Who Requests SOC Reports and Why Do They Matter?

System and Organization Controls (SOC) reports provide independent assurance over an organization's controls and processes for customers, auditors, business partners, investors, and other stakeholders. Who requests and benefits from a SOC report depends largely on the type of report and the assurance those stakeholders need.

As organizations increasingly rely on third parties for services such as cloud hosting, payroll processing, cybersecurity monitoring, payment processing, and data storage, customers and stakeholders want greater confidence that those service providers have appropriate controls in place.

Who Requests and Benefits From a SOC 1 Report?

SOC 1 reports focus on controls at a service organization that may be relevant to a customer's internal control over financial reporting (ICFR). They are particularly relevant when an organization outsources processes that affect its financial reporting.

Common Requestors

• Customers whose financial reporting relies on outsourced services such as payroll processing, loan servicing, or claims processing
• External financial statement auditors who need assurance over outsourced processes affecting financial reporting

Who Benefits

• Customers gain confidence in the controls over financial data processed by the service organization
• User auditors may reduce the amount of direct testing they need to perform
• Service organizations can streamline customer audit requests by providing a standardized independent report

Who Requests and Benefits From a SOC 2 Report?

SOC 2 reports evaluate controls related to one or more of the Trust Services Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy.

Common Requestors

• Customers and prospects performing vendor due diligence
• Organizations sharing sensitive or regulated data with third parties
• Business partners evaluating cybersecurity and operational risk

Who benefits

• Customers receive assurance about the controls in place to protect their data
• Service organizations demonstrate their commitment to security, compliance, and risk management
• Sales and vendor management teams can use SOC 2 reports to help build trust and support procurement processes

Who Requests and Benefits From a SOC 3 Report?

SOC 3 reports provide a high-level summary of a SOC 2 examination without including detailed testing procedures or results. Unlike other SOC reports, SOC 3 reports are intended for general use and can be distributed publicly.

How it’s typically used

SOC 3 reports are generally not requested directly by customers. Instead, organizations often publish them proactively for public distribution.

Who benefits

• Prospective customers and business partners gain high-level assurance over the organization's controls
• Service organizations can publicly demonstrate their commitment to security and transparency without sharing the detailed information contained in a SOC 2 report

Who Requests and Benefits From a SOC for Supply Chain Report?

SOC for Supply Chain reports focus on controls related to the production, manufacturing, or distribution of goods. They can provide customers and other stakeholders with information about risks within an organization's supply chain operations.

Common Requestors

• Customers seeking assurance over supplier reliability and operational resilience
• Large business partners or stakeholders concerned about supply chain disruptions and operational risk

Who benefits

• Customers gain greater visibility into supplier processes and risk management practices
• Organizations can demonstrate the reliability and integrity of their supply chain operations

Who Requests and Benefits From a SOC for Cybersecurity Report?

SOC for Cybersecurity reports evaluate an organization's enterprise-wide cybersecurity risk management program. They provide stakeholders with independent information about how an organization manages cybersecurity risk.

Common Requestors

• Boards of directors
• Investors and stakeholders
• Large customers and business partners
• Organizations seeking broader assurance over cybersecurity governance and risk management

Who benefits

• Stakeholders gain confidence in how the organization identifies, manages, and responds to cybersecurity risks
• Management and boards receive independent validation of the organization's cybersecurity program

Which SOC Report Is Right for Your Organization?

The appropriate SOC report depends on what type of assurance your stakeholders need and how they intend to use the report.

Whether the focus is financial reporting, cybersecurity, privacy, or operational resilience, SOC reports can provide independent assurance over key controls and processes. For customers, auditors, investors, and business partners, these reports can support informed risk decisions. For service organizations, they can demonstrate accountability, transparency, and a commitment to strong controls.

Reach out to one of our Risk Assurance professionals to help you understand the different types of SOC reports and determine which may be appropriate for your organization. 

HoganTaylor Risk Assurance Services

The HoganTaylor Risk Assurance team is a dedicated group of experienced professionals ready to validate and showcase your investment in information security. If you have any questions about the content of this publication, or if you would like more information about HoganTaylor's Risk Assurance services, please contact Kevin Hearn, Risk Assurance Lead. 

INFORMATIONAL PURPOSE ONLY. This content is for informational purposes only. This content does not constitute professional advice and should not be relied upon by you or any third party, including to operate or promote your business, secure financing or capital in any form, obtain any regulatory or governmental approvals, or otherwise be used in connection with procuring services or other benefits from any entity. Before making any decision or taking any action, you should consult with professional advisors.