When Financial Controls Must Be Trusted
SOC 1 Demonstrates Control Over Financial Reporting
Organizations that provide services impacting their customers’ financial reporting are expected to demonstrate that controls are properly designed and operating effectively. Internal assurances are no longer sufficient — customers, auditors, and stakeholders require independent validation.
SOC 1 examinations provide a structured way to evaluate controls relevant to Internal Control over Financial Reporting (ICFR), helping organizations build trust with clients who rely on their services.
What Is SOC 1 (SSAE 18)?
SOC 1 is an attestation framework governed by the AICPA under SSAE 18. It evaluates controls at a service organization that are relevant to its clients’ financial reporting.
An independent CPA firm performs the examination and issues a report that user auditors rely on to assess the impact of outsourced services on financial statements.
SOC Levels Explained
Understanding the differences between SOC 1, SOC 2, and SOC 3 reports is critical when determining how to demonstrate assurance to customers, auditors, and stakeholders. Each report serves a distinct purpose, depending on the nature of your services, the type of data you handle, and the expectations of your users.
SOC 1
Focuses on controls relevant to financial reporting. SOC 1 reports are typically used by service organizations whose systems may impact their customers’ financial statements.
SOC 2
Evaluates controls related to the Trust Services Criteria — security, availability, processing integrity, confidentiality, and privacy. SOC 2 reports are commonly used to demonstrate how organizations protect customer data.
SOC 3
Provides a high-level, public-facing summary of a SOC 2 report without detailed testing results. SOC 3 reports are designed for general distribution and marketing purposes.
SOC 1 Readiness & Advisory Services
Many organizations pursue SOC 1 because customers or auditors require it — but underestimate the level of control definition, documentation, and evidence needed. Processes may exist, but control objectives, ownership, and testing readiness are often not clearly established.
RS Assurance & Advisory provides SOC 1 readiness and advisory services — not the examination.
Scoping & Control Objectives
We help define the scope of your SOC 1 report and establish clear control objectives aligned to processes that impact financial reporting. This ensures your approach meets user auditor expectations.
Control Design & Documentation
We support the design and refinement of controls, narratives, and documentation. This includes aligning process descriptions, control activities, and evidence to ensure consistency and auditability.
Readiness & Examination Preparation
We develop remediation plans and guide organizations through readiness activities, including evidence preparation and pre-assessment reviews to ensure alignment before engaging an independent auditor.
All services are advisory in nature and designed to prepare organizations for independent SOC 1 examinations while preserving auditor independence. Our approach prioritizes building a control environment that is clear, consistent, and defensible under audit.
We most commonly support service organizations whose activities impact customer financial reporting, including payroll processors, SaaS providers with financial integrations, managed service providers, and other outsourced business service organizations.
For additional insights, explore our related resources:
[Understanding SOC 1 Control Objectives]
[SOC 1 vs SOC 2: Key Differences]
[How to Prepare for a SOC 1 Examination]
[Addressing Exceptions in SOC Reports]
Why Organizations Choose RSAA
AICPA & SOC Expertise
We bring experience with SOC 1 requirements and ICFR expectations, ensuring alignment with user auditors and regulatory standards.
Senior-Level Guidance
Engagements are led by experienced CPAs and cybersecurity professionals who understand both financial controls and operational realities.
Practical, Risk-Based Approach
We focus on controls that materially impact financial reporting and audit outcomes, avoiding unnecessary complexity.
Clarify Your SOC 1 Readiness Path
If your organization’s services impact customer financial reporting, RS Assurance & Advisory can help you define scope, establish control objectives, and prepare for a successful SOC 1 examination.