What is a SOC 1 Type 2 Report?
A SOC 1 Type 2 audit report is specifically intended to examine the effectiveness of the controls put in place by a service organization, relevant to their clients’ financial reporting and statements. The auditor, typically a CPA, will conduct tests and assess these controls to see if there are any potential gaps or threats. Once passed, the service organization becomes SOC certified.
SOC 1 Type 2 vs. Type 1
It is important to know the difference between the two types of these reports. A Type 2 report provides evidence about how the controls set in place have been operated over a period of time (minimum 6-months) and contains an opinion regarding the operating effectiveness of those controls. Due to these reasons, a Type 2 report provides more assurance to your customers compared to Type 1.
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?
Like Type 1, a Type 2 Report is for service organizations that impact their clients’ financial reporting, such as, Third Party Administrators.
Our team is ready to help take your business to the next level with a SOC 1 Audit. Contact us today to get a quote and answers to any SOC questions related to your business.