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SOC 1

SOC 1 is a CPA firm's report on a service organization's controls that are relevant to its customers' internal control over financial reporting.

A SOC 1 is what a customer's financial auditors rely on when a service such as payroll, billing or payment processing feeds the customer's financial statements. The service organization defines its own control objectives, unlike SOC 2, which uses fixed criteria.

Its international counterpart is ISAE 3402, and many firms issue a combined report.

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Related terms

SOC 2
SOC 2 is an attestation report in which a CPA firm gives an opinion on a service organization's controls against the AICPA Trust Services Criteria.
ISAE 3402
ISAE 3402 is the IAASB's international standard for assurance reports on controls at a service organization relevant to customers' financial reporting.
SOC 3
SOC 3 is a general-use summary of a SOC 2 examination, with the auditor's opinion and a short system description but no detailed tests or results.

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