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      Demonstrate control. Build trust. Accelerate growth.

      As a third party service organization, your customers increasingly expect independent assurance beyond verbal commitments. The International Standard on Assurance Engagements (ISAE) and System and Organization Controls (SOC) reports have become common requirements for vendor onboarding, procurement processes, and ongoing business relationships. 

      Both ISAE and SOC reports provide internationally recognized assurance that helps organizations build stakeholder confidence, streamline customer due diligence, and support scalable growth—particularly when serving regulated industries or multinational clients.

      We help organizations demonstrate the effectiveness of their controls through independent ISAE and SOC assurance services. These reports can support your customers’ due diligence efforts, reduce duplicative audit requests, and enhance credibility in competitive markets.

      Quality and trust underpin our approach. Through comprehensive training and accreditation across our team, combined with the application of KPMG’s SOC Execution Guide, we focus on delivering consistent, high quality outcomes. Our dedicated ISAE and SOC reporting IT audit professionals support clients with deep technical knowledge and practical insight throughout every engagement.

      Understanding ISAE and SOC reports

      ISAE and SOC reports are based on internationally recognized assurance standards and are broadly categorized into SOC 1 and SOC 2 engagements:

      • SOC 1 and ISAE 3402 focus on controls relevant to internal control over financial reporting. These reports are applicable where a service organization’s processes or controls may impact the financial reporting of its customers.
      • SOC 2 and ISAE 3000 assurance engagements focus on the evaluation of controls relating to the Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy.

      These reports may be issued as either Type 1 or Type 2 engagements:

      • Type 1 reports evaluate the fairness of management’s system description and the suitability of control design at a specific point in time.
      • Type 2 reports extend this assessment to include the operating effectiveness of controls over a defined review period.

      In practice, SOC and ISAE Type 2 reports are commonly requested by customers and their auditors, as they provide a higher level of assurance regarding the ongoing effectiveness of controls.

      Many organizations require both SOC 1 and SOC 2 reports, particularly where financial processing and technology services overlap. If you are unsure which SOC report applies, we can help you assess your requirements and define a clear approach.

      Who is it for?

      Our ISAE and SOC services are designed for organizations seeking to demonstrate control maturity, transparency, and reliability to their customers and stakeholders.

      This includes organizations that:

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      Provide outsourced, technology-enabled, or business-critical services

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      Host or process customer data, operate systems or platforms, or support financial transactions

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      Serve enterprise, regulated, or multinational customers

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      Are experiencing growth, expanding into new markets, or responding to growing customer and regulatory expectations

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      Customers and their auditors regularly sought assurance on the effectiveness of controls governing security and processing integrity

      Whether you are preparing for your first assurance engagement or enhancing an existing control framework, SOC reporting can support scalable customer assurance and strengthen stakeholder confidence.

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      Why do ISAE and SOC reports matter for organizations?

      While ISAE and SOC reports While ISAE and SOC reports are not currently mandatory, they are increasingly recognized as good practice for addressing third-party risk, including in the context of Bank Negara Malaysia’s (BNM) latest Risk Management in Technology (RMiT) policy. They can also provide a commercial advantage by demonstrating a strong control environment and building customer confidence.  

      For many service organizations, responding to customer assurance requests can be costly, time consuming, and repetitive. These reports can help address the challenges by providing a single, independent assurance report aligned with widely accepted customer and auditor expectations, and reduce the need for multiple questionnaires, audits, and site visits.

      Accelerate sales and customer onboarding

      Increasingly, ISAE and SOC reports are becoming baseline requirements for vendor onboarding. Having a report readily available can help streamline sales cycles, reduce approval bottlenecks, and address assurance requirements early in the procurement journey.

      Strengthen market credibility

      Independent assurance provides confidence over the design and operating effectiveness of controls, helping build trust with customers, auditors, and stakeholders—particularly for organizations serving regulated industries or multinational clients.

      A scalable and cost effective solution

      Rather than responding to assurance requests on a customer-by-customer basis, ISAE and SOC reports provide a standardized, reusable approach that supports long‑term operational efficiency, especially as your customer base grows.

