SOC 2

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

SOC 2 Type 1 vs Type 2: Your SOC 2 Guide to Compliance

Achieving SOC 2 Type 2 Certification is a complex process that follows these overarching steps:

• Choose the right SOC framework for your needs
• Determine the scope (or Type) of report you need
• Implement Trust Services Criteria controls
• Execute your SOC 2 compliance audit and report

All service organizations thrive on providing customers with security assurance across all information technology infrastructure and deliveries—especially regarding clients’ data.