Megasys Achieves SOC 1 Type 2 Compliance: What It Means for Our Clients
We are pleased to announce that Megasys has successfully completed its SOC 1 Type 2 audit, conducted by independent accounting firm Elliott Davis. This achievement underscores our commitment to maintaining the highest standards of internal controls over financial reporting and data security for our loan management and servicing software.
What is a SOC 1 Type 2 Audit?
A SOC 1 (System and Organization Controls) audit focuses on an organization's internal controls relevant to a client's financial reporting. There are two types:
- Type 1: Describes a service organization's systems and the suitability of the design of its controls at a specific point in time.
- Type 2: Includes the information in a Type 1 report but adds a crucial element: testing the operating effectiveness of those controls over a specified period (typically 6-12 months).
Our successful completion of the Type 2 audit means that an independent review has confirmed not only that our controls are well-designed, but also that they have been operating effectively and consistently over time.
Why SOC 1 Type 2 Compliance Matters to You
For our clients in the lending and financial services industries, this compliance is critical:
- Enhanced Trust and Assurance: It provides independent validation that Megasys has robust controls in place to protect your financial data and support your own regulatory and audit requirements.
- Reduced Risk: Our commitment to these rigorous standards helps mitigate risks related to data processing, security, and operational integrity within our platform.
- Support for Your Audits: The SOC 1 Type 2 report can be a valuable resource for your own auditors, helping them assess the controls at your service providers (like Megasys) and reducing the burden on your internal teams.
- Operational Excellence: This ongoing commitment to auditing and improving our controls translates into more reliable and secure software for your daily operations.
The Audit Process
The audit involved an intensive, independent review by Elliott Davis, a national accounting firm. This thorough investigation included:
- Detailed examination of our control objectives and activities.
- Testing the effectiveness of these controls over a specific period.
- Verification of evidence demonstrating how Megasys operated its controls consistently within the audit timeframe.
Our Commitment to Security and Reliability
Achieving SOC 1 Type 2 compliance is not just a one-time event; it's an ongoing commitment. Megasys continuously invests in our infrastructure, processes, and personnel to ensure our loan management and servicing solutions meet the evolving demands of the financial industry.
We are proud of this accomplishment and remain dedicated to providing a secure and reliable platform that you can trust.
Frequently Asked Questions
Q: What's the difference between SOC 1 Type 1 and Type 2?
A: Type 1 reports on the design of controls at a specific point in time, while Type 2 also tests and reports on the operating effectiveness of those controls over a period of time.
Q: How does this benefit my lending business?
A: It provides independent assurance that Megasys maintains strong controls relevant to your financial reporting, helping you meet your own audit and regulatory obligations.
Q: Who performed the audit?
A: The audit was conducted by Elliott Davis, a national accounting firm.
About Megasys
Megasys provides enterprise-grade loan management and servicing software trusted by lenders and financial organizations. Our platform powers efficient originations, servicing, and analytics—backed by industry expertise and a commitment to customer success.
✅ Contact Us
For more information about our security and compliance standards, please contact us.
