What to know about the increase in requests for SOC reports
System and Organization Controls (SOC) reports are designed to demonstrate that service providers have proper controls in place. SOC 1 and SOC 2 reports primarily examine controls in place for the reporting and processing of financial transactions (SOC 1) and the security of data (SOC 2). Requests for these reports, especially the latter, are on the rise.
“Both private and public entities are increasingly requesting SOC 2 reports as it’s a way for a company to gain peace of mind that their data is being adequately protected,” says Andrew Sizemore, a manager with Clark Schaefer Consulting.