IT audits don't always consist of direct testing, but also indirect testing. 

One example is the Service Organization Control (SOC) Report. 

A Service Organization Control (SOC) Report is a report that provides assurance that the controls over a company's services (systems or infrastructure) are adequate, which can be considered an appropriate indirect test if the company is regularly monitoring that the controls relevant to the audit are properly designed.  

This article will examine the necessity for SOC reports, the Type I, Type II, and Type III reports that are available, and how to use them in various contexts, including IT audits and cybersecurity assessments. Knowing the significance of SOC reports,

SOC reports are divided into three different categories and two different forms.

Type 1 is a time-based evaluation, which is equivalent to the design assessment, and Type 2 is a period-based assessment, which is equivalent to the design assessment and operation assessment.

The term typically doesn't span the entire year, such as "January to September," and the corporation that issues the BRIDGE LETTER, not the organization that issues the SOC, is the one that provides the evidence of the unfilled time frame.

A document known as the "BIRDGE LETTER" is used to cover the remaining period and certifies that the company's internal controls and systems have not changed.

Let's examine each sort of SOC report's qualities in more detail.

1. SOC 1 Report

The SOC 1 Report is used in the computerized audit of an accounting firm and is associated with the ICFR in terms of financial reporting. It assesses a service organization's financial reporting controls, particularly its internal financial reporting controls (ICFR). It applies to service organizations that handle financial transactions or offer financial services, and users can be divided into management and auditors of the service organization as well as management and auditors of the user.

SOC 1 reports are classified into Type 1 and Type 2.

2. SOC 2 Report

The SOC 2 Report is a report related to security, availability, processing integrity, confidentiality, and privacy and is non-ICFR. It has a limited audience and the scope of distribution is specified in the contract or report.

They are primarily relevant to service organizations that store or process sensitive customer information, such as medical or financial information.

SOC 2 reports are classified into Type 1 and Type 2.

3. SOC 3 Report

The SOC 3 Report, which is a condensed version of the SOC2 Report, is produced for public release. It expresses an overview or general opinion rather than specific findings or opinions about whether controls are effectively designed and implemented, in contrast to the SOC 2 report, which expresses findings or opinions.

A service organization's controls are high-level summarized in SOC 3 reports, which can also be used for marketing.

There is only one type of SOC 3 report.

Conclusion:

SOC reports are used to increase customer trust by proving that your business abides by rules and laws. Financial audits and cybersecurity assessments are just two uses for SOC reports (Type I, Type II, and Type III), which come in a variety of formats.

In any circumstance, from financial audits to cybersecurity assessments, SOC reports are crucial for upholding trust and transparency between service providers and their clients.

Source: 

[1] https://www.pwc.com/us/en/services/trust-solutions/digital-assurance-transparency/soc-reporting.html

[2] https://www2.deloitte.com/content/dam/Deloitte/cz/Documents/risk/SOC1_EN_online_fin-0730.pdf

[3] https://www2.deloitte.com/za/en/pages/risk/articles/service-organisation-controls.html