A SOC (Service Organization Controls) report is a way to verify that an organization is following specific best practices related to protecting their clients data before outsourcing a business function to that organization. SOC reports are important because they provide thorough business overviews delivered in a common and consistent framework, canvassing the organization’s in-scope systems in a logical way. These reports are created and validated by third-party auditors, and they are built to provide independent assurance and to help potential customers/partners understand any potential risks involved in working with the organization that was evaluated. SOC reports are governed by the American Institute of Certified Public Accountants (AICPA) and focus on offering assurance that the controls service organizations put in place to protect their clients’ assets (data in most cases) are effective. There are four main types of SOC reports: SOC 1, SOC 2, SOC 3, and SOC for Cybersecurity, with subsets of each. The type of assessment a business chooses will depend on its services and business model. SOC reports utilize independent, third-party auditors to examine various aspects of a company, such as security, availability, processing integrity, confidentiality, privacy, controls related to financial reporting, and controls related to cybersecurity. The benefit of obtaining a SOC report is that it establishes credibility and trustworthiness for a service provider, which is a competitive advantage that’s worth both the time and monetary investment. SOC reports communicate the checks and balances a company is enforcing to root out inconsistencies and send a strong message to customers that they are paying attention to how policies and procedures are followed.