A SOC 1 Audit refers to an examination of a service organization’s internal controls over financial reporting. SOC 1 audits are conducted in accordance with the Statement on Standards for Attestation Engagements (SSAE) No. 18, which provides guidelines for auditors performing engagements on service organizations. The primary objective of a SOC 1 Audit is to assess the design and operating effectiveness of controls relevant to financial reporting. These controls are evaluated to ensure that they provide reasonable assurance over the accuracy, completeness, and reliability of financial information processed by the service organization.
In today's interconnected business world, organizations are increasingly relying on third-party service providers to perform critical functions (e.g., managed