SOC 1 refers to a type of audit report that evaluates the controls at a service organization related to financial reporting. It is primarily used by companies that provide services affecting their clients' financial statements, ensuring that these controls are effective and reliable. The SOC 1 report is essential for organizations that rely on third-party services, as it helps them assess the risks associated with outsourcing. This report is typically prepared according to the standards set by the AICPA (American Institute of Certified Public Accountants) and is crucial for maintaining trust and transparency in business relationships.