What are the main types of SOC reports Lazarus Alliance provides?

We provide all current SOC suites: SOC 1 (ICFR – controls over financial reporting) SOC 2 and SOC 3 (Trust Services Criteria: Security, Availability, Processing Integrity, Confidentiality, Privacy) SOC for Cybersecurity SOC for Supply Chain

What is the difference between SOC 1, SOC 2, and SOC for Cybersecurity?

SOC 1 focuses on controls relevant to financial reporting (ICFR). SOC 2 examines non-financial controls based on the AICPA Trust Services Criteria (most commonly Security + additional criteria). SOC for Cybersecurity is a broader entity-wide cybersecurity risk management examination that results in a report suitable for public distribution.

How long does a SOC 2 examination typically take?

For first-time (Type 1 or Type 2) examinations, the process usually spans 6–12 months from kickoff to report issuance. A Type 2 examination requires a minimum 6-month observation period (most organizations choose 12 months for stronger market acceptance).

What is the difference between SOC 2 Type 1 and Type 2?

Type 1 tests the design and implementation of controls as of a specific point in time. Type 2 tests both the design and operating effectiveness of controls over a period (minimum 6 months). Type 2 reports are significantly more valuable to customers and prospects.

Does Lazarus Alliance offer both readiness assessments and the actual attestation examinations?

Yes. We provide gap/readiness assessments, remediation support, and full attestation services. Many clients engage us for the entire lifecycle (readiness → remediation → examination) to ensure the smoothest and most successful outcome.

Are your SOC examiners CPA-licensed and do you carry professional liability insurance?

Yes. All of our SOC engagement leaders and examiners are licensed CPAs with extensive SOC experience, and Lazarus Alliance maintains robust professional liability (E&O) coverage specific to attestation services.

Can you issue a SOC 2 report that includes the Privacy Trust Services Criterion?

Absolutely. We commonly perform SOC 2 examinations that include Privacy alongside Security and other applicable criteria, which is especially valuable for organizations handling personal information (PII/PI) and needing to demonstrate HIPAA, CCPA/CPRA, GDPR, or other privacy compliance alignment.

SOC Audit: Key Benefits for Your Business

We prioritize cybersecurity compliance as our primary focus, while operating as a fully licensed CPA firm to deliver comprehensive audit services. With over 25 years of hands-on cybersecurity expertise, Lazarus Alliance’s team of seasoned professionals—including certified experts in information security and risk management—brings deep industry knowledge across sectors like technology, finance, healthcare, and government. We’re fully dedicated to guiding your SOC 1 and SOC 2 audit success, whether you operate in the private or public sector, and we’re ready to collaborate closely with your organization to achieve lasting compliance goals.

System and Organization Controls (SOC) reports provide assurance that service providers, or prospective providers, operate ethically and in compliance with standards. While the term "audit" may carry a negative connotation, SOC reports enhance a service provider’s credibility and trustworthiness, offering a competitive edge that justifies the investment of time and resources.

Lazarus Alliance Services

Lazarus Alliance's role in conducting SOC 1 and SOC 2 audits is to provide independent, objective assurance on the controls of a service organization, ensuring they meet the standards set by the American Institute of Certified Public Accountants (AICPA). Below is a concise explanation of their roles for each audit type:

SOC 1 Audit

A SOC 1 audit focuses on controls relevant to a service organization's financial reporting, particularly for clients whose financial statements are affected by the service organization's controls (e.g., payroll processors, data centers).

Lazarus Alliance's Role:

Planning and Scoping: Assess the service organization’s processes, identify controls relevant to financial reporting, and define the audit scope (e.g., specific systems or services).
Risk Assessment: Evaluate risks that could impact the reliability of financial reporting and determine key controls to test.
Testing Controls: Perform procedures (e.g., inquiries, inspections, observations, or reperformance) to verify the design and operating effectiveness of controls (Type II) or only the design (Type I).
Evidence Collection: Gather documentation, such as policies, procedures, and system logs, to support findings.
Reporting: Issue a SOC 1 report, including the auditor’s opinion on whether controls are suitably designed and, for Type II, operating effectively over a period. The report includes a description of the system, controls, and test results (if applicable).
Advisory (Optional): Provide recommendations for improving controls, though this is separate from the audit to maintain independence.

