Which of the following is a 'Type 1' SOC report?

Answer options:

Report on the fairness of the presentation and the suitability of the design and operating effectiveness of controls over a period of time.

Report on the fairness of the presentation and the suitability of the design of controls at a specific point in time.

Report on the financial statements.

Report for general public use.

How to approach this question

Type 1 = Snapshot (Design only). Type 2 = Movie (Design + Operation over time).

Full Answer

B.Report on the fairness of the presentation and the suitability of the design of controls at a specific point in time.✓ Correct

A Type 1 report looks at the design of controls at a specific point in time (e.g., as of Dec 31). It does not test whether the controls operated effectively over a period (that is Type 2).

Common mistakes

Confusing Type 1 (Design/Point in time) with Type 2 (Operating Effectiveness/Period).

Question 62 All questions Question 64

Practice the full CPA ISC Practice Exam 3

82 questions · hints · full answers · grading

More questions from this exam

Q01A CPA is advising a client who is migrating their legacy on-premise ERP system to a cloud-based s...Medium Q02During a review of a client's cloud governance structure, an auditor notes that the client uses a...Medium Q03An auditor is evaluating the 'Processing Integrity' principle for a financial institution's loan ...Hard Q04A company uses a batch processing system to update inventory records overnight. The 'Grandfather-...Hard Q05During a walkthrough of the change management process, an auditor observes that the 'Developer' r...Medium

View all 82 questions →