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What is a SOC Report and Why Does A Company Need One?

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What is a SOC Report and Why Does A Company Need One?

December 21
17:45 2022

A Systems and Organization Controls (SOC) report is an audit report that provides a detailed description of a company’s operations for a product or service. The report is the result of an examination performed by certified auditors (CPA’s) that measure a company’s operational practices against compliance standards established by the American Institute of Certified Public Accountants (AICPA). Companies that are looking to identify a third-party vendor to provide an outsourced service often require confirmation that their selected vendor can perform the outsourced service efficiently and accurately (SOC 1 Report) and/or implement appropriate data protection or system availability practices (SOC 2 Report) for their product or service offering. Organizations that require a SOC report, referred to in the SOC world as “Service Organizations”, may need to achieve SOC compliance and receive a SOC report for many reasons, including:

 ● Communicating trust in their product or service

 ● Sales and marketing efforts

 ● Contractual compliance requirements 

 ● Competitive advantage in the market

      

There are several types of SOC reports that can be created for a service organization. Service organization management must understand their particular needs for SOC compliance and decide the appropriate SOC report they will need for their product or service. The types of SOC reports that can be created include:

SOC 1 – Report on the operations of a product or service supporting financial statement reporting. 

SOC 2 – Report on the security, availability, confidentiality, processing integrity, or privacy practices of a product or service. 

SOC 3 – A general use report on the operations of a product or service. This is typically created to describe the product or service to the general public and often used for marketing efforts.

 A SOC 1, SOC 2, or SOC 3 report are the most common types of SOC report available in the market; however, there are other SOC reports that can be created for a service organization, including a SOC for Cybersecurity or SOC for Supply Chain Management report. You may also hear “SOC” referring to a Security Operations Center, which is a separate definition for the acronym for SOC within information technology. Work with the leading experts in the industry and visit jrassocreports.com. Get SOC compliant today! 🙂

Media Contact
Company Name: JRAS
Contact Person: Kristen Hessner
Email: Send Email
Country: United States
Website: http://jrassocreports.com/

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