Glossary · Sales & procurement
SOC 1
A third-party report on a service organization's controls relevant to client financial reporting, frequently requested in PEO due diligence.
All terms
Entravia Editorial
SOC 1 Type II reports test the operating effectiveness of payroll, tax-remittance, and related controls over a period. Public-company clients typically require SOC 1 Type II for any PEO that touches payroll inputs to financial reporting.
SOC 1 differs from SOC 2 (which addresses security/availability/confidentiality). Mature PEO buyers request both during selection.
Related terms
- SOC 2A third-party audit framework evaluating service organizations against trust service criteria (security, availability, confidentiality, processing integrity, privacy).
- SOX (Sarbanes-Oxley Act)Federal law imposing financial-reporting and internal-control requirements on U.S. public companies and their auditors.
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