SOC 2

The current information environment puts pressure on businesses to find partners, services, and products that build security into their foundation. With cyberattacks and data loss costing businesses millions every year, fewer are willing to acquire new software without knowing if they have implemented some security framework. 

Compliance with the Service Organization Control (SOC) 2 report is vital for any service organization. For auditing success, it is best to conduct an SOC 2 readiness assessment.

Information systems is a growing industry that requires transparency and trust. Some companies provide these information systems as services. One of the best ways to ensure the quality of these services is to learn SOC reporting requirements.

Businesses that process client data need to find ways to make their valued clients trust them.  Whether your business is storing delicate financial information, transporting medical records, or processing intricate biographical details, it’s important to follow the SOC 2 guidelines set out by the American Institute of CPAs (AICPA). But what do these guidelines entail? What does SOC 2 certification cost, and what factors impact and influence cost?

Your business stores a lot of consumer information that needs to be protected from hackers and other cybersecurity threats. Depending on the industry, your company needs to meet certain compliance standards, and this is one of the reasons why you should conduct a SOC 2 audit.

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:

• Security
• Availability
• Processing integrity
• Confidentiality
• Privacy

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.