Close Menu
JustwebworldJustwebworld
  • Astrology
  • Business & Finance
    • Cryptocurrency
    • Make Money
    • Entrepreneur
    • Brands
    • Companies
    • Personal Finance
      • Banking
      • Insurance
      • Trading and Investing
  • Tech
    • Computing
    • Cybersecurity
    • Electronics
    • Android
    • Apple
    • Gadgets
    • Social Media
    • Mobile Apps
    • Softwares
  • Education
    • Vocabulary
    • Abbreviations
    • General Knowledge
    • Writing & Translation
  • Lifestyle
    • Beauty & Cosmetics
    • Fashion & Style
    • Furniture & Decor
    • Luxury
    • People & Relationships
    • Pets and Animals
    • Shopping
    • Parenting
    • Gardening
    • Birthdays
  • Health
  • Travel
  • Auto
  • Gaming
  • Food
  • Entertainment
  • Sports
Facebook X (Twitter) Instagram
Thursday, July 31
  • About
  • Contact Us
  • Advertise With Us
  • Disclaimer
  • Terms & Conditions
  • Privacy Policy
JustwebworldJustwebworld
  • Astrology
  • Business & Finance
    • Cryptocurrency
    • Make Money
    • Entrepreneur
    • Brands
    • Companies
    • Personal Finance
      • Banking
      • Insurance
      • Trading and Investing
  • Tech
    • Computing
    • Cybersecurity
    • Electronics
    • Android
    • Apple
    • Gadgets
    • Social Media
    • Mobile Apps
    • Softwares
  • Education
    • Vocabulary
    • Abbreviations
    • General Knowledge
    • Writing & Translation
  • Lifestyle
    • Beauty & Cosmetics
    • Fashion & Style
    • Furniture & Decor
    • Luxury
    • People & Relationships
    • Pets and Animals
    • Shopping
    • Parenting
    • Gardening
    • Birthdays
  • Health
  • Travel
  • Auto
  • Gaming
  • Food
  • Entertainment
  • Sports
JustwebworldJustwebworld
Home » Business & Finance » Soc 1 Vs Soc 2 Vs Soc 3: What’s The Difference?

Soc 1 Vs Soc 2 Vs Soc 3: What’s The Difference?

Vidya MenonBy Vidya Menon Business & Finance
Facebook Twitter LinkedIn Telegram Pinterest Reddit Email WhatsApp
Follow Us
WhatsApp Telegram
Share
Facebook Twitter LinkedIn Pinterest Reddit Telegram WhatsApp

Are you a new company that is in the software field? Maybe you’re a services provider? If you answered Yes to either question, you might have heard of something called “SOC Report”. But what exactly is it?

Table of Contents

Toggle
  • What is a SOC Report?
  • Types of SOC Reports
    • SOC 1 Report
    • SOC 2 Report
    • SOC 3 Report
  • Soc 1 vs Soc 2 vs Soc 3 – Which one should you get?

What is a SOC Report?

SOC stands for Service Organization Controls. It is a measure of your company’s quality of services, processes, and overall operations. If you are a software company or service provider in any capacity, you will need to furnish a SOC report.

The SOC report is a type of attestation report that assures regulators of your compliance to security and service quality standards.

SOC 1 vs SOC 2 vs SOC 3

You need to hire an external, impartial, certified public accountant (CPA) to conduct the audit. The CPA will conduct a series of tests to check how well your various processes work and how compliant they are. Then the CPA will issue a SOC Report validating the extent of your SOC compliance.

Types of SOC Reports

You may need to get a SOC report for multiple business processes when it comes to SOC compliance. The type of business processes/operations you engage in determines the type of SOC report you need from the CPA.

There are three types of reports you need to know about.

SOC 1 Report

Are you outsourcing your company’s payroll processes or payment management to an external, third-party service company? Do you plan to hire an external verification agency to vet a client or employee’s background? In these cases, you will need to comply with SOC 1.

Also Read: 5 Critical Factors to Consider When Choosing a Small Business CRM 5 Critical Factors to Consider When Choosing a Small Business CRM

Essentially, the SOC 1 report is needed by companies who are outsourcing their internal financial services to an external party. SOC 1 is also needed if you outsource services that may put your client’s financial information & statements at risk or affect them somehow.

SOC 2 Report

The SOC 2 report focuses on non-financial processes and operations. Specifically, the CPA checks if you have met all of the Trust Service Principles (TSPs) mandated for service providers. These TSPs include.

  • Confidentiality
  • Accessibility
  • Security
  • Processing integrity.
  • Privacy

So, let’s say you plan to offer a SaaS facility, network monitoring service or data backup/repository services. Irrespective of whether you use an external technology vendor to provide these services or not, you’ll need to furnish a SOC2 report. This report ensures you have complied with all five TSPs with care.

SOC 3 Report

Both the SOC 1 and SOC2 reports are confidential. Your organization does not have to share this report with anyone other than a regulator. But, let’s say your customers want to know whether you comply with the TSPs or not. In that case, you can get the CPA to give you a SOC 3 report, in addition to the SOC 2 report.

This is because the SOC 3 is a public document, and it must be made available for anyone who wishes to peruse it. A SOC 3 example would be a report you have made because an organization you are providing cloud services to asks for your TSP compliance status.

