SOC Reporting for Service Organizations
SOC Reporting options are valuable tools for organizations and can be issued to present control activities and processes at a service organization in a cohesive format to users of your services or users’ auditors.
Some of the benefits include:
- Reducing or potentially eliminating questions and costly site visits
- Differentiating the service organization from its peers and building trust
- Additional assurance to management and governance bodies
The Role of Type II SOC I Reports
- Covers controls relevant to financial reporting
- Meets the needs of auditors in evaluating the effectiveness of controls at a service organization
- Reports are restricted to the management of the service organization, user entities, and user auditor
- Intended for a broader range of users
- Reports are generally restricted
- Simplified version of a SOC 2 report covering the same subject matter
- General-use report
- Can be freely distributed and posted on a website
- Type I: Reports on management’s description of a service organization’s system and the suitability of the design of controls.
- Type II: Covers everything that a Type I report includes, plus reports on the operating effectiveness of controls.