What type of report is classified as SOC 1 and what is its purpose?

SOC 1 reports are specifically focused on the examination of controls relevant to an organization's financial reporting. The primary purpose of SOC 1 is to assess how these controls affect the financial statements of the organization. This type of report is particularly important for organizations that provide services which can impact their clients' financial reporting, such as data centers or payroll processors. By providing a detailed evaluation of these controls, SOC 1 helps stakeholders understand the risk associated with the service organization and assures them of the integrity of the financial data being reported.

The focus on financial reporting makes this report distinct from others, such as those related to incident response capabilities, security controls, or data protection measures, which are covered by different types of SOC reports (e.g., SOC 2 or SOC 3). Understanding this distinction is crucial for professionals managing cloud security and compliance.