SOC 2 compliance is the most common requirement for technology companies today. A SOC audit can inform the client, as well as all stakeholders, that the company has effective internal controls and security in place. This is especially true for service providers such as cloud storage, web hosting, SaaS services, etc. In fact, SOC compliance is important for any organization that stores its user data in the cloud. In this article, we will tell you about the importance of SOC 2 business compliance, and you can also find out the SOC 2 Type 2 certification cost.
Some Important Reasons to Comply with the SOC 2 Standard
Preparations for an SOC 2 audit should be started as early as possible. This will allow your company to lay a stable foundation for development in different directions.
In short, SOC 2 compliance provides the following benefits:
- Security improvement. Meeting the SOC 2 criteria helps mitigate the impact of potential attacks, creating strong security mechanisms that will better meet the existing risks. SOC 2 pushes businesses to implement resilient, scalable security systems.
- Maintaining corporate culture. Implementing security measures is always a complex process. People may complain that it takes them extra time to log in to services through the use of multi-factor authentication. However, such small problems are worth the end result. Creating a safe, standards-compliant corporate culture is easier to start when the organization is young. Many companies, even consisting of 3 people, have successfully passed the SOC 2 audit.
- Implementation of risk management. Preparing for an SOC 2 audit provides a solid foundation for understanding and mitigating risks. Many organizations unfamiliar with formal compliance auditing are either unaware of security risks or resolve them on the fly. A systematic approach to the problem allows you to identify any risks, even the most insignificant, in advance and eliminate them in a timely manner.
Of course, it is often difficult for a small company to pass a SOC 2 audit, as it may lack the resources to do so. But it is even more difficult for an established company to do this, because it needs to change the culture, processes, tools, etc. The sooner you do this, the better, because it will allow you to integrate all the tools and processes into your business from the very beginning.
Types of SOC Audits
In general, there are three types of SOC audits for service organizations:
- SOC 1. This type of audit is concerned with the processes and tools that affect an entity’s internal control over financial reporting (ICFR).
- SOC 2. This type of audit is designed to control non-financial reporting. There are 5 key criteria TSC (Trust Services Criteria). They set standards for the privacy and security of data (both in transit and in storage). You can check the SOC 2 Type 2 certification cost on UnderDefense website.
- SOC 3. This type of audit is similar to the second type in terms of reporting criteria. The only difference is in the way information is transmitted. SOC 2 is aimed at organizations, while SOC 3 is aimed at the general public.
Trust Services Сriteria Used In SOC 2
SOC 2 verification is a way to ensure that a third-party service provider is doing absolutely everything necessary to protect your customers’ data. This gives you some security assurance because you know that independent licensed auditors have reviewed the policies, controls, and procedures of the service provider. This significantly reduces the consequences of various risks.
- Security.
This section notes criteria that relate to the protection of the mechanisms and systems used to collect, create, store, use, process and transmit data.
Here are just a few of the tools and policies that fall into this category:
- intrusion detection systems;
- firewalls;
- multi-factor authentication tools;
- client certificates;
- digital and physical access control.
- Availability.
This section of the TSC notes the availability of data, both for the organization’s systems and for the products/services that customers receive. The auditor reviews management tools to determine if they support this availability for various operations, monitoring and maintenance.
Some of the tools and policies that fall into this category are:
- emergency response;
- protected data backups;
- performance and incident monitoring.
- Integrity of data processing.
These criteria ensure the integrity, completeness, validity and relevance of the data. They allow the auditor to make sure that the data is processed by the provider according to the rules.
An audit allows you to identify whether there are any delays, omissions, errors or manipulations (unintentional or unauthorized) in the systems in the processing of data.
Some of the tools and policies that fall into this category are:
- process monitoring;
- QA.
- Privacy.
This category is intended to demonstrate that any sensitive data remains safe and protected. This includes any information, from the personal data of the subject to his intellectual property.
To achieve the security of transmitted data, SSL / TLS certificates are used, as well as digital signature certificates for email.
Some of the tools and policies that fall into this category are:
- digital and physical access control;
- network firewalls;
- cryptographic tools.
- Privacy.
Confidentiality and privacy in TSC criteria are different things. Confidentiality describes different categories of sensitive information, while privacy refers only to personal information, including:
- name and surname;
- address;
- contacts;
- social security number.
To pass an audit in this area, organizations need to prove reliability in the protection and processing of personal data. The reports describe how data is collected, used, disclosed, stored and deleted.
Some of the tools and policies that fall into this category are:
- access control;
- data disclosure notices;
- data deletion processes.
To implement SOC 2 compliance, you will need to contact independent licensed auditors.
Conclusion
If you would like to learn more about the SOC 2 certification process, we recommend that you contact the trusted company UnderDefense. With the support of this company, you can save time and avoid stress when preparing for certification, as well as pass the certification from the first time. You can find out the SOC 2 Type 2 2023 certification cost in 2023 for SMBs with different numbers of employees, including direct and hidden costs, on the company website.
