Common SOC Audit Mistakes to Avoid in Your First Audit Cycle

Navigating your first SOC audit can feel overwhelming. If you’re new to the compliance process, you might not be fully aware of the requirements and best practices that can lead to a smooth audit. Unfortunately, many organizations make mistakes during their first audit cycle that can result in delays, extra costs, or even an unfavorable report. In this blog, we’ll go over the most common mistakes and provide guidance on how to avoid them, so you can achieve a successful audit and maintain compliance with less stress.

1. Not Conducting an Audit Readiness Assessment

Some organizations skip the audit readiness assessment, thinking it’s a waste of time or unnecessary. However, this step can be one of the most helpful in preventing future audit issues. Without a thorough internal review, you might miss gaps in your controls or areas that need more attention.

Solution: Conduct a readiness assessment that helps you identify potential gaps in your security before the auditors do. If you find any issues, use the time before the audit to fix them. The readiness assessment should cover every control your audit will examine, so you have a clear picture of your organization’s compliance status.

2. Starting the Audit Too Close to the Period End

One of the biggest mistakes organizations make is waiting too long to start preparing for their SOC audit. It’s not uncommon for companies to realize they need to start preparing a few weeks or months before the audit begins, which can lead to rushed work and missed details. SOC audits take time, so it’s important to start planning well in advance.

Solution: Begin your audit preparations as soon as you know you’ll be undergoing an audit. Ideally, start the process three to six months ahead of the scheduled audit date. Use this time to review your current controls and processes, identify gaps, and ensure your team is well-informed about what the audit will involve.

3. Lack of Clear Policies and Documentation

SOC audits rely heavily on thorough policies to ensure your organization’s processes are secure and compliant. If your team does not have clear, up-to-date documentation for policies, procedures, and controls, it can create significant problems. Missing or incomplete policies can delay the audit process and raise red flags for the auditors. Audit Advantage Group has templated policies that can be accessed after taking their readiness assessment so that you can be successful in a SOC audit. 

Solution: Ensure that all policies are itemized and listed. Audit Advantage Group offers an audit portal for clients to make sure all policies and documentation are uploaded in one safe, secure spot for their auditor. These documents include updated manuals, checklists, and reports that demonstrate how your organization meets each SOC requirement. Proper documentation helps auditors quickly verify your compliance, making their job easier and reducing the likelihood of needing follow-up requests.

4. Overlooking Risk Assessments for Fraud and Third-Party Vendors

Failing to conduct a comprehensive risk assessment that addresses fraud and third-party vendor risk is a critical mistake, particularly for SOC 2 audits. These assessments are essential for identifying vulnerabilities in your organization’s systems and processes, ensuring you have controls in place to mitigate risks. Neglecting this step can lead to gaps in compliance and an increased likelihood of audit findings. Audit Advantage Group offers templates for these risk assessments, available for clients. 

Solution: Incorporate a detailed risk assessment into your SOC 2 readiness plan, focusing specifically on:

1. Enterprise and Fraud Risk Assessment: Evaluate areas where your organization may be susceptible to fraud, such as financial processes, employee access controls, or vendor invoicing. Develop robust internal controls to detect and prevent fraudulent activity.

   
   

2. Third-Party Vendor Risk Assessment: Review all vendors who provide critical services to your organization, ensuring they comply with your security and compliance standards. This includes assessing their controls for security, availability, and confidentiality.

5. Misalignment Between Policies and Controls

One of the most common sources of audit exceptions is a misalignment between documented policies and the actual controls in place. For example, your organization's policy may state that passwords must be a minimum of 12 characters, but if your system configuration allows shorter passwords, it creates a compliance gap. These "aspirational" policies, which reflect ideal practices rather than the current environment, can lead to audit findings and delays.

Solution: Before the audit begins, management should conduct a thorough review to ensure all configurations and practices align with documented policies. Key steps include:

1. Policy and Configuration Alignment: Compare written policies to actual system settings and configurations. Update either the policy or the controls to eliminate discrepancies.

2. Validation and Testing: Test controls to confirm they function as documented. For example, attempt to create a password that does not meet the stated criteria to ensure the system enforces the policy.

3. Collaborate with Auditors: Engage with your auditor early to understand how specific policies will be evaluated and ensure the evidence provided matches the stated requirements.

   
   

By aligning policies with current controls and addressing gaps proactively, you can avoid audit exceptions, demonstrate operational integrity, and streamline the audit process.

6. Keeping Evidence Organized

When auditors request evidence to prove compliance, it’s crucial that your team can provide it quickly and efficiently. One common mistake is having evidence scattered across different systems and locations, making it difficult to find and present. AAG’s audit portal, once your information is uploaded, keeps everything organized for you and the auditor, ensuring nothing goes missing and everything is easily retrievable. 

Solution: Upload your policies and documents to the AAG audit portal to store and organize all evidence related to the audit. The portal uses file naming conventions, folders, and checklists to keep everything in order. This will help you stay organized and make it easier to find and present the requested evidence during the audit.

Avoiding these common SOC audit mistakes can make a big difference in your audit experience. By conducting audit readiness assessments, preparing early, keeping documentation up to date, managing vendors and third parties, staying organized, and aligning policies with controls, you can set your organization up for success. A well-managed audit not only saves you time and money but also ensures your company can demonstrate trust and reliability to your clients and partners. At Audit Advantage Group, we know how crucial it is to approach your first SOC audit with a solid plan. With these steps, you’ll be better equipped to handle the process smoothly and achieve a successful outcome.