What is a SOC audit?

A SOC audit, or System and Organization Controls audit, is an examination of a service organization’s controls and processes. It is conducted to ensure that the organization has adequate controls in place to protect the data and information of its clients. There are three types of SOC audits: SOC 1, SOC 2, and SOC 3.

– SOC 1: SOC 1 audits are focused on controls relevant to financial reporting. They are conducted in accordance with the Statement on Standards for Attestation Engagements (SSAE) No. 18 and are intended to provide assurance to the clients of the service organization that their internal controls are effectively designed and operating to achieve the specified control objectives.

– SOC 2: SOC 2 audits are broader in scope compared to SOC 1 audits and focus on controls related to security, availability, processing integrity, confidentiality, and privacy. These audits are conducted in accordance with the AT-C section 205 of the AICPA’s Professional Standards and are intended to provide assurance to clients regarding the security and privacy of their data.

– SOC 3: SOC 3 audits are similar to SOC 2 audits but are designed for a broader audience. They result in a general-use report that can be freely distributed and displayed on the service organization’s website. SOC 3 reports provide a high-level overview of the service organization’s controls and are often used as marketing tools to assure clients of the organization’s commitment to security and privacy.

In summary, SOC audits are essential for service organizations to demonstrate their commitment to data security and privacy. By undergoing SOC audits, organizations can provide assurance to their clients that their controls are in place and effective in safeguarding sensitive information. These audits also help service organizations identify areas for improvement and strengthen their overall control environment.