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The Arizona Society of Certified Public Accountants
President & CEO Oliver Yandle
Editor Haley MacDonell
Advertising Heidi Frei
Board of Directors
Chair Lauren Murro
Chair-Elect Eugene Park
Secretary/Treasurer Joe Heidleburg
Directors Tahir Alhassan
Austin Billingslea Daliah Bui
Jay Ganesan
Marissa Graves
Ignatius Jackson
Sarah Jones
Mark Kohler
Donnie Neves
Dennis Osuch
Lisa Parke
Stella Shanovich
Immediate Past Chair Andrea Levy
AICPA Council Members Kelly Damron
Tom Duensing
AZ CPA Editorial Committee
Alli Byrne, Trevor Johnson Mike Nyman, Adrian Ochoa
Amy O’Loughlin, Becky Pusch
AZ CPA is published by the Arizona Society of Certified Public Accountants (ASCPA) to provide information, news and trends to the accounting profession. It is distributed six times a year as a benefit to ASCPA members. The ASCPA, its members, board of directors and administrative staff assume no responsibility for advertisements herein. The ASCPA and the above people also assume no liability for business decisions made by readers in reference to statements and/or claims in articles or advertisements within this publication. Opinions expressed by contributors are not necessarily those of the ASCPA.
Arizona Society of CPAs 410 N. 44th St. Ste 205 Phoenix, AZ 85008
Telephone (602) 252-4144
AZ Toll-Free (888) 237-0700 www.ascpa.com
By Haley MacDonell
By Amy O’Loughlin, CPA
By Brian Kush
By Michael S. Nyman, CPA
Lauren E. Murro, CPA Chair, Arizona Society of CPAs
Partner, Eide Bailly
As I think about summer, I look forward to some much needed time away from work. I know students often feel the same, but many are already planning the next semester and contemplating their future.
When I was still in school, I remember playing The Game of Life with my family and selected accountant as a profession. I only knew of a few accountants growing up, like my dad’s tax CPA. I had to ask what an accountant was, but at the end of my mom’s (very brief) description she said I’d probably be good at it. As I started taking introductory accounting courses my sophomore year of college, the content made sense to me. Not only did it make sense, but I was good at it and enjoyed the classes. It was clear that accounting was in my future!
I think we can all agree that education is an indispensable stepping stone to a career in accounting. Without our education, how could we as CPAs continue to be seen as trusted advisors to the public? Considering our education and licensing requirements, our profession is often compared to attorneys and doctors — and for a good reason. We maintain our reputation by placing emphasis on that educational aspect.
We continue to hear one of the significant deterrents for students considering accounting is the cost of education. The Arizona Society of CPAs and members like you have the ability to support future CPAs throughout their education. The Arizona CPA Foundation for Education & Innovation aims to attract and prepare individuals with the highest potential for contribution to the accounting profession in Arizona through initiatives in formal education. Since 1990, the Foundation has supported over 400 students on their journey to the accounting profession and CPA exam.
In a profession where we rely on our educational foundation to succeed, it’s important we encourage students’ growth and development throughout their education. This year, the Foundation supported 13 deserving students who are on their way to being auditors, forensic accountants, tax practitioners and experts in other areas of the profession. Recipients like Kyle Freer are the first in their family to graduate and be accepted into a master’s program. As the financial landscape evolves, the importance of the Foundation and those who contribute cannot be overstated.
Although I eventually learned the path to a career in accounting, I wish I had sought out more support in attaining my accounting degrees, including information about what the profession had to offer and the variety of careers I could have as a CPA. In the game of life (the real one we’re living), I was fortunate enough to have support that guided me early in my career, and I hope you’ll consider supporting the next generation of the profession too. l
Warm Regards, Lauren Murro
Jordan Sandberg was promoted to associate director at HKA.
Kevin R. Yeanoplos, CPA, of Brueggeman and Johnson Yeanoplos, P.C., has been named by Forbes Magazine as one of the Top 200 CPAs in America.
