Question

Which type of service organization control (SOC) report will provide assurance as to whether the controls are suitably designed to achieve specified control objectives, whether those controls have been placed in operation, and whether they operate effectively over a period of time?

a. SOC 1 Report
b. SOC 2 Report
c. SOC 3 Report
d. SOC 4 Report

Answer 1

A SOC 1 Report provides assurance on the design, implementation, and operational effectiveness of controls within a service organization that are relevant to an entity's internal control over financial reporting.

Step-by-step explanation:

The type of service organization control (SOC) report that provides assurance as to whether the controls are suitably designed to achieve specified control objectives, whether those controls have been placed in operation, and whether they operate effectively over a period of time is the SOC 1 Report. SOC reports are internal control reports on the services provided by a service organization, providing valuable information for users to assess and address the risks associated with an outsourced service. The SOC 1 Report, specifically, is intended for reports on controls at a service organization which are relevant to user entities' internal control over financial reporting.