Whether you’re a new entrepreneur in the software industry, scaling your startup, or a seasoned SaaS provider, securing a SOC 3 audit report can be a game-changer for your business, helping you strengthen customer trust while demonstrating your unwavering commitment to data security. The good news? It’s easier than you might think.
In this blog, we’ll explore the importance of SOC 3 in boosting your business’s credibility and reveal four easy steps that you can follow to get your hands on a SOC 3 report.
Let’s dive in!
What is SOC 3?
SOC 3 or Service Organization Control Report focuses on providing a general-use overview of an organization’s security, integrity, availability, confidentiality, and privacy controls.
Established by the American Institute of Certified Public Accountants (AICPA) as a security framework to help organizations show their commitment to data security, SOC reports aren’t legally required, but your customers and stakeholders are likely requesting the compliance report – especially if you handle customer data.
SOC 3 consists of 5 controls or Trust Service Principles (TSP):
- Security – The systems and information are protected against any damage, unauthorized access, and unauthorized disclosure of information.
- Availability – The systems and data are available for use.
- Integrity – The data is processed completely and accurately.
- Confidentiality – All information classified as confidential is protected accordingly.
- Privacy – Any personal information is collected, archived, utilized, kept, disclosed, and removed accordingly.
The above controls reassure potential customers that your software safeguards their sensitive data with the highest standards, backed by the credibility of accredited certified public accountants (CPA). These criteria further highlight that every aspect of data is expertly managed to ensure complete protection and compliance.
What is a SOC 3 Report?
Wondering what’s the difference between SOC 2 and SOC 3 reports? You’re not alone – it’s a question that comes up all the time. Simply put, a SOC 3 report is a general-use report that provides an overview of the TSCs of a service organization. They are issued semi-annually by an independent AICPA auditor service and are based on the same principles and criteria used for SOC 2 reports.
As SOC 3 reports are designed for public use and serve as excellent marketing tools, they offer a simplified, customer-centric overview of your organization’s security and compliance measures. They highlight key aspects of your systems and controls without getting into the detailed technical specifics (yawn!) found in SOC 2 reports.
Key differences between SOC 2 and SOC 3 reports:
| Differentiating Factors | SOC 2 | SOC 3 |
| Intended Audience | Restricted to specific audiences like customers, prospects, service organization management, and other specifically named parties. | For public use. |
| Level of Detail | Detailed review of security controls including auditor’s opinion and management’s assertion. | Summary of SOC 2 results, designed for general interest. |
| Intended Distribution | Provided to customers seeking details regarding how the organization is maintaining security controls to protect their data. | Publicly distributed and used for marketing purposes. |
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4 Easy Steps to Get Your SOC 3 Report
Similar to the SOC 2 compliance process, becoming SOC 3 compliant involves undergoing an audit to ensure your organization meets the required standards for security, availability, processing integrity, confidentiality, and privacy.
Here are 4 simple steps to help you prepare for and achieve SOC 3 compliance:
- Choose Your SOC Audit Type:
First, decide which SOC audit type you need. SOC 3 builds off SOC 2, but you don’t need to define a system description. Since SOC 2 and SOC 3 criteria are the same, many companies choose to get both.
- Prepare for the Audit:
Once you’ve picked your SOC framework, make sure each control is audit-ready. You can do this by conducting a gap analysis to identify any areas of weakness, and addressing these issues by implementing effective controls like access control measures. Develop and apply thorough data protection policies as part of your compliant security program to ensure you meet the necessary SOC 3 requirements. Document everything so that you can easily prove compliance when the auditor checks.
- Complete a Readiness Assessment:
A readiness assessment can be used to evaluate whether or not your business’s controls are effectively managed. It helps spot gaps or weaknesses in your SOC 3 controls before the final audit takes place. You can do it in-house, use automation tools, or engage a consultant.
- Select Your SOC Auditor:
Choose an AICPA-certified public accountant who has a good reputation and extensive experience in your specific industry for the official audit. They’ll review your controls, conduct tests, interview staff, and gather evidence to prepare the SOC 3 report. If everything is above board and the auditor agrees that management’s assertion is consistent with the relevant security controls, then guess what? You’re SOC 3 compliant! The auditor will then issue the SOC 3 general controls report confirming your organization’s compliance, and you can proudly publish your SOC 3 report on your website.
Although your organization has unique needs and requires a tailored compliance strategy, the steps above can offer you a fantastic starting point.
The good news? SOC 2 compliance software can help facilitate this entire process, taking the stress out of overcoming tough compliance requirements and saving you a ton of time and resources along the way.
Implementing and Enhancing SOC 3 Controls
Getting a SOC 3 report might sound very complex, but it really boils down to a few straightforward steps. To implement and enhance your SOC 3 controls, focus on establishing transparent, user-friendly security measures that align with SOC 2 standards.
Start by developing clear data protection policies, and continually monitor the effectiveness of your controls to ensure they meet AICPA standards and maintain compliance over time. Regularly testing your controls will help keep your security framework robust and identify any gaps that may need to be addressed throughout the year.
SOC 3 reports are perfect for sharing publicly, letting you show off your commitment to data security without spilling all the tea (aka: sensitive details). This makes SOC 3 reports a fantastic tool for building trust with customers and stakeholders, with each step taken to strengthen your information security approach signaling a major green flag.
Benefits of SOC 3
A SOC 3 report takes your SOC 2 compliance up a notch by enhancing the value of your SOC 2 attestation and providing a public, easy-to-share badge of trust that showcases your organization’s commitment to data security.
It’s proof that your systems meet rigorous information security standards, and it’s specifically designed for the world to see – no unnecessarily complicated technical details, just the data security assurance your customers want to see. Here’s why a SOC 3 report is worth it:
Builds Trust and Credibility:
Position your organization as a trusted, reliable partner that takes information security seriously.
Differentiates You in the Market:
Gain a competitive advantage and stand out as a proactive, compliance-driven company with one priority in mind: security.
Boosts Sales and Attracts New Clients:
Open doors to new business opportunities by showing both existing and prospective customers your commitment to maintaining confidentiality and protecting their data.
Although the cost of obtaining a SOC 3 report can be high, this investment pales in comparison to the potential costs of a data breach, which can include significant financial losses and long-term reputational damage. For any software company, big or small, becoming SOC 3 compliant is not only a valuable investment but also a strategic move to enhance credibility and strengthen security posture.
Streamlining SOC 3 Compliance with Scytale
In a world where data security is everything, becoming SOC 3 compliant and getting your hands on a SOC 3 report is a powerful, strategic investment for any SaaS business.
It’s more than just an attestation – it’s a public stamp of trust that boosts credibility, builds customer confidence, and ensures you remain a top choice among competitors. By proving your commitment to data security, you not only gain a marketing edge but also protect against the extremely high costs of potential breaches.
And here’s the best part: with compliance automation, Scytale can make achieving SOC 3 compliance faster, simpler, and smarter. By automating the heavy lifting of security assessments and walking you through the entire audit process, Scytale helps you streamline your SOC 2 and SOC 3 efforts, letting you focus on what matters most – growing your business with the confidence of rock-solid security.
