What distinguishes a qualified SOC 2 report from a SOC 1 report?

A qualified SOC 2 report is distinguished from a SOC 1 report primarily by its focus on the specific criteria for assessing the controls relevant to the Trust Services Criteria, which encompass security, availability, processing integrity, confidentiality, and privacy. In a qualified SOC 2 report, the auditor expresses a qualified opinion because certain aspects of the organization's controls may not fully comply with these criteria. This means the auditor identifies areas where the controls may not operate effectively or where there are limitations, thereby offering a basis for the qualified opinion.

In contrast, a SOC 1 report is concerned primarily with internal controls over financial reporting and is designed to assess the effectiveness of those controls in relation to the services provided by the service organization that can impact the financial statements of user entities. Therefore, the focus and the implications of the findings differ between the two types of reports, with the SOC 2 report addressing a wider scope of operational concerns beyond financial reporting. This distinction clarifies why recognizing the basis for a qualified opinion is key to understanding the findings of a qualified SOC 2 report.