ExpertMedium1 markMultiple Choice
CPA · Question 63 · Area III: SOC Engagements
A service organization's clients need assurance regarding the controls over financial reporting. Which SOC report is most appropriate?
A service organization's clients need assurance regarding the controls over financial reporting. Which SOC report is most appropriate?
Answer options:
A.
SOC 1
B.
SOC 2
C.
SOC 3
D.
SOC for Cybersecurity
How to approach this question
Keywords: 'Financial Reporting' = SOC 1.
Full Answer
A.SOC 1✓ Correct
SOC 1
SOC 1 reports address controls relevant to user entities' internal control over financial reporting (ICFR). SOC 2 addresses operational controls (Security, Availability, etc.).
Common mistakes
Selecting SOC 2 because it's popular, even though the need is financial.
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