SOC 1 Examinations for Service Organizations
SOC 1 reports help service organizations demonstrate how controls support their clients’ internal control over financial reporting (ICFR). If your organization processes transactions, hosts financial systems, manages assets, or supports billing, payroll, claims, or payment workflows, your clients’ auditors may request a SOC 1 Type II report.
Insight Assurance provides independent SOC 1 (both Type I and Type II) examinations under SSAE 18 for United States (US) coverage, and with ISAE 3402 alignment for organizations that serve companies outside of the US and need international reporting coverage.
Does Your Service Impact Your Clients’ Financial Reporting?
SOC 1 is designed for service organizations whose systems or processes may affect user entities’ financial reporting. This often includes:
- Payroll processors.
- Claims administrators.
- Billing and payment platforms.
- Clearinghouses.
- Asset managers and fund administrators.
- Cloud hosting providers supporting financial systems.
A SOC 1 examination helps clients and their auditors understand whether relevant controls are suitably designed (Type I) and, for Type II reports, operating effectively over time.
Core Services
SOC 1 Type I — Design of Controls
A SOC 1 Type I report evaluates the suitability of control design at a specific point in time. This is often a fit for organizations preparing for customer requests, request for proposal requirements, or an initial compliance baseline.
SOC 1 Type II — Operating Effectiveness
A SOC 1 Type II report evaluates whether controls are suitably designed and operating effectively over a defined period, often 9 or 12 months. This is commonly requested by established service providers that need deeper assurance for clients’ financial auditors.
ISAE 3402 Alignment
For organizations serving clients outside of the United States, Insight Assurance can align SOC 1 procedures with ISAE 3402 requirements. This supports ISAE3402 needs (international reporting) while maintaining consistency with US (SSAE 18) reporting requirements.
Our Streamlined Process
(1) Scoping and Strategy
Define the systems, services, and control objectives relevant to users’ internal controls over financial reporting.
(2) Readiness Assessment
Identify documentation, evidence, or control gaps before formal fieldwork begins.
(3) Fieldwork and Testing
Complete interviews, walkthroughs, and evidence collection aligned to the report type.
(4) Report Issuance
Deliver a SOC 1 report prepared under SSAE 18 and, where applicable, aligned to ISAE 3402 standards.
Who We Serve
Insight Assurance supports SOC 1 examinations for service organizations across industries, including:
- Financial services: Fund administrators, asset managers, and transaction processors.
FAQs About SOC 1 and SOC 2
What Is the Difference Between SOC 1 and SOC 2?
SOC 1 focuses on controls relevant to user entities’ financial reporting (commonly referred to as ICFR). SOC 2 focuses on controls to meet the American Institute of Certified Public Accountants (AICPA) Trust Services Criteria related to security, availability, processing integrity, confidentiality, or privacy for a defined system.
What Does AICPA and ISAE 3000 Mean for a SOC 2?
AICPA provides the United States SOC 2 framework and Trust Services Criteria, while ISAE 3000 is an international assurance standard from the IAASB that may be relevant when global stakeholders need reporting aligned to non-U.S. assurance requirements.
How Long Does a SOC 1 Type II Examination Take?
A SOC 1 Type II report typically covers a 9- to 12-month review period, followed by fieldwork, testing, and report preparation.
Can We Combine SOC 1 and SOC 2 Work?
In some cases, organizations can align SOC 1 and SOC 2 examination timelines to reduce duplicate evidence requests and streamline audit activities.
Ready for SOC Compliance?
Do not let SOC compliance slow customer conversations or auditor requests. Work with independent auditors who understand your business, your technology, and your reporting needs.
Why Choose Insight Assurance?
Insight Assurance brings independent audit experience, responsive communication, and technology-enabled workflows to SOC 1 examinations. Our team focuses on reducing unnecessary friction while maintaining the rigor required for stakeholder-ready reporting.
Big 4 expertise, agile execution
Experienced auditors without unnecessary process complexity.
AI-enhanced workflows
Automation-enabled evidence coordination to support efficient audit cycles.
Clear reporting
Findings and requests communicated in practical language.
Global footprint
Support for organizations operating across multiple jurisdictions and time zones.