Data is growing faster than it ever has before. But it is starting to become the biggest risk of every organization. The convenience and collaboration of using data stores in the cloud means that companies and hackers have more information and more access to it by design.
System and Organization Controls (SOC) reports are an essential method for service organizations to build trust and confidence in software and service delivery processes and controls that protect information and systems against risks, including unauthorized access and damage to systems. The SOC report framework, previously referred to as Service Organization Controls, was developed by the American Institute of Certified Public Accounts (AICPA) to be managed by independent third party certified public accountants (CPAs).
Service Organization Control reports (SOC), in a nutshell, help companies with various aspects of their business. Essentially, these reports outsource different responsibilities within a business, like payroll, medical claims processing, document management and much, much more. Typically, they are aspects of a business that a company or “user entity” is not capable of doing as well as the service organization. It also allows the company or “user entity” to concentrate on other facets of their business. These reports come in various types based on the type of work the user entity does.
In this article, we’ll discuss the different types of reports in detail, as well as why you might choose one Service Organization Control report over another. To best understand how it works, it’s important to make sense of the system that came before SOC. Prior to the implementation of Service Organization Control, CPAs used a system called SAS 70.
As a business owner, you are always looking for ways to set yourself apart from the competition. It may be that your exceptional service, incredible products, or perhaps low prices that give you that competitive edge. Just as important as all these things are to the success of your business, so is establishing a deep level of trust with your customers. One good way to establish this trust is to become SOC 2 Compliant.
There are five trust service principles which include:
- Processing integrity
Running a business is no easy task. Knowing whether you’re SOC 2 compliant or not is yet another thing on your already full plate of expense reports, hiring, marketing, and so much more. Using the following information will help clear any confusion so you can focus on the things you love about running your business.
Data breaches continue to be a pressing concern for companies worldwide. According to the most recent Data Breach Report, the number of reported data breaches in the first quarter of 2019 is up to 56.4% higher than what was reported in the same period last year.
Indeed, information security has become a prime concern for many organizations around the world including those who outsource their business requirements to third-party organizations such as SaaS (software as a service) and cloud computing providers. And this is not a shock since mishandled data can leave companies vulnerable to security attacks like data theft, malware installation, and extortion.
Many different auditing processes exist, and companies increasingly face the challenge of choosing which type to conduct. Consumers and business partners demand data protection, so it is vital that companies understand the differences of each auditing process available. Are you aware of the Soc 2 compliance requirements? Find out how to be compliant from the experts at RSI Security.