SOC Report: What it is and why it is key to your business
Posted: Wed Jan 22, 2025 5:23 am
If you provide customer service, you will know that data protection is essential to avoid problems. And one of the best mechanisms to avoid this is through a SOC report: find out what it is, the types that exist and why they are key in your business to guarantee transparency and security in the services that companies offer their customers.
What is a SOC report?
A SOC report is a document issued by an external auditor that evaluates and certifies the internal controls of a service organization .
management report
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In many industries, compliance with international regulations indonesia phone number lead and standards is a must. And SOC reports allow companies to demonstrate that they comply with these standards , to avoid potential sanctions and improve their reputation.
These controls are mainly related to security, confidentiality, data integrity and privacy . And the objective of the SOC report is to demonstrate to customers, partners and stakeholders that your company has the appropriate measures in place to protect the information you handle. Something basic in these times where cyber attacks are the order of the day .
Furthermore, it is almost mandatory in the IT sector , since SOC reports guarantee that digital platforms and services comply with international security and control standards.
Types of SOC reports
SOC reports are divided into three main types: SOC 1, SOC 2, and SOC 3 .
documents in the company
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Furthermore, some reports may be classified as type 1 or 2, depending on the depth of the assessment performed.
SOC 1: Control over financial information
The SOC 1 report assesses a company's internal controls related to the generation and processing of financial information . They are widely used in sectors such as accounting software, as it directly affects the financial status of its clients.
SOC 1 Type 1: Evaluates the design of controls at a specific point in time.
SOC 1 Type 2: Provides a more detailed assessment, as it analyzes operational effectiveness over a given period.
SOC 2: Security and Privacy Related Controls
The SOC 2 report is the most common in technology sectors . It focuses on five trust principles established by the AICPA (American Institute of Certified Public Accountants): security, availability, processing integrity, confidentiality and privacy.
It is most commonly used in companies that offer services such as cloud storage, streaming platforms, and maps. For example, Microsoft's Azure has SOC 2 controls .
SOC 2 Type 1: Performs an assessment of controls at a specific point in time.
SOC 2 Type 2: An analysis that establishes the effectiveness of controls over a period of time to ensure that they actually function as expected.
SOC 3: Public Security Summary
The SOC 3 report is a simplified and public version of SOC 2. It is designed to share security information with a broader audience without revealing sensitive technical details. A report for companies to demonstrate their security best practices to customers and partners without having to reveal sensitive data.
What is a SOC report?
A SOC report is a document issued by an external auditor that evaluates and certifies the internal controls of a service organization .
management report
You may also be interested in: Doxing: what it is and how to prevent the disclosure of your data
In many industries, compliance with international regulations indonesia phone number lead and standards is a must. And SOC reports allow companies to demonstrate that they comply with these standards , to avoid potential sanctions and improve their reputation.
These controls are mainly related to security, confidentiality, data integrity and privacy . And the objective of the SOC report is to demonstrate to customers, partners and stakeholders that your company has the appropriate measures in place to protect the information you handle. Something basic in these times where cyber attacks are the order of the day .
Furthermore, it is almost mandatory in the IT sector , since SOC reports guarantee that digital platforms and services comply with international security and control standards.
Types of SOC reports
SOC reports are divided into three main types: SOC 1, SOC 2, and SOC 3 .
documents in the company
You may also be interested in: How to ensure your company's internet security?
Furthermore, some reports may be classified as type 1 or 2, depending on the depth of the assessment performed.
SOC 1: Control over financial information
The SOC 1 report assesses a company's internal controls related to the generation and processing of financial information . They are widely used in sectors such as accounting software, as it directly affects the financial status of its clients.
SOC 1 Type 1: Evaluates the design of controls at a specific point in time.
SOC 1 Type 2: Provides a more detailed assessment, as it analyzes operational effectiveness over a given period.
SOC 2: Security and Privacy Related Controls
The SOC 2 report is the most common in technology sectors . It focuses on five trust principles established by the AICPA (American Institute of Certified Public Accountants): security, availability, processing integrity, confidentiality and privacy.
It is most commonly used in companies that offer services such as cloud storage, streaming platforms, and maps. For example, Microsoft's Azure has SOC 2 controls .
SOC 2 Type 1: Performs an assessment of controls at a specific point in time.
SOC 2 Type 2: An analysis that establishes the effectiveness of controls over a period of time to ensure that they actually function as expected.
SOC 3: Public Security Summary
The SOC 3 report is a simplified and public version of SOC 2. It is designed to share security information with a broader audience without revealing sensitive technical details. A report for companies to demonstrate their security best practices to customers and partners without having to reveal sensitive data.