SOC 1 and SOC 2

SOC 1 and SOC 2 are types of reports assessing how service providers manage data. SOC 1 focuses on financial reporting controls, ensuring that a company’s financial statements are accurate and reliable. It's often relevant for companies that handle payroll, billing, or revenue processing. SOC 2, on the other hand, evaluates a service provider’s information security policies based on five principles: security, availability, processing integrity, confidentiality, and privacy. This report is especially important for technology and cloud service companies, as it helps clients understand how their data is protected and managed.