Which SOC report focuses specifically on internal control over financial reporting?

The SOC 1 report is designed specifically to address internal controls over financial reporting. It is primarily used by service organizations that process financial transactions or hold financial data on behalf of their clients. This report assures users that the controls within these organizations are sufficient to prevent material misstatements in the financial statements of the organizations relying on these services.

SOC 1 reports are based on the AICPA’s Statement on Standards for Attestation Engagements (SSAE) No. 18 and provide relevant criteria for evaluating how well the service organization manages data and ensures the integrity of financial reporting. This focus is critical for stakeholders who are concerned about the accuracy of financial information and the overall effectiveness of the internal controls in place.

In contrast, SOC 2 and SOC 3 reports deal with controls related to security, availability, processing integrity, confidentiality, and privacy, rather than financial reporting specifically. SOC 4 does not exist as a formal designation in the SOC reporting framework and is not utilized in the context of auditing and attestation services. Therefore, SOC 1 is the correct report for assessing internal control over financial reporting.