SOC 2 Compliance

The SOC 2 report is intended to meet the needs of a broad range of users that need detailed information and assurance about the controls at a service organization. The report can play an important role in oversight of the organization, vendor management programs, and internal corporate governance and risk management processes.

The report can be distributed to an organization’s stakeholders including user entities, CPAs providing services to such user entities, regulators, and business partners.

Organizations have the ability to choose one or a combination of the five AICPA Trust Services Criteria depending upon their customer needs:

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.

Obtaining a SOC 2 report provides assurance to prospective and current clients that you have procedures and controls in place to provide reliable services, which will differentiate your organization during the sales process. Additional benefits include:

• Increased trust and transparency with your internal and external stakeholders
• Reduced cost of compliance and number of on-site audits
• Helps ensure controls are appropriately designed and operating effectively to mitigate risks
• Satisfaction of audit requirements

There are multiple benefits that come with SOC 2 compliance. In addition to providing assurance to prospective and current clients that you have procedures and controls in place to provide reliable services, a SOC 2 report can also increase trust and transparency with stakeholders, ensure controls are appropriately designed, and satisfy overall audit requirements. When you partner with BARR, your SOC 2 auditor will make the SOC 2 reporting process as seamless as possible.

A SOC 2 report is valid for one year after its issuance date.

SOC 2 reports are intended to be shared privately with necessary stakeholders, including prospective customers and partners. Since a SOC 2 report often contains sensitive information, most businesses require signed non-disclosure agreements prior to sharing a SOC 2 report. If you have additional questions about how to share your SOC 2 report, ask your SOC 2 auditor to explain best practices.

SOC 2 is not a mandatory legal compliance requirement for any organization. However, some customers and third parties may only choose to work with vendors that have a SOC 2 report—meaning without one, you could be missing out on certain customers and blocking your company’s growth.

A SOC 2 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 2 compliance process here.

A licensed CPA firm accredited by the AICPA, such as BARR Advisory, can help you navigate through the process. The auditor must be independent and have expertise in information security to ensure the audit is conducted accurately. Check out some of our tips for how to prepare for a SOC 2 compliance audit.

A SOC 2 is an independent review that evaluates your controls against industry standards to identify risks and weaknesses in security and compliance. A SOC 2 audit can help you improve your internal controls and build trust with your customers by prioritizing data protection. Read our blog post about what to expect throughout your SOC 2 audit.

While it isn’t legally required, many businesses are requesting this certification to ensure the security of their data. SOC 2 is crucial for technology companies that handle customer data in the cloud, as well as organizations in finance, healthcare, and education. Make sure your company is meeting the necessary controls to protect sensitive information.

There are five trust services criteria (TSC) that can be included in a SOC 2 report: security, availability, confidentiality, processing integrity, and privacy. We outline each TSC in this blog post.

Preparing for your SOC 2 audit ahead of time can make the experience significantly smoother and more efficient. Read this blog post to learn how to best prepare for your audit.

Whether you’re a healthcare organization navigating the complex landscape of patient data or a service provider working to process and store data in a secure manner, HITRUST e1 Assessments and SOC 2 reports play a pivotal role in assuring clients, stakeholders, and partners that you’re taking information security and compliance measures seriously. Check out the differences between the HITRUST e1 and SOC 2 frameworks.