SOC 2 compliance is a rigorous set of criteria designed to ensure the security, availability, processing integrity, confidentiality, and privacy of customer data.

The rise of cloud-hosted apps pushes the importance of staying compliant with industry standards for SaaS companies. SOC 2 compliance is thus no longer a question- “Whether you need SOC 2 Compliance?” Ensuring your organization meets stringent security standards- it’s a strategic advantage in 2024.

But before understanding the SOC 2 Security checklist, you should know that without the checklist, SOC 2 Compliance is not possible. It takes months of planning, preparation, and crossing items off a very long checklist to be SOC 2 audit-ready. Setting up internal risk, defining a scope, selecting appropriate trust service criteria, and evaluating controls are just a few of the tasks you must complete before receiving the report.

Let’s examine each step in the SOC 2 compliance checklist and discover a quick cut at the conclusion.

What Is the SOC 2 Compliance Checklist?

The SOC 2 compliance checklist is a detailed guide that organizations follow to meet the SOC 2 standards. Developed by the American Institute of CPAs (AICPA), SOC 2 focuses on five Trust Service Criteria (TSC): security, availability, processing integrity, confidentiality, and privacy.

From vulnerability management to risk mitigation, the SOC 2 Checklist reviews all! This checklist outlines the necessary steps and controls that need to be implemented and maintained to ensure compliance with SOC 2 standards. It serves as a roadmap for organizations aiming to secure their data and build customer trust.

What Is The Importance Of SOC 2 Checklist?

Using a SOC 2 checklist streamlines the audit preparation process and offers thorough coverage. It demonstrates your dedication to security and reassures clients that their information is protected.

The importance of the SOC 2 checklist cannot be overstated, let’s have a good knowledge of its importance-

• Enhance Security Posture: Implementing the SOC 2 checklist ensures that robust security measures are in place, protecting against unauthorized access and potential breaches.
• Build Customer Trust: SOC 2 compliance demonstrates a commitment to data security, building trust with customers and stakeholders.
• Meet Regulatory Requirements: Following the SOC 2 checklist helps organizations comply with various regulatory requirements, avoiding potential legal issues.
• Gain Competitive Edge: Achieving SOC 2 compliance sets an organization apart from its competitors, showcasing its dedication to maintaining high-security standards.

Adhering to the SOC 2 Checklist, organizations are prompted to codify and record policies, processes, and controls by the SOC 2 audit.

What is SOC 2 Audit?

The procedure you go through to determine whether the control set in your company satisfies SOC 2 compliance criteria is called a SOC 2 audit. To get the SOC 2 Audit, it is vital to check the SOC 2 Compliance checklist and implement the necessary. Also, the time for SOC 2 Audit depends on what type of Audit report you have chosen. There are mainly two types of SOC 2 Audit Reports: SOC 2 Type 1 Audit Report, and SOC 2 Type 2 Audit Report.

The security posture of your controls’ design and implementation at the time of your audit is attested to by a SOC 2 Type 1 report. A SOC 2 Type 2 report evaluates the operational efficacy of your security measures by attesting to your security posture over time. Depending on the duration you select, the audit window for a SOC 2 Type 2 might last anywhere from three months to a year. Your auditor will need an extra six to eight weeks to complete your SOC 2 report following the audit window.

Hence, it can be said that SOC 2 Type 1 Report takes less time, compared to SOC 2 Type 2 Report.

How To Align SOC 2 Checklist With SOC2 Trust Service Criteria?

Aligning your SOC 2 checklist with the Trust Service Criteria is crucial for ensuring compliance and protecting your organization’s data. The Trust Service Criteria encompass five key areas: security, availability, processing integrity, confidentiality, and privacy.

Here’s a detailed nine-step checklist to help you align your SOC 2 compliance efforts effectively:

1. Define Your Scope and Objectives

The first step in the SOC 2 compliance checklist is to clearly define the scope and objectives of your SOC 2 audit. Determine which systems, processes, and data will be included in the SOC 2 audit. This involves identifying all relevant applications, infrastructure, and data flows.

The more clarity you build, the more you can claim the scope, assemble a cross-functional team, evaluate controls, and undergo smooth audits while adjusting the necessary gaps.

Next, set clear objectives for your SOC 2 audit. What do you aim to achieve? Whether it’s enhancing data security, building customer trust, or meeting regulatory requirements, having clear goals will guide your compliance efforts.

