In planning a SOC 2 engagement, the auditor must assess 'Materiality'. How is materiality typically viewed in a SOC 2 compared to a financial audit?

Answer options:

It is purely quantitative (dollar amount).

It is qualitative, focusing on whether a deficiency could affect the user's decision-making regarding the service.

Materiality does not apply to SOC 2.

It is based on the service organization's revenue.

How to approach this question

SOC 2 is about trust/operations, not dollars.

Full Answer

B.It is qualitative, focusing on whether a deficiency could affect the user's decision-making regarding the service.✓ Correct

It is qualitative, focusing on whether a deficiency could affect the user's decision-making regarding the service.

In SOC 2, materiality is about the significance of a control failure to the achievement of the Trust Services Criteria. It's often qualitative (e.g., 'Does this expose data?') rather than a dollar threshold.

Common mistakes

Applying financial audit materiality (dollars) to SOC 2.

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