What are SOC reports?
SOC is an auditing process that verifies whether your service providers implement proper security measures to safeguard your organization’s data, ensuring both the protection of your business interests and the privacy of its clients. SOC has three levels of reports:
- SOC 1 focuses on the controls that are critical to a service organization’s financial reporting. A SOC 1 Type 1 report evaluates the design and implementation of a service organization’s internal controls over financial reporting at a specific point in time, while a SOC 1 Type 2 report assesses both the design and operating effectiveness of those controls over a defined period, typically 6 to 12 months.
The primary audience for SOC 1 reports includes the following:
- Management of the service organization
- External auditors of the service organization
- Management of the service organization’s customers
- External auditors of the service organization’s customers
- SOC...
