Which type of report is restricted from certain potential users according to SOC regulations?

The designation of SOC1 reports is specifically tailored for user entities and their auditors, which limits accessibility to certain potential users. These reports focus on internal controls over financial reporting for organizations providing services that could impact their clients' financial statements. Consequently, SOC1 reports are considered restricted because they contain sensitive information that is relevant primarily to clients and their auditors, who need to understand the control environment of the service organization to evaluate its impact on financial reporting.

In contrast, SOC2 and SOC3 reports are broader and designed to provide assurance about the controls related to the Trust Services Criteria (security, availability, processing integrity, confidentiality, and privacy). SOC2 reports are typically restricted as well, but their content is often shared with specific stakeholders interested in the service organization’s performance in these areas. SOC3 reports, on the other hand, are intended for a general audience and are publicly available, which means they do not have the same restrictions as SOC1 reports.

Thus, SOC1 reports are unique in their restriction from certain users due to the sensitive nature of the information related to financial reporting controls.