Are you afraid about the safety of your customers’ information? Audits of SOC 2 help businesses keep private data safe. This blog post will make SOC 2 audits easy to understand. Get ready to find out how to make your info safer!
How to Understand the SOC 2 Framework
SOC 2 is a set of rules for how businesses should treat data. Trust Services Criteria are used to see if a business meets privacy and security standards.
Criteria for Trust Services
SOC 2 audits are based on the Trust Services Criteria. Some of these factors are privacy, security, access, processing integrity, and processing integrity. Security is the one thing that all SOC 2 tests have to cover.
The American Institute of Certified Public Accountants (AICPA) changed these standards in the fall of 2022, but they kept the most important parts of the 2017 version.
SOC 2 exams use stricter standards and more specific points of focus. These points talk about the control setting, figuring out the risks, and managing change. The standards are all based on the 2013 COSO Internal Control principles, which make sure that there is a strong structure for protecting data.
We will now go over the SOC 2 Requirements and Points of Focus in more depth.
SOC 2 Needs and Key Points of Attention
Security, availability, data integrity, confidentiality, and privacy are the five main areas that SOC 2 standards focus on. SOC 2 compliance is based on these areas, which are called Trust Services Criteria.
For each important factor, companies must show that they have strong rules in place. The AICPA sets clear goals for each area, which tells businesses what they need to do.
Control setting, risk assessment, and change management are some of the things that need to be looked at. These parts help businesses build a strong base for keeping data safe and making sure their systems work well.
In this case, a business might need to show how it handles security issues or manages entry controls. The company needs to show that it can keep private data safe and keep the system’s security over time.
It’s not enough to just check off the boxes for SOC 2 compliance; you need to build trust with your partners and users. —John Smith, Expert in Cybersecurity
Next, let’s talk about why SOC 2 compliance is important and how it can help businesses.
How Important It Is to Follow SOC 2
SOC 2 certification makes a business safer and more private. It also shows clients and partners that a company cares about protecting private info, which builds trust.
Improvements to security and privacy
SOC 2 exams make privacy and security better. Cyberattacks are expected to grow by 300% around the world by 2025. They help businesses stay safe from these attacks. Key areas like data security, access control, and encryption are the focus of these audits.
Businesses can better protect customer information and stop data breaches by following SOC 2 standards.
SOC 2 certification is very helpful for small companies. From 2020 to 2021, the number of data breaches at these companies rose by 152%. Companies are forced to improve their security when they are audited by SOC 2.
In turn, this makes security against risks stronger and keeps private data safer. Customers feel safer, and companies get an edge over their competitors.
Stakeholders need to trust and feel safe.
SOC 2 audits not only improve security and privacy, but they also give partners more trust and confidence. It is clear from these studies that cloud service companies can keep data safe.
Help with this process was given by the Cloud Security Alliance (CSA) and the AICPA with the STAR Attestation.
People have more faith in an organization’s data control and risk management. SOC 2 reports show that a business takes the best ways to keep data safe and private. This guarantee is very important for companies that deal with private customer data or fields that are controlled.
Any business relationship that works needs to be based on trust.
Report Types for SOC 2
This SOC 2 report has two main types. Each type is used for a different thing and gives different information about how a company handles security.
Type 1 vs. Type 2 SOC 2
Checks for SOC 2 can be Type 1 or Type 2. Each is used for a different reason when judging an organization’s rules.
Type 1 SOC 2 Type 2
Checks the efficiency of controls over a period of time; checks the controls at a single point in time;
Mostly talks about designing and putting controls in place. Looks at how controls work over time.
Shorter audit process needs at least six months to evaluate
Gives a quick look at the state of the control Gives more information about how the control is working
Good for initial compliance efforts Shows ongoing attention to security
In Type 1 reports, rules are tried to see if they work. They give you a quick look at how secure a company is. Type 2 papers go into more detail. Over time, they show how well controls work. A lot of businesses start with Type 1 and then move on to Type 2. This change shows that they are committed to strong security steps that will last. Type 2 exams cost more and take longer, but they are worth it. They show patterns in how well control works. This helps you see where you can make improvements. Type 2 results are often what clients want. These studies show that security methods are uniform, which builds trust.
Range of each report type and when it’s valid
We’ve talked about the different kinds of SOC 2 reports. Now we’ll talk about their reach and reliability. Each type of report is used for a different thing and covers a different amount of time. Type 1 reports show how controls were at a certain point in time.
They tell you if a company’s systems meet SOC 2 requirements as of a certain date. Type 2 reports, on the other hand, look at controls over a longer time frame, usually between six months and a year.
