BDO Unicon Outsourcing Secures SOC 1 Report

BDO Unicon Outsourcing successfully passed the audit of the payroll service internal control system for the third time and secured SOC 1 Report (independent evaluation of controls over financial reporting) for two standards:

• SSAE18 (Statement on Standards for Attestation Engagements);

• ISAE 3402 (International Standard on Assurance Engagements).

The audit addressed service quality control procedures and IT environment security over an 11-month period. The annual auditing process is supervised by BDO team composed of:

• Payroll centre specialists;

• IT support professionals;

• Methodologists;

• Business Processes Optimisation and Regulation Division;

• Methodology and Quality Control Division in charge of standardising processes in conformity with the requirements of the report.

Each employee involved in the provision of payroll services had to undergo service quality control procedures: launching inspection reports, filling out checklists with launch dates, saving files with the findings.

The audit addressed around 30 control procedures that ensure data processing reliability and transparency, including such modules as:

1. Setup of payroll services, conformity thereof to internal regulations and by-laws.

2. Reliability of data, accuracy and timeliness of calculations.

3. Calculation, payment, and withholding of personal income tax.

4. Accurate calculation of contributions, preparation and timely presentation of statements.

5. Compliance of actual payroll calculation and reporting dates with the schedule agreed upon by the customer and BDO.

Over a 2.5-month period, the company was subjected to testing, and BDO team had to provide the auditors with the necessary certificates and explanations concerning internal controls. In addition, in the course of the audit, the auditors:

• Interviewed company staff on internal control methods;

• Reviewed the reports and files generated by the company;

• Monitored customer communications;

• Tested control procedures;

• Checked the availability reconciliations with government authorities;

• Examined reports on the system of internal controls.

SOC 1 Report attests to the company’s responsible treatment of risk management and proves high quality of the systems of internal controls.