The Difference Between SOC 1 and SOC 2

If a company offers outsourced technology services—particularly in the form of data storage and management—they need to meet specific standards of quality and reliability. A Service Organization Controls (SOC) report is an audit from the American Institute of Certified Public Accountants that identifies and reviews an organization’s ability to process, manage, and secure customer data. When you work with SOC 1 and SOC 2 certified organizations, you know your data is in safe hands. What kind of compliance does your company need? Learn more with this guide to the difference between SOC 1 and SOC 2.

An Introduction To SOC 1

Though the two types of SOC audits are similar, they have different objectives. A SOC 1 report addresses an organization’s internal controls that are relevant to their client’s financial statements. The audit examines how an organization processes and secures crucial financial information. A SOC 1 report has no set criteria for companies to meet. Instead, the report defines control objectives relevant to the company’s service or product, then examines how well the current controls and processes meet these objectives. Overall, a SOC 1 report ensures that an organization or company handles clients’ financial information safely and securely.

An Introduction To SOC 2

While a SOC 1 report revolves around the management of clients’ financial information, the SOC 2 report takes a broader approach. It examines internal controls relevant to the management and storage of all customer data. A SOC 2 report examines any of the following Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. The company undergoing a SOC 2 audit must identify which of these criteria is relevant to the services they provide. It’s important to note that no compliance framework requires a SOC 2 report. However, public concern around data leaks and breaches means that clients enjoy having proof that companies take their data protection seriously.

The Difference Between SOC 1 and SOC 2

If a company’s services impact clients’ financial reporting, SOC 1 compliance guarantees best practices around processing and managing this data. If a company processes, stores, or manages other types of data, a SOC 2 report is more relevant. The audit you need depends on your company’s situation. You might undergo both to ensure compliance across all the services you offer.

Clients should be able to rest easy knowing that their partners and vendors are following best practices to provide safe, secure, and reliable data management. That’s why Atmosera’s data centers are compliant with both SOC 1 and SOC 2 Type II reports. Azure compliance monitoring ensures that your operating environment serves you and your clients to the best of its ability. At Atmosera, we ensure your Microsoft Azure network goes above and beyond to meet industry standards and keep you and your clients secure.

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