SOC 1 focuses on controls relevant to financial reporting, ensuring that service providers meet industry standards for security and compliance. It is particularly crucial for organizations that process financial data, as it helps maintain integrity, reliability, and regulatory adherence. A SOC 1 audit, conducted under SSAE 18, assesses internal controls over financial reporting (ICFR), ensuring transparency and reducing financial risk.
SOC 2 compliance is designed for technology and cloud-based service providers, evaluating controls related to security, availability, processing integrity, confidentiality, and privacy. Organizations undergo rigorous audits to demonstrate adherence to the Trust Services Criteria (TSC), ensuring robust security measures, continuous monitoring, and data protection. Achieving SOC 2 certification enhances client confidence and demonstrates a commitment to safeguarding sensitive information.
The primary difference between a SOC 1 and SOC 2 report is in the scope: A SOC 1 report is concerned with the implementation of financial controls, whereas SOC 2 attestation reports focus more extensively on availability, security, processing integrity, confidentiality, and privacy.
While SOC 2 identifies and tests control that meets the requirements, SOC 1 tests control that adheres to the identified control objectives.
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