SOC 2+ reports are highly flexible tools that can incorporate multiple frameworks and industry standards into third-party assurance reporting (see Figure 2). SOC 2+ reports create substantial efficiencies for organizations. These reports are based on a common control framework and address various industry standards.
SOC 2 is a framework applicable to all technology service or SaaS companies that store customer data in the cloud to ensure that organizational controls and practices effectively safeguard the privacy and security of customer and client data.
The short answer is no. A SOC report belongs to the service organization and they do not have to share it with anyone.
Differences: The main difference between SOC 2 and ISO27001 is that SOC 2 is focused mostly on proving the security controls that protect customer data have been implemented, whereas ISO 27001 also wants you to prove you have an operational Information Security Management System (ISMS) in place to manage your InfoSec
Who needs a SOC 2 report? If you are a service provider or a service organization which stores, processes or transmits any kind of information you may need to have one if you want to be competitive in the market exactly like the decision to have an ISO 27001 certifications.
Begin by establishing which of the SOC 2 Trust Service Categories and their 61 principles apply to your organization. Those categories, governing how your organization processes personal information, are: Security. Availability.
In simple terms, here's what you are required to do to become SOC 2 compliant:
- Establish data management policies and procedures based on the five trust service principles,
- Demonstrate that these policies are applied and followed religiously by everyone, and.
- Demonstrate control over the systems and operations.
A SOC 1 audit's control objectives cover controls around processing and securing customer information, spanning both business and IT processes. A SOC 2 audit's control objectives cover any combination of the five criteria. Readers and users of SOC 1 reports often include the customer's management and external auditors.
A Service Organization Control 3 (Soc 3) report outlines information related to a service organization's internal controls for security, availability, processing integrity, confidentiality or privacy. A Soc 3 reports on the same information as a Soc 2 report.
SOC reports refer to an audit of internal controls to ensure data security, minimal waste, and shareholder confidence; SOX relates to government-issued record keeping and financial information disclosure standards law.
The CIA triad refers to an information security model made up of the three main components: confidentiality, integrity and availability. Each component represents a fundamental objective of information security.
To get straight to the answer of how to get SOC 2 compliance and how long it takes – in general, you can expect 6 months to acquire SOC 1 Type 1 and 12 months for the SOC 2 Type 2 report. However, this will vary per size of the organisation and readiness level.
The SOC 2 audit cost for Type 2 reports usually has a starting range anywhere from $30,000-$100,000. The key difference in the Type 2 reports is the expanded review timeline of 3-12 months, and that extra timing and review can be the reason behind the higher cost.
A SOC 2 compliance checklist should include: Define organizational structure. Establish policies and procedures. Perform a risk assessment. Create a backup and recovery plan.
It's important to know that the SOC 2 audit does not grade as pass or fail. Your auditor provides an opinion on how your organization adheres to the Trust Service Principles in scope. The desired result is to receive an opinion from the auditor stating that you can be trusted as a service organization.
A clean SOC 2 audit report assures customers that their data is secure with your organization. But failing to pass a SOC 2 audit, or receiving a qualified report, can scare customers away.
Who can perform a SOC audit? A SOC audit can only be performed by an independent CPA (Certified Public Accountant) or accountancy organization. SOC auditors are regulated by, and must adhere to specific professional standards established by, the AICPA.
A SOC 2 Type 2 report is an internal controls report capturing how a company safeguards customer data and how well those controls are operating. These reports are issued by independent third party auditors covering the principles of Security, Availability, Confidentiality, and Privacy.
