Video: Inclusive v. Carve-out Method in SOC Engagements

In this lesson, Nick Palazzolo, CPA, delves into the inclusive and carve-out methods used in SOC 1 and SOC 2 engagements, specifically addressing the handling of subservice organizations like a trucking company when conducting a SOC report for a manufacturing client. Nick explains that the inclusive method involves incorporating the controls of the subservice organization into the main SOC report, providing a comprehensive view of the entire control environment. This can be more labor-intensive but offers a more in-depth assurance. Conversely, the carve-out method simplifies the process by focusing only on the service organization, thereby excluding the subservice entity from the scope of the report. Nick also clarifies the role of Complementary Subservice Organization Controls (CSOCs) in each method, enhancing understanding of how these controls affect the report depending on the chosen method.

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Considerations Specific to Planning, Performing & Reporting on a SOC Engagement
Module: 2 Concepts, 30 Videos
Considerations Specific to Planning and Performing a SOC Engagement - Overview
1:09
Introduction to Considerations Specific to Planning and Performing a SOC Engagement
8:07
Purpose and Organization of the Trust Services Criteria
3:58
Subject Matters in Trust Services Criteria Reporting
5:13
Management Assertions in SOC Engagements
8:35
Intended Users of SOC 1, SOC 2, and SOC 3 Reports
5:16
Independence Considerations in SOC Engagements
3:39
Materiality in SOC Engagements
3:01
Risk Assessment for Service Organizations and Service Auditors
2:40
Criteria for a Vendor To Be Considered a Subservice Organization
5:42
Inclusive v. Carve-out Method in SOC Engagements
4:20
Service Commitments and System Requirements in SOC 2 Engagements
2:47
Subsequently Discovered Facts on SOC Engagements
6:25
Purpose and Common Sections of a System Description in SOC Engagements
3:31
Management's Description of an Entity's Cybersecurity Risk Management Program
3:52
Complementary User Entity Controls
4:22
Obtaining Management's Written Representations
4:07
Understanding the System in a SOC 2 Engagement
5:46
SOC 1 vs. SOC 2 Engagements
11:31
Considerations Specific to Planning and Performing a SOC Engagement - Summary
1:30
Considerations Specific to Planning and Performing a SOC Engagement - Practice Questions
5:08
Considerations Specific to Reporting on a SOC Engagement - Overview
0:59
Introduction to Considerations Specific to Reporting on a SOC Engagement
2:05
CUECs Effect on SOC Reports
5:31
Carve-out vs. Inclusive Method in Reporting on CSOCs
5:39
Types of Opinions and Report Modifications in the Presence of Deficiencies
11:47
Preparation of SOC 2 Reports
5:05
Form and Content of SOC 1 and SOC 2 Reports
4:49
Considerations Specific to Reporting on a SOC Engagement - Summary
1:42
Considerations Specific to Reporting on a SOC Engagement - Practice Questions
5:45