Compliance Standards

If you’re unsure whether SOC 2 compliance is necessary for your organization, ask yourself the following:

• Industry requirements: Which industries and niches specifically require SOC 2 compliance?
• Report types: Which type of SOC 2 report, Type I or Type II, best fits your needs?
• SOC framework differences: How does SOC 2 differ from SOC 1 and SOC 3?

Other Compliance frameworks: Are there other SOC or security frameworks that might apply to your organization?

SOC 2 Compliance is a critical standard for service-oriented businesses aiming to protect client data and build trust. Developed by the American Institute of CPAs (AICPA), SOC 2 provides a framework for managing and securing sensitive information. While achieving SOC 2 compliance can seem complex, understanding its requirements is essential for safeguarding data, meeting client expectations, and demonstrating a strong commitment to cybersecurity.

Depending on your business and the type of data you handle, you may need to be SOC 2 compliant to meet the security standards set by the American Institute of CPAs (AICPA). SOC reports, SOC 1, SOC 2, and SOC 3, apply mainly to service organizations that store, process, or manage customer data.

So, who exactly needs to be SOC 2 compliant, and what does SOC 2 cover? Keep reading to find out everything you need to know about SOC 2 compliance and how it protects sensitive data

Service organizations pursue SOC reports to demonstrate to clients that their data is handled securely. SOC 2 reports specifically assess a company’s adherence to the five Trust Services Criteria (TSC): security, availability, processing integrity, confidentiality, and privacy. These criteria, established by the American Institute of Certified Public Accountants (AICPA), form the foundation for SOC 2 controls that guide audit and reporting processes. Unlike a simple checklist, the TSC provides a framework that ensures organizations implement effective controls to protect client data.