What is Service Organization Controls (SOC)

What is Service Organization Controls (SOC)

The SOC is a report pattern developed by American Institute of Certified Public Accountants (AICPA) It allows you to understand how protection of confidentiality and privacy of the information stored and processed by the service providers, through the following criteria:

• Security
• Availability
• Confidentiality
• Integrity in processing
• privacy

  SOC reporting types

  We basically have three types of SOC reports, know more details about each of them.

  SOC 1

  These reports are specifically designed to address controls in service companies that are relevant to the financial statements of user entities.

  They allow auditors to execute risk assessment procedures and obtain evidence of audit on controls in service companies, and if they are operating effectively.

  Using these reports is restricted to service organization management, user entities and user auditors.

  SOC 2

  There are two types:

  type I -Report on the presentation of the administration description of the Service Service Providing System and the Control Project Adequacy to achieve the related control objectives included in the description at a specified date. / p>

  type II -Report on appropriate presentation of the description of the administration of the service provider system and the precision of the project and operational efficacy of the controls to achieve the control objectives included in the description along a specified period.

  They provide a level of detail enough to meet the risk management needs of the user and are restricted to specific parts with sufficient knowledge and understanding of the systems of services and the nature of the services it provides. / p>

  SOC 3

  As SOC 2, these reports address relevant controls for security, availability, processing integrity, confidentiality and privacy.

  however, they do not provide the same level of detail. Therefore, general use reports and can be distributed free of charge.

  Optimize your company's results and controls, count on specialized auditors and get the support you need to enhance your business results, with Audilink auditors & consultants .