SOC 2

In the complex realm of cybersecurity, many organizations face the challenge of navigating a multitude of frameworks and standards to protect their data. Among these, SOC 2 compliance stands out, especially for service-oriented businesses. Developed by the American Institute of CPAs (AICPA), SOC 2 provides essential guidelines for managing and securing client data. Understanding SOC 2 and achieving compliance can be daunting, but it’s crucial for safeguarding sensitive information and demonstrating your commitment to security.

All SOC 2 attestations are audits using the American Institute of Certified Public Accountants’ (AICPA’s) System and Organization Controls (SOC) frameworks. Any organization considering SOC compliance must choose between various SOC levels (i.e., SOC 1, SOC 2, and SOC 3) and the Types of SOC audits (i.e., Type 1 or Type 2). Read on to learn what differentiates a SOC 2 Type 1 attestation and SOC 2 Type 2 attestation and which is best for your organization.

The American Institute of Certified Public Accountants (AICPA) oversees several certification programs for service organizations, including those for software-as-a-service (SaaS) providers. If clients are uncertain about the SaaS company’s security measures protecting their data, producing a System and Organization Controls (SOC) 2 Type 2 report provides concrete trust assurance.

The American Institute of Certified Public Accountants (AICPA) manages various certification programs for service organizations, including those for software-as-a-service (SaaS) providers. If clients are concerned about how a SaaS company secures their data, a System and Organization Controls (SOC) 2 Type 2 report offers tangible assurance of trust. SOC 2 Type 2 certification enhances customer confidence, reduces incident impact, and simplifies compliance.

SSAE 18 is a set of standards governing service organizations’ security practices. It’s used to identify and manage risks involved in handling consumer data. Many organizations need to showcase compliance with SSAE 18 standards through SOC audit reports. While SSAE 18 Type 2 is often misused to refer to SSAE 18 SOC 2 Type 2 reports, the usage is commonly accepted. SOC 2 reports closely follow guidelines laid out in SSAE 18, especially for service organizations that utilize subcontractors or sub-service organizations. 

Service organizations that need to become SOC 2 compliant often struggle with scoping out their SOC 2 Report. Other issues include covering gaps in the control layout and allocating the resources needed for an audit. Working with a compliance partner helps solve for all of them.

Preparation for a SOC 2 Type 2 audit comprises four essential steps:

• Establishing an accurate implementation and assessment scope
• Implementing the Common Criteria from the SOC 2 Type 2 controls list
• Installing any Additional Criteria controls that may be required of you
• Conducting the assessment and reporting on your SOC 2 compliance

Preparing for a SOC 2 audit? To figure out which type you need, ask the following questions:

SOC 2 compliance ensures service providers meet client expectations for data security, and it offers the best value when implemented efficiently. To do so, organizations need to scope and install controls intentionally, prioritizing necessities for the specific kind of audit they’re targeting.

If you’re on the fence about whether you need SOC 2 compliance, you should consider:

• Which industry niches specifically require SOC 2
• Which Type of SOC 2 report might be best for you
• What differentiates SOC 2 from SOC 1 and SOC 3
• What other SOC compliance frameworks might apply