SOC 2 (System and Organization Control) is a set of standards and
guidelines for assessing and reporting on the controls at a service
organization related to security, availability, processing integrity,
confidentiality and privacy. SOC 2 reports are intended to provide
assurance to customers, regulators, and other stakeholders that the
service organization has effectively designed and implemented controls to
meet the trust service criteria set forth by the American Institute of Certified
Public Accountants (AICPA).
SOC 2 reports are performed by an independent auditor, who assesses
the design and effectiveness of controls in place at the service
organization. The auditor will perform testing and provide a detailed report
that includes an opinion on the design and effectiveness of the controls.
The SOC 2 report is intended to be used by customers, regulators and
other stakeholders as a way to evaluate the service organization’s control
environment, and assess the level of risk associated with using the service
There are two types of SOC 2 reports: Type 1 and Type 2. Type 1 reports
focus on the design of the controls, while Type 2 reports focus on the
design and effectiveness of the controls. A Type 1 report provides
assurance on the controls that were in place as of a specific date, while a
Type 2 report provides assurance on the controls that were in place over a
period of time (typically six months or a year).
SOC 2 compliance is becoming an increasingly important consideration for
organizations that provide services to other organizations and handle
sensitive information. Implementing SOC 2 standards can help
organizations to protect their reputation, comply with regulatory
requirements, and provide assurance to their customers that their sensitive
information is being handled securely.