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MaloneBailey's IT Audit Team comprises senior experts who have the "Big Four" accounting firms’ background, with extensive experience in IT audits and IT risk management consulting for leading enterprises across industries such as crypto, retail, TMT, and manufacturing. Our core team members hold globally recognized certifications, including CPA, CISA, and CIA, enabling us to deliver customized, international-standard IT service solutions.
SOC Examination Service
Use of service organizations drives efficiency—but also creates risk. Customers want proof that services used are secure and reliable. The SOC examination addresses this challenge. It provides an independent, internationally recognized assessment that verifies the service organization's controls are designed and operating effectively. The examination helps service organizations build trust and gain a competitive advantage.
A SOC report verifies the effectiveness of a service organization's internal controls. Service organizations widely use SOC reports to assist clients with risk assessments and compliance requirements. The main report types and evaluation criteria are as follows:
- SOC 1: Focuses on ICFR (Internal Control over Financial Reporting).
- SOC 2: Focuses on operational and compliance controls and is evaluated against the AICPA’s five Trust Services Criteria (security, availability, confidentiality, processing integrity, and privacy).
The SOC Examination is an attestation engagement that evaluates the effectiveness of a service organization's internal controls and issues a formal SOC report with an independent audit opinion.
Service offered:
- Assess the appropriate SOC report type based on the organization's specific needs and objectives.
- Perform a comprehensive SOC readiness assessment through control walkthrough and sample-based testing to identify gaps and remediation priorities.
- Provide remediation recommendations for identified gaps.
- Guide clients through drafting and refining system descriptions to clearly articulate service offerings, technical architecture, and control environments.
- Issue an independent attestation report with a formal audit opinion.
IT Internal Control Service
IT Internal Control Service refers to a systematic set of policies, procedures, and technologies implemented by organizations to manage IT-related risks, ensure data security, maintain system integrity, and achieve regulatory compliance (e.g., SOX, SOC). It encompasses areas like logical/ physical access control, data encryption, backup/recovery, change management, and continuous monitoring.
IT internal control service helps clients safeguard IT assets, prevent fraud/errors, optimize operations, and meet compliance requirements (e.g., SOX, SOC 1/2, ISO 27001) and standards (e.g., COBIT). It helps organizations mitigate cyber threats and build stakeholder trust through auditable governance frameworks.
Services offered:
- Risk Assessment & Gap Analysis: Identify vulnerabilities in IT systems, processes, and compliance frameworks (e.g., SOX, SOC 1/2, ISO 27001); Benchmark controls against industry standards (e.g., COBIT)
- Control Design & Implementation: Develop tailored IT governance policies (e.g., access controls, data encryption, change management)
- Continuous Monitoring & Improvement: Provide remediation plans for control weaknesses
- Training & Awareness: Educate staff on IT internal control’s best practices
IT Audit Outsourcing Service
The IT Audit Outsourcing Service provides specialized audits, internal control assessments, IT due diligence, data analysis, and SOC report review.
IT Audit Outsourcing Service brings value to organizations by the following benefits:
- Reduces costs by eliminating the need for dedicated internal IT audit teams
- Delivers professional expertise (CISA/CPA-certified)
- Improves efficiency by leveraging proven methodologies
- Mitigates risks through objective third-party evaluations of systems and processes
SOX Readiness Service
Sarbanes-Oxley Act (SOX) is a U.S. federal law designed to strengthen oversight of public companies and safeguard investors by requiring accurate and reliable financial disclosures. Section 404 of SOX sets stringent standards for financial reporting and internal control, focusing on Internal Control over Financial Reporting (ICFR).
SOX readiness refers to the preparatory activities a company undertakes to achieve SOX compliance. During this process, the company evaluates its financial processes, documents all relevant controls, tests the effectiveness, and remediates deficiencies to ensure alignment with SOX requirements.
SOX readiness enables enterprises to enhance financial reporting, operational efficiency, risk management, and data security:
- Enhances the reliability of financial reporting, strengthen investor confidence
- Optimizes business processes to improve operational performance
- Develops risk response strategies to mitigate potential losses arising from risk events
- Ensures the confidentiality, integrity, and availability of financial data, strengthening data security
Services offered:
MB Internal Control Service Team and MB IT Audit Team cooperate to deliver an integrated, SOX-ready solution. Our solution covers the following aspects:
- Conducts pre-assessment and gap analysis to identify control deficiencies
- Maps core business processes and documents key controls
- Evaluates control design and operating effectiveness
- Leverages best practices to recommend remediation actions and track implementation
- Assists in establishing SOX-compliant risk-assessment frameworks, interpreting regulatory updates and evaluating ICFR effectiveness
- Provides staff training to enhance control awareness and understanding
- Facilitates ongoing monitoring and post-implementation review
System Migration Consulting Service
System Migration is the process of moving an enterprise's IT systems (e.g., ERP, CRM) from a legacy environment to a new one including infrastructure, applications, and data. It is typically required when facing system replacement, infrastructure changes, or application modernization.
