Are you a cloud-hosted company that handles sensitive customer data? With the sales blocker, do you need SOC 2 Compliance for small businesses, startups, or large enterprises?
We understand your concern! With increasing cyber threats and data breaches, more companies are prioritizing data security.
In fact, according to a report by Cybersecurity Ventures, cybercrime is expected to cost the world $10.5 trillion annually by 2025.
But to be compliant, you need to understand the nitty gritty of the SOC 2 Compliance Report.
In this guide, we’ll unravel the complexities of SOC 2 compliance, helping you understand its importance, the steps involved, and how Socurely can assist you in achieving it.
SOC 2, or Service Organization Control 2, is a framework developed by the American Institute of Certified Public Accountants (AICPA) to manage customer data based on five “trust service criteria” – security, availability, processing integrity, confidentiality, and privacy. Among the 5 TSCs, security is always included in SOC 2, whereas the other four are optional.
The SOC 2 Report is an attestation audit report that is provided by auditors who have been recognized by the AICPA ( American Institute of CPA). These auditors evaluate your organization using the five trust principles. Also, ensuring the security of client data handled by outside service providers is its primary goal.
A SOC 2 compliance report was created to assess whether an organization meets these criteria, ensuring that it handles data securely and protects the privacy of its clients.
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Some terms commonly used by the Auditor-
A SOC 2 audit is an evaluation conducted by an independent third-party auditor who assesses the effectiveness of an organization’s controls regarding the selected trust service criteria. The audit involves a thorough examination of policies, procedures, and systems to ensure that they are designed and operating effectively to meet the criteria. The result of this audit is the SOC 2 report, which assures clients and stakeholders about the organization’s commitment to data security.
Get ready for SOC 2 Type 1 Audit by following our previous blog- https://socurely.com/what-businesses-should-know-about-soc-2-type-1-compliance/
SOC 2 Report mainly shows the systems and procedures that protect your cloud assets and data. Further indicating the highest standards of security.
It attracts and retains customers based on trust and security that your cloud business is SOC 2 Compliant.
Further demonstrates the effectiveness of the administrative and technological controls and policies of your business information security system.
The SOC 2 Compliance Reports can be attested as two types Type 1, and Type 2.
The difference between SOC 2 Type 1 and Type 2, can be understood by knowing their elaborated sketch.
SOC 2 Type-1
Attestation for SOC 2 Type 1 is less complicated and costs comparatively less. This is because it represents a moment in time when your company’s internal controls and rules were put into effect. A SOC 2 Type 1 process typically takes one to three months to complete. Over time, SOC 2 Type 1 assesses how well the controls and policies that have been put in place are planned and aligned with the specifications provided for the TSCs that you have selected.
SOC 2 Type-2
Comparing SOC 2 Type 2 to Type 1, the latter is noticeably less thorough. SOC 2 Type 2 assesses the effectiveness of established controls and policies by mapping them to the TSC requirements that you have selected. The monitoring phase of a SOC 2 Type 2 attestation procedure lasts for three to twelve months.
Businesses must participate in a required audit for SOC 2 Type 1 and SOC 2 Type 2 to be authenticated. Unless the prospect expressly states that even a SOC 2 Type 1 will suffice, prospects typically request a SOC 2 Type 2 report when SOC 2 attestations are required to unlock sales negotiations.
Before getting the SOC 2 Audit Reports, you should know that there is no SOC 2 Report. Rather what the auditor reviews and gives the SOC 2 attestation based upon the compliance posture is the SOC 2 Report.
To get the SOC 2 Report, compliance experts and auditors suggest the following steps that you can take into account:
The first step in obtaining a SOC 2 report is to understand the Trust Service Criteria (TSC). 5 criteria are involved in the TSC-like security process, including security, availability, processing integrity, confidentiality, and privacy. Each criterion focuses on a specific aspect of data security and management. Begin by determining which criteria are relevant to your organization based on the services you provide and the type of data you handle. Security is mandatory, but you may also need to include other criteria depending on your business needs.
A readiness assessment helps you evaluate your current security controls and processes. During this assessment, identify gaps in your existing systems that need to be addressed to meet SOC 2 requirements. This step involves a thorough review of your organization’s policies, procedures, and technologies to ensure they align with the relevant TSC. You may need to engage an experienced consultant to help with this assessment and provide recommendations for improvements.
Based on the findings from the readiness assessment, implement the necessary controls and policies to address any identified gaps. This might include updating security measures, improving data handling procedures, and enhancing system monitoring practices. Ensure that all changes are well-documented and communicated across the organization. Training staff on new procedures and policies is crucial to ensure compliance.
