SOC 2

If you’re comparing SSAE 18 SOC 2 Type 2, you’re not alone. These terms are often used interchangeably, but they are not the same thing.

Here’s the short answer:

• SSAE 18 is an auditing standard issued by the AICPA.

• SOC 2 Type 2 is a specific report performed under SSAE 18 that evaluates how controls operate over time.

Understanding the difference is critical for service organizations that handle customer data and need to demonstrate trust.

Let’s break it down clearly.

Preparing for a SOC 2 audit? Determining whether you need a SOC 2 Type 1 or a SOC 2 Type 2 report is crucial for your compliance and client trust. Ask yourself the following questions to guide your decision:

• Do you need SOC 2 reporting at all for your organization? 
• Would a SOC 2 Type 1 report be sufficient to meet your initial requirements? 
• Do you require a SOC 2 Type 2 report to demonstrate ongoing security controls over time? 
• Could your business benefit from having both a Type 1 and a Type 2 report?
  

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.

Organizations aiming to achieve SOC 2 Framework compliance often face challenges, such as scoping their SOC 2 reports, addressing gaps in control implementation, and allocating resources for audits.

Partnering with an experienced compliance advisor can help your organization navigate these hurdles efficiently.

Facing obstacles with your SOC 2 Framework implementation? Schedule a consultation today to get expert guidance.

The American Institute of Certified Public Accountants (AICPA) manages several certification programs for service organizations, including software-as-a-service (SaaS) providers. When clients are uncertain about a SaaS company’s data protection measures, obtaining SOC 2 Type 2 Certification provides concrete assurance of trust.

The key benefits of this certification include increased customer confidence, reduced impact from security incidents, and simplified regulatory compliance.

SOC 2 compliance is essential for service organizations that want to prove their security and operational practices meet industry standards. One of the key trust service criteria in a SOC 2 audit is processing integrity. This principle focuses on ensuring that data processing is accurate, complete, timely, and authorized, supported by specific controls across objectives, inputs, processes, outputs, and storage.

Is your organization preparing for a SOC 2 audit? Schedule a consultation today to assess your readiness.

Demonstrating a commitment to data security is no longer optional—it’s expected. If your organization handles sensitive data, provides IT services, or operates within regulated industries, you’ll need more than policies in place—you’ll need to prove those controls work. That’s where attestation services governed by the American Institute of Certified Public Accountants (AICPA) come in.