Lesson: Intended Users of SOC 1, SOC 2, and SOC 3 Reports

In this lesson, Nick Palazzolo, CPA, dives into the specific audiences for SOC 1, SOC 2, and SOC 3 reports, clarifying which types of entities and individuals these reports serve best and why understanding these distinctions is crucial. He starts by exploring SOC 1 reports, primarily aimed at auditors and management of user entities, to aid in the audit of financial statements and internal controls. Next, he expands on SOC 2 reports, which cater to a broader group including management, regulators, and business partners, emphasizing their utility in verifying controls related to security, availability, processing integrity, confidentiality, and privacy. Finally, Nick discusses SOC 3 reports, designed for general users, offering assurance without the technical details found in SOC 2 reports, and often used for marketing purposes. By the end of this lesson, Nick ensures that the roles and purposes of each SOC report type are clear, highlighting their strategic relevance in risk management and audit processes.