Compliance Glossary

SOC 1 is a type of audit that assesses a service organization’s controls relevant to its clients’ financial reporting. The purpose of a SOC 1 audit is to evaluate the controls at a service organization that is relevant to the financial reporting of its clients and provide assurance on the operational efficiency of these controls. 

The service organization’s clients and auditors use the audit report. It provides information about the design and operating effectiveness of the service organization’s controls.

A SOC 1 audit is similar to a SOC 2 audit but focuses specifically on controls related to financial reporting rather than on controls related to security, availability, processing integrity, confidentiality, and privacy.