ExpertMedium1 markMultiple Choice
CPA · Question 19 · Area III: SOC Engagements
Which of the following is a key difference between SOC 1® and SOC 2® engagements?
Which of the following is a key difference between SOC 1® and SOC 2® engagements?
Answer options:
A.
SOC 1® is for general public use; SOC 2® is restricted use.
B.
SOC 1® focuses on financial reporting controls; SOC 2® focuses on Trust Services Criteria.
C.
SOC 1® is mandatory for all public companies; SOC 2® is voluntary.
D.
SOC 1® covers historic periods; SOC 2® covers a point in time.
How to approach this question
Identify the subject matter of the reports.
Full Answer
B.SOC 1® focuses on financial reporting controls; SOC 2® focuses on Trust Services Criteria.✓ Correct
SOC 1® focuses on financial reporting controls; SOC 2® focuses on Trust Services Criteria.
SOC 1 reports are relevant to user entities' internal control over financial reporting. SOC 2 reports are relevant to security, availability, processing integrity, confidentiality, or privacy.
Common mistakes
Confusing the Type (I vs II) with the Report (1 vs 2).
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