What type of report reviews controls relevant to confidentiality, privacy, and security?

The reason SOC 2 is the correct answer is that it specifically focuses on the controls relevant to confidentiality, privacy, and security within a service organization. This type of report is designed to provide assurance to customers and stakeholders that the service provider has implemented adequate safeguards for maintaining the security and confidentiality of data they handle.

SOC 2 reports are based on the Trust Services Criteria established by the AICPA, which encompass five key areas: security, availability, processing integrity, confidentiality, and privacy. When organizations undergo a SOC 2 audit, they are evaluated against these criteria, and the resulting report provides detailed information about the effectiveness of their controls.

This emphasis on confidentiality and security makes SOC 2 particularly valuable to clients in various industries, especially those that handle sensitive information. In contrast, SOC 1 reports focus on financial controls relevant to operational effectiveness, and SOC 3 reports are more general and do not provide the same detailed assurances as SOC 2. Compliance reports may address regulations and standards but do not concentrate specifically on the same aspects as SOC 2.