Video: Introduction to Considerations Specific to Planning and Performing a SOC Engagement

In this lesson, Nick Palazzolo, CPA dives deep into the intricacies of planning and performing SOC engagements, a critical aspect of modern auditing related to service organizations. Nick begins by clarifying the purpose of the trust services criteria and its alignment with the COSU internal control framework, essential for comprehending SOC reports. He also reviews the various types of SOC reports—SOC 1, SOC 2, and SOC 3, including their differences and the significance of type 1 and type 2 reports. Furthermore, Nick elucidates the roles of service auditors, service organizations, and subservice organizations using relatable real-life examples like Apple and ADP. He explains key concepts such as auditor independence, materiality, risk assessment, and the strategic use of the inclusive and carve-out methods. This lesson, rich with detailed objectives and practical examples, ensures a thorough understanding of how SOC engagements are planned, performed, and how they intersect with broader IT audit considerations.