System and Organization Controls (SOC 2) is a widely recognized auditing framework developed by the American Institute of Certified Public Accountants (AICPA). It is specifically designed for service organizations that handle or store customer data in the cloud, to demonstrate the effectiveness of their controls to their customers, regulators, and other stakeholders.
SOC 2 reports evaluate an organization’s internal controls related to five Trust Services Criteria (TSC):
Security
Focuses on protecting systems and data from unauthorized access, both physical and digital. This includes measures like firewalls, intrusion detection, and multi-factor authentication.
Availability
Ensures that systems are operational and accessible as agreed upon in service-level agreements (SLAs). This involves performance monitoring, disaster recovery, and incident handling.
Processing Integrity
Verifies that system processing is complete, valid, accurate, timely, and authorized. It ensures data is not altered or corrupted during processing.
Confidentiality
Addresses the protection of sensitive information from unauthorized disclosure. This includes encryption, access controls, and secure data disposal.
Privacy
Relates to how personal information is collected, used, retained, disclosed, and disposed of in accordance with relevant privacy laws and regulations.
SOC 2 is not a one-size-fits-all certification, organizations choose which of the Trust Services Criteria are relevant to their operations and customer commitments. The report is typically issued by an independent third-party auditor and can be used to build trust with clients, partners, and regulators.
These reports help organizations demonstrate their commitment to information security and data protection, reassuring customers, regulators, and stakeholders that their systems are reliable and secure. Furthermore, organizations that take a proactive approach to creating and solidifying their compliance strategy often benefit from cost savings and an enhanced security posture, reducing risks and improving their overall security posture.
"SOC 2 isn’t just about compliance, it’s about showing your clients that you take their trust seriously. It’s a strategic investment in your brand, your operations, and your future."
— Jorge Paredes, Advisory Manager at Kevane Grant Thornton
| SOC 2 Report Type I |
SOC 2 Report Type II |
This report evaluates the design of a service organization's controls at a specific point in time.
It answers the question of whether the security controls are designed properly
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This report not only assesses the design of controls but also their effectiveness over a period, usually over at least six months.
It answers the question of whether the security controls that the company has in place are functioning as intended.
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What is the Business Value of SOC 2 Reports?
- Build client trust: Validate that systems are designed to protect data and operate securely.
- Differentiation in the market: Display maturity and credibility to prospects, partners, and regulators.
- Support sales & procurement: Often required in vendor due diligence and enterprise onboarding.
- Reduce exposure to risk: Identifies and mitigates control gaps before they become liabilities.
Operational Benefits
A SOC 2 audit not only highlights areas for security improvement but also reveals opportunities to streamline internal processes. This can lead to greater efficiency, allowing organizations to reinvest time and resources into enhancing products and services—ultimately boosting customer satisfaction.
A SOC 2 audit does not just demonstrate where security can and should be improved. It also shows you ways you can streamline your organization’s controls and processes. This allows you to make security improvements that increase efficiency within your organization. You will have more time and resources to invest in your products and services, boosting quality and customer satisfaction.
Protect your brand's reputation
A single breach can be devastating to your brand reputation. Not to mention the cost of recovery and cleanup, implementing new controls, and recovering customer trust.
Stand out from the competition
SOC 2 Reports show customers that you are committed to keeping their data safe. This differentiation might just be the nudge they need to choose your company over a competitor that lacks a SOC 2 report.
Our Advisory professionals can help you determine which report(s) will satisfy your customers’ needs and provide relevant information to your customers and customers’ auditors that will be of benefit to you.
We are committed to keeping you informed of the latest business trends to help you stay competitive and compliant. Contact us to learn more about how we can help you.
