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What is SOC 2? Guide to SOC 2 Compliance & Certification

SOC 2 is an independent compliance benchmark for service companies, created by the American Institute of CPAs (AICPA). This specifies the manner in that organizations should handle customer data. Compliance with SOC 2 prerequisites signifies that a company carries an elevated level of knowledge security.

What is SOC2 compliance?

SOC 2 is an independent compliance benchmark for service companies, created by the American Institute of CPAs (AICPA). This specifies the manner in that organizations should handle customer data. 

The measure is based on the following Trust Services Criteria: 

  • Security
  • Availability
  • Processing integrity
  • Confidentiality
  • Privacy

A SOC 2 statement is analyzed to the individual requirements of each organization. Relying on its distinctive business procedures, each organization can create commands that pursue one or more regulations of trust. These internal notifications furnish organizations and their controllers, business associates, and suppliers with essential knowledge about how the organization manages its data. 

What are the types of SOC 2 reports?

There are two types of SOC 2 reports:

  • Type 1 expresses the system of organization and whether the scheme method concedes with the appropriate trust principles.
  • Type 2 attributes the operating efficiency of these procedures.

What is the benefit of SOC 2 compliance?

Compliance with SOC 2 prerequisites signifies that a company carries an elevated level of knowledge security. Stringent compliance conditions can aid ensure exposed information is handled responsibly.

What are the differences between SOC 1 and SOC 2?

SOC 1 and SOC 2 are two different compliance measures, with separate goals controlled by the AICPA. SOC 2 does not imply an up-gradation of SOC 1. The table below illustrates SOC 1 vs. SOC 2.

 

 

SOC 1  

SOC 2 

Purpose 

Enables a service institution notice on internal rules which pertain to monetary information by its consumers. 

Helps a service institution information on internal management that safeguards customer data, appropriate to the five Trust Services Criteria. 

Control objectives 

A SOC 1 audit protects the processing and security of customer knowledge across the business and IT procedures. 

A SOC 2 audit protects all varieties of the five regulations. Certain service institutions, 

Audit intended for 

The Certified Public Accountant of the audited institution’s directors, external auditors, user commodities and CPAs who audit their monetary declarations. 

Executives, business associates, competitors, adherence supervisors, and external auditors of the audited institution. 

The audit used for 

Helps user commodities understands the influence of benefit organization management on their economic statements. 

Supervising service organizations, supplier administration procedures, internal corporate management and threat management techniques, and regulatory administration. 

What is the basis of SOC 2 certification?

To obtain SOC 2 certification, it is important to comply with these SOC 2 principles:

  • Whether the consumer access the method according to the approved terms of use and service classes.
  • Whether the company proposes economic or eCommerce trades, the audit report must possess organizational components developed to shield the transaction. 
  • If there are any regulations on the manner of data is sharing.
  • The way does the organization manages and uses consumer information. The organization's privacy policy must be compatible with the basic operational techniques. 
The SOC 2 compliance and certification requires a methodical proceeding, to which the experts from Quickcompany provide the best assistance.

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