SOC Compliance
SOC Compliance For Oil And Gas Division Order Services
To schedule a free consultation, please call (303) 463-8799 or fill out our contact form.
We are SOC compliant, and in our industry, that’s a big deal! To become and remain SOC compliant, companies have to go through a structured process that includes designing and maintaining robust internal controls, undergoing regular audits by a licensed CPA firm, and continuously maintaining, updating, and improving those controls.
What Is SOC Compliance
SOC compliance, in a nutshell, refers to the standards that have been developed by the American Institute of Certified Public Accountants (AICPA). The SOC acronym stands for “System and Organization Controls,” and the standards focus on internal controls over financial reporting.
ExTex’s SOC Compliance
At ExTex, we spend three months every year with external auditors, writing new rules for our internal systems and controls and ensuring that we have followed the existing rules throughout the previous year. These external auditors provide a SOC report for us that verifies that we are in compliance. Our SOC compliance audit can either replace the need for you to perform an audit, or it can feed into your own SOC compliance report.
Why Does SOC Compliance Matter For Oil And Gas Companies
For oil and gas purchasers and oil and gas operators – big and small – SOC compliance is important, because it provides you with the assurance that we can handle data – reliably, transparently, and securely. With publicly-traded companies, SOC compliance reports become even more critical, because they help fulfill their SEC requirements.
ExTex’s SOC Compliance Checklist
SOC compliance helps ensure that we have robust internal controls, verifiable audit trails, and secure systems.
Our SOC compliance checklist is extensive, and it includes:
- defined roles and responsibilities for financial data processing
- documented internal control procedures
- regular internal audits and risk assessments
- business continuity and disaster recovery plans
- validated ownership data (“title decks”) before revenue distribution
- proper segregation of duties in revenue processing workflows
- audit trails for all changes to owner records and payments
- reconciliation processes for revenue and run tickets
- controls for processing unclaimed property
- data input validations and error-checking protocols
- procedures for secure storage and disposal of sensitive records
- timely issuance of revenue statements and 1099s
- transparent processes for resolving ownership or payment disputes
- system logs and audit reports that can be reviewed by clients and auditors
- regular reviews and tests of controls
- staying up-to-date on evolving best practices and potential threats
For more information about SOC compliance, or to schedule a free consultation, please call (303) 463-8799 or fill out our contact form.
ExTex Division Order Services, LLC is located in the Denver metro area (in Golden, Colorado), and we provide back office outsourcing services for oil and gas companies across the U.S. and Canada.