This lesson delves into the details of System and Organization Control Reports (SOC Reports), discussing the differences, requirements, and purposes of each type. These engagements aim to provide various levels of assurance on system level controls, and can work in conjunction with audit teams for large companies. The lesson explores the distinctions between SOC 1 and SOC 2 reports, as well as the two types within each (Type 1 and Type 2). Key distinctions between Type 1 and Type 2 reports are highlighted and discussed in depth, ultimately showcasing how a Type 2 report can offer more assurance on the operating effectiveness of internal controls and can be used as audit evidence.