What is a SOC Report and Why Does Compliance Depend on It?

If your organization works with third-party vendors, manages sensitive data, or operates in a regulated industry, you’ve likely come across the term SOC report. But what is a SOC report, and why does it play such a crucial role in maintaining compliance and trust?

Let’s break it down, from understanding the SOC report meaning to identifying which SOC report types apply to your organization.

SOC Report Meaning

A SOC report, short for System and Organization Controls report, is a third-party audit that assesses how well a service organization manages and safeguards customer data. Issued by a certified public accountant (CPA), this report demonstrates an organization’s commitment to secure, confidential, and privacy-focused data management.

Whether it’s financial controls, security policies, or data handling procedures, SOC reports help verify that best practices are in place — and functioning effectively.

Why Are SOC Reports Essential for Cybersecurity?

In today’s high-risk digital environment, a SOC audit report isn’t just a compliance checkbox — it’s a vital signal of trust. With high-profile breaches dominating headlines, customers and regulators expect service providers to demonstrate rigorous cybersecurity practices.

That’s where Swimlane steps in.

Providers of AI security automation platforms like Swimlane Turbine enables organizations to operationalize security controls required for SOC audits — and do so continuously, not just once a year. From real-time logging and monitoring to automated incident response, Swimlane gives teams the tools they need to prove their commitment to data protection and availability year-round.

SOC reports validate your organization’s dedication to protecting sensitive information and maintaining operational resilience — two outcomes that the Swimlane Turbine platform supports at an enterprise scale.

How Does a SOC Report Work? 

A SOC report is the output of a formal audit performed by a CPA. The auditor evaluates your internal controls — from data privacy to system availability — and produces a detailed report covering:

• The scope of the audit
• The controls evaluated
• The test results
• Any exceptions found

Platforms like Swimlane Turbine can play a central role in this process. By automating key components such as access control, audit logging, and risk assessments, Swimlane supports the evidence gathering necessary to pass SOC audits with confidence.

Swimlane’s SOC 2 Type II certification — covering Security, Availability, and Confidentiality — reflects how our internal processes model best-in-class compliance outcomes​.

SOC Reporting Types 

There are three main SOC report types, each designed for different use cases and audiences:

SOC 1 Report

A SOC 1 report focuses on controls relevant to financial reporting. It’s most commonly used by organizations that impact their clients’ financial statements — like payroll processors or accounting platforms.

It answers the question: What is a SOC 1 report, and is it relevant to my business? If your service could affect a client’s financial reporting, the answer is likely yes.

SOC 2 Report 

A SOC 2 report evaluates a service organization’s controls based on five Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. 

If you’re wondering what a SOC 2 report is, it’s the go-to for SaaS providers and tech companies managing customer data in the cloud.

SOC 3 Report

A SOC 3 report covers the same scope as SOC 2 but is intended for a general audience. It’s less technical and can be publicly distributed, making it a great marketing and trust-building asset.

What SOC Report Does My Company Need? 

Choosing the right SOC report type depends on your services, your customers’ expectations, and compliance requirements.

• SOC 1: Best for companies impacting financial transactions or reporting
• SOC 2: Ideal for SaaS providers and data-centric businesses
• SOC 3: Great for marketing and general transparency

Choosing between SOC 1, SOC 2, or SOC 3 depends on your business model, data handling practices, and customer requirements. Here’s a quick breakdown:

SOC Type	Best For	Swimlane Support
SOC 1	Financial reporting impact	Log collection, data access monitoring
SOC 2	Data privacy, SaaS/cloud	Automation of TSC controls via Turbine
SOC 3	General transparency	Marketing-friendly version of SOC 2 report

With Swimlane, you gain not only visibility into your controls, but also the tools to continuously enforce them — ensuring audit readiness and customer trust.

How to Achieve SOC Compliance 

Here’s a proven roadmap to SOC readiness, enhanced with Swimlane’s capabilities:

1. Assess readiness – Use Swimlane to analyze gaps in logging, monitoring, and control enforcement.
2. Engage an auditor – Partner with a CPA familiar with SOC frameworks.
3. Implement controls – Enforce least privilege, secure APIs, and audit logs using Turbine’s role-based access control (RBAC) and secure SDLC features.
4. Undergo the audit – Ensure all systems are auditable with continuous observability.
   Review and remediate – Use Swimlane dashboards and audit trails to identify and correct deficiencies.

Want to see how Swimlane prepares organizations for SOC audits? Visit our Security and Compliance Center to learn more.

SOC Report FAQs

What is a SOC report in cyber security?

A SOC report is an independent audit that assesses how securely an organization manages data. In cybersecurity, it proves that a company has strong controls around data protection, access management, and system availability.

What is the difference between SOC 1 and SOC 2 cybersecurity?

SOC 1: Focuses on financial reporting controls. Used by services that impact clients’ financial data.

SOC 2: Focuses on cybersecurity and data privacy. Evaluates controls related to security, availability, and confidentiality.

SOC 2 is the go-to standard for SaaS and cloud providers like Swimlane.

What is SOC 1, SOC 2 and SOC 3?

• SOC 1: For financial control audits.
  SOC 2: For security, privacy, and operational audits.
• SOC 3: A public-facing summary of SOC 2, used for marketing and trust-building.

SOC 3 shares the same scope as SOC 2 but omits sensitive details, making it ideal for public distribution.