CyberGuard Compliance Accounts Receivable Management and the Need for a SOC Audit

The primary function of an accounts receivable management company is to pursue and try to collect on the outstanding debt of businesses and individuals.

Many times, an accounts receivable management company will act as a third-party agent of the creditor and is paid based on a fee or based on the total amount owed or collected.

Prior to a company contracting with a third-party agent to perform collection duties, the company will want assurances the collections agency is in compliance with laws and regulations, such as the Fair Debt Collection Practices Act (FDCPA).

In terms of internal controls, the contracting company will want to see the processes around receiving placements, processing collections, receipt of payments, reconciliation of receipts, and reporting of debts collected.

The contracting company will want assurances through review of the SOC audit, that customer information is handled securely and debt payments are provided completely, timely, and accurately.

CyberGuard is based in the United States and serves clients around the globe.

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CGCompliance.com

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