Your auditor, lawyer, or consultant says you need audited SOC 2 AP automation.
What does that mean? And is it REALLY a requirement? Or just another certification that adds cost to AP automation?
Read on to find out!
What is SOC 2?
SOC 2 is specifically designed for service providers storing customer data in the cloud. That means SOC 2 applies to nearly every SaaS company. But also any company that uses the cloud to store its customers’ information.
SOC 2 is a technical audit. It requires companies to establish and follow strict information security policies and procedures. These include the security, availability, processing, integrity, and confidentiality of customer data.
SOC 2 ensures that a company’s information security measures align to the parameters of today’s cloud requirements.
As companies increasingly leverage the cloud to store customer data, SOC 2 compliance is becoming a necessity for organizations.
How Does it Work?
A Service Organization Controls 2 (SOC 2 Type II) examination audits a service organization’s controls that relate to operations and compliance.
The AICPA’s Trust Services criteria outlines these criteria. They include availability, security, processing integrity, confidentiality, and privacy.
A SOC 2 report includes a detailed description of the service auditor’s test of these controls and results.
See our Article Accounts Payable Internal Control Checklist for More Details about AP Automation and Internal Controls
Risk managers use these reports as assurance about the controls at a service organization. They analyze the security, availability, and processing integrity of the systems the service organization uses to process users’ data.
This assures confidentiality and privacy of the information processed.
Risk management teams of clients and vendors use the reports up and down the supply chain to assure compliance. Once everyone in the supply chain is SOC 2 compliant you have no weak security links.
That’s why it’s important to only do business in the cloud with other SOC 2 compliant companies.
These reports can also play an important role in:
- Oversight of the organization
- Vendor management programs
- Internal corporate governance and risk management processes
- Regulatory oversight
Bottom Line – SOC 2 AP Automation Compliance
So the answer is yes! SOC 2 compliance verification SHOULD be a requirement in AP automation.
SOC 2 compliance means your vendor and invoice data are protected in the cloud.
Requiring SOC 2 certification puts in place well-defined policies, procedures, and practices. Doing so effectively builds trust with customers and end users about the secure nature and operation of your cloud infrastructure.
CoreIntegrator is a SOC 2 Type II AP automation provider.
So you can rest assured that your cloud-stored data will be safe when you use our AP automation solutions! It’s one more way that AP automation can help keep your company or organization protected from fraud!