The System Migration Governance Consulting Service provides end-to-end project management consulting for system migration, covering planning, risk assessment, design and implementation of system migration controls.
The service enables the enterprise to:
- Mitigate critical migration risks including business interruption, data loss, unauthorized access, and configuration errors.
- Achieve audit readiness with strong IT governance and internal controls.
- Improve migration efficiency through disciplined project management.
Services Offered:
Pre-Migration Risks & Controls Assessments
- Identify risks such as data loss, unauthorized access, segregation of duties conflicts and business interruption.
- Map key business processes (e.g., revenue, finance, payroll) and their existing controls from legacy system to target system.
- Identify process and control gaps due to changed workflows or different functions between legacy and target systems and recommend remediation controls.
Access & Security Management
- Oversee timely deprovisioning of legacy access and provisioning of appropriate access in the target system.
- Review user roles and permissions to avoid segregation of duties conflicts in the target system.
- Review privileged access controls to evaluate whether permission allocation is effectively managed and ensure that the operations of privileged users are auditable.
Change & Documentation Management
- Update process and control documentation (flowcharts, risk matrices, narratives).
- Train control owners on new system responsibilities.
- Design monitoring mechanisms to ensure emergency/break-glass processes have proper oversight and post-event review.
Data Migration Integrity Validation
- Verify that key business logic (e.g., transaction workflows, calculation logic) remains functionally correct within the target system.
- Design reconciliation controls and review the reconciliation results to ensure completeness, accuracy, and consistency of migrated data.
Testing & UAT Support
- Help define test scenarios that include control and compliance test.
- Review test results to ensure controls operate as designed.
- Document any deviations and required remediations.
Regulatory Compliance & Audit Readiness
- Align migration activities with regulatory requirements (SOX, GDPR, etc.).
- Maintain an audit trail of changes, approvals, and exceptions.
- Assist with internal or external audit requests regarding migration.
Post-Migration Validation
- Verify that controls are operating effectively in production.
- Support any post-go-live remediation of control issues.
Cybersecurity and Data Security Compliance Services
What regulations are related to Cybersecurity and Data Security Compliance?
- ISO27001 is an international standard for information security management systems (ISMS). It provides requirements for establishing, implementing, maintaining, and improving security controls to protect data confidentiality, integrity, and availability.
- ISO27701 is an extension to ISO 27001, focusing on privacy information management. It specifies requirements and guidance for establishing a Privacy Information Management System (PIMS), helping organizations manage personally identifiable information (PII) and comply with privacy laws.
- GDPR is an EU regulation on data protection and privacy. It imposes strict rules on processing PII, including principles like lawfulness, purpose limitation, data minimization, and rights for data subjects. It also regulates cross-border data transfer. It can be used as a compliance framework and best practice for countries outside the EU.
- China Cross-border Data Transfer Regulations include the Cybersecurity Law (CSL), Personal Information Protection Law (PIPL), and Data Security Law (DSL). Cross-border data transfer generally requires security assessment (for critical data or large-scale PII), standard contract filing, or certification. These regulations are applicable to multinational corporation’s subsidiary in China.
Benefit: Complying with these frameworks provides a strong foundation for:
- Enhanced trust & reputation
- Legal & regulatory risk mitigation
- Operational efficiency
- Better incident response
Services Offered:
Gap Assessment & Readiness
- Analyze regulatory applicability to determine which specific obligations apply.
- Identify where personnel information and important data reside, flow, and are stored.
- Assess gaps between current processes / controls and applicable frameworks / regulations.
Policy & Governance Framework
- Draft or update information security policies, privacy policies, and data classification schemes.
- Design and help implement ROPA (Records of Processing Activities) as required by applicable frameworks and regulations.
- Define roles and responsibilities, including DPO (Data Protection Officer), data protection roles, and data owners.
Implementation and Remediation
- Oversee the design and implementation of processes and controls according to applicable frameworks and regulations, including technical controls (e.g., data encryption, anonymization) and organizational controls (e.g., access control, incident management)
- Conduct verification and/or pre-certification assessment to ensure identified gaps are remediated
Training & Awareness Program
- Develop role-based training (e.g., for DPO, HR, marketing, IT, legal)
- Deliver employee awareness sessions on data protection and cybersecurity
Certification & Regulatory Filing Support
- Coordinate with certification bodies and prepare evidence and certification applications
- Assist with external audit responses and regulatory inquiries
- Monitor applicable regulatory changes, assess their impact, and recommend update actions accordingly
Incident Response & Breach Management
- Develop or review IRP (Incident Response Plan) aligned with breach notification requirements (72-hour GDPR, immediate PIPL notification)
- Support breach notification drafting and regulatory reporting
Additional Services Offered:
- Identify IT systems material to financial reporting
- Evaluate ITGCs across key domains: IT environment, access management, program change, system development, and computer operations
For additional information about how we can help you, please contact George Qin.