Makenzi M. Johnson, CPA, of Heinfeld, Meech & Co, P.C. was promoted to senior associate.
Michael T. R. Martin, MACC, MBA, has been named in Marquis Who’s Who.
Wesley Ryan Benally, CPA, of REDW has been named in the 18 most influential minority business leaders in Arizona for 2024 by AZ Big Media.
Wesley R. Nye, CPA, of Eide Bailly was promoted to partner.
Tina Raether, CPA, joined Arevon Energy as senior director, operations controller.
Heather M. Morton, CPA, joined Life in Balance Accounting CPAs.
Congratulations to Corey Arvizu, CPA, on his retirement at Heinfeld, Meech & Co, P.C.
Austin Bradley, CPA, and Brock R. Yates, CPA, at Baker Tilly were promoted to principal.
Written by ASCPA member Jordan Sandberg
Most accountants are familiar with the first in, first out (FIFO) and last in, first out (LIFO) inventory pricing methodologies. These are also two of the most common tracing methods for forensic accounting, among other methods such as the lowest intermediate balance rule (LIBR) and pro rata method. With various viable options, how do you know which approach is best for tracing ill-gotten gains?
Continue reading at ascpa.com/tracingmethods.
By Haley MacDonell
Are you a musical CPA? We asked and you answered: YES! Chime in on Connect and read other stories: ascpa.com/musicalcpas
Jakob I. Klein, CPA, now a tax manager at Wallace Plese + Dreher, started his education as a music major.
“Playing music was the biggest part of my identity growing up,” Klein remembers.
In fifth grade, he picked up a trumpet for the first time and quickly joined in on music classes at school. As he grew up, he discovered a love for jazz music and learned how to play other instruments like the guitar and French horn.
“I was practicing every day for at least an hour, and I had a great time doing it.”
His love for music led him to pursue a music scholarship and a major in music performance in college. However, as he approached
his senior year, the realities of a career in jazz caused him to reconsider.
“I talked through the situation with a friend of mine, who had a very similar path,” Klein says.
His friend was a former music major turned accountant.
“I took his advice and started taking business classes. Accounting just made sense to me, and I was good at it.”
Switching majors added an additional three years to his education, but in the end, Klein says it was worth it. On the bright side, he had no problem hitting the 150-hour requirement when the time came for him to sit for the CPA exam.
“I already had so many credits added up from
music classes that I graduated with almost 200 credit hours,” he says.
The skills he honed as a musician have influenced his approach to his current career. Playing in ensembles, and his experience as a section leader, taught him the importance of teamwork and communication, skills he now leverages in teams and with clients. Klein has said goodbye to his brass instruments, but he still picks up a guitar from time to time.
When we asked the ASCPA membership on Connect if they were passionate about music, the response was overwhelming. CPAs from all over the state chimed in on how they had studied music, toured with orchestras and continue to share their passion through local nonprofits and music communities. See how music has shaped the lives of these Arizona CPAs.
At the age of 12, Joy Partridge, CPA’s fascination with music was sparked by a chance encounter with a girl carrying a violin case into her elementary school cafeteria, where the school orchestra was practicing for a music program.
Music. Community spirit. Artistic collaboration. She wanted to be a part of it all. When the orchestra director mentioned a need for viola players, Partridge eagerly took up the challenge, beginning her journey into the world of music. Since elementary school, music has been an unwavering passion for Partridge. Throughout her schooling she dedicated herself to mastering the viola, participating in orchestras at every opportunity. She also continues to share her passion for music through her work as a cofounder and executive director of the Scottsdale Philharmonic, a nonprofit that was formed in 2012.
“The viola is the third voice of a symphony, slightly bigger than a violin but still played under the chin,” Partridge explains.
Her passion for music did not wane, even while pursuing a degree in history and liberal arts, and later, a degree in business & accounting to become a CPA.
“In 2012, after being on the board and performing in many orchestras, I decided that
with my business skills, I would be able to help build a symphony that was very much needed in Scottsdale at the time,”
Partridge recalls of her pivotal decision to co-found the Scottsdale Philharmonic alongside Carl Reiter, a professional musician and friend. Their mission was ambitious yet clear: to deliver outstanding performances of classical music to the community, free of charge.
