A
AcadiFi
SF
sf_fintech2026-05-21
cpaISCSOC ReportsICFR

Which SOC report fits controls that affect a customer's financial reporting?

I keep mixing up SOC 1 and SOC 2 when the question mentions payroll or transaction processing. What is the cleanest signal for the exam?

46 upvotes
AcadiFi TeamVerified Expert
AcadiFi Certified Professional

SOC 1 is the usual fit when the service organization's controls are relevant to user entities' internal control over financial reporting. Think payroll processing, loan servicing, transaction processing, billing, or other outsourced processes that feed customer financial statements.

SOC 2 is not wrong because it is less important; it is wrong when the user need is specifically financial reporting. SOC 2 is built around Trust Services Criteria such as security, availability, processing integrity, confidentiality, and privacy.

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