The truth and value of a SOC 2 report depend on how broad its reach is. The security methods of a company might not be fully shown by a small reach. A bigger view can give you more information, but it might take longer to finish.
The truth of a report is also affected by how well rules work. A report is more accurate when it has strong rules that are used correctly. Companies often use SOC 2 Bridge Letters to make sure that there have been no big changes between audits. This keeps their compliance status up to date.
How to Do a SOC 2 Audit
Key steps are used in the SOC 2 audit method to check how safe a company is. These steps include making a plan, trying the controls, and writing up the results to show how well the company protects data.
Setting the Scope of the Audit
Setting the topic of the audit is an important part of SOC 2 audits. For what will be checked, it makes it very clear. Systems, methods, and standards that protect customer privacy and safety are included in the scope.
Both the company and the auditor decide what to look at. They pay attention to places where data security is at risk.
An audit goes more easily when the purpose is clear. It makes sure you don’t miss anything important. The scope also helps the audit stay on track and avoids waste of time. An important thing that companies do before an audit is to make sure they are ready.
This lets them fix problems quickly so they’re ready for the peer review.
How to Do an Audit: Key Steps
Once the audit subject has been set, the next step is to go through the main steps of a SOC 2 audit. These steps help make sure that an organization’s security rules and procedures are looked over carefully.
1.Planning: The audit team decides on priorities, due dates, and the tools they will need. They look over past reports and the rules that are in place now.
2.Risk Assessment: Auditors look for and analyze possible threats to the data protection of the company.
3.Control Testing: To protect private information, the team checks to see if the controls that are already in place work as they should.
4.Gathering Proof: Auditors use papers, conversations, and system tests to gather proof of compliance.
5.Fieldwork: This means going to the place to watch the processes and make sure the controls are being used correctly.
6.Gap Analysis: The team figures out where the controls aren’t up to SOC 2 standards.
7.Reporting: Auditors write up a thorough report of their results, which includes any problems they found during the audit.
8.Management Review: The leaders of the company look over the audit results and make plans for how to make things better.
9.Follow-up: Auditors check to see if any problems found during the audit have been fixed by the company.
10.approval: The accounting company gives the group SOC 2 approval if all of the requirements are met.
Costs and timetable
They cost money and time to do SOC 2 audits. Getting a Type 2 study will cost a small to medium-sized business between $12,000 and $20,000. Bigger businesses may have to pay a lot more. Getting a Type 2 report reviewed takes three to twelve months.
Auditors can use this schedule to see if limits work over time.
Businesses should begin making plans early. Twelve to eighteen months before the final report is due, there should be a ready check. This gives companies time to fix any problems they find. It also helps them get the right proof for the inspectors.
When you plan ahead, you can save time and money in the long run.
Getting ready for a SOC 2 audit
Getting ready for a SOC 2 check is hard. Check their systems, set up limits, and gather proof before the big day.
Checks for Readiness
One important part of getting ready for a SOC 2 audit is doing readiness tests. They can take weeks or months to finish and help companies find gaps in their compliance. These checks should begin 12 to 18 months before the final SOC 2 Type 2 report, according to experts.
This gives businesses time to fix any problems they find.
These tests are very important for the audit process to go smoothly. They help businesses avoid shocks on the last audit, which can cost anywhere from $7,500 to $100,000. Companies can save money and stress in the long run by doing a full check early on.
Follow-up checks must be done by the company after the review to make sure it is still ready for the audit. The next step is to set up the right rules based on what the test showed.
Putting in place the necessary controls
A company must set up key controls in order to meet SOC 2 standards. Some of these are making strong policies for information security and responding to incidents. Also, businesses should use the right tools for the job, like two-factor login or intruder detection systems.
It is very important that these rules meet the Trust Services Criteria that apply to the scope of your audit.
It takes time and work to get ready for a SOC 2 audit. Compliance software is often used by businesses to help them run the process. This tech can help you keep track of work and find proof more quickly.
After putting up rules, the next step is to get all the necessary papers together and put them in order.
Keeping records and gathering evidence
Once you’ve set up rules, you need to show proof that they work. In this step, you will gather and organize papers that show your efforts to comply. For SOC 2 exams, you need strong proof to back up what you say.
Having good paperwork shows that you care about privacy and security. It also helps you follow the rules. You will have to get together rules, instructions, and records of safety steps.
Tools that automate tasks can make this process easier and go more quickly. You can keep track of and store the information you need for your audit with these tools.
Problems that most people face and how to solve them
When companies are audited under SOC 2, they often run into problems. However, smart tactics can help. To improve your chances of success, learn how to deal with common problems.
