3M Management Consultants: Leading SOC 2 Consultants and Certification Providers in India. SOC 2, aka Service Organization Control Type 2, is a cybersecurity compliance framework developed by the American Institute of Certified Public Accountants (AICPA). In an era where data security is non-negotiable, businesses are seeking robust frameworks to safeguard sensitive information and build trust with their clients. As the digital landscape grows more complex, SOC 2 compliance has emerged as a gold standard for information security. We take pride in being the preeminent SOC 2 consultants and certification providers in India, empowering businesses to fortify their security posture and achieve SOC 2 compliance seamlessly.
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SOC 2 HIGHLIGHTS
SOC 2 COMPLIANCE OVERVIEW
SOC 2
A SOC 2 examination is a report on controls at a service organization relevant to security, availability, processing integrity, confidentiality, or privacy. SOC 2 reports are intended to meet the needs of a broad range of users that need detailed information and assurance about the controls at a service organization relevant to security, availability, and processing integrity of the systems the service organization uses to process users’ data and the confidentiality and privacy of the information processed by these systems.
SOC 1 vs SOC 2 vs SOC 3
SOC 1 report is for organizations whose internal security controls can impact a customer’s financial statements. Think payroll, claims, or payment processing companies. SOC 1 reports can assure customers that their financial information is being handled securely.
SOC 2 reports help organizations demonstrate their cloud and data center security controls. This security framework is based on the Trust Services Criteria (more on that in a bit).
SOC 3 Type 2 reports do not include detailed descriptions of the auditor’s control tests, test procedures, or test results. They do contain the auditor’s opinion, management assertion, and system description. Because the report doesn’t go into as much detail as a SOC 2, SOC 3 reports usually won’t satisfy the needs of your customers or their auditors.
What Does SOC 2 Stand for?
SOC 2 stands for Systems and Organization Controls 2.
It was created by the AICPA in 2010. SOC 2 was designed to provide auditors with guidance for evaluating the operating effectiveness of an organization’s security protocols.
The SOC 2 security framework covers how companies should handle customer data that’s stored in the cloud. At its core, the AICPA designed SOC 2 to establish trust between service providers and their customers.
What is SOC 2 Compliance?
These are common questions for companies starting on their journey to SOC 2 compliance.
SOC 2 refers to both the security framework and the audit that checks whether a company is compliant with SOC 2 requirements.
SOC 2 defines requirements to manage and store customer data based on five Trust Services Criteria (TSC):
- Security
- Availability
- Processing integrity
- Confidentiality
During a SOC 2 audit, an independent auditor will evaluate a company’s security posture related to one or all of these Trust Services Criteria. Each TSC has specific requirements, and a company puts internal controls in place to meet those requirements.
The Security TSC is always included in a SOC 2 audit, while the other four are optional.
Security is also referred to as the Common Criteria, since many of the security criteria are shared among all of the Trust Services Criteria.
What is a SOC 2 Audit?
While some security frameworks like ISO 27001 and PCI DSS have rigid requirements, that isn’t the case with SOC 2.
Controls and attestation reports are unique to every organization.
Each company designs its own controls to comply with its Trust Services Criteria.
An independent auditor is then brought in to verify whether the company’s controls satisfy SOC 2 requirements.
After the audit, the auditor writes a report about how well the company’s systems and processes comply with SOC 2.
Every organization that completes a SOC 2 audit receives a report, regardless of whether they passed the audit.
Here are the terms auditors use to describe the audit results:
- Unqualified: The company passed its audit.
- Qualified: The company passed, but some areas require attention.
- Adverse: The company failed its audit.
- Disclaimer of Opinion: The auditor doesn’t have enough information to make a fair conclusion.
SOC 2 Type I vs Type II: What’s the Difference?
There are two types of SOC 2 reports:
- SOC 2 Type I reports evaluate a company’s controls at a single point in time. It answers the question: are the security controls designed properly?
- SOC 2 Type II reports assess how those controls function over a period of time, generally 3-12 months. It answers the question: do the security controls a company has in place function as intended?
To choose between the two, consider your goals, cost, and timeline constraints.
A Type I report can be faster to achieve, but a Type II report offers greater assurance to your customers.
We recommend going straight for the SOC 2 Type II report.
Many customers are rejecting Type I reports, and it’s likely you’ll need a Type II report at some point. By going straight for a Type II, you can save time and money by doing a single audit.
If you need a SOC 2 report ASAP, a Type II report that covers a shorter 3-month review period can be an ideal solution.
Who Needs a SOC 2 Report?
If you’re a service organization that stores, processes, or transmits any kind of customer data, you’ll likely need to be SOC 2 compliant.
Here’s why:
SOC 2 requirements help your company establish airtight internal security controls. This lays a foundation of security policies and processes that can help your company scale securely.
It also builds trust with your customers.
