Why Your Software Provider Needs To Be SOC 1 Compliant

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    CobbleStone Software maintains SOC 1 compliance for better data security.

    Why do you trust your software provider?  Is there any specific criteria by which you measure a software system’s trustworthiness in protecting sensitive and confidential data such as PCI (payment card information), PII (personally identifiable information), employee information, client details, vendor data, and vital contract data?  With increased risk of data and security breaches, especially during such uncertain times as these, you should be confident that your information is stored on a trusted platform.  Read on to learn how to use such a trusted platform, along with the importance of SOC compliance.

    Executive Summary

    Recently, software and technology organizations have implemented data security compliance with SOC 1, SOC 2, and SOC 3 reports to virtually ensure that security monitoring and controls are correctly in place.  Data security is crucial for the success and reputation of virtually every organization, especially with the increasingly digital landscape posed by today's unprecedented challenges.  To protect key data and increase accountability, organizations should consider SOC 1 compliance as a requirement.  This article serves to define SOC 1 compliance, including its two types, and its significance within the technology and software industries.

    What Is SOC 1?

    SOC 1, or System and Organization Controls 1 (not to be confused with Service Organization Controls), is an auditing process performed by the American Institute of CPAs (AICPA), certifying that a software platform’s internal control over financial reporting (ICFR) is securely protecting client data.  Software providers must follow strict security procedures and policies to abide by SOC 1 compliance.  The organization requesting an audit must follow the criteria set and distributed by the AICPA.

    According to the AICPA, SOC 1 reports play a vital role in:

    • protecting client data.
    • virtually ensuring the security of controls over a user’s financial reporting.
    • maintaining secure oversight of sensitive and confidential information.

    There are two types of SOC 1 audit reports.

    SOC 1 Type 1

    The SOC 1 Type 1 report attests to the suitable implementation of a software’s controls concerning their description provided by management at a specific point in time.

    SOC 1 Type 2

    The SOC 1 Type 2 report attests to the suitable implementation and secure effectiveness of a software’s controls concerning their description provided by management usually over a minimum timeframe of six months.

    Software providers who are not SOC 1 compliant could place organizations at risk.  Organizations without such a security audit may not find it will distinguish them from their competitors or may not have yet been requested by clients for SOC 1 compliance.  Regardless of these reasons and others, lacking the proper security to achieve SOC 1 compliance could be the reason a company does not have a SOC 1 report.  Before working with a software provider, it would behoove any organization to request a SOC 1 report to virtually ensure that their information will be securely managed.

    Software You Can Trust

    While technology provides organizations with solutions to streamline their processes, it should not come at the risk of breached security and accidental data leakage.  Technology needs to remain in the users’ best interests, both functionally and securely.  Determining risk factors and remaining in control of secure data oversight contributes largely to remaining SOC 1 compliant.

    With the increasing demand from organizations for software as a service (or SaaS) providers to centralize and streamline their processes with more comprehensive data oversight, the former should require that their prospective software selection is SOC 1 compliant.  SOC 1 compliance virtually ensures that a software’s procedures and controls are secure within the software providers' data center and as a whole.  SOC 1 compliance makes prospective users confident that a software platform remains in security compliance within its own configurations and when connecting to third-party integrations.

    CobbleStone’s Contract Insight® Achieves SOC 1 Compliance

    CobbleStone Software has achieved SOC 1 Type 2 compliance.  This esteemed distinction, matched with its preexisting achievement of SOC 2 compliance, only proves CobbleStone’s unwavering dedication to its clients’ security and data protection.

    Click here to learn more about AICPA SOC compliance.

    CobbleStone's recognition of such an esteemed certification furthers its mission which states in part:

    • Our software products and staff go above and beyond the expectations of each other and our clients.
    • We take a pledge to respect our clients, our co-workers, our environment, and ourselves.
    • We strive to be successful by exemplifying sincerity, personal integrity, humility, courtesy, wisdom, and charity.
    • Our products and software solutions should continue to evolve to meet modern-day business needs.

    While this mission statement refers to more than compliance, it exudes CobbleStone's dedication to its clients in providing unparalleled, secure technology that safeguards the confidentiality of critical data.  CobbleStone users can confidently manage contracts and other sensitive data with a software provider they can trust.

    CobbleStone Software provides proven and user-friendly contract management software that proves to be the leading, one-stop solution for future-minded contract management, eSourcing, eProcurement, eSignatures, contract request tracking, analytics and reporting, and more.  CobbleStone's Contract Insight is a flexible, highly-secure, low-friction, highly-configurable, and user-friendly solution that helps thousands of users in the private and public sectors achieve contract management success.

    To see CobbleStone's industry-leading contract management software in action, book a free demo with a Contract Insight expert today!

    Contact CobbleStone, subscribe to our YouTube channel, and subscribe to our blog to learn more about how to improve your contract management process with Contract Insight!

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    Published: 11/18/20
    Discover why your contract management software provider needs to be SOC 1 compliant.

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