For the first 10 years, the Scottsdale Philharmonic offered all concerts free of charge, garnering an overwhelming response from the community. A notable highlight was their 2018 performance of Beethoven’s Ninth Symphony, which was played to a packed house of more than 2,000 people.
Today, the Philharmonic boasts approximately 75 musicians, many of whom volunteer their talents, supported by a dedicated board and volunteer group, despite the challenges posed by the COVID-19 pandemic.
Partridge attributes part of the Philharmonic’s success to her blend of musical expertise and business acumen.
“When I was in college at Arizona State University, people in the music
Joy Partridge, CPA
Partridge & Associates
CPA’s
department didn’t understand why someone like me was also getting a degree in business,”
she notes.
With her degree in accounting, she built her own practice from the ground up while continuing to be an active member of the musical community. “I knew we needed an audience first, so we made concerts free. Once we built our audience, we introduced a small ticket fee to cover costs. It’s all about applying business skills to build and sustain the orchestra.”
With a steadfast commitment to fostering cultural development in the valley, Partridge continues to lead the Scottsdale Philharmonic, ensuring that classical music remains accessible and cherished within the community.
“There’s something spiritually beautiful about classical music,” she says, “especially as you sit in the middle of an orchestra with 70 other people. It’s magical to be a part of that.”
The Musical Instrument Museum in Phoenix should be on the list of every music lover. Known as the world’s only global instrument museum, MIM is home to over 12,000 instruments and music related objects.
A current special exhibit, “Acoustic America” features iconic guitars, mandolins and banjos from wellknown folk, blues and bluegrass musicians, including the guitar of Mississippi John Hurt, a critical figure in the revival of American Folk music.
“Mississippi John Hurt recorded a dozen songs with a record label in 1928, but they didn’t sell well, so he returned home to Avalon, Mississippi, to continue working as a sharecropper,” explains Phil Rumble, controller at MIM.
Phil Rumble Musical Instrument Museum
the museum’s music theater, kid classes, memberships, field trips and more. As a CPA, he helps to ensure the long-term fulfillment of MIM’s mission to preserve, share and celebrate musical heritage from around the world.
“In the 1960s, folklorists were inspired by a lyric in his song ‘Avalon Blues’ to search for him in his hometown, where they rediscovered him. When I listen to his music, it feels like discovering a hidden treasure that was almost lost.”
Today, Rumble plays an acoustic Taylor guitar when he can find the free time, and he enjoys exploring the museum, where the music of over 200 countries is represented. Upstairs in the Geographic Galleries, he especially likes the section dedicated to Sweden, where his family originally came from. There, you’ll find unique instruments like the nyckelharpa, a fiddle with keys along its neck – and a träskofiol, or a clog fiddle.
For several years, Rumble has supported the many areas of the MIM’s financial success, including
“I think music is fundamentally a human experience,” Rumble explains.
In a way, numbers are too. He remembers collecting baseball cards as a kid, each number on the back of the card telling a different story of the player and their career.
“Music reaches out to everyone. As I mentioned before, accounting is a way to tell stories, and I think music is as well.”
“My love of classical music started with my dad, who loved classical music along with big band jazz. I tried singing in my high school choir, which did not work out very well since you must be able to carry a tune,” Hoover says.
Despite this, Hoover became a cymbal performer with a drum & bugle corps in college. He enjoyed it so much that he continued on with two other touring drum corps in the Phoenix area in the years to come.
As director of finance and administration at the Fox Tucson Theater, he’s glad to be back in show business, in a different way. The Fox’s performances represent a variety of genres: rock, folk, mariachi, country and even nonmusical performances like movies and comedians.
“Performing art organizations are always looking for help when it comes to finances. You do not have to be a musician to find a place in music,” he says.