Most often, service organizations pursue a SOC 2 report because their customers are asking for it. Your clients need to know that you’ll keep their sensitive data safe.
A SOC 2 report is the gold standard for providing that assurance.
A SOC 2 report can also be the key to unlocking sales and moving upmarket. It can signal to customers a level of sophistication within your organization. It also demonstrates a commitment to security. Not to mention provides a powerful differentiator against the competition.
Put simply, a SOC 2 audit is important for two reasons.
One, attaining a SOC 2 report helps your business maintain best-in-class security standards. And two, it can unlock significant growth opportunities.
SOC 2 AUDIT PROCESS
1. Report Type
Chose the Report Type
2. Scope
Define the Scope and Boundries of Audit
3. Gap analysis
Conduct the Gap Analysis wrt SOC
4. Readyness Assessment
Complete the Readiness Assesment
5. Select an Auditor
Find an accredited CPA.
6. Intiate the Audit
Begin the Formal Audit Process
7. SOC 2 Report
Gather Evedences and Reporting
Choose 3M Management Consultants for Unrivaled SOC 2 Expertise
With 3M Management Consultants as your SOC 2 consultants and certification providers in India, you’re not just ensuring compliance; you’re fortifying your organization against cyber threats and instilling confidence in your clients. Elevate your security standards with us and let SOC 2 certification become a testament to your commitment to data security excellence. Get in touch with us today to embark on a journey towards a more secure and resilient future.
FREQUENTLY ASKED QUESTIONS
1. When Did SOC 2 Start?
In April 2010, the AICPA announced a new auditing standard: the Statement on Standards for Attestation Engagement (SSAE 16).
Under SSAE 16, the AICPA released three new reports. This resulted in the Service Organization Controls (SOC) and the ever-popular SOC 2:
- SOC 1: Internal controls for financial statements and reporting
- SOC 2: Internal controls for the five Trust Services Criteria. (These are Security, Confidentiality, Processing Integrity, Privacy, and Availability of customer data)
- SOC 3: SOC 2 results, tailored for a public audience
In May 2017, the AICPA replaced SSAE 16 with SSAE 18 to update and simplify some confusing aspects of SSAE 16.
SSAE 18 is now used for all SOC 1, SOC 2, and SOC 3 reports.
2. What is Trust Services Criteria?
The SOC 2 framework is built on five Trust Services Criteria (formerly called the Trust Services Principles), defined by the American Institute of Certified Public Accountants (AICPA).
These Trust Services Criteria are the basic elements of your cybersecurity posture. They include organization controls, risk assessment, risk mitigation, risk management, and change management.
The five Trust Services Criteria are:
- Security: Protecting information from vulnerabilities and unauthorized access
- Availability: Ensuring employees and clients can rely on your systems to do their work
- Processing integrity: Verifying that company systems operate as intended
- Confidentiality: Protecting confidential information by limiting its access, storage, and use
- Privacy: Safeguarding sensitive personal information against unauthorized users
3. How Often are SOC 2 Audits Done?
The golden rule is to schedule a SOC audit every 12 months. Completing an audit every 12 months gives you enough runway to add cybersecurity controls, do employee performance reviews, etc.
4. How Long Does a SOC 2 Audit Take?
The traditional process of getting a SOC 2 report can be pretty lengthy and involved. Especially if you opt for a SOC 2 Type II report. Compliance automation software can slash this timeline from months to weeks. By automatically monitoring your infrastructure and collecting evidence, it cuts audit preparation from months to weeks.
5 . Will I Need Both a SOC 1 and SOC 2 Report?
Which SOC report do you need?
Deciding which SOC report makes the most sense for your company depends on the type of information you’re processing for your customers.
For example, if you’re providing payroll processing services, you’ll most likely need a SOC 1. If you’re hosting or processing customer data, you’ll need a SOC 2 report. SOC 3 reports are less formal and are best used as marketing material.
Some organizations need both a SOC 1 and SOC 2 report. This will depend on the services you provide and your customers. You may have customers requesting a SOC 1 and other customers requesting a SOC 2. There is overlap across both, which can streamline readiness and testing.
6. Why is SOC 2 Important?
- Protects Your Brand’s Reputation.
- Distinguishes You from the Competition.
- Attracts More Customers.
- Improves Your Services.
- Saves You Time and Money in the Long Run.
7. Who Performs a SOC 2 Audit?
SOC 2 audits can only be conducted by a licensed CPA firm or agency accredited by the American Institute of Certified Public Accountants (AICPA).
In addition, the auditor or auditing firm must be a completely independent CPA, which means they have no relationship with the service organization they’re auditing.
SOC auditors are required by the AICPA to:
- Comply with the AICPA’s professional standards
- Adhere to the latest guidance for planning, executing, and supervising audit procedures
- Undergo peer reviews that attest to their credentials and the validity of their audits