Service Organization Control (SOC) 2
SOC 2, or Service Organization Control 2, is a security compliance framework developed by the American Institute of Certified Public Accountants (AICPA).
It focuses on five "trust service principles": security, availability, processing integrity, confidentiality, and privacy. SOC 2 is particularly relevant in the SaaS industry and helps organizations demonstrate their commitment to data security to clients and partners.
Here's a more detailed breakdown:
Purpose
SOC 2 helps organizations evaluate the security practices of their third-party service providers, ensuring they handle data securely and responsibly.
Trust Services Criteria:
The framework is built around five "Trust Services Criteria":
Security: Protecting systems from unauthorized access.
Availability: Ensuring systems are available for their intended use.
ProcessingIntegrity: Ensuring data processing is complete, accurate, and timely.
Confidentiality: Protecting sensitive information from unauthorized access.
Privacy: Protecting personal information.
Types of SOC 2 Reports:
Type I: Focuses on the design of a service organization's controls and whether they are suitable for meeting the relevant trust principles.
Type II: Goes further, examining the operational effectiveness of those controls over a period of time.
Benefits of SOC 2 Compliance:
Increased Trust: Demonstrates a commitment to data security, building trust with customers and partners.
Risk Mitigation: Helps organizations reduce the risk of engaging with service providers with inadequate security controls.
Competitive Advantage: Shows a strong data security posture, which can be a differentiator in the market.
Scope of Services We typically propose a phased approach to support you through both Type I and Type II readiness and audit: Phase 1: SOC 2 Readiness Assessment Identify the in-scope systems and services. Assess current control environment against selected TSCs. Deliver Gap Assessment Report with remediation recommendations. Phase 2: Control Design & Implementation Support in developing control activities mapped to TSC. Assist with drafting policies, procedures, and control narratives. Provide a Risk Assessment methodology aligned with AICPA guidance. Phase 3: Type I Audit Preparation Review evidence of control design and implementation. Prepare management assertion and facilitate CPA-led audit. Deliver Type I readiness documentation package. Phase 4: Type II Support Develop evidence collection plan and controls testing schedule. Monitor control operation throughout the audit period. Conduct mock audits and address findings proactively. Phase 5: Coordination with CPA Firm We partner with a licensed CPA firm to: Perform the formal SOC 2 Type I and Type II audits. Review documentation and testing samples. Issue the final SOC 2 Audit Report and Attestation.
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