A SOC 1 Report (Service Organization Controls Report) is an outside assessment on controls at a service organization, which are relevant to user entities’ internal control over financial reporting. It is what would have previously been considered to be the standard SAS 70, but falls under the SSAE 16 (Statements on Standards for Attestation Engagements No. 16) standard.
SSAE 16 is a nationally recognized auditing standard developed by the American Institute of Certified Public Accountants (AICPA). A SOC 1 assessment is widely recognized, because it means that a service organization has been through an in-depth outside review of their control activities, which generally include controls over information technology and related processes. Service organizations or service providers must demonstrate that they have adequate controls and safeguards when they host or process data belonging to their clients. In addition, Balance Point management provides assertion of the controls and their effectiveness within the SOC 1 reports.