SOC 2 (System and Organisation Controls 2) is a compliance framework developed by the American Institute of Certified Public Accountants (AICPA) to evaluate and validate an organisation's information security practices. It is widely used by technology companies, especially in North America, to ensure the secure handling of customer data.

 

Purpose

• Ensure that organisations implement adequate controls to protect customer data from unauthorised access, breaches, and misuse.
• Demonstrate accountability and transparency in data security practices, fostering trust among clients, partners, and stakeholders.
• Provide assurance through independent audits that an organisation meets high standards of security, availability, processing integrity, confidentiality, and privacy.

 

Scope

• Service Organisations: Companies that store, process, or transmit sensitive customer data, particularly in cloud-based environments.
• Trust Service Principles: Organisations are assessed against five criteria:

   Security: Protecting systems and data from unauthorised access.
   Availability: Ensuring systems are operational and accessible as needed.
   Processing Integrity: Ensuring data processing is accurate, complete, and timely.
   Confidentiality: Safeguarding sensitive information from disclosure.
   Privacy: Managing personal information in compliance with relevant regulations.

 

Types of Reports
   SOC 2 Type 1: Evaluates the design of security controls at a specific point in time.
   SOC 2 Type 2: Assesses the effectiveness of controls over a period (e.g., 3–12 months).

 

Benefits

 

SOC 2 is not legally required by any organisation, however, it may be required by your prospects before they agree to do business with you. Your SOC 2 report helps your customers reduce the risk of bringing you on as a vendor and verifies what measures you have in place to protect their data. For this reason, many businesses and investors in North America can only do business with organisations that demonstrate their information security with a SOC 2 report. 

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There are several advantages to getting a SOC 2 that can impact your business: 

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• Show you have a strong data security posture.  
• Ensure via an audit that you’ve lowered your chances of a possible data breach. 
• Unlocks deals with high-value clients and business partners that require a SOC 2. 
• Demonstrate trustworthiness with your stakeholders. 
• Build a strong data security posture.

 

What is a SOC 2 audit?

 

A SOC 2 audit is a third-party evaluation of an organisation's information security practices. It assesses how effectively you protect your organisation’s and customer’s data, focusing on controls like security, availability, and confidentiality. 

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To get a SOC 2 report, you must hire an external auditor to review your policies and practices to ensure they meet the SOC 2 criteria. Completing a SOC 2 audit is a way to verify the trustworthiness and effectiveness of your security policies to be trustworthy and effective.

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There are two types of SOC 2 audits: SOC 2 Type 1 and SOC 2 Type 2. During a SOC 2 Type 1 audit, your auditor will review and document the security controls you have in place at a single point in time. A SOC 2 Type 2 audit is done over a period of time where your auditor will review and document your controls and test how effective they are.