You know you need a SOC 1 audit report, but do you need a SOC 1 Type I or a SOC 1 Type II? What's the difference? Which one makes the most sense for your organization?

Read more to understand the importance of a SOC 1 audit report and the differences between a Type I and a Type II audit report.

What is a SOC 1 Audit?

A SOC 1 audit, or Service Organization Control 1 engagement, is an audit of internal controls at a service organization that may affect their clients’ internal control over financial reporting. A SOC 1 audit report provides user entities with reasonable assurance and the peace of mind that the controls at a service organization are operating effectively and appropriately protecting client data. There are two types of SOC 1 audit reports – SOC 1 Type I and a SOC 1 Type II.

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