Which of the following is a key difference between SOC 1® and SOC 2® engagements?

Answer options:

SOC 1® is for general public use; SOC 2® is restricted use.

SOC 1® focuses on financial reporting controls; SOC 2® focuses on Trust Services Criteria.

SOC 1® is mandatory for all public companies; SOC 2® is voluntary.

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 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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