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Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteIn current AICPA usage, SOC stands for System and Organization Controls. “Service Organization Control” is the older expansion, which is why both versions still appear. SOC reports are CPA examination reports that help intended readers assess controls and risks tied to outsourced services; they are not blanket certifications that a company is “SOC compliant.”
What SOC means today—and why the older phrase persists
The AICPA & CIMA describes System and Organization Controls as a suite of services CPAs may provide in connection with system-level controls at a service organization or system- or entity-level controls at other organizations. The AICPA introduced the broader name in 2017; before then, SOC was commonly expanded as “Service Organization Control.” The change explains the terminology without making the older phrase meaningless. AICPA & CIMA’s SOC resources and its peer-review standards note describe the current usage and its history.
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What a SOC report is for
A service organization performs a service that another organization relies on—for example, a provider whose systems or processes affect a customer’s operations, data, or financial reporting. A SOC report communicates the results of a CPA examination of specified controls so intended users can assess risks associated with that outsourced service. Its conclusions apply to the report’s defined subject matter and scope, not every aspect of the provider’s business. The AICPA’s SOC overview explains the suite and its reports.
For that reason, “SOC certified” or “SOC compliant” is imprecise shorthand. A SOC report is not a universal certification: the report type, examined system, applicable criteria, period, and intended users determine what it can tell you.
#1 Best Overall
SOC 1, SOC 2, and SOC 3 compared
| Report | Subject matter | Typical reader or use | Level of detail |
|---|---|---|---|
| SOC 1 | Controls at a service organization relevant to user entities’ internal control over financial reporting. | User-entity management and auditors assessing financial-reporting controls. | Consult the actual report for its scope and contents. |
| SOC 2 | Controls assessed against applicable Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. A report need not cover all five categories; check which apply. | Readers assessing system controls against the criteria included in the report. | A detailed report with a description of the system and control testing. |
| SOC 3 | Assurance related to Trust Services Criteria. | Broader audiences that do not need the detailed SOC 2 report; the AICPA notes it can also be used for marketing. | Less detailed than SOC 2. |
The AICPA’s SOC materials explain the report types and their intended uses; its Trust Services Criteria set out the criteria used for SOC 2 and SOC 3 engagements.
Quick Recap
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How to choose or read the right report
- If the question concerns controls relevant to financial reporting, look for SOC 1.
- If it concerns system controls assessed against Trust Services Criteria, look for SOC 2 or SOC 3. Choose SOC 2 when you need the detailed description and testing; SOC 3 is less detailed and may serve readers who do not need that information.
- In the report itself, verify the system boundaries, applicable criteria, period covered, and intended users. The SOC label alone does not establish what was examined or who can rely on the report.
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