SOC 2 automation doesn’t simply make compliance easier, it also makes it possible.
SOC 2 (Service Organization Controls 2) is a security framework with a set of compliance requirements geared toward technology-based companies that use cloud-based storage of customer data.
SOC 2 compliance is both an audit procedure and criteria, as well as a voluntary compliance standard that specifies how an organization should manage internal controls and protect customer data.
The AICPA (The American Institute of Certified Public Accountants) developed a set of criteria to be used when evaluating an organization’s design and operating effectiveness of controls relevant to the Trust Service Principles:
Security
Availability
Processing Integrity
Confidentiality
Privacy
Organizations can choose one or more of these TSPs to include in the scope of their SOC 2 report, depending on their particular business operations. It is important to note, however, that Security is mandatory. During a SOC 2 audit, the auditor will assess an organization's security posture related to the Trust Service Principles that are included in the scope of their audit. Each TSP has specific requirements that companies meet with their internal controls.
More and more companies are seeking SOC 2 reports with an ever-expanding digital world and the security risks that come with it. Importantly, more customers and prospects are asking for a SOC 2 report as a requirement in order to do business with technology-based organizations
There are many reasons why organizations need a SOC 2 report. Let’s take a look at the importance of SOC 2 compliance!!
Demonstrating SOC 2 allows you to stand out amongst other players in the market that are not SOC 2 compliant, giving customers the confidence that their sensitive data is safe and that they are partnering with a company that takes information security seriously. And so, a SOC 2 report boosts sales and enables a faster sales cycle.
SOC 2 controls are the processes, procedures, and systems that your organization has in place to protect customer data, according to the SOC 2 criteria. SOC 2 controls are based on the five Trust Service Principles that organizations include in their SOC 2 audit report and therefore, your organization’s list of controls will depend on your specific SOC 2 report scope.
SOC 2 is, in fact, not a certification. SOC 2 is an attestation. SOC 2 auditors do not certify that your organization has met SOC 2 requirements. Your SOC 2 auditor will provide his expert opinion on whether or not he agrees with management’s assertion relating to the design (Type I) and operating effectiveness (Type II) of your controls.
For startups, first-timers and companies that do not have an in-house security and compliance specialist, expert and hands-on guidance during the audit-preparation process is much needed. Companies need to understand the specific SOC 2 requirements, any compliance gaps, and much more, in order to achieve SOC 2 compliance efficiently.
Organizations need to identify which of the five Trust Service Principles to include in your audit. The controls that will be monitored will depend on these TSPs. A fixed list of controls is not best practice, as every organization is different. Therefore, a customized list of controls should cover specific risks that are relevant to your business operations. Organizations also need to decide on the reporting period in the case of a SOC 2 Type II report.
Only a licensed and independent CPA firm that specializes in IT audits can conduct a SOC 2 audit. The firm must comply with all the guidelines and updates provided by the AICPA. It is important to select an auditor that understands the specific industry of your organization and has extensive experience with SOC 2 audits, as well as experience with companies similar in size. Audit costs and timeframes will be dependent on the chosen audit firm.
The readiness assessment determines whether or not your organization is ready for the official audit. A gap analysis will identify if your security posture meets the standards of the SOC 2 criteria and any remediation necessary will take place.
After a company undergoes its observation period, in the case of a SOC 2 Type II report, the official audit will take place. The auditor will assess the controls in place, specifically whether they are operating in the manner that has been stated by management and if they comply with the criteria of SOC 2. The service auditor will issue the organization’s SOC 2 Type I or SOC 2 Type II report with details of the testing results.
A SOC 2 report is an examination. The attestation report provides the auditor’s opinion, attesting whether the internal controls of a service organization are in place and meet the criteria of the Trust Service Principles. This is the reason why there is no pass or fail of SOC 2, but rather a professional opinion in the eyes of the auditor.
Organizations need to renew their SOC 2 report annually in order for the report to remain valid. The golden rule is that a SOC 2 audit should be scheduled every 12 months. Companies should be continuously monitoring their relevant controls throughout the year and keeping policies and procedures updated. Pro-Tip: Have a SOC 2 compliance checklist in place!
SOC 2 automation doesn’t simply make compliance easier, it also makes it possible.
A SOC 2 readiness assessment is a way of examining your systems to make sure it’s compliant with security controls of the SOC 2 standard.
SOC 2 compliance opens up new markets. It helps SaaS companies stand out in a crowd.
ISO 270001 or SOC 2. Which is right for your business? It’s a common question.
There has always been some confusion between SOC 2 and SOC 3 reports. Let’s take a look at their key differences.
In this article, we’re looking at what SOC 2 controls are, and the role they play in becoming SOC 2 compliant.
If your business deals with sensitive data, it's important to understand the key differences between SOC 1 and SOC 2.
Discover what you need to know from a development point of view for SOC 2 compliance.
Pen testing is a practice simulating a cyberattack to highlight any weaknesses before a cybercriminal can use them against you.
Audit exceptions are often an acceptable part of the audit process.
Here’s everything you need to know about compliance automation and how it redefines compliance management one click at a time.
Here’s a handy checklist to help you prepare for your SOC 2 compliance audit.
Nowadays, it's more challenging to consistently protect data. Kick uncertainty to the curb with easy and consistent data compliance!
Learn more how to implement effective risk management and creating the right strategy for your business.
How can you ensure you're using the right tools to highlight all risks? Businesses need the right risk assessment methodology.
Automate your compliance journey and drive more sales, faster.
The ultimate security compliance automation and expert advisory solution, helping SaaS companies get compliant fast and stay compliant with security frameworks like SOC 2, ISO 27001, HIPAA, GDPR, and PCI DSS, without breaking a sweat.
© 2023 Scytale. All rights reserved.