SOC 2 Audit

A SOC 2 audit evaluates controls related to security, availability, processing integrity, confidentiality, and/or privacy, based on the AICPA’s Trust Services Criteria. It’s relevant for organizations handling sensitive data (e.g., cloud service providers, SaaS companies).

Lazarus Alliance's Roles:

Planning and Scoping: Work with the organization to define the scope, including which Trust Services Criteria to evaluate and which systems or services are included.
Risk Assessment: Identify risks related to the selected criteria and assess the design of controls to mitigate those risks.
Testing Controls: Conduct tests to evaluate the design (Type I) and operating effectiveness (Type II) of controls, using methods like sampling, walkthroughs, and reviewing system configurations.
Evidence Collection: Collect and analyze evidence, such as access logs, incident reports, or encryption protocols, to validate control effectiveness.
Reporting: Issue a SOC 2 report with an opinion on the controls’ design and effectiveness, a system description, and, for Type II, detailed test results. The report is typically restricted to authorized users (e.g., clients or regulators).
Advisory (Optional): Offer guidance on addressing control gaps or improving security practices, while maintaining auditor independence.

Key Differences in Roles

Focus: SOC 1 addresses financial reporting controls, while SOC 2 focuses on operational and compliance controls (security, availability, etc.).
Audience: SOC 1 reports are primarily for clients’ financial auditors, while SOC 2 reports are for clients, regulators, or partners concerned with data security and privacy.
Criteria: SOC 1 uses control objectives defined by the service organization, while SOC 2 uses standardized Trust Services Criteria.

General Responsibilities for Both

Independence: Maintain objectivity and avoid conflicts of interest, adhering to AICPA standards.
Expertise: Apply knowledge of IT systems, internal controls, and industry standards to ensure a thorough audit.
Communication: Engage with the service organization to clarify expectations, discuss findings, and ensure accurate reporting.
Compliance: Follow AICPA’s SSAE 18 (for SOC 1) or AT-C standards (for SOC 2) to ensure the audit meets professional requirements.

Lazarus Alliance is a CPA firm with specialized IT audit expertise, ensure that SOC 1 and SOC 2 reports provide reliable assurance to stakeholders about the service organization’s controls.

Benefits of SOC Compliance

Here are the key benefits of achieving and maintaining SOC compliance (primarily SOC 1, SOC 2, SOC for Cybersecurity, or SOC for Supply Chain):

Stronger Customer Trust & Sales Advantage: A clean SOC report (especially SOC 2 Type 2) is often a mandatory requirement in RFPs and vendor questionnaires. Having one removes a major sales obstacle and shortens sales cycles.
Competitive Differentiation: Many prospects explicitly favor (or require) vendors with a current SOC 2 or SOC for Cybersecurity report. It becomes a market differentiator, especially in SaaS, fintech, healthcare, and cloud services.
Reduced Third-Party Risk for Your Customers: Your SOC report gives customers and their auditors the assurance they need without having to send you lengthy questionnaires or perform on-site audits.
Regulatory & Contractual Compliance: SOC reports help satisfy requirements or expectations from:
- HIPAA/HITECH (Security Rule & Breach Notification)
- PCI DSS (as supporting evidence)
- GDPR, CCPA/CPRA, and other privacy laws (especially when the Privacy criterion is included)
- FedRAMP, CMMC, StateRAMP, TX-RAMP, etc. (SOC 2 often used as foundational evidence)
- Customer contracts that mandate SOC attestation
Improved Internal Processes & Security Posture: The readiness and examination process forces organizations to document, implement, and test controls—resulting in fewer vulnerabilities, better change management, stronger access controls, and overall maturity.
Risk Reduction & Lower Insurance Premiums: Many cyber insurance carriers offer better terms or lower premiums to organizations that can provide a current SOC 2 Type 2 or SOC for Cybersecurity report.
Avoid Costly Duplicate Audits: Instead of undergoing separate audits for every large customer, one SOC report can satisfy dozens or hundreds of customers at once.
Enhanced Stakeholder & Investor Confidence: Boards, investors, and partners view SOC compliance as evidence of operational maturity and responsible governance.
Public Relations & Marketing Asset: SOC 3 reports and seal usage (or even mentioning a SOC 2 Type 2 in marketing) signal to the market that you take security and reliability seriously.

Gain Customer Confidence and Business Advantage with a Lazarus Alliance SOC 1 or SOC 2 audit. Call +1 (888) 896-7580 today!