Soc 1 vs Soc 2 vs Soc 3 – Which one should you get?

Now you know what SOC types there are. But you may have more questions.

Also Read: Debt and Stress: Manage, Reduce and Eliminate Debt-Related Anxiety Debt and Stress: Manage, Reduce and Eliminate Debt-Related Anxiety

Will only the SOC 1 report be sufficient?

Is SOC 2 or SOC 3 better?

Should I get all SOC 1, 2, 3 certifications?

We can help you answer these questions.

Only if you are an intermediary between a client and a payroll company, who has access to the client’s (and their client’s) financial data, will just the SOC 1 be sufficient. Most service providers and software companies will need to get both the SOC 1 and SOC 2 reports made by the CPA.

So, there is no question of SOC 1 vs SOC 2. Both are equally important.

Another major difference between SOC 1 and SOC 2 is the intention of testing. SOC 1 focuses on whether your company has put in place the right compliance measures and how well-designed they are. SOC 2, on the other hand, focuses on the quality and effectiveness of these processes over a period of many months.

Your CPA will be able to give you a SOC 1 report within a month, while you may need to wait 3-4 months for your SOC 2 report to arrive. Plus, the extensiveness of the testing will also be greater for the SOC 2 report.

Now, as for SOC 3 – this is optional and completely dependent on your company’s requirements. Not every client will ask to see your SOC compliance status. But, if the services you offer pose a high risk to your client or their clients, then you will need to get the SOC 3 made as a precautionary measure.

These SOC 3 reports aren’t very detailed, and they usually only contain a summary of the SOC 2 results. They’ll be written up without any jargon, allowing the layperson to understand your SOC compliance results.

Also Read: The Art of Negotiation: Techniques for Successful Business Deals The Art of Negotiation: Techniques for Successful Business Deals

Join 25,000+ smart readers—don’t miss out!

Follow on WhatsApp Follow on Telegram
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Telegram WhatsApp Copy Link
Previous ArticleHow to Build Successful Career In Cloud Computing With Azure Certifications?
Next Article DRM M4V Converter for Windows (Convert iTunes M4V to MP4)
Vidya Menon

Vidya Menon is a talented content writer who brings ideas to life with clarity and creativity. She writes across diverse topics, making complex subjects easy to understand and engaging to read. With a passion for storytelling, she delivers content that informs, inspires, and leaves a lasting impact.

Related Posts

The Role of Angel Investors In Business Expansion

Free Invoice Generator That Makes Billing Simple and Error-Free

Ways to Ensure Your Business Remains Competitive and Successful

Understanding Swipe Machine Costs: A Smart Guide for Businesses

Why Every Blogger and YouTuber Needs A Trademark In 2025

How to Use Virtual Numbers for 24/7 Customer Support | Boost Customer Service & Business Communication

Leave A Reply

Join 25K+ smart readers!
Categories
Latest Posts

How Digital Solutions are Revolutionizing Fuel Consumption Monitoring

Danny Go! Cast, Songs, Live Shows, Net Worth & Fun Facts for Kids | Watch, Learn & Dance With the Hit YouTube Sensation!

The Secret to Smoother DIY Projects: Pro Tips, Tools & Hacks You Need to Know!

The Role of Angel Investors In Business Expansion

TOP 5 Fraud Schemes When Buying A Car from Abroad

Pharrell Williams: Net Worth, Iconic Songs, Fashion, Awards, Wife, Bio & Inspiring Career Journey

Craft Meets Conscience: Are Your Sandals Truly Sustainable?

Daddy Yankee Biography 2025: Reggaeton King, Net Worth, Age, Career, Wife & Real Story Revealed!

Atticus Shaffer Full Profile: Age, Height, YouTube, Twitch, Shows & Net Worth

Important Things You Must Consider While Comparing Health Insurance Plans

Quick Links
Age Calculator
Angel Number Calculator
Case Converter
Sudoku Online
Word Counter
Love Calculator
Useful Links
Number to Words
Period Calculator
Yes-No Picker Wheel
Demon Name Generator
Kingdom Name Generator
Harry Potter Name Generator
Helpful Resources
Colors Name In English
Best Computer Brands
WhatsApp Web
Most Beautiful Beaches
Tesla Cybertruck Review
Richest Actors in the World
Explore More
Good Morning Handsome
Best English Songs of All Time
Cricket World Cup Winners
Ways to Say Rest In Peace
Britain’s Got Talent Winners
American Idol Winners
Facebook X (Twitter) Instagram Pinterest YouTube Tumblr LinkedIn WhatsApp Telegram Threads RSS
  • About
  • Contact Us
  • Advertise With Us
  • Disclaimer
  • Privacy Policy
  • Terms & Conditions
  • Web Stories
Copyright © 2012-2025. JustWebWorld - All Rights Reserved. | Sitemap

Type above and press Enter to search. Press Esc to cancel.

×

👇 Bonus Reads for You 🎁

How to Running a Successful Business
4 Tips to Running a Successful Business In San Diego
Organize Your Office Documents
Organize Your Office Documents For Optimal Efficiency
Equipment Your Business Needs To Invest
The Equipment Your Business Needs To Invest In To Get Off the Ground
Moving Services in the US
Why The Moving Services Industry Is So Important In The U.S.