September 23, 2021

Blog Archives

Are Third Party Vendor reviews required for SOC 1 and SOC 2?

As of the latest SSAE 18 and SOC 2 updates, vendor management and review of any relevant compliance / audit reports (SOC 1, SOC 2, HITRUST, ISO 27001/2, PCI, etc.) has become a key component of monitoring for potential security and compliance risks when outsourcing functions that use a third party’s data.

How much does a SOC 1 Type 1 cost?

A SOC 1 Type 1 report typically costs on average anywhere between $10,000 and $20,000 USD, without the readiness assessment project which most Organizations benefit from and can be an additional $5,000 to $10,000 USD depending on the level of assistance required and project scope.

SOC 1 or HITRUST?

The SOC 1 has a completely different purpose than HITRUST. Typically a company would perform both if they are a TPA processing medical claims and other claims, where, there is responsibility for financial reporting and maintaining security over the information being handled.

How long does a SOC 1 take to complete?

This depends on how prepared and how many resources an Organization has to dedicate to the project. The first time through, usually a readiness assessment would be performed, and then a SOC 1 Type 1, and take anywhere from 2 to 3 months. However, there are situations where it may take 6 to 12 months should an Organization not have the resources or sufficient priority assigned.

A Type 2 report takes about 2 months to complete, but, it may take a little longer during the first audit and become more efficient every year thereafter.