SOC 2
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Overview
What is SOC 2?
SOC 2 proves your company secures customer data with strong controls, boosting trust, sales, and risk management.
What is SOC 2?
The SOC 2 stands for System and Organization Controls 2. This security framework was developed by the American Institute of Certified Public Accountants (AICPA). Technology companies, service providers, SaaS platforms, and cloud infrastructure providers can demonstrate their secure management of customer data by using this framework.
Trust Services Criteria (TSC)
The SOC 2 compliance is based on the following five Trust Services Criteria:
Security: System and sensitive data must be protected from unauthorized access
Availability: System reliability and accessibility must be maintained
Processing Integrity: Systems must correctly process data
Confidentiality: Sensitivities must be protected from unauthorized disclosure
Privacy: The handling of personally identifiable information (PII) needs to comply with laws and regulations such as the General Data Protection Regulation (GDPR)
The controls decrease the risk of security incidents and protect financial data and intellectual property.
Why SOC 2 is Important for Your Business
Digital services are now part of our daily business operations. Companies are now expected to have higher levels of security and trust. SOC 2 readiness shows that your organization takes data protection seriously.
Who Needs SOC 2?
SOC 2 compliance is essential for businesses that handle sensitive information:
AI companies and machine learning companies
Financial services vendors
Healthcare technology firms
Security-conscious enterprises
It is vital to understand the SOC 2 common criteria when customers require evidence of your security practices. Our SOC 2 for beginners guide provides a basic overview for those who are new to the topic.
Types of SOC 2 Reports
SOC 2 Type I Report vs SOC 2 Type II Report
SOC 2 offers two main types of SOC reports:
SOC 2 Type I report: Checks if your control activities are designed correctly at a specific point in time
SOC 2 Type II report: Verifies the effectiveness of controls throughout a period of 3 to 12 months
The majority of companies start with a Type I report before moving to a Type II audit. We have additional information about the differences between SOC 2 Type I and Type II reports.
The SOC 2 Audit Process
How SOC 2 Audits Work
A SOC 2 audit is performed by an independent licensed CPA firm. The audit process includes:
Determining your SOC 2 audit scope - which systems to review
Readiness assessment - identifying gaps in your controls
Data collection and testing controls
Getting a formal audit report
How long does your SOC 2 audit procedure take? Or who conducts a SOC 2 audit? Check our detailed guides.
Preparing for Your SOC 2 Audit
To prepare for your first SOC 2 audit you must plan ahead. You need to:
Build strong internal controls
Create proper documentation
Train your team on security practices
SOC 2 Compliance Automation
Manual vs Automated SOC 2 Compliance
Continuous control monitoring is required to maintain compliance. Data collection must be continuous with updates to address emerging risks.
DSALTA assists with SOC 2 compliance automation through:
Automating data collection
Keeping your team audit-ready
Securing data throughout the process
We explain the difference between manual and automated SOC 2 compliance as well as how to build security insights into your SOC 2 program.
Benefits of SOC 2 Compliance
Achieving SOC 2 compliance provides competitive advantages:
Reduce the risk of data breaches
Speed up sales with trusted vendors
Build customer confidence in data protection
Meet the laws and regulations requirements
Building Your SOC 2 Program
Key SOC 2 Controls
Key SOC 2 controls are essential to understand. You also need to know about SOC 2 Trust Services Criteria.
SOC 2 Documentation and Policies
Create proper SOC 2 policies and procedures. This includes:
Control activities documentation
Processing integrity procedures
Confidentiality protocols
Ongoing Compliance
Staying continuously SOC 2 compliant requires:
Regular monitoring of controls
Updates for new threats
Audit-ready documentation
Many companies integrate SOC 2 with ISO 27001 and GDPR to form a comprehensive compliance program.
Getting Started with SOC 2
As a SaaS company, cloud service provider, or technology-driven business, SOC 2 compliance shows that you are serious about protecting customer data.
The first step in this process is to understand the SOC 2 compliance requirements and to draft your SOC 2 policies.
So, what do you say? Let's take a look at SOC 2's overview and also see how SOC 2 came about.
Need help with SOC 2 compliance? DSALTA's automation tools make the audit process easier and keep you audit-ready throughout the year.
