SOC 2
Systems and Organisations Controls 2, more commonly referred to as SOC 2, is a compliance framework created by the American Institute of Certified Public Accountants (AICPA) to help businesses manage and protect customer data. The standard outlines five key areas, called the Trust Services Criteria. These are:
Security - Safeguarding data against unauthorised access.
Availability - Ensuring that systems are both reliable and accessible for employees and clients.
Processing Integrity - Guaranteeing that data processing is accurate and that systems operate as intended.
Confidentiality - Protecting sensitive information from unauthorised disclosure by limiting access, storage, and use.
Privacy - Protecting personal or sensitive information from unauthorised users.
During a SOC 2 audit, an independent auditor will verify a businesses' security posture against these criteria by reviewing the internal controls that have been put in place to meet the requirements of the standard. At the end of the audit, the business will receive an Attestation Report, which will outline how well the company's systems and controls comply with SOC 2. These reports are created regardless of whether the audit was successful or not.
There are two different types of SOC 2 report:
Type I: Assesses the design of an organization's controls at a specific point in time.
Type II: Evaluates the operational effectiveness of these controls over a period, typically over the course of six to twelve months.
While Type I is faster to achieve, it is also less valuable to potential partners or vendors as it doesn't fully reflect the security process of an organisation. As such, Type II is typically the preferred choice for businesses going through the audit process, as it provides a greater level of assurance to stakeholders.
While there is no legal requirement to comply with SOC 2, it is becoming an expected standard for any organisation that stores, handles, or processes any type of customer data. It also helps businesses differentiate themselves in an increasingly competitive and security conscious market.
Security - Safeguarding data against unauthorised access.
Availability - Ensuring that systems are both reliable and accessible for employees and clients.
Processing Integrity - Guaranteeing that data processing is accurate and that systems operate as intended.
Confidentiality - Protecting sensitive information from unauthorised disclosure by limiting access, storage, and use.
Privacy - Protecting personal or sensitive information from unauthorised users.
During a SOC 2 audit, an independent auditor will verify a businesses' security posture against these criteria by reviewing the internal controls that have been put in place to meet the requirements of the standard. At the end of the audit, the business will receive an Attestation Report, which will outline how well the company's systems and controls comply with SOC 2. These reports are created regardless of whether the audit was successful or not.
There are two different types of SOC 2 report:
Type I: Assesses the design of an organization's controls at a specific point in time.
Type II: Evaluates the operational effectiveness of these controls over a period, typically over the course of six to twelve months.
While Type I is faster to achieve, it is also less valuable to potential partners or vendors as it doesn't fully reflect the security process of an organisation. As such, Type II is typically the preferred choice for businesses going through the audit process, as it provides a greater level of assurance to stakeholders.
While there is no legal requirement to comply with SOC 2, it is becoming an expected standard for any organisation that stores, handles, or processes any type of customer data. It also helps businesses differentiate themselves in an increasingly competitive and security conscious market.
Updated on: 19/02/2025
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