SSAE 16 Includes Three Broad Types of SOC Reports

question 7

Multiple Choice

SSAE 16 includes three broad types of SOC Reports.SOC 1 reports on:

• A)ERP systems.
• B)the COSO framework.
• C)controls over security, availability, processing integrity, confidentiality or privacy.
• D)controls relevant to user entities internal control over financial reporting.

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Definitions:

Stockholders' Equity

The total value of a company's assets minus its liabilities, representing the ownership interest of its shareholders.

Asset Classification

The process of grouping a company's assets based on their nature, purpose, or the duration for which they are expected to be used in operations.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares.

Par Value

The nominal or face value of a bond, share of stock, or other security, typically set at the time of issuance and used to calculate dividends or interest.