Systems and Service Organization Controls (SOC)
What is Systems and Service Organization Controls?
SOC—Systems and Service Organization Controls—reports are third-party audits that verify how well a service provider protects data.
Developed by the AICPA, SOC reports give security, risk, and compliance teams a trusted way to evaluate vendors, based on how they manage critical controls across security, availability, processing integrity, confidentiality, and privacy.
If a partner handles sensitive data or impacts your operations, SOC reports are how you validate their controls—and prove you’re doing your due diligence.
Why SOC reports matter
You can’t secure what you don’t control. But you can demand proof from those who do.
SOC reports make that proof actionable. They help you:
- Confirm whether a vendor’s security claims hold up
- Streamline third-party risk reviews and procurement cycles
- Show regulators, customers, and auditors that controls are in place—and working
- Shift from trust-based to evidence-based vendor relationships
In regulated industries, a SOC 2 Type II isn’t just nice to have. It’s the baseline.
SOC report types: Know the difference
Not all SOC reports are built for the same purpose.
Here’s how they break down:
- SOC 1: Focused on controls that impact financial reporting. Often required in audits involving payroll, billing, or similar services.
- SOC 2: Covers broader trust principles—like security, availability, and confidentiality. Standard for cloud and SaaS environments.
- SOC 3: A high-level summary of SOC 2 findings, designed for public consumption.
SOC 1 and SOC 2 each come in:
- Type I: Tests control design at a point in time.
- Type II: Tests control effectiveness over a defined period (usually 6–12 months).
A Real-world SOC scenario
Your identity provider handles millions of authentication requests daily. How do you know their failover systems work—or that their engineers follow secure change controls?
A SOC 2 Type II report shows exactly that. It verifies key controls, flags any exceptions, and provides timelines and evidence—so your team can assess risk without chasing down spreadsheets or vague vendor responses.
What to look for in an SOC report
Don’t just ask if a SOC report exists—check what it says:
- Scope: Which systems and services were audited?
- Controls: Are they aligned to your risk priorities?
- Exceptions: Were any controls found ineffective?
- Framework mapping: Are controls mapped to NIST, ISO, or HIPAA?
Use the report to inform—not just check off—your third-party risk decisions.
Finally, SOC reports turn vendor claims into verifiable facts. They simplify oversight, strengthen your compliance posture, and give you confidence in the services that power your business. And when risk accountability spans beyond your walls, that visibility isn’t optional—it’s essential.
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