If your organization handles, processes, stores, or transmits financial information, or information that can impact the financial statements of your customers, then a SOC 1 audit can help evaluate the internal controls of your organization and review how your organization protects client data. An organization may be required to obtain a SOC 1 report from clients or stakeholders that handle sensitive financial data, including businesses offering billing management platforms, payroll processing software, financial reporting software, etc.

Difference Between SOC 1 Report and SOC 2 Report

SOC 1 Reports are ideal for organizations whose data processing or storage can impact the financial reporting of their customers, SOC 2 reports are relevant for a broader group of organizations because they focus on information and IT security. These may include data centers, IT-managed services, SaaS vendors, and other technology and cloud computing businesses.

SOC 1 / ISAE 3402/SSAE 16 Report Structure

Section 1: Independent Service Auditor’s Section One report (the `Opinion´)
Section 2: Written assertion provided by the service organisation
Section 3: Description of internal controls and control objectives (provided by the service organisation)
Section 4: Information provided by the independent service auditor (includes tests of operating effectiveness and testing results for a Type 2 report)
Section 5: Other information provided by the service organisation (optional)

SOC 1 reporting benefits

SOC 1 reports provide broad assurance in internal processes, policies, and meeting internal controls expectations about business processes and IT by outsourced service providers. The following are the benefits of our SOC 1 reporting for you as the outsourced service provider or you as the client.

  • Possibility of integration with other control frameworks in financial and IT controls
  • Employees will increase their awareness of risks, internal controls and governance
  • Reducing the possibility of undergoing multiple audits for various clients
  • Coverage of the informational systems applicable for ICFR

How E Com Security Solutions Can Help?

With over 4000 SOC 1 & SOC 2 assessments completed and more than 15 years of experience, E Com Security Solutions is a leader in helping organizations ensure they have the right controls in place to protect the financial information of their customers and business partners.