Lesson: Preparation of SOC 2 Reports

In this lesson, Nick Palazzolo, CPA, takes you through the intricate process of preparing a SOC 2 report, with a focus on the results of control testing, including exceptions. He starts with a practical example of testing the enforcement of multi-factor authentication for remote network access, outlining the testing methodology, selecting a sample size, and scrutinizing the results. Nick also guides you through how to deal with exceptions, analyzing their nature, assessing their impact, and discussing corrective measures with management. Throughout, he emphasizes the importance of presenting findings in a clear, structured manner using visuals where useful, and ensuring reports are understandable, avoiding excessive jargon. Nick concludes by illustrating how to assess overall control effectiveness and make recommendations for continuous improvements to security practices. This lesson not only explains how to compile a SOC 2 report but also highlights its role in enhancing the credibility and security of the organization's control environment.