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What is a SOC 1 report Bridge letter?
A bridge letter, also known as a gap letter, is made available by the service organization (your vendor) to cover a period of time between the reporting period end date of the SOC report and the release of a new SOC report. This occurs because a SOC report covers only a portion of a fiscal year.
What is an SOC 1 report?
SOC 1 Report. A SOC 1 Report (System and Organization Controls Report) is a report on Controls at a Service Organization which are relevant to user entities' internal control over financial reporting.
What does a SOC 1 mean?
A Service Organization Control 1 or Soc 1 (pronounced “sock one”) report is written documentation of the internal controls that are likely to be relevant to an audit of a customer's financial statements.
What is a SOC report?
A SOC report is a verifiable auditing report which is performed by a Certified Public Accountant (CPA) designated by the American Institute of Certified Public Accountants (AICPA). It is a collection of offered services of a CPA concerning the systematic controls in a service organization.
What is the difference between a SOC 1 and SOC 2 report?
A SOC 2 report, similar to a SOC 1 report, evaluates internal controls, policies, and procedures. However, the difference is that a SOC 2 reports on controls that directly relate to the security, availability, processing integrity, confidentiality, and privacy at a service organization.
Why do I need a SOC 1 report?
SOC 1 reports were primarily designed to report on the controls of service organizations that are relevant to their client's financial statements. SOC 1 audits are intended to aid service organizations in eliminating potential errors to client information and ensuring efficiency in their controls.
WHO issues a bridge letter?
In instances where there is a gap between the SSA 16 SOC 1 type II reporting period and user entities financial reporting period, service organizations can issue a bridge letter to user entities to provide additional comfort over the controls for the period not covered by type II report.
Which party issues the bridge letter and who is the letter issued to?
A bridge letter, also known as a gap letter, is made available by the service organization (your vendor) to cover a period of time between the reporting period end date of the SOC report and the release of a new SOC report. This occurs because a SOC report covers only a portion of a fiscal year.
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