A SOC 1 report is utilized by organizations that outsource specific services or systems that may impact their internal controls over financial reporting.
A SOC 2 report, on the other hand, is designed to address the needs of a wide range of users seeking detailed information and assurance regarding a service organization's controls. This report plays a crucial role in the oversight of the organization, vendor management programs, and internal corporate governance and risk management processes. It can be shared with various stakeholders, including user entities, CPAs serving those entities, regulators, and business partners.
A SOC 3 report is aimed at users who require assurance about a service organization’s controls but do not need the in-depth detail provided in a SOC 2 report. Essentially a more concise version of the SOC 2, the SOC 3 is user-friendly and suitable for general distribution.