What is SOC 1?
SOC 1 (Service Organization Control 1) is an auditing standard specifically designed for service organizations that process financial transactions or manage controls that could materially impact clients’ financial reporting. Maintained by the American Institute of Certified Public Accountants (AICPA), SOC 1 ensures that a service provider has implemented appropriate controls over financial processes. SOC 1 focuses on the control environment and processes that affect financial transaction processing, reporting accuracy, and the integrity of financial data maintained on behalf of clients.Why SOC 1 Matters
As a Merchant of Record (MoR) and payment processor, Appcharge handles critical financial operations for our merchants, including transaction processing, billing, revenue management, and financial data handling. Given the material impact these operations have on our merchants’ financial statements and business operations, SOC 1 certification is essential to ensure:- Financial Accuracy: Controls over billing, revenue recognition, and transaction recording
- Transaction Integrity: Safeguards ensuring all transactions are thoroughly and accurately processed
- Financial Data Security: Protection of sensitive financial information and payment data
- Reliable Reporting: Assurance that financial reports generated through our systems are accurate and timely
- Audit Trail Maintenance: Complete and traceable records of all financial transactions
Appcharge’s SOC 1 Certification
Appcharge maintains SOC 1 Type 2 certification, which demonstrates that our controls over financial processes have been tested and validated over an extended period. This Type 2 certification provides the highest level of assurance, showing that our financial controls are not only effectively designed but also operating as intended. Our SOC 1 compliance program includes: Regular Independent Audits: We engage leading external auditing firms to conduct comprehensive SOC 1 Type 2 audits of our financial systems and processes. These audits evaluate the design and operating effectiveness of our controls. Financial Transaction Controls: Appcharge has implemented robust controls over all aspects of financial transaction processing, including transaction validation, billing accuracy, revenue recognition, and financial data integrity. Access and Security Controls: We maintain strict access controls over financial systems, ensuring that only authorized personnel can process financial transactions or access sensitive financial data. All access is logged and monitored. Data Integrity and Reconciliation: Regular reconciliation procedures ensure that all financial transactions are recorded accurately, completely, and in the correct accounting period. Our systems include built-in controls to detect and prevent errors or anomalies. System Availability: We maintain infrastructure and processes to ensure the continuous availability and reliability of financial transaction processing systems, minimizing service disruptions that could impact our merchants’ operations. Change Management: All changes to financial systems and processes are subject to formal change management procedures, including testing, approval, and documentation, to ensure that controls remain effective.SOC 1 and Your Financial Audit
If you’re a merchant working with Appcharge, your external auditors may request access to our SOC 1 report as part of their evaluation of your internal controls over financial reporting. Our SOC 1 Type 2 certification provides the comprehensive evidence auditors need to gain assurance over the controls operating within our systems. We can provide SOC 1 reports and audit evidence to your auditors upon request through our standard compliance inquiry process.Continuous Compliance
Appcharge treats SOC 1 compliance as an ongoing commitment, not a one-time achievement. To maintain the highest standards, Appcharge:- Conducts regular SOC 1 audits to maintain our Type 2 certification
- Continuously monitors and tests our financial controls
- Updates our control environment in response to evolving business needs and emerging risks
- Works with industry-leading audit firms to ensure ongoing compliance and excellence