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By Amy O’Loughlin, CPA
On August 16, 2022, the Inflation Reduction Act (IRA) was signed into law to provide, among other measures, an investment of $369 billion for clean energy and climate change programs for the next 10 years.
Continued on next page...
The tax incentives provide a significant portion of the investment within the Act. There are incentives for consumers, businesses and nonprofits. For businesses and nonprofits, there are both clean electricity production tax credits (PTC) and investment tax credits (ITC). The production tax credits subsidize the production of clean electricity. The investment tax credits support new investment in clean electricity installations. A given project can receive either a production tax credit or an investment tax credit but not both. Within the investment and production tax credits, three bonus credits add to the base credit amount. For both Investment and Production credits, there is an incentive if the projects are built with domestically produced materials. Projects sited in “energy communities” are areas that have suffered from the decline of fossil fuel energy. There is a map released by the U.S. Department of Energy that identifies these energy communities. Finally, if the project is in a community classified as a “qualified low-income residential building project” or a “qualified low-income economic benefit project,” there is a 10 to 20% increase in the credit.
The types of projects that are eligible for the clean energy tax credits are the production of electricity from eligible renewable sources, including wind, biomass, geothermal, solar, small irrigation, landfill and trash, hydropower, marine and hydrokinetic energy (IRC §45, pre-2025). The technology-neutral tax credit to produce clean electricity replaces IRC §45 for facilities that begin construction and are placed in service after 2024. The Act established technology-neutral tax credits for clean electricity facilities placed in service on Jan. 1, 2025, or later. The credits apply to facilities with net-zero greenhouse gas emissions and will succeed the IRA’s existing production tax credit (PTC) and investment tax credit (ITC) for qualifying wind and
solar projects. In addition, qualified energy storage facilities will be able to receive the new technology-neutral ITC if they enter service in 2025 or later. The Investment Tax Credit for energy property (IRC §48, pre-2025) provides incentives for investment in renewable energy projects including fuel cell, solar, geothermal, small wind, energy storage, biogas, microgrid controllers and combined heat and power properties. From 2025 onwards under IRC §48E, technology-neutral tax credits are available for investment in facilities that generate clean electricity and qualified energy storage technologies. This replaces §48 for facilities that begin construction and are placed in service after 2024. There are bonus credits that can be layered on for projects that include small-scale solar and wind or clean electricity on Indian land, federally subsidized housing, in low-income communities and benefit low-income households. There are credits for purchasers of commercial clean vehicles. Qualifying vehicles include passenger vehicles, buses, ambulances and certain other vehicles for use on public streets, roads and highways. To support the use of clean vehicles, there are refueling property credits located in low-income and non-urban areas. Qualified fuels include electricity, ethanol, natural gas, hydrogen and biodiesel.
A special feature of the Clean Energy Tax Credit program is elective pay. Elective pay allows tax-exempt and governmental entities that would otherwise be unable to claim the credits because they do not owe federal income tax, to treat the amount of the credit as a payment of tax and apply for a refund. Tax-exempt and government entities that qualify can file an annual tax return with the IRS to claim elective pay for the full value of the investment tax credit if it meets all the requirements including a prefiling registration requirement. The elective pay election would be claimed on the entity’s annual tax return along with any form required to claim the relevant tax credit.
• To receive elective pay, the following requirements must be met:
• Identify and pursue a qualifying project or activity.
• Determine the entity’s tax year. The tax year will determine the due date for the tax return.
Complete pre-filing registration with the IRS. The registration requests information about the organization, which credits will be earned, and the project or property that will contribute to the credit. The IRS will issue a registration number for each project or property. The registration number will be included on the organization’s tax return as part of making the elective pay election.
Satisfy all the requirements for the tax and bonus (if any) credit for the tax year. There will be documentation requirements to properly substantiate the credit and bonus.
File the annual return by the due date or extended due date and make a valid elective payment election.
The IRS has provided Publication 5884, IRA and CHIPS Pre-Filing Registration Tool User Guide to assist with pre-filing registration. As with any new law, a careful reading of the IRS regulations and Frequently Asked Questions (FAQ) guidelines is required to understand the processes and procedures that must be followed to receive the elective pay funds.
