SOC 2 Compliance: An Easy Overview in 3 Points

Introduction

Compliance is not as easy as the exercise of connect-the-dots. Compliance can be a little dizzying when you realize how rapidly enterprises shift and develop in the cloud, and then consider the emergence of cloud-based security threats. In this article, we will discuss, soc 2 compliance, soc 2 certification, soc 2 audit full form and, soc 2 compliance requirements.

In this article let us look at:

1. What is SOC 2?
2. What is SOC 2 certification?
3. The importance of SOC 2 compliance

1. What is soc 2?

Service Organization Control (SOC) 2 is a collection of auditing procedures and compliance criteria directed at third-party service providers. It was built to help businesses decide if their business partners and suppliers can handle data safely and protect their customers’ interests and privacy.

The American Institute of Certified Public Accountants established SOC 2. (AICPA). There are two forms of SOC 2 reports under its procedures:

• The systems and controls you have in place for security enforcement are detailed in SOC 2 Form 1. Auditors search for facts and check whether you comply with the applicable standards of trust. Think of it as a check of controls point-in-time.
• SOC 2 Form 2 measures how effective the procedures are over a period of time in delivering the optimal degree of data protection and management.

2. What is SOC 2 certification?

The SOC 2 certification is provided by external auditors. They determine the degree to which one or more of the five confidence standards based on the structures and processes in place are complied with by a vendor.

The tenets of confidence are broken down as follows:

1. Security: The security concept refers to device resource defense against unauthorized access.

2. Availability: The concept of availability applies to the functionality of the system, goods, or services as provided for in the agreement or service level agreement (SLA). As such, the minimum appropriate output standard is set by all parties for device availability.

3. Processing integrity: The concept of processing integrity discusses whether a device achieves its function or not (i.e., delivers the right data at the right price at the right time). The processing of data must therefore be complete, legitimate, reliable, timely, and approved.

4. Confidentiality: If its access and dissemination are limited to a designated group of persons or organizations, data is deemed confidential. Data intended specifically for executive employees, marketing plans, intellectual property, internal pricing lists, and other forms of confidential financial details can be included as examples.

5. Privacy: The concept of privacy addresses the collection, use, preservation, disclosure, and disposal of personal information by the system in accordance with the privacy notice of an entity, as well as with the requirements set out in the widely agreed privacy principles of the AICPA (GAPP).

3. The importance of SOC 2 compliance

To remain competitive in the industry, it is one of the most common compliance standards that tech companies should meet today. SOC stands for Service, and Organizational Controls is enforced by AICPA and is based on the criteria of Trust Services (explained later). Each Trust Services Criteria (TSC) is divided into some Focus Points that may be a security control or a combination of or connected to one or more security controls.

SOC 2 is about the right to report to a service agency on the design of controls (and/or monitoring and operational efficacy of such controls). It is more like ISO 27001, which offers the organization more versatility in meeting the standards. PCI DSS, HIPAA, and most other security mechanisms, on the other hand, are very well-defined norms and have precise specifications.

We may clearly claim that the SOC 2 audit is the auditor’s view about how the safety controls/safeguards of the company match its requirements and that’s because the integrity of the auditor is very relevant for auditing and reporting SOC 2 much like auditing ISO 27001. If you are a service provider or a service company that stores, processes, or transmits some sort of information, you may need one exactly like the ISO 27001 certification decision if you want to be competitive in the market. These reports are now handy for many technologies and cloud computing entities and will deliver them to their customers on request.

Conclusion

SOC 2 is an evaluation process that ensures that the service providers handle your data safely to protect your organization’s interests and the privacy of its customers. For security-conscious organizations, when evaluating a SaaS provider, SOC 2 enforcement is a minimal requirement. It refers to almost every SaaS business and any business that uses the cloud to store the data of its customers.

So what is needed by SOC 2? It is called a technical audit, but it goes beyond that: it allows businesses to develop and implement specific policies and procedures for information protection, including consumer data security, availability, processing, integrity, and confidentiality. It guarantees that the information security policies of an organization are in line with the specific criteria of the cloud requirements of today. SOC 2 compliance is becoming a requirement for a wide range of companies as businesses increasingly use the cloud to store consumer data.

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