What is System and Organization Controls (SOC) 1 report?
In short
A System and Organization Controls (SOC) 1 report is a service auditor's report on a service organization's controls that are relevant to its customers' internal control over financial reporting.
Key takeaways
- Type 1 covers the description and design of controls at a point in time; Type 2 adds operating effectiveness over a period.
- Its use is restricted to the service organization, its customers and their auditors.
- Customers' auditors read it alongside the complementary user entity controls it describes.
Where it's tested
AUD: Attestation & System and Organization Controls (SOC) Engagements — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A user auditor wants to rely on controls at a service organization for the entire audit period. Which report provides appropriate evidence?