      ISAE and SOC reporting represents an investment in long‑term value creation by reducing friction, strengthening trust, and supporting sustainable growth.

      Turn assurance into efficiency

      ISAE and SOC reports can help reduce the frequency of client audit and due diligence requests by providing independent assurance over your control environment, allowing your teams to focus on day-to-day operations rather than responding to repeated assurance requests. 

      Why KPMG?

      Choosing the right firm for your ISAE and SOC engagement is critical. At KPMG in Malaysia, we combine deep technical knowledge with a practical, business focused approach—delivering assurance that is widely recognized by customers, auditors, and regulators worldwide.

      KPMG’s ISAE and SOC engagements are delivered using a globally consistent methodology aligned with international assurance standards. This approach is aligned with the expectations of multinational customers, group auditors, and regulators, while being delivered by teams with a strong understanding of local regulatory and business environments.

      Our professionals are extensively trained and accredited in ISAE and SOC engagements. Our multidisciplinary team brings together experience across accounting, auditing, information technology, IT audit, and cybersecurity—enabling us to address both financial and technology related risks in an effective manner.

      Quality and consistency are central to our approach. Through robust methodologies, rigorous quality reviews, and strong technical support, we deliver independent reports aligned with the expectations of your customers, auditors, and other key stakeholders.

      We understand that service organizations are highly focused on cost efficiency and carefully evaluate the value of assurance engagements. Our approach is designed to help organizations derive meaningful business value while minimizing unnecessary cost and operational disruption.

      •Focused on what matters – We apply a risk‑based and proportionate scoping approach aligned with customer expectations to help reduce unnecessary controls, testing, and associated costs.

      • Reducing hidden costs – Our experience helps minimize rework, follow‑up audits, and challenged reports by delivering assurance designed to withstand scrutiny from the outset.

      • Efficient and scalable – A high quality ISAE or SOC report can help reduce recurring customer audits and questionnaires, supporting greater long term efficiency.

      • Value beyond cost considerations – While pricing‑led approaches may appear attractive, effective and trusted assurance plays an important role in strengthening stakeholder confidence and sustainable growth.

      Our services

      Whether you are preparing for your first ISAE or SOC engagement or require an independent assurance report, we offer services to support every stage of the process.

      Readiness assessment

      Prepare for your ISAE 3402 / SOC 1 or ISAE 3000 / SOC 2 audit through a structured readiness assessment. We evaluate the internal controls relevant to the applicable engagement, with the focus and scope differing between SOC 1 and SOC 2. We identify potential gaps, clarify documentation and reporting expectations, and support management in addressing key areas for improvement. 

      Our approach is designed to help minimize disruption, reduce rework, and support an efficient assurance engagement.

      Independent attestation

      We provide independent ISAE 3402 / SOC 1 or ISAE 3000 / SOC 2 attestation services by evaluating the design and, where applicable, the operating effectiveness of the relevant internal controls in accordance with the applicable assurance standards. The resulting assurance report supports your organization’s assurance requirements and provides customers and stakeholders with confidence in your controls.

      Our structured, risk based approach helps deliver a consistent, high quality engagement, while minimizing disruption to your day-to-day operations.

      What to expect: The engagement journey 

      Our engagements follow a structured and transparent approach designed to support clarity, coordination, and efficiency throughout the process.

      Scoping and planning

      We work with you to understand your services, systems, customers, and assurance objectives. This includes defining scope, timelines, responsibilities, and required information.

      Readiness

      For organizations that require preparation, we conduct a readiness assessment to help identify gaps, clarify expectations, and support remediation planning ahead of the formal attestation.

      Fieldwork and testing

      For attestation engagements, we perform walkthroughs and testing of control design and, where applicable, operating effectiveness in accordance with relevant SOC standards.

      Reporting and delivery

      We issue the SOC report upon completion of testing and required internal reviews. We also support management in understanding the report findings and responding to customer or stakeholder queries, where appropriate.

      Scoping and planning

      We work with you to understand your services, systems, customers, and assurance objectives. This includes defining scope, timelines, responsibilities, and required information.

