In what way do SOC 2 reports differ from SOC 1 reports?

SOC 2 reports are designed to assess and report on the controls related to an organization’s operations, specifically regarding the trust service criteria, which include security, availability, processing integrity, confidentiality, and privacy. The focus on operational aspects distinguishes SOC 2 from SOC 1 reports, which are geared more toward financial reporting and internal control over financial reporting (ICFR). SOC 1 evaluations primarily address how a service organization’s controls affect the financial statements of its users, making the distinction in focus between operational and financial audits particularly important.

This operational focus in SOC 2 reports is crucial for organizations that want to demonstrate their commitment to building trust with clients regarding how they handle and protect data, particularly in a cloud environment. Understanding this key difference helps clients and stakeholders evaluate the appropriateness of services based on operational reliability, rather than just financial implications.