SOC 2 Type 1 report details the suitability of the design controls to the service organization’s system. It details the system at a point in time particularly its scope, the management of the organization describing the system, and the controls in place.
Key to this report is its ‘as of’ date meaning it deals with the specifics of a system within a particular point in time. The auditor will base his or her report on the description of the controls and review of documentation around these controls.
As proof of compliance to the AICPA auditing procedure, SOC 2 Type 1 report shows that a SaaS firm has best practices in place. There are numerous benefits that this report can provide to any service entity.
SOC 2 Type 1 report is particularly helpful to service companies as it can make them more competitive. It gives potential customers the assurance that a service organization has passed the said auditing procedure, and that their data is safe if they work with the SOC 2-compliant company.