SOC 2 vs SOC 1

 SOC 2 and SOC 1 are both types of System and Organization Controls (SOC) reports, but they serve different purposes and assess different types of controls.

 

SOC 1 is focused on controls related to financial reporting. It evaluates the effectiveness of an organization's internal controls over financial reporting, such as those related to transactions, account balances, and financial statements. SOC 1 reports are often used by service organizations that provide outsourcing services that could impact their clients' financial statements. SOC 1 reports are also known as Service Organization Control (SOC) 1 reports or Statement on Standards for Attestation Engagements (SSAE) 18 reports.

 

SOC 2, on the other hand, evaluates the effectiveness of an organization's controls related to security, availability, processing integrity, confidentiality, and privacy of customer data. SOC 2 reports are often used by service organizations that provide cloud-based services, SaaS applications, and other technology services. SOC 2 reports are also known as Service Organization Control (SOC) 2 reports.

 

In summary, SOC 1 is focused on financial reporting controls, while SOC 2 is focused on controls related to security, availability, processing integrity, confidentiality, and privacy. Both SOC 1 and SOC 2 are important for service organizations to provide assurance to their clients and stakeholders about the effectiveness of their controls.