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Governance, Risk, Audit & Privacy · Intermediate

SOC 1

Report on a service organization's controls relevant to user entities' internal control over financial reporting.

Definition

SOC 1 reports are performed under SSAE 18 (AT-C 320) and are used by user auditors in financial statement audits, including SOX. They are restricted-use reports. They come in Type 1 and Type 2 forms.

Example

A payroll provider gives clients a SOC 1 Type 2 report to support their SOX audits.

Exam tip

SOC 1 is about financial reporting controls; choose SOC 2 for security.

Related terms