SOC 1, SOC 2 and SOC 3 certifications
Which one does your company need?

SOC 1, SOC 2 and SOC 3 certifications. Which one does your company need?

In a digital environment where data security is key, SOC (Service Organization Control) reports, established by the American Institute of Certified Public Accountants (AICPA), enable independent third-party analysis that provides valuable information for users to assess and manage the risks associated with an outsourced service.

Each SOC (or System and Organizational Controls) certification has a different objective and is intended for a different audience. These certifications, performed by Certified Public Accountants (CPAs), reinforce the confidence of clients and business partners.

At BOTECH, we guide you through the SOC 1, SOC 2 and SOC 3 certification process, ensuring that your company meets the requirements and demonstrates its commitment to information security. But the first thing we're going to do is detail what these reports are for, who needs each certification and what benefits it can bring to your organization. Read on.

What are SOC reports?

Developed by the American Institute of Certified Public Accountants (AICPA), SOC (Systems and Organization Controls) reports analyze an organization's internal controls in different areas. Let's take a closer look at each of the reports.

There are 3 types of reports:

SOC 1

  • The SOC 1 report addresses an organization's internal controls related to its customers' financial information.
  • This SOC 1 report benefits the company by improving its transparency, increasing customer confidence and serving as an excellent cover letter to potential customers by providing financial security.
  • Which companies need a SOC 1 report? Organizations that offer services that can impact their clients' financial statements to ensure the robustness of their internal controls, such as payroll service providers, financial transaction processing and IT service providers.

SOC 2

  • The SOC 2 report defines risk factors to improve operational efficiency and evaluates them through five criteria: security, availability, confidentiality, privacy and data processing integrity. Compliance with these criteria allows for a robust and solid cybersecurity strategy.
  • The SOC 2 report, allows to show the robustness of the system and to guarantee the security and integrity of the data to the clients and/or regulators of the company.
  • Which companies need a SOC2 report? Organizations that handle sensitive information not related to financial reporting, such as technology service providers or SaaS companies that store, process or manage customer information, may need this report.

SOC 3

  • The SOC 3 report is simply a summary of the Type 2 assessment results designed to be shared with external companies for regulatory and marketing purposes. It applies to both SOC1 and SOC2.
  • The SOC 3 report benefits the organization as it builds trust by being shared with both customers and prospects and is also useful for the marketing department and to support certain marketing actions.
  • Which companies need a SOC3 report? This report can be applied to all service providers who wish to publish and announce the achievement of SOC certification.

In addition, SOC reports can be of two types:

  • Type I: Evaluates the adequacy of the design of controls at a specific time.
  • Type II: Analyzes the operating effectiveness of these controls over a period of six to twelve months.

In summary, the SOC 1 report places special emphasis on financial information while the SOC 2 report places more emphasis on compliance and safety in operations. These two types of reports are the most common, while SOC 3 is the least common and is only a summary of what has already been certified.

Each certification fulfills a specific function, so choosing the right one will depend on the type of information your company handles and the requirements of your customers.

Advantages of obtaining SOC certifications

Having SOC certifications not only helps to meet compliance standards, but also strengthens customer confidence and enhances a company's reputation. Adopting these certifications brings multiple benefits, including:

Did you know that at BOTECH we have certified public accountants known as CPAs?

The Certified Public Accountant (CPA) certificate, granted by the American Institute of Certified Public Accountants (AICPA), is a professional recognition of international prestige and very important in the business and financial world of the United States, obtained by those who have extensive knowledge of accounting, auditing standards and tax regulations.

BOTECH: Your partner in the SOC certification process

With more than 15 years of history and a team of more than 80 international experts with more than 30 years in the industry, at BOTECH we accompany you in every step of the SOC certification process. We have CPAs (certified public accountants) and tailor our services to the specific needs of your organization.

We operate globally with offices in Spain, United States, Brazil, Mexico, Chile, Peru, Colombia and Dominican Republic, providing you with a close and specialized service in regulatory compliance, cybersecurity, cyberintelligence and anti-fraud.

Protect your company today

If you want to certify your organization to SOC standards, contact us. We can help you get certified and obtain your reports to improve your company's security and your customers' trust. Our team is ready to offer you the solution you need.

Contact us

Send us an email to info@botech.info or fill out the following contact form.