AUD Review 5

Question 1

Describe the differences between the System and Organization Controls (SOC) reports.

Answer 1

SOC 1: Internal Control over Financial Reporting (ICFR)
- This report is used to provide assurance related to the financial information and that it is being handled safely and securely.

SOC 2: Trust Services Criteria
- This report is used to provide assurance to a more broad set of users regarding the internal controls relevant to the trust service criteria; security, availability, processing integrity, confidentiality, and privacy.

Type 1:
Is reporting on the design and implementation of internal control(IC) but does NOT provide assurance on the operating effectiveness of IC

Type 2:
Is reporting on the design, implementation, AND operating effectiveness of internal control and provides assurance.

Question 2

What are the components of Internal Control (IC)