What does SOC 2 stand for? What is SOC 2 compliance? What is a SOC 2 report? SOC 2 Type 1 vs. SOC 2 Type 2 reports Importance of SOC 2 compliance? How long does it take to get a SOC 2?… All this questions are answered in this article.
SOC 2 is a compliance framework used to evaluate and validate an organization’s information security practices. It’s widely used in North America, particularly in the SaaS industry. To get a SOC 2, your organization’s security controls need to be assessed against a set of criteria to verify that you’ve implemented the appropriate policies and protocols to protect your customers’ data. A SOC 2 helps build trust with stakeholders by demonstrating the measures you have in place to keep their data safe.
What does SOC 2 stand for?
SOC 2 stands for System and Organization Controls 2. It was created by the American Institute of Certified Public Accountants (AICPA) to help organizations verify their security practices and reduce the risk of security breaches. The name refers to the specific controls being assessed, which in SOC 2’s case, focus on an organization’s data security across technical systems and daily operations.
Your checklist to SOC 2 compliance
Need your SOC 2 report but unsure where to begin? This guide walks you through the steps to attain SOC 2 compliance.
What is SOC 2 compliance?
Achieving SOC 2 compliance means implementing appropriate security controls and having those controls assessed by a third-party auditor. Your auditor will evaluate your information security practices based on five categories, known as the Trust Services Criteria (TSC):
• Security (CC): Protection against unauthorized access and disclosure.
• Availability (A): Ensuring systems and information are available for their intended use.
• Confidentiality (C): Ensuring confidential information remains confidential.
• Processing integrity (PI): Data processing is accurate, complete, and timely.
• Privacy (P): Consumer data is protected, with transparency on its collection, use, and disposal.
The Trust Services Criteria (TSC) of SOC 2
Your auditor will assess your security practices using the five Trust Services Criteria (TSC). The security criteria, also known as the common criteria, are mandatory for all SOC 2 reports. The remaining four criteria are only included if they apply to your organization’s products and services. For example, confidentiality should be added to your report if relevant to your business.
What is a SOC 2 report?
A SOC 2 report verifies your SOC 2 compliance. To obtain this report, you’ll need to hire an AICPA-accredited auditor who will evaluate your data security practices and document the controls you’ve implemented. The auditor will then issue a report detailing their findings and attesting to whether your organization meets SOC 2 criteria.
SOC 2 Type 1 vs. SOC 2 Type 2 reports
There are two types of SOC 2 reports:
• SOC 2 Type 1: Focuses on the security controls you’ve implemented at the time of the audit. It verifies the presence of necessary controls but does not evaluate their effectiveness over time. SOC 2 Type 1 is faster and more cost-effective, but it holds less value for larger firms.
• SOC 2 Type 2: Evaluates the effectiveness of your security controls over a specified period, typically between three to twelve months. This report provides stakeholders with reassurance by demonstrating that your controls are consistently effective.
Importance of SOC 2 compliance
While SOC 2 is not legally required, it is often a prerequisite for doing business, especially with clients or investors in North America. A SOC 2 report helps customers reduce the risk of engaging with you as a vendor by verifying the data protection measures you have in place.
The benefits of SOC 2 compliance
• Demonstrates a strong data security posture.
• Verifies, through an audit, that you’ve minimized the risk of a data breach.
• Opens opportunities with high-value clients requiring SOC 2 compliance.
• Builds trust with stakeholders by showcasing robust security practices.
How long does it take to get a SOC 2?
The entire SOC 2 process typically takes six months to a year, from preparing controls to receiving your completed report. This involves identifying gaps, setting up controls, testing them, collecting evidence, and finding an auditor. Once the audit starts, it typically takes four to six weeks.
However, you can expedite this process with compliance automation.
Streamlining your SOC 2 audit with benchmarked services
With benchmarked trust services, you can accelerate your SOC 2 audit. Here’s how an automated SOC 2 process works:
- We assess risks holistically
- You receive notifications on non-compliance areas.
- You get a checklist of actions to implement necessary changes.
- We collect evidence and centralize documents.
- Complete your SOC 2 in half the time.
By using a benchmarked , you can save significant time and money during your SOC 2 audit.