When you can prepare-

• When your customers demand the report
• When you are in another geographical location
• When you need SOC 2 Reports to add the strength
• When you want to grow your security post and demand added protection from data breaches and financial and reputational losses.

2. Implement Security Controls

Security is at the core of SOC 2 compliance. Implementing robust security controls is essential to protect data and prevent unauthorized access. This includes:

• Access Controls: Ensure that only authorized personnel have access to sensitive data.
• Encryption: Encrypt data both at rest and in transit to safeguard it from potential breaches.
• Firewalls and Intrusion Detection Systems: Use firewalls and IDS to monitor and protect your network from malicious activity.

For example, a financial services firm might implement multi-factor authentication (MFA) to enhance access control. By requiring employees to verify their identity using multiple methods, the firm can significantly reduce the risk of unauthorized access.

3. Check The Type Of SOC 2 Report–

Next, decide which type of SOC 2 report is suitable for your organization. Type I reports focus on the design of your controls at a specific point in time, while Type II reports evaluate the operational effectiveness of those controls over a period. Choose the report type that best meets your needs and objectives.

For example, if you are just beginning your compliance journey or are under time constraints to demonstrate compliance intent to potential clients or prospects, go for SOC 2 Type 1. Select SOC 2 Type 2 if your clients have expressly requested it, you have finished your SOC 2 Type 1 and the three to six-month observation period, or you are already in compliance with other frameworks.

4. Define the Parameters

Clearly outline the scope of your SOC 2 audit. Identify the systems, processes, and data flows that will be included. This step involves pinpointing relevant applications, infrastructure, and data to ensure comprehensive coverage of your compliance efforts.

Also, by choosing the TSC that best fits your company’s needs depending on the kinds of data you transfer or keep, you must choose the audit’s parameters. However, based on our observations, most SaaS companies only require TSC in the areas of Security, Availability, and Confidentiality (or their combination) for their SOC 2 journey.

Here are a few instances you can consider:

• Should your customers be worried about downtime, select Availability.
• Select Confidentiality if your clients have particular demands about confidentiality or if you keep sensitive data covered by non-disclosure agreements (NDAs).
• If you carry out crucial client processes like payroll services, tax processing, and financial processing, to mention a few, then you should incorporate processing integrity.
• If your clients keep PII, such as social security numbers, birthdays, and medical records, include privacy.

5. Make an Internal Risk Analysis

Conduct a thorough internal risk assessment to identify potential vulnerabilities and areas of concern within your organization. Evaluate the risks associated with your systems and data, and prioritize them based on their potential impact on your operations. This process helps you to control the risks as per the SOC 2 Checklist.

Some questions you can ask to perform this process-

• Have you determined which risks might affect your company?
• Can you determine which of the highlighted threats apply to your key systems?
• Have you considered the importance of the dangers connected to each threat?
• What risk-mitigation techniques do you employ?

At this point, any mistakes, omissions, or failures in SOC 2 Internal risk assessment might greatly increase your vulnerabilities. A serious gap in your risk matrix might result from failing to identify the risks associated with a particular production entity (endpoint) in the event of an employee taking a lengthy leave of absence or from failing to adequately analyze the risk of consultants or contract workers, who are not employees.

6. Analyze and Close Gaps in Your Knowledge

Identify any gaps in your current security posture and knowledge. This involves assessing your existing controls and comparing them against SOC 2 requirements. Address these gaps by implementing additional measures or improving existing ones to ensure compliance. The more you rate and analyze the risks and gaps, the more remediation can be prioritized.

Some questions you can ask to follow this process-

• Is there a clear organizational structure in place?
• Do you have workers who are authorized to create and carry out policies and procedures?
• What processes do you use for background checks?
• Do your customers and staff members know how to use your system or service?
• Are frequent updates made to your hardware, software, and infrastructure?

Recall that to pass a SOC 2 audit, you must provide documentation of the procedures, guidelines, and controls you have implemented. Your information security policies and procedures, screenshots, log reports, signed memoranda, and more can all serve as evidence. If you are unable to provide verifiable evidence of meeting SOC 2 compliance criteria, the auditor may mark your account as an exception. And that’s not what you want!

7. Add Controls That Are Suitable for the Stage

Implement the necessary controls to meet the SOC 2 criteria. To set the controls follow the TSC you choose earlier. Align and implement controls by the selected TSC. These controls should be appropriate for your organization’s current stage and tailored to your specific needs. Ensure that all controls are robust and effective in protecting your data and systems.