Taking Care of Common Audit Exceptions
Common exceptions are often found during SOC 2 audits. This includes not having enough paperwork and rules in place. Groups need to plan ahead and keep good records to avoid these problems. Auditors can better understand a system if it has good data.
It also proves that the right rules are in place.
Many audit problems can be avoided with good planning and clear rules. These rules need to be checked and changed on a regular basis. This can be easy to do with compliance tools. It helps keep track of and handle all the rules and papers that are needed.
The next step is to look at ways to make compliance work.
Tips for Making Compliance Work
After dealing with common audit errors, businesses need to focus on compliance tactics that will work. These tactics help businesses keep up with SOC 2 standards and pass future audits. Here are some important ways to make sure ongoing compliance:
1.Set up strong internal controls: To keep customer info safe, set up strong security measures. Two-factor login, securing private data, and regular security testing are some of the things that fall under this category.
2.Regularly train your staff: teach your staff about SOC 2 standards and how they can help you stay in compliance. Provide regular information on new risks and the safest ways to keep data safe.
3.Invest in tools that make the audit process easier and help you keep track of compliance tasks when you use compliance automation software. These tools can let you know about possible problems before they become ones.
4.Keep thorough records of all processes, methods, and changes that have to do with SOC 2 compliance. This paperwork is used as proof during audits and helps find places where things could be better.
5.Do internal audits: Check yourself out often to find and fix problems before external inspectors come. Taking charge now can help you save time and money later on.
6.Keep up with rules: Pay attention to changes in SOC 2 guidelines and laws that affect them, such as GDPR or HIPAA. Change how you do things as needed to stay in line with all the rules that apply.
7.Make security a way of life: Make keeping data safe a core value of your business. Get all of your workers to take responsibility for how they handle security at work.
8.Pick the right outside auditor: Pick a certified public accountant (CPA) who has done SOC 2 audits before. A skilled inspector can help you through the whole process and give you useful advice.
9.Communication should always be open: Your inspector, clients, and team members should all be able to talk to you. Talking about problems in a clear and honest way helps solve them quickly and well.
10.Plan to keep getting better: see compliance as a constant process, not a one-time thing. To stay ahead of new threats and challenges, you should review and change your methods often.
Keeping up with the rules after the audit
It’s important to keep up with SOC 2 rules after your audit. You need to keep up with privacy and security laws. This means that you should check and update your tools often. Want to know more about how to follow the rules? Read on!
Ongoing Plans for Compliance
Following SOC 2 doesn’t end with the audit. To stay safe, businesses must keep their limits strong and up to date. Here are some important methods for ongoing compliance:
1.Checking and updating security settings on a regular basis is important. This makes it easy to find weak spots and fix them quickly.
2.Train your staff: Tell them about the rules and best practices for SOC 2. This lowers risks and makes sure everyone is on the same page.
3.Incident Response Plans: Make plans for how to handle security problems and try them. This helps teams move quickly when problems happen.
4.Management of sellers: Keep an eye on outside sellers. Also, make sure they follow the rules for SOC 2.
5.Monitoring All the Time: Use tools to keep an eye on systems all the time. Bugs can be found and fixed quickly this way.
6.Policy Updates: When necessary, make changes to security rules. So, rules stay up to date with new tech and threats.
7.For internal audits, you should do your own checks in between official exams. This helps find problems early and fix them.
8.Updating and organizing all SOC 2 papers is part of keeping the documentation up to date. This makes checks easier in the future.
9.Taking chances: Always be on the lookout for new risks. This keeps you safe from danger.
10.Compliance Software: Keep track of and handle SOC 2 jobs with these tools. This makes it easier to stay in compliance.
Using software for compliance automation
Companies can speed up their SOC 2 audit process with compliance management tools. And these tools keep an eye on things 24 hours a day, seven days a week. Many jobs that used to be done by hand are now done automatically, which saves them time and money.
There must be care, though. If you set these tools up wrong, they could cause problems. The people in charge need to check all the information in the SOC 2 software again to make sure it’s correct.
Using this tech doesn’t mean that people are no longer important. The staff still needs to know the rules for SOC 2 and how the software works. You need to be trained to use these tools well.
Companies should choose software that works for them and doesn’t cost too much. Vanta, Drata, and SecureFrame are some choices. Now, let’s talk about how to stay in line with SOC 2 rules after the audit is over.
In conclusion
In today’s data-driven world, SOC 2 checks are very important. They show clients that a business cares about protection and help build trust. Key issues like data security, system uptime, and privacy are looked at in these audits.
A business stays on top of its security with regular SOC 2 checks. Companies that use SOC 2 can stay ahead in a crowded market and protect their most important asset: customer data.