What are SOC 1, SOC 2, and SOC 3 Reports?

SOC (Service Organization Control) reports are vital for demonstrating a company's commitment to managing and safeguarding data, crucial for securing business contracts and fostering growth.

‍SOC 1 Report

SOC 1 focuses on financial reporting. It assesses internal controls a company has in place regarding the handling of financial information of its clients. This is essential for businesses that need to report financial data to auditors. SOC 1 comes in two types: Type 1 - examining controls at a specific point in time and Type 2 - examining the effectiveness of controls over a period, such as six months.

‍SOC 2 Report

SOC 2 focuses on operations and compliance, with a strong emphasis on cloud computing and data security. It is guided by the Trust Services Criteria, which includes security, confidentiality, processing integrity, privacy, and availability criteria. Like SOC 1, SOC 2 is split into Type 1 and Type 2 reporting.

‍SOC 3 Report

It is similar to SOC 2 but designed for a general audience. It contains the same information as SOC 2 but in a format suitable for public sharing. It is often used as a marketing tool to demonstrate compliance and reliability to potential clients.