How to Review a SOC 1 Report in Under an Hour
The average SOC 1 Type II review takes 8.5 hours for experienced auditors. But with the right framework and tools, you can complete a thorough, high-quality review in under 60 minutes. Here's the exact process used by top-performing audit teams.
Time Breakdown
- • Pre-review preparation: 5 minutes
- • Report overview and scoping: 8 minutes
- • Exception identification: 12 minutes
- • Control mapping and gap analysis: 15 minutes
- • CUEC extraction and assessment: 10 minutes
- • Documentation and conclusion: 10 minutes
- Total: 60 minutes
Step 1: Pre-Review Preparation (5 Minutes)
Don't start reading the report cold. Proper preparation saves 20+ minutes during the actual review.
What to Do:
- Pull prior period reports (if available) - Review previous exceptions and management responses
- Gather client risk assessment - Understand which assertions and accounts are most material
- Prepare your template - Have your standard review workpaper open and ready
- Set up automation tool - If using SOC Review or similar, upload the PDF now
Pro Tip: Create service organization profiles for commonly reviewed entities. Note their typical control structure, historical exception patterns, and key contacts. This saves 10-15 minutes on repeat reviews.
Step 2: Report Overview and Scoping (8 Minutes)
Quickly extract critical information about scope and coverage.
Key Items to Extract:
✓ Report Period
Verify it covers your client's fiscal period. Flag any gaps.
✓ Service Organization Type
Payroll, benefits admin, cloud hosting, etc. - determines which assertions are relevant.
✓ Opinion Type
Unqualified, qualified, or adverse. Any qualifications require immediate attention.
✓ Subservice Organizations
Note any carve-outs or inclusive methods. These create additional risk.
Speed Technique:
Use your PDF reader's search function (Ctrl+F) to jump directly to key sections:
- Search "opinion" to find the auditor's conclusion
- Search "exception" to identify test results
- Search "subservice" to locate third-party dependencies
- Search "complementary" or "CUEC" to find user entity controls
Step 3: Exception Identification (12 Minutes)
This is the most critical step. Exceptions directly impact your reliance strategy.
Manual Method:
- Navigate to Section IV (Test Results and Exceptions)
- Skim each control's test results - look for "exception," "deviation," "instance," or "noted"
- For each exception found:
- Note the control objective affected
- Document the nature of the exception
- Identify frequency (1 of 25 items, etc.)
- Assess severity based on your client's risk
- Check management's response to each exception
Automated Method (Recommended):
Use SOC Review or similar automation to:
- Automatically extract all exceptions in under 30 seconds
- Categorize by severity (critical, significant, minor)
- Link exceptions to affected financial statement assertions
- Highlight potential compensating controls
Time Savings: Manual exception extraction averages 45 minutes. Automation reduces this to 3.5 minutes - a 92% reduction.
Step 4: Control Mapping and Gap Analysis (15 Minutes)
Map service organization controls to your client's financial statement assertions and identify gaps.
The 5-Assertion Framework:
| Assertion | Controls to Verify | Time |
|---|---|---|
| Completeness | Interface controls, batch totals, reconciliations | 3 min |
| Accuracy | Edit checks, calculations, data validation | 3 min |
| Validity | Authorization, access controls, segregation of duties | 3 min |
| Authorization | Approval workflows, dual controls, review procedures | 3 min |
| Cutoff | Timing controls, period-end procedures | 3 min |
Gap Analysis Checklist:
- Are all material assertions addressed by at least one control with no exceptions?
- For exceptions identified, are there compensating controls at the service org?
- Are there controls your client needs to implement (CUECs) to mitigate gaps?
- Does the control environment address your client's specific risk areas?
Step 5: CUEC Extraction and Assessment (10 Minutes)
Complementary User Entity Controls are YOUR responsibility to test. Don't miss these.
Where to Find CUECs:
- Section I: Management's Assertion (usually listed here)
- Section III: Control descriptions (often embedded in descriptions)
- Look for phrases like "user entity should," "client is responsible for," "user organization must"
Document for Each CUEC:
- 1. The specific control activity (e.g., "Review exception reports weekly")
- 2. Related service organization control (which control it complements)
- 3. Assertion affected (completeness, accuracy, etc.)
- 4. Client implementation status (has your client implemented this?)
Critical Warning: The #1 mistake in SOC reviews is failing to test CUECs at the client. If your client hasn't implemented a required CUEC, you cannot rely on the related service organization control - even if that control operated effectively.
Step 6: Documentation and Conclusion (10 Minutes)
Synthesize your findings into clear audit conclusions.
Required Documentation:
1. Summary of Key Information
- Service org name and type
- Report period and opinion type
- Service auditor firm name
2. Exception Analysis
- List all exceptions with severity assessment
- Impact on your client's financial statements
- Compensating controls (if any)
3. CUEC Testing Plan
- All identified CUECs
- Testing procedures for each
- Responsible team member and timing
4. Reliance Conclusion
- Can you rely on service org controls?
- Are additional substantive procedures needed?
- Any limitations or concerns?
Time-Saving Tips from Top Performers
Use Automation Strategically
Let tools handle extraction and mapping (saves 40+ minutes). Focus your expertise on judgment calls like exception severity and reliance decisions.
Build Reusable Templates
Create assertion mapping templates for common service types (payroll, benefits, cloud hosting). Reuse and adjust rather than starting from scratch.
Focus on High-Risk Areas First
Not all controls are equally important. Prioritize controls that affect material accounts and assertions. Low-risk controls can receive lighter review.
Leverage Prior Period Knowledge
For repeat service organizations, start with last year's exceptions and CUECs. This provides immediate context and saves discovery time.
Communicate Early on Exceptions
Don't wait until review completion to flag significant exceptions. Alert the engagement team immediately so they can plan additional procedures in parallel.
When 60 Minutes Isn't Enough
Some SOC reports legitimately require more time:
- Complex multi-service reports (cloud + application + managed services) - budget 90 minutes
- Reports with 5+ exceptions - add 15 minutes per exception beyond the first 3
- First-time service organizations - add 20 minutes for learning curve
- Qualified or adverse opinions - requires detailed root cause analysis, budget 2+ hours
Next Steps
Ready to implement this framework? Here's your action plan:
- Download or create review templates based on this guide
- Time your next 3 reviews using this method to establish your baseline
- Identify your biggest time sinks (usually exception identification or CUEC extraction)
- Consider automation for repetitive tasks that don't require professional judgment
- Refine your process based on what works best for your firm's workflow
Cut Your Review Time by 65%
SOC Review automates the most time-consuming parts of this framework: exception extraction, control mapping, and CUEC identification. Complete thorough reviews in under 30 minutes while improving accuracy.