What Are Carve-Out and Inclusive Auditing Methods for SOC Reporting?


SOC audits are some of the most common non-regulatory audits in the U.S. These attestations provide companies with a way to demonstrate their dedication to transparent and secure financial reporting and protecting consumer information. Accordingly, SOC reporting can become an in-depth and complicated task that is rendered even more complicated when factoring in subservice providers. 

We’ll cover two ways to account for subservice provider services in your financial and IT infrastructure: carve-out and inclusive reporting. 


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What is SOC 1 Compliance?

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Audits and compliance are just part of doing business for financial organizations. Clients and partners must know that they can trust you to manage their critical information, keep it secure, and maintain its confidentiality. Frameworks like Systems and Organization Controls, or SOC, help organizations meet these expectations in a standardized way. 

While SOC 2 is generally the more popular all-purpose attestation for businesses, SOC 1 attestation is just as necessary, if not more, for financial service providers. 


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What Are SOC 2 Type 1 and Type 2 Reports?

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SOC 2 is one of the most well-known and well-respected compliance frameworks for businesses wanting to show partners and clients that they take security seriously. With the help of expert auditors and supportive security professionals, SOC 2 can quickly become a standard part of doing business in nearly any industry. 

Organizations attempting to meet SOC 2 requirements will find that they will always seek one of two types of SOC 2 reports, Types 1 and 2. Learn more about these reports here. 


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