If an entity is not eligible for elective pay but does qualify for a clean energy tax credit, the organization can transfer its tax credit amount. The credit can transfer to a third-party buyer in exchange for cash. The buyer and seller would negotiate and agree to the terms and pricing.
A final important caveat for tax exempt organizations who are considering capital campaigns or specific donation requests to raise funds for clean energy projects, the tax credits available may be limited.
Grants from government, private foundation or individuals and forgivable loans received to fund
the purchase of investment-related credit property should be included in the basis of the property for the purpose of calculating the credit. However, the final regulations prevent an entity from obtaining an excess benefit. Meaning if the organization receives a grant or forgivable loan for the specific purpose of purchasing, constructing, reconstructing, erecting or otherwise acquiring an investmentrelated credit property (a restricted tax exempt amount), and the sum of any restricted tax exempt amounts plus the applicable credit otherwise determined with respect to that credit property exceeds the cost of the investment-
related credit property, then the amount of the applicable credit is reduced so that the total amount of applicable credit plus the amount of any restricted tax exempt amounts equals the cost of investment-related credit property.
The excess benefit rule, however, does not apply if a tax-exempt amount is not received for the specific purpose of purchasing, constructing, reconstructing, erecting, or otherwise acquiring a property eligible for an investment-related credit. See the IRS Elective pay and transferability frequently asked questions: Elective pay. l
Amy O’Loughlin has been in public accounting since 2002 and is a tax director in the CBIZ financial services division. She provides compliance and consulting services for all types of exempt organizations. She is an ASCPA member and serves on the ASCPA’s editorial committee. To see the sources referenced in this article, visit ascpa.com/cleanenergytax.
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By Brian Kush
Accounting is about numbers. It’s about noticing trends (in the numbers) and sharing insights (about the numbers) and using your judgment (to properly value the numbers).
As an accountant, you spend a lot of your time (a lot of your life!) working with numbers. But you don’t do it alone. None of us do.
We work together. We work in teams. We work with people, with other human beings.
Numbers or People: Of the two, which is more meaningful to you when you think about your work?
It may be helpful to think about the day you will move on, retire or just leave the organization you are working at right now. Do you think you will reminisce about all the numbers you fixed, the transactions you adjusted or the judgment you used for the numbers you estimated? Maybe.
But, I’m willing to bet you’ll focus more on the people. Maybe you’ll reflect on
• The hard things you accomplished together.
• The impact you had on your organization’s culture.
• That one person you mentored who grew into the leader you knew they could be.
• That one person who smiled when you were going through a tough time.
• That one person who believed in your abilities and potential, even when you doubted yourself.
• That one person who lent a helping hand when you felt overwhelmed.
It’s the people we remember: our relationships and the impact they had on us, that we value most.
Yet, on most days, we focus primarily on the work we have to get done and we don’t spend enough time reflecting on the people we work with and our relationships with them.
Assuming you’re not leaving your job tomorrow (I hope not, the profession needs you!), what can you do today to improve your current working relationships?
Let’s start by being a bit more intentional about ensuring your working relationships are working for all parties. Ask some questions to encourage curiosity about how you could work even better together, such as:
• What is going well in the ways we currently work together?
• How could we exchange performance feedback in a way that supports each of us? How often should we exchange feedback? Where? What is the specific type of feedback we are each looking for that would be most helpful?
• How do we want to engage with each other when we disagree or notice conflict?
Although the answers to these questions are certainly important, perhaps it’s even more important to simply hold the conversations and ask the questions! When you do, you are telling a teammate:
• Our working relationship is important to me.
• I want us to grow together, and I need your input to do that.
By discussing interactions like feedback and conflict ahead of time, you set the stage for future learning. You will also make future conversations about conflict and feedback easier because they will be more expected. This is critical because when you create a regular and expected pattern of sharing feedback, people tend to be more open and receptive to it. What is normalized through repetition feels safer to our brains. We’re less likely to feel criticized or defensive and go into fight or flight mode.
