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Glossary definition: SOC 1

SOC 1: Understanding Your Report

SOC 1 is an abbreviation for Service Organization Controls 1 Report. It is a report issued by an independent auditor that provides assurance to a service organization's customers that the organization has adequate controls and safeguards in place to protect their customers’ financial information. The report is based on the American Institute of Certified Public Accountants (AICPA) Trust Services Principles and Criteria, which are a set of standards designed to evaluate the effectiveness of a service organization's internal controls. The report is used to provide assurance to customers that their financial information is secure and that the service organization is following accepted standards and procedures to protect their data. The report is also used to demonstrate compliance with applicable regulations and industry standards.