SOC 2 is a compliance standard for service organizations, used to assess the security, availability, integrity, confidentiality, and privacy of the organization’s systems and operations. This voluntary standard was developed by the American Institute of Certified Public Accountants (AICPA) as a part of their Service Organization Control Reporting platform. The framework specifies how organizations should manage customer data.

 

What does SOC stand for? 

SOC’s full form is System and Organization Control, formerly known as Service Organization Control. 

 

SOC 1 vs. SOC 2 vs. SOC 3

SOC 2 is the most common SOC report compared to SOC 1 and SOC 3. Understanding the difference between them is crucial.

  • SOC 1 centers on financial reporting, while SOC 2 emphasizes compliance and operations.
  • SOC 3, a less frequent format, mirrors SOC 2 content but caters to a broader audience, not just those well-versed in the field. SOC 3 targets the customers of the company being assessed, making it more accessible to external stakeholders.
  • For Whom is SOC 2 essential?

    SOC 2 type 2 is essential for service businesses that handle confidential customer information. It can be useful for,

    • Cloud Computing Vendors
    • IT service providers
    • Healthcare organizations
    • SaaS (Software-as-a-service) providers
    • Data centers

     

    SOC 2 Requirements

    SOC 2 compliance is based on specific requirements for effectively handling customer data, segmented into the 5 Trust Services Criteria(TSC): 

    • Security
    • Availability
    • processing integrity
    • Confidentiality
    • Privacy

Security: It aims to stop the unauthorized use of assets and data. This involves using controls, like limiting access, to avoid harmful attacks, data leaks, or unauthorized changes.

Availability: Centers on system accessibility to maintain business objectives. Address capacity management, evaluate environmental threats, and ensure operational capability.

Processing Integrity: Concerned with delivering accurate and timely data. Maintain detailed logs of processing operations and define activities to ensure compliance.

Confidentiality: Limits access to private data. Identify sensitive information, implement data disposal strategies, and safeguard confidential data.

Privacy: Aligns with client privacy policy and Generally Accepted Principles and Practices. Ensure clear language in privacy notices, collect information from reliable sources, and adhere to privacy principles.

Documents required

The documentation process may vary based on the organization type, business operations, the scope defined, and the TSCs that are being addressed. Here is a general list of documents that are usually required for SOC 2 attestation.

 

  • Information Security Policy
  • Access Control Policy
  • Incident Response Policy
  • Data Retention and Destruction Policy
  • Change Management Policy
  • Vendor Management Policy
  • Data Privacy Policy
  • Risk Management Policy
  • Risk Assessment Report
  • Risk Treatment Plan
  • Access Control Matrix
  • User Access Policies and Procedures
  • Authentication and Authorization Procedures
  • Incident Response Plan
  • Security Incident Logs and Reports
  • Intrusion Detection and Prevention Documentation
  • Change Management Procedures
  • Data Handling Procedures
  • Data Classification Policies
  • Third-Party Risk Assessment Procedures
  • Vendor Due Diligence and Monitoring Policies
  • Contractual Agreements with Service Providers
  • Software Development Lifecycle (SDLC) Procedures
  • Code Review and Testing Documentation
  • Patch Management Procedures
  • Physical Security Policies
  • Data Center Access Logs and Security Reports
  • Encryption Policies and Procedures
  • Data Encryption Key Management Documentation
  • Network Architecture Diagrams
  • Network Security Policies and Procedures
  • Background Check Procedures
  • Security Training Records
  • Audit Trail Configuration and Monitoring Procedures
  • Log Retention and Review Documentation
  • On-boarding and Off-boarding process
  • organizational Chart
  • SOC 2 Type 2 Audit Reports (for previous years)
  • Internal and External Audit Reports

Documents required

The documentation process may vary based on the organization type, business operations, the scope defined, and the TSCs that are being addressed. Here is a general list of documents that are usually required for SOC 2 attestation.