Feedback tends to get a bad rap in our profession because it’s not happening consistently. When we surprise people with feedback, they don’t feel safe. They feel the need to defend and protect themselves. They feel the need to win the conversation, instead of being open to learning through it.
We need to increase our conversational capacity and have more conversations that are about learning, rather than winning.
We Need Relationship Leaders
Whose responsibility is it to initiate these conversations and questions? Yours!
Our profession needs more leaders who focus on relationships now more than ever to create an environment where people feel psychologically safe.
It’s said that people don’t leave organizations, they leave relationships, like a frustrating boss. I’ve never heard one accountant tell me that they left an organization because:
• They received too much feedback about their performance.
• They spent too much time talking about how to best work with one another.
• Too many people invested in their growth by asking them questions, listening to them and tending to their answers.
We all value functioning, healthy relationships at work, and in life!. When our relationships are healthy, we bring more of our full selves to work. We engage at higher levels. We feel more energized, focused, productive and willing to help. When our relationships flourish, we can all be more human, and bring in the humanity that our profession needs. l
Brian Kush is principal at Intend2Lead and started his career as a consultant at Ernst and Young and AuditWatch. Now, Kush coaches CPA firm leaders to tap into their power and increase their capacity to lead others to more meaningful results. He can be reached at brian@intend2lead.com. Kush spoke at ASCPA’s Not-for-Profit Conference in June.
May 9
Thank you for joining us at the Westin Kierland for a celebration of achievement and service. Congratulations to the ASCPA’s newest awardees: Life Member Michael Lemme; Honorary Members Bob Kilpatrick and Nancy Wilburn; and Excellence in Teaching Award recipient Janeé Johnson.
Top scorers on the Arizona CPA exam at the Annual Meeting & Awards Luncheon. Michael DiNuto, William Badger, Adrienne Whiting, Jerica Keller, Emily Benson, Jacob Satter and Norma Steiger.
ASCPA leadership attended the AICPA’s Spring Council in Florida. Thank you to Jared Van Arsdale, Kelly Damron, Andrea Levy, Lauren Murro, Oliver Yandle and Mike Allen for representing our state.
Coming Up
August 22
Free Webinar: Demystifying Outsourcing
Sponsored by Vintti Register to learn more and earn free CPE credit at ascpa.com/augfw.
September 20 Phoenix Tax Workshop
PTW connects tax professionals throughout Arizona to learn and better serve their clients and organizations. Visit ascpa.com/ptw to register.
October 17-18 Converge
The ASCPA’s annual conference is back with top sessions in tax, audit, technology and more. Early bird pricing closes August 15: ascpa.com/converge.
November 21
Save the Date: Networking ABC Event
Meet local Attorneys, Bankers and CPAs while enjoying complimentary appetizers and two drinks in Phoenix. Members of the Maricopa County Bar and the Risk Management Association Arizona Chapter will be there to mingle with our members. Visit ascpa.com/abc to learn more.
The Arizona CPA Foundation for Education & Innovation supports efforts of the Arizona Society of CPAs to attract and prepare individuals with the highest potential for contribution to the accounting profession in Arizona through initiatives in formal education.
Congratulations to our 2024-2025 scholarship recipients.
October 17 & 18, 2024
Venue8600 in North Scottsdale
At Converge, you’re in the driver’s seat. Our annual conference lets you map out the perfect day of sessions to earn up to 12 credits of CPE in the areas of practice that matter most to you. Plus, we’re adding an ... evening reception and workshop to the agenda.
By Michael S. Nyman, CPA
In the rapidly progressing landscape of information security and data privacy, organizations seeking to provide assurance regarding the reliability and security of their services often undergo examinations like a System and Organization Control (SOC) 2 report based on the American Institute of Certified Public Accountants (AICPA) Trust Service Criteria (TSC).
Organizations are continually seeking additional control frameworks to demonstrate their commitment to safeguarding clients’ sensitive information. The SOC 2+ report has emerged as a valuable tool, combining the strengths of SOC 2 TSC with additional components tailored to specific organizational needs.