To stop illegal access to your network, for example, you may use two-factor authentication; another company might use firewalls; yet others might use both!

8. Conduct a Readiness Assessment

Perform a readiness assessment to evaluate your organization’s preparedness for the SOC 2 audit. This involves reviewing your implemented controls, policies, and procedures to ensure they align with SOC 2 requirements. Address any deficiencies before proceeding to the audit stage.

Your areas of focus for the assessment will be:

• Client cooperation: To compile a profile of their operations and scope, your clients need to complete a guided evaluation.
• Gap analysis: It looks for weaknesses and openings and produces a list of precise suggestions and steps. From beginning to end, it takes around two to four weeks.
• Control Matrix- The control matrix includes a list of the control features, identification of internal controls, and an objectives map.
• Auditor Documentation- The process of creating the auditor request list and testing methods is known as auditor documentation.

Remap certain controls or add new ones to close the gaps left by the auditor’s findings. Technically, no company can “fail” a SOC 2 audit; but, to guarantee a satisfactory result, you must address any irregularities.

9. SOC 2 Audit

Undergo the SOC 2 examination conducted by a qualified auditor. This assessment will evaluate the design and effectiveness of your controls based on the selected SOC 2 report type. Ensure that all documentation and evidence are readily available for review.

For more clarity about our business, the auditor could inquire about the following:

• Can you provide proof that every one of your staff had their background checked?
• Could you provide evidence of how you make sure your code repositories get peer review before merging changes?
• Can you provide proof that, upon an employee’s resignation from your company, they are no longer able to access emails or databases?
• Is there documentation proving you’ve performed background checks on each employee?
• Could you provide evidence of how you keep every system’s endpoint secure?

10. Create Procedures for Ongoing Monitoring

Establish procedures for continuous monitoring and maintenance of your SOC 2 compliance. Regularly review and update your controls, conduct periodic risk assessments, and stay informed about changes in compliance requirements. Ongoing monitoring ensures that your organization remains compliant and maintains a strong security posture.

Some areas that continuous monitoring can achieve include-

• It identifies the adaptability and expansion together with your company.
• It simplifies and streamlines the process of gathering evidence.
• It does not impede the productivity of your staff members.
• It gives an entity-level detailed overview of your infosec health at any given moment, in addition to alerting you when control isn’t deployed or is deployed wrongly.

Aside from this, you will also need to implement other measures (at additional expense), which should all be on your SOC 2 compliance checklist. This includes vulnerability scanners, incident management systems, mobile device management (MDM) software, and updating security measures.

Get Your SOC 2 Checklist With Socurely

Achieving SOC 2 compliance can be a daunting task, but with the right partner, it becomes manageable. Socurely offers a “unique-to-you” compliance solution driven by a robust automation engine, streamlining the compliance process and ensuring thorough validation.

Step 1: Mapping Entities for a Stronger Security Position

The first step with Socurely involves mapping all entities within your organization to identify critical components that need protection. This tailored approach goes beyond the traditional “checking a box” method, ensuring that every aspect of your security infrastructure is robust and well-protected.

Step 2: Implementing Edge Cases

Socurely helps in addressing edge cases, ensuring that even the most complex scenarios are covered. This step involves customizing security controls to fit the unique needs of your organization, providing comprehensive coverage, and mitigating potential risks.

Step 3: Cataloging Evidence Automatically

With Socurely’s advanced automation engine, the process of cataloging evidence is streamlined. This means that all necessary documentation and proof of compliance are collected and organized efficiently, saving time and reducing the burden on your team.

Step 4: Proposing an Audit Report or SAQ

Finally, Socurely assists with the submission of audit reports or Self-Assessment Questionnaires (SAQs). This support ensures that all required documentation is complete and accurate, facilitating a smooth audit process and enhancing your chances of achieving SOC 2 compliance.

Want to experience the smooth SOC 2 Compliance process? Book your 1st consultation with us! We are here to guide you so that you can successfully start and sail your business.

FAQ

Q1: What are the key components of SOC 2 compliance?

The key components of SOC 2 compliance include security, availability, processing integrity, confidentiality, and privacy.

Q2: How long does it take to achieve SOC 2 compliance?

The timeline for achieving SOC 2 compliance varies depending on the organization’s size and complexity but typically ranges from several months to a year.