[Audio] SOC 1 versus SOC 2
SOC 1 reports focus on internal controls relevant to a service organization's client's financial statements.. 

Scene 1

Purpose: SOC 1 focus on internal controls relevant to a service organization’s client’s financial statements.   Scope: These reports are intended specifically for an  organization’s management and auditors.
 Emphasis: SOC 1 emphasizes internal controls over financial reporting (ICFR), which includes processes related to financial accuracy and compliance.
 Applicability: Organizations that have a true  relationship with ICFR should opt for SOC 1 reports.

[Audio] SOC 2 revolves around Trust Services Principles (TSP) – covering Security
Availability
Process Integrity
Confidentiality &
Privacy. 

Scene 2

•Purpose: SOC 2 reports address a service organization’s  controls that are relevant to its operations and compliance.
 •Scope: Designed for entities such as data centers,  I.T. managed services, SaaS vendors, and technology-based businesses.

Trust Services Principles (TSP): SOC 2 criteria include five sections:

 •Security: Ensures the security of a service organization’s system.
 •Availability: Focuses on system availability.
 •Processing Integrity: Assesses the integrity of system processes.
 •Confidentiality: Addresses information confidentiality.
 •Privacy: Deals with personal information handling

[Audio] SOC 1 primarily revolves around financial controls, while SOC 2 covers non-financial controls related to critical trust services.. 

Scene 3

SOC 1 primarily revolves around financial controls, while SOC 2 covers non-financial controls related to critical trust services.

Organizations choose the appropriate report based on their specific needs and focus areas.

[Audio] Type 1 versus Type 2
In breif
Type 1 - Describes installed controls.
Type 2 - Assesses both design and operating effectiveness.. 

Scene 4

Description: A SOC Type 1 report provides management’s description of a service organizations system and a service auditor's report on that description and the suitability of control design.

Focus: It describes the installed procedures and controls at a specific point in time.

Assurance: The report attests to the suitability of controls, but it does not assess their operating effectiveness.

Audience: Typically requested by auditors to gain assurance regarding the efficacy of controls implemented by the service organization

Description: A SOC Type 2 report goes further. It includes the service auditor's assessment of operating effectiveness of controls during an audit period.

Operating Evidence: It provides evidence on how controls have been operated over time.

Assesses both design and operating effectiveness.

Type 2 is more comprehensive and suitable for organizations with  stringent security requirements and sensitive data.

[Audio] Benefits of SOC to Organizations
Enhanced Trust & Assurance
Transparency & Compliance
Risk Mitigation
Competitive Advantage
Vendor Management Internal Process Improvements. 

Scene 5

a.:jo
GOG
ooo r.
roos
wuoeu
000 s
os
03) s
z...oono

SOC reports provide third-party validation, instilling confidence in the organization's controls and processes.

SOC reports demonstrate the organization's commitment to transparency and compliance with industry standards.

SOC reports identify and address control weaknesses, mitigating the risk of data breaches and operational failures.

Favorable SOC reports can be a competitive differentiator, signaling to clients the organization's prioritization of security and privacy.

For service providers, SOC reports facilitate discussions with clients about security and controls.

Clients can assess the risks associated with outsourcing services.

SOC audits encourage organizations to evaluate and enhance their internal controls.

The process leads to better risk management practices.

[Audio] Need for SOC 2 Report
Client Trust.
Compliance Standards.
Risk Mitigation
Vendor Management
Transparency & Accountability
Competitive Advantage. 

Scene 6

preencoded.png preencoded.png preencoded.png preencoded.png preencoded.png preencoded.png preencoded.png  ` Need for SOC 2 Report Client Trust Demonstrates commitment to security, privacy, and compliance, instilling confidence in controls and processes. Compliance Standards Helps organizations meet sensitive data handling compliance requirements and demonstrate control effectiveness. Risk Mitigation Identifies control weaknesses and reduces the risk of data breaches, fraud, and operational failures. Competitive Advantage Signals prioritization of security and privacy, serving as a competitive differentiator for potential clients. Vendor Management SOC 2 reports help service providers discuss security and controls with clients. Clients can assess outsourcing risks and streamline vendor management. Transparency and Accountability SOC 2 reports provide transparency and hold service providers accountable for security practices.

SOC 1 & SOC 2

Scene 0

SOC 1 versus SOC 2
SOC 1 reports focus on internal controls relevant to a service organization's client's financial statements.

avatar

SOC 2 revolves around Trust Services Principles (T-S-P--) – covering 
Security
Availability
Process Integrity
Confidentiality &
Privacy

SOC 1 primarily revolves around financial controls
 while SOC 2 covers non-financial controls related to critical trust services.

Type 1 versus Type 2
In breif
Type 1  Describes installed controls.
Type 2  Assesses both design and operating effectiveness.

Benefits of S-O-C to Organizations
Enhanced Trust & Assurance
Transparency & Compliance
Risk Mitigation
Competitive Advantage
Vendor Management 
Internal Process Improvements

Need for SOC 2 Report
Client Trust.
Compliance Standards.
Risk Mitigation
Vendor Management
Transparency & Accountability
Competitive Advantage

SOC 1 & SOC 2

Scene 1 (0s)

Scene 2 (15s)

Scene 3 (45s)

Scene 4 (1m 3s)

Scene 5 (1m 49s)

Scene 6 (2m 34s)