SOC 2 reports are designed to assess and attest service organizations securely manage data to protect clients’ interests. A SOC 2+ report extends the conventional SOC 2 TSC by incorporating supplementary elements aligning with an organization’s specific requirements or industry standards.
This approach allows businesses to tailor reporting to address specific concerns, providing stakeholders a more comprehensive view of their security posture.
The TSC categories are a set of standards designed to evaluate the reliability and security of information systems. These criteria are often used in audits of service organizations managing sensitive data. There are five categories of TSC, each focusing on various aspects of information systems. The TSC were last updated in January 2022 with these categories:
Security: This assesses the system’s protection and the information it processes from unauthorized access, both physical and logical. It includes measures such as access controls, encryption, and monitoring to uphold the confidentiality, integrity and availability of data.
Availability: Availability measures the accessibility of the system, services and information when needed by authorized users. This category evaluates the organization’s ability to keep its systems operational and available for use as agreed upon in service-level agreements.
Processing integrity: This focuses on the accuracy, completeness and validity of system processing. It assesses whether the system performs its functions in an authorized, accurate and timely manner. Controls related to data input, processing, output and error handling are examined.
Confidentiality: Confidentiality evaluates protecting sensitive information to prevent its unauthorized disclosure. It includes controls restricting access to information to only those individuals or entities with the proper authorization. Encryption, data classification and disposal of data are examples of controls this category considers.
Privacy: The privacy category assesses the organization’s policies and procedures related to the collection, use, retention, disclosure and disposal of personal information. It focuses on whether the organization complies with applicable privacy laws and regulations and protects the privacy rights of individuals.
ISO (International Organization for Standardization) 27001: Integrating the international standard for information security management systems (ISMS) enhances the information security component in a SOC 2 plus report.
NIST (National Institute of Standards and Technology) cybersecurity framework: Aligning with the NIST framework provides a structured approach to managing and improving an organization’s cybersecurity posture.
GDPR (general data protection regulation): Incorporating GDPR principles supports compliance with European data protection laws, bolstering data privacy aspects of the SOC 2+ report.
HITRUST CSF (Health Information Trust Alliance common security framework): Ideal for healthcare organizations, HITRUST CSF integrates specific controls addressing distinct challenges in health care.
COBIT (control objectives for information and related technologies): Integrating COBIT provides a governance and management framework, enhancing information technology processes and controls.
CIS controls (Center for Internet Security controls): These are a set of recommended practices developed by the Center for Internet Security to help organizations improve their cybersecurity posture.
Tailored compliance: Organizations can align SOC 2+ reports with specific industry standards or regulatory requirements.
Enhanced stakeholder confidence: A SOC 2+ report provides stakeholders with a more detailed and relevant understanding of an organization’s commitment to security and controls.
This helps provide transparency to stakeholders and maintain a comprehensive approach to managing risk and securing sensitive information. Additionally, engaging with a qualified independent auditor can help organizations navigate the complexities of multiple frameworks and assess whether the service organization implements a robust control environment.
In an era where data security and compliance are paramount, the SOC 2+ report stands out as a flexible and comprehensive tool. By integrating additional frameworks tailored to an organization’s needs, businesses can demonstrate a heightened commitment to information security and compliance, fostering trust with clients and stakeholders alike. l
For more information on SOC reports in Arizona, contact Mike Nyman at michael.nyman@ CLAconnect.com or 602-604-3524.
The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting, investment, or tax advice or opinion provided by CliftonLarsonAllen LLP (CLA) to the reader. For more information, visit CLAconnect.com.
CLA exists to create opportunities for our clients, our people, and our communities through our industry-focused wealth advisory, digital, audit, tax, consulting, and outsourcing services. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal. com/disclaimer. Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor.
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Go to www.ascpa.com/quickquiz to access links to all active quizzes. Once a quiz is purchased, a link and password will be emailed to you. Your results will be sent immediately after completion, and certificates are emailed within five business days.
