SOC 3 Compliance

The SOC 3 report is designed for users who want assurance on a service organization’s controls, but do not have the need for the detailed, comprehensive SOC 2 report. Essentially a smaller scale SOC 2 report, the SOC 3 is easy-to-read and can be viewed by anyone (general use).

Like SOC 2, a SOC 3 reports on if the service organization achieved one or more of the five AICPA trust services criteria, which include:

1. Security – The system is protected against unauthorized physical and logical access.
2. Availability – The system is available for operation and used as agreed upon.
3. Processing Integrity – System processing is complete, accurate, timely, and authorized.
4. Confidentiality – Information designated as confidential is protected as agreed upon.
5. Privacy – Personal information is collected, used, retained, disclosed, and/or destroyed in accordance with established standards.

Because of the lack of detail in a SOC 3 report, the audit must be a Type 2 report.

SOC 3 compliance refers to an organization’s adherence to a framework set by the AICPA that evaluates controls relevant to the trust services criteria (security, availability, processing integrity, confidentiality, and privacy). It assures clients and stakeholders that the organization has effective controls in place to safeguard their systems and data. Similar to SOC 1 and SOC 2, SOC 3 is not a certification; organizations are considered “SOC 3 compliant” rather than “SOC 3 certified” upon receiving their report.

A SOC 3 report has many benefits. If your organization handles consumer data, a SOC 3 report can demonstrate your company’s trustworthiness by showing the controls you’ve put in place to protect consumer data. A SOC 3 report can be beneficial for organizations that want to share their security controls publicly—unlike a SOC 2, a SOC 3 report can be shared in public.

One key difference between the three SOC compliance frameworks is the purpose and controls covered. SOC 1 focuses on internal controls over financial reporting (ICFR), making it relevant for organizations providing services that impact their clients’ financial data. SOC 2 evaluates controls related to trust service principles such as security, availability, processing integrity, confidentiality, and privacy, making it essential for organizations managing sensitive data. SOC 3 covers the same trust service principles as SOC 2, but is designed for a general audience. Unlike SOC 1 and SOC 2, which contain detailed information meant for specific stakeholders, SOC 3 reports are public-facing and provide a high-level summary of the organization’s controls.

A SOC 3 report is valid for one year after its issuance date.

A SOC 3 report is the only type of SOC report that can be publicly distributed. Your organization can demonstrate your SOC 3 compliance in marketing campaigns, add it to your website, and more. While other SOC reports are confidential and often require signed non-disclosure agreements prior to viewing, the public nature of SOC 3 reports can help build trust among your stakeholders and customers without revealing private information about your organization.

No. SOC 3 reports are not required by law and are not mandatory for your organization to do business.

A SOC 3 report can take several weeks or months depending on the type of audit, scope, and complexity of the organization’s environment. Learn more about each step of the SOC 3 auditing and compliance process here.