SOC 2 Compliance: Complete Guide
SOC 2 is a set of criteria for service providers. The standard helps customers understand how their data is being handled and assures that companies are protecting their data.
If you’re wondering what SOC 2 means, what’s better for you—SOC 1 vs SOC 2, or if you should be concerned about how it applies to your business, keep reading!
Types Of SOC 2 Reports And Their Differences
There are two types of SOC 2 reports: Type 1 and Type 2.
A SOC 2 Type 1 is a report on a company’s internal controls, procedures, and policies that address material weaknesses in those areas. A SOC 2 Type 2 is designed to provide additional information on the company’s internal control deficiencies.
The difference between these two types lies in their scope. A SOC 2 Type 1 report focuses specifically on identifying material weaknesses within an organization, whereas a SOC 2 Type 2 report contains additional information about these weaknesses as well as any corrective actions taken by management or other entities within the company.
The Five Trust Services Criteria of SOC 2 Compliance
So, what is SOC 2 compliance?
SOC 2 compliance is a standard for service organizations to prove they are trustworthy and reliable. It’s an industry-wide standard that aims to ensure that cyber security practices are in place to protect your organization’s data from loss or misuse. Its trust services criteria are measures that demonstrate the effectiveness of an organization’s information security controls.
The five trust services criteria are:
- Security – The service provider has appropriate technical and operational safeguards in place to protect its environment from internal and external threats. Before the audit, you must prepare a SOC 2 controls list to give to the auditor.
- Availability – The service provider ensures timely, reliable access to data by providing continuous processing with no unplanned downtime.
- Processing integrity – The service provider’s environment is configured to prevent unauthorized access, modification, or destruction of data.
- Confidentiality – Information that has been designated as confidential must be protected in order to meet the objectives of the company. However, The service provider protects the confidentiality of information as required by applicable laws, regulations, and policies.
- Privacy – If the company is collecting, using, disclosing, retaining, or disposing of any personal information, it must meet the privacy standards. The service provider has appropriate security policies and procedures in place that are reviewed on an ongoing basis.
SOC 2 Requirements and Process
The SOC 2 compliance requirements process is a three-step process that requires your organization to develop an incident response plan and designate someone in charge of coordinating the company’s response.
The first step involves identifying the types of incidents that could affect the company, and then determining if those incidents have occurred before (and if so, how many times).
The second step involves developing a list of steps you’ll take when faced with a crisis situation.
Finally, once all this information has been collected and analyzed by experts at your organization’s security department, they will create an initial report on their findings.
This document can be useful later when reviewing past incidents or deciding whether or not there’s any need for improvement in certain areas within your company’s safety policies.
Also, Its recommended that you develop a soc 2 compliance checklist beforehand to better prepared for this.
Who Needs to Comply With SOC 2?
You’ll need to comply with SOC 2 if you handle sensitive data, including:
- Healthcare
- Financial Services (banks)
- Government (including the military)
- Education institutions and schools, such as universities and colleges.
How to Get SOC 2 Certification in 5 Steps
- Prepare for the Audit
In order to prepare for the audit, you must ensure that you comply with all the trust service principles of SOC 2. Prepare a SOC 2 questionnaire so that you are ready for whatever the auditor throws at you.
- Choose a SOC 2 Auditor
Next, while choosing a SOC 2 auditor, make sure that they are from an AICPA-affiliated firm. They must also have prior experience with conducting a SOC 2 audit.
- Conduct the SOC 2 Audit
During this stage, the auditor will take a look at your operations and security controls in place. You will have to provide them with reports of the same.
- Complete the SOC 2 Audit Report
Once the audit completed, the audit will provide you with a report stating that you have now received SOC 2 compliance. They might also suggest some improvements that you can make.
- Submit a SOC 2 Audit Report to your Clients
You can submit this report to your current or prospective clients to gain their trust.
Conclusion
SOC2 compliance is essential to ensure your company’s security and integrity. Also, Getting SOC 2 certification will help you become more responsible for your organization’s data. The five steps listed here should help you go about getting SOC 2 certified in no time!
