TaxConnex Completes SOC 1 Type 2 and SOC 2 Type 2 Audits

TaxConnex, LLC has successfully completed both a SSAE 16 (SOC 1) Type 2 and a SOC 2 Type 2 audit with no reported exceptions. TaxConnex provides sales tax outsourcing, sales tax consulting and VoIP tax service to businesses of all sizes.

The Type 2 audits, which are more difficult than Type 1 audits, were conducted by independent CPAs and focused on several of TaxConnex’s processes. Auditors looked at the company’s control objects intended to govern new client setup, tax return preparation and accuracy, payment processing, data security and back-up procedures.

SOC reporting replaces the older SAS70 reporting. A SOC 1 audit is prepared in accordance with Statement on Standards for Attestation Engagements No. 16, Reporting on Controls at a Service Organization. It is designed to meet the needs of customers and their auditors as they evaluate the effect of the organization’s controls in regards to customers’ financial reporting. A SOC 2 audit is prepared under AT Section 101, Attest Engagement (AICPA, Professional Standards). It follows a predefined framework to report on an organization’s controls, such as the design and effectiveness of policies, communications, procedures and monitoring based on certain criteria.