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 organization’s services.
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.
