SOC Type 1 reports are considered "restricted use," in that they are intended only for limited audiences and purposes. Which of the following is NOT a population that would be appropriate for a SOC Type 1 report?
Suggested Answer:C🗳️
Potential clients are not served by SOC Type 1 audits. A Type 2 or Type 3 report would be appropriate for potential clients. SOC Type 1 reports are intended for restricted use, where only the service organization itself, current clients, or auditors would have access to them.
SOC Type 1 reports are considered "restricted use" and are intended only for internal stakeholders, current clients, and auditors who need to assess an organization's financial controls or security posture. These reports contain sensitive details about internal controls, which is why they are not typically shared with potential clients.
Why Not the Others?
A. Current clients → Need the report to assess the effectiveness of controls before continuing their business relationship.
B. Auditors → Use the report to validate compliance and control effectiveness.
D. The service organization → The organization being audited will receive the report for internal review and improvements.
SOC1 is Financial Report
SOC2 is IT report
SOC3 is Certification, publicly reported.
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