After implementing the required controls, perform a gap analysis to verify that all identified gaps have been effectively addressed. This step involves reviewing the implemented changes to ensure they meet SOC 2 standards. A gap analysis helps confirm that your organization is fully prepared for the formal SOC 2 audit. Any remaining issues should be resolved at this stage to avoid complications during the audit.
Select an independent, certified public accountant (CPA) or a reputable audit firm to conduct the SOC 2 audit. The auditor will evaluate your controls and processes against the selected TSC. They will examine your documentation, perform tests, and assess the effectiveness of your controls over a specified period. It’s important to choose an auditor with experience in SOC 2 audits to ensure a thorough and accurate evaluation.
Prepare your team and systems for the audit by ensuring all documentation is up-to-date and easily accessible. Conduct internal reviews and mock audits to identify and address any potential issues. Ensure that your employees are aware of their roles and responsibilities during the audit process. Clear communication and organization are key to a smooth audit experience.
During the audit, the auditor will review your controls and policies, interview staff, and test systems to ensure compliance with the TSC. This process can take several weeks to months, depending on the scope of the audit and the size of your organization. Be prepared to provide evidence and answer questions about your security practices and procedures.
Once the audit is complete, the auditor will provide a SOC 2 report detailing their findings. Review the report carefully to understand any identified deficiencies and recommendations for improvement. The report will indicate whether your organization’s controls and processes meet SOC 2 standards.
If the audit report identifies any issues or areas for improvement, take immediate action to address them. Implement recommended changes and enhancements to ensure ongoing compliance with SOC 2 standards. Regularly review and update your controls and policies to maintain a high level of security.
SOC 2 compliance is an ongoing process. Continuously monitor and improve your security controls to ensure they remain effective. Regularly update your policies and procedures to reflect changes in your business operations and emerging security threats. Consider conducting periodic internal audits to identify and address any new issues promptly.
The typical price range for SOC 2 certification/attestation is USD 20,000 to USD 50,000.
The price of your SOC 2 certification will vary depending on add-ons, auditor fees, the size of your workforce, the infrastructure you use, and the state of your current tech stack.
Socurely was developed with the specific goal of assisting businesses in achieving smooth and affordable SOC 2 compliance along with other compliance like PCI DSS, ISO 27001, and more. You have total insight into your compliance posture with our integrated dashboard, which also provides you with a real-time score to track your compliance progress and pinpoint areas in your business environment that require improvement.
To make sure the auditor has access to all the information regarding controls, processes, and policies as of a certain date, the Socurely compliance automation engine also depends on its automated evidence-collecting and continuous monitoring engine.
Not only that, but our dashboard confronting the SOC 2 audit is specially made to satisfy customer demands. They receive all of the evidence in the sequence and format of their choice for working with. By doing this, we can make sure they have all they require without having to ask our clients for extra details. This shortens the audit duration by several weeks.
Are you worried about the prices? Our reliance on automation eliminates the need for us to bill our clients exorbitant fees. You will therefore only pay a small portion of the typical market price when using Socurely’s pricing model.
So what are you waiting for? Partner with Socurely to secure your business and gain the trust of your clients.
Who Needs A SOC 2 Audit Report?
Businesses looking to engage with third-party suppliers or IT service providers typically require SOC 2 Type II reports. The Systems and Organization Controls procedure will be thoroughly covered by this attestation, which is quite helpful. Although it doesn’t offer security, it does help win over potential clients’ trust.
What are the challenges to obtaining SOC 2 report?
Defining the audit scope of the SOC 2 compliance report correctly, aligning business practices with the framework requirements, documenting policies, selecting the appropriate auditor, carrying out a risk assessment, locating a pen test partner, and manually gathering evidence are some common obstacles that companies face when trying to comply with SOC 2 compliance requirements.
Why TSC Is Important for SOC 2 Compliance?
Trust Service Criteria (TSC) are the backbone of SOC 2 compliance, providing a framework for evaluating and managing risks related to data security and privacy. These criteria ensure that an organization has robust controls in place to protect data integrity and confidentiality. Selecting the right TSC relevant to your business operations is crucial for a successful SOC 2 audit and demonstrates your commitment to high standards of security and trustworthiness.
SOC 2 compliance is a critical aspect of modern data security, offering numerous benefits to organizations that handle sensitive customer information. By following the outlined steps and understanding the importance of trust service criteria, businesses can achieve SOC 2 compliance and enhance their security posture. Partnering with experts like Socurely can simplify this journey, ensuring you meet all requirements efficiently and effectively.
