A service organization's clients need assurance regarding the controls over financial reporting. Which SOC report is most appropriate?

Answer options:

SOC 1

SOC 2

SOC 3

SOC for Cybersecurity

How to approach this question

Keywords: 'Financial Reporting' = SOC 1.

Full Answer

A.SOC 1✓ Correct

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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