      Readiness

      For organizations that require preparation, we conduct a readiness assessment to help identify gaps, clarify expectations, and support remediation planning ahead of the formal attestation.

      Fieldwork and testing

      For attestation engagements, we perform walkthroughs and testing of control design and, where applicable, operating effectiveness in accordance with relevant SOC standards.

      Reporting and delivery

      We issue the SOC report upon completion of testing and required internal reviews. We also support management in understanding the report findings and responding to customer or stakeholder queries, where appropriate.

      Throughout the engagement, we prioritize clear communication, practical insights, and a coordinated approach to help minimize disruption to day‑to‑day operations.

      Frequently asked questions 

      It depends on the nature of your services:

      • SOC 1 is generally relevant where your services impact your clients’ financial reporting, such as payroll processing or transaction processing.
      • SOC 2 is typically relevant where you host systems, operate platforms, or manage customer data, such as SaaS, cloud, or fintech services.

      In some cases, organizations may request both reports, particularly where financial processing and technology‑enabled services overlap.

      You may consider starting a SOC engagement when:

      • Customers are requesting independent assurance or security reports
      • You are engaging with larger or regulated organizations (e.g. multinational companies or financial institutions)
      • You want to reduce repetitive customer due diligence questionnaires
      • You are scaling operations and seeking to demonstrate stronger control maturity

      Starting early allows sufficient time to align scope, readiness, and expectations.

      Typical indicative timelines are:

      • SOC Type 1: approximately 6 to 8 weeks
      • SOC Type 2: approximately 10 to 12 weeks

      Actual timelines depend on factors such as:

      • Current control maturity
      • Scope and complexity of systems
      • Availability and readiness of documentation

      We work with you to establish a structured timeline with defined milestones to help manage expectations and reduce delays.

      SOC attestation engagements require input from your team to support documentation, walkthroughs, and evidence of control operation. The level of effort varies depending on the size, complexity, and readiness of your organization.

      We apply a structured and coordinated approach, with clear information requests, timelines, and communication, to help minimize disruption and support an efficient audit process.

      This is common, especially for first‑time SOC engagements.

      Many organizations begin with a readiness assessment to:

      • Understand current control maturity
      • Identify potential gaps and areas for improvement
      • Align scope and expectations ahead of formal attestation

      This approach helps reduce rework and supports a more structured and efficient attestation process.

      The controls assessed depend on the SOC type and scope, but commonly include:

      • IT general controls (e.g. access management, change management, computer operations)
      • Business process controls
      • Security and data protection controls (particularly for SOC 2)
      • System and application‑level controls

      We work with you to define an appropriate scope to support clarity and alignment with customer expectations.

      A SOC report provides independent assurance that can:

      • Support customer due diligence and onboarding processes
      • Reduce the need for repeated audits or security questionnaires
      • Align with the expectations of applicable regulatory and industry frameworks, such as Bank Negara Malaysia's (BNM) Risk Management in Technology (RMiT) framework and the Monetary Authority of Singapore's (MAS) Technology Risk Management (TRM) framework.

      This is particularly relevant for organizations serving financial institutions or other regulated clients.

      In many cases, yes. SOC reports are widely recognized, standardized assurance reports that can:

      • Reduce multiple customer audit requests
      • Provide a consistent basis for customer evaluation

      However, some customers may have additional or specific requirements depending on their risk profile. In such cases, we can work with you to tailor scope or reporting approaches while remaining aligned with SOC reporting standards.

      SOC reports are internationally recognized and commonly used by customers across Malaysia, Singapore, and other global markets.

      Acceptance may vary depending on individual customer requirements, but SOC reporting standards provide a consistent assurance framework for organizations serving regional or multinational clients.

      SOC reports are typically issued on an annual basis, particularly for Type 2 engagements.

      Maintaining an annual cycle helps:

      • Support ongoing customer assurance expectations
      • Provide continuous visibility over control effectiveness
      • Prevent gaps in assurance coverage

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      Connect with us

      Ts. Sia Chin Hoe

      Partner – Head of IT Audit and China Business Practice

      KPMG in Malaysia

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