Running a business can be difficult. Besides hiring, expense reports, sales, and marketing, if you are storing customer data in the cloud, you need to know if you are SOC 2 Compliant. The following SOC 2 guide will help clarify whether you are or not so that you can spend more time focusing on improving your business.
Service organizational control (SOC) 2 reports are created to ensure that the data is stored, transmitted, processed, maintained, and disposed of discreetly if you are a service provider handling clients' data. SOC 2 compliance was introduced by the American Institute of CPAs (AICPA). It shows your customer you will take care of their data with the utmost respect. When you store your client's data in the cloud, being SOC 2 certified increases the level of trust you create with your clients.
A business that has SOC 2 experts has increased data protection, organizational reputation, and customer trust. If you are struggling to guarantee your business meets SOC 2 compliance, continue reading the SOC 2 compliance checklist below.
For your SOC 2 readiness, find what you will test for and why. Some systems offer a free consultation that helps you frame the needs of the clients. You get to guarantee that you meet the needed requirements and checklists. The framework has to be clear and written in a way that auditors can assess accurately.
When you choose the right report, you show clients that you are a good service provider. You need to meet the standard security criteria that the AICPA outlines. Look at other principles that increase the reputation of your organization.
Type 1 focuses on the controls used to address the trust service principles. In this audit type, the organization controls are designed effectively. Type 2 has similar information, and in addition, there is a service that tests the organization's controls over time. The reports for type 2 are meant to meet a wide range of users that need detailed information and assurance regarding controls.
Asking the Right Questions
The critical questions according to the AICPA guidelines for service organizations include:
Do the customers understand the details of controls and processes at a service organization? Do they need the tests done by the service auditor? Do clients and stakeholders use the report to increase confidence and trust in the organization's systems? If yes, then a SOC 2 Type 2 certification is recommended. However, if the report is meant to help with future audits, you may only require SOC 1 report.
Test for service principles
As a business owner, consider the needs of your customers and the service principles that fit those needs. The five service principles are necessary SOC 2 requirements. The five trust service principles include privacy, availability, confidentiality, processing integrity, and security. A certified public accountant can do an external audit that ensures your business meets the requirements. Expert guidance and this article will help you get ready for an external audit and make sure you are SOC 2 compliant. Compare and contrast the different kinds of SOC reports you may need for your compliance checklist.
SOC 2 compliance is an extremely integral part of many organizations in today's data-driven world. Make sure you cross all of your t's and dot all of the i's to ensure that your cybersecurity is pristine with all of the necessary compliance. If you have any questions regarding our SOC 2 compliance checklist, SOC 2 itself, or anything cybersecurity-related, you can reach us at (512) 595-4974 to learn more.