What is a SOC 1 Type 1 Report?
A SOC 1 Type 1 (Service Organization Report) assists service organizations that operate information systems and provide information system services to their customers. It helps build confidence in their service delivery processes and controls.
Type 1 vs. Type 2
As beneficial as SOC 1 reports are, it is important to know the difference between the two types of these reports (Type 1 and Type 2). A Type 1 report describes the procedures and controls that have been installed, attests to the suitability of the controls being used, and reports on the procedures and controls at a specific point in time. This will provide your customers with some comfort that your company has controls in place but does not provide evidence regarding the operating effectiveness. A Type 1 report is a step in the right direction that will help distinguish you from your competitors.
Benefits of a SOC 1 Report
- Affirms security of your services
- Clear view of company controls in place
- Maintain loyal clients and attract new ones
- Assure client’s data is protected
- Differentiate yourself in the eyes of customers from others who aren’t certified
Which Organizations Will Benefit?
The AICPA states that this type of report is for service organizations that impact their clients’ financial reporting, most commonly, Third Party Administrators.
Contact our SOC Audit Specialists to determine which SOC 1 report is right for your organization.