke team values our relationship with you, our clients, and understands that as business owners, you depend on us to manage your ESOP and sensitive information securely and reliably. These independent audits are a testament to our dedication to maintaining and continually improving our high standards and we look forward to continuing to provide our clients with the best possible service, safely and securely.
