Internal controls for a service organization’s customer’s financial statement are assessed through the SOC1 Audit and Certification procedure. These are private records only the management of the service organisation, user entities, and user auditors may access. A SOC1 Certification is crucial and strongly advised for Service Organizations providing outsourced services to get advantage in their sector. The SOC 1 certificate/attestation, also referred to as System and Organization Controls, is official documentation proving that the internal controls of the Service Organizations relating to the client’s financial reports were subjected to a SOC1 audit and met the standards set forth by the American Institute of Certified Public Accountants for SOC1.The Statement on Standards for Attestation Engagements 18, which governs audit reports, applies to SOC1 reports. A Service Organization’s clients or investors may demand SOC 1 certification/attestation reports, which may have an effect on the client’s internal controls over financial reporting. A SOC 1 certification can show that the Service Organization has the required controls in place to enable the attainment of the control target, depending on the industry and the risk involved with the service given by the Service Organization.