 

  • Information Security Policy
  • Access Control Policy
  • Incident Response Policy
  • Data Retention and Destruction Policy
  • Change Management Policy
  • Vendor Management Policy
  • Data Privacy Policy
  • Risk Management Policy
  • Risk Assessment Report
  • Risk Treatment Plan
  • Access Control Matrix
  • User Access Policies and Procedures
  • Authentication and Authorization Procedures
  • Incident Response Plan
  • Security Incident Logs and Reports
  • Intrusion Detection and Prevention Documentation
  • Change Management Procedures
  • Data Handling Procedures
  • Data Classification Policies
  • Third-Party Risk Assessment Procedures
  • Vendor Due Diligence and Monitoring Policies
  • Contractual Agreements with Service Providers
  • Software Development Lifecycle (SDLC) Procedures
  • Code Review and Testing Documentation
  • Patch Management Procedures
  • Physical Security Policies
  • Data Center Access Logs and Security Reports
  • Encryption Policies and Procedures
  • Data Encryption Key Management Documentation
  • Network Architecture Diagrams
  • Network Security Policies and Procedures
  • Background Check Procedures
  • Security Training Records
  • Audit Trail Configuration and Monitoring Procedures
  • Log Retention and Review Documentation
  • On-boarding and Off-boarding process
  • organizational Chart
  • SOC 2 Type 2 Audit Reports (for previous years)
  • Internal and External Audit Reports

Get Started with SOC 2 Compliance in 10 Easy Steps

SOC 2 Compliance can be a challenging framework to conquer especially when there is an imposed evidence-valid period. However, the process can be eased by following a simple yet efficient checklist. Below mentioned are the steps that you can take to get started with your SOC journey. For a detailed step-by-step guide, Check out our in-depth blog post on “SOC 2 Checklist. A to Z guide (insert blog link)”.


  • Defining the audit period (or reporting period)

According to AICPA, a reporting period shorter than 6 months is not likely to be useful for organizations and the auditors in a SOC 2 audit. Define the audit period (between 6 – 12 months) before planning the SOC 2 audit. Whether you perform type I or type II, ensure that audits are conducted every 6 – 12 months to ensure regular compliance.


  • Planning and scope

Define the scope depending on the organization’s needs and requirements. Select the applicable controls from one or more of the given TSCs. The scope can be wider or narrower based on what is being analyzed.


  • Build a team

Path to SOC 2 certification is a challenging process and it might take several months to prepare and get attested. In order to move things smoothly, a dedicated compliance team is very much essential. Assign roles and responsibilities to users such as Project manager, security team, etc.


  • Readiness assessment

This crucial practice assists IT teams in identifying vital aspects of the control environment that need attention and improvement before conducting the formal audit.


  • Gap assessment

Gap analysis helps ensure that all essential controls are properly documented and in position. During gap analysis, an independent auditor can help assess your current environment and how it compares to the SOC 2 requirements and TSCs.


  • Gap remediation

After identifying the gaps and missing controls, remediate the gaps by implementing controls and procedures wherever required. Continuously monitor the implementation to ensure its effectiveness and functionality.

  • Preparing for the audit
    1. Before performing the internal audit, make sure all the necessary controls are implemented and functioning the way it was intended to.
    2. Collect evidence for all the controls within the defined reporting period
    3. Perform any technical testing like VAPT and source code review if required and validate the report. 
    4. Gather additional documents that might be required as a part of the SOC 2 documentation. Refer to the list of documents mentioned above.


  • Conducting Internal Audit

Conduct the Internal Audit with the help of an independent auditor. The auditor will review all the controls and documents and provide insight into the compliance status of the organization. All the findings will be consolidated in an internal audit report provided by the auditor.


  • SOC 2 attestation

Remediate gaps and risks that were identified during the internal audit. Approach an external auditor to perform the final evaluation for the SOC 2 report. If all the requirements are satisfied, you are ready to get the SOC 2 attestation report.


  • Continuous Improvement

Schedule and conduct audits periodically, every 6 to 12 months to stay compliant.

Simplifying the SOC 2 Audit Process

We at WhizzC work hard to make compliance a breeze. We specialize in automating and streamlining the entire audit process so our customers can be stress-free and stay compliant without any hassle. 

Prep and get certified in under 30 days with WhizzC. 

To know more, Book a demo.