SOC 2 type 2 – Ultimate Guide to Help You Decide | Neumetric

Introduction

The Service Organisation Control 2 Type 2 [SOC 2 type 2] Standard is a new reporting Standard for Service Organisations that provides a framework for third-party auditors to assess the controls in place at Service Organisations, as well as their effectiveness. Complying with this Standard helps achieve SOC2 report through a SOC2 external audit.

The intent is to provide vendors with a framework for reporting on Service Organisations’ controls, risks, and implementation of those controls. This report will help vendors know if their partners are compliant with standards and best practices. The ultimate goal is to create safer and more secure vendor environments within cloud services. But what is SOC 2 Type 2? Why Is It Important? What does it mean for Your Business? Let’s find out!

SOC 2 Type 2 Requirement

The SOC 2 Type 2 Report is not a requirement for all Organisations, but it is recommended for those who want to be able to demonstrate that they are operating in a manner that meets the highest standards of security and privacy. If you’re an Organisation offering cloud-based services or Software as a Service [SaaS], then SOC 2 Type 2 may be especially important.

If you fall into this category, we recommend reading this section carefully so that you can understand how your Organisation will benefit from obtaining certification and what steps need to be taken next. SOC 2 controls are defined by the Trust Services Criteria, a set of Standards published by the American Institute of Certified Public Accountants [AICPA]. The Trust Services Criteria [TSC] are used to define how each control should be designed and implemented.

The SOC 2 Type 2 requirements are based on the Standard itself. The Standard provides guidelines for performing an audit to meet the requirements of a Type 2 SOC. The Standard provides guidance rather than specific directions, so each company can formulate its own policies and procedures as long as they conform to the requirements of the document. For example, companies that want to retain an independent auditor to verify that their computer systems comply with the guidelines published in SOC 2 will have to implement some kind of control over access privileges for cloud assets.

Some of the SOC 2 requirements are covered in our previous article titled SOC 2 controls : Everything You Need to Know! Click here to read the article.

Importance of SOC 2 type 2

Service Organisations are the backbone of modern society. Without a service, you would not be able to get your water from the tap, dial the emergency services or watch Netflix. However, with the advent of technology, it is more important than ever before to ensure that these services are provided in an efficient and effective way.

SOC 2 type 2 helps to ensure that an Organisation provides high quality services by ensuring that they have robust controls in place. In other words, SOC 2 type 2:

• Ensures that your service is compliant with its requirements;
• Helps prevent any issues arising from incorrect processing; and
• Provides assurance that your systems work correctly

Some of the benefits of having a SOC 2 Type Report are:

• It helps you to provide high quality services;
• It can help you to build trust with your customers and increase customer confidence;
• It may be required by certain customers as part of their due diligence process.
• Reduced risk of data breach, system failures and fraud;
• Increased confidence in the security and reliability of your service;
• Improved customer satisfaction with your service;
• Ability to compete for higher-value projects;
• Greater ability to attract new customers.

Difference between SOC 2 type 1 & SOC type 2

The main difference between SOC 2 Type 1 and SOC 2 Type 2 is that SOC 2 Type 1 checks for policies and procedures that were in operation at a specific point in time whereas SOC 2 Type 2 checks for the effectiveness of policies and procedures on systems over a specific period of time which is more than six (6) months.

With SOC 2 type 1 reports, the auditor inspects controls to determine if they are in place and operating as designed. This means that the company must have implemented all of its control activities before the audit begins.

For example, if you’re an eCommerce site and you want to be audited for a SOC 2 Type 1 report, your IT department needs to make sure all security measures are installed and running on time before you are audited by an independent auditor. This can take weeks or even months due to various schedules and priorities at different companies—and it’s hard to predict exactly when everything will be ready for inspection.

As soon as you pass this test you receive your certification. There is no need for any further testing since you have already shown that all relevant controls are functioning correctly at this point in time (or close enough). If something changes or stops working properly later down the road—say a patch breaks some software feature or someone accidentally deletes important information from their laptop—you’ll need to get back in touch with your auditor so he can conduct another inspection process known as “retesting”.

For a SOC 2 Audit, the Auditor checks for evidence of the controls’ proper operation by examining the system and its documentation. The Auditor also verifies that these controls are working as intended and have been implemented correctly throughout the entire Organisation. For example, if your company has a firewall, the Auditor will check that it’s turned on and works properly and if the details are being logged and for how long. If you’re using antivirus software on every desktop in your company, the Auditor will verify this by testing random machines to make sure it’s installed and updated with the most recent virus definitions.

How much time does it take to get SOC 2 Type 2 Report?

The actual time it takes for an SOC 2 Audit ranges from five weeks to three months. How long your audit will take depends on how large the Organisation being audited is, and how many controls it has in place. A SOC 2 Audit requires your Organisation to have the right policies, procedures and other documents for at least 6 months. With the right partner, you can ensure that all the documents that you need for your Organisation to become SOC 2 Compliant are created and managed as effectively and efficiently as possible.

Neumetric, a cyber security products and services Organisation, can help you obtain a SOC 2 Report for your Organisation with ease. Neumetric has a team of experts who can help you create the right policies and procedures, and then manage them to ensure that they are being followed by your staff. We also conduct a risk assessment for your Organisation to ensure that you are able to identify any areas of weakness and address them. This will allow you to build a secure cyber security environment that is compliant with the standards set by SOC 2.

Along with this Neumetric conducts employee awareness training programs to ensure that your staff are aware of the importance of cyber security and the risks that come with not following the policies. This will allow you to ensure compliance with SOC 2, and prevent data breaches from occurring within your Organisation. Finally, Neumetric coordinates with an external auditing agency to conduct an independent review of your security program to ensure that it meets the standards set by SOC 2 and help you obtain a SOC 2 Report for your Organisation.

Conclusion

The SOC reporting framework will have a huge impact on the way vendors do business with their customers. It’s important to understand what your company needs in order to be SOC compliant, and how you can prepare yourself for these changes before they happen. This guide has everything you need to know about SOC 2 type 2 reports including what they are, who needs them and how long it takes!

FAQs:

Who needs to be SOC 2 Type 2 compliant?

Any Organisation that provides or is an integral part of a service that is used by other Organisations, must have a SOC 2 type 2 report. This means most of your business clients will require you to certify their controls over the services they use. SOC 2 Type 2 Reports are important if you provide cloud-based services and SaaS services. 

How much does it cost to become SOC 2 Type 2 compliant?

There are many companies that offer this service, but it can be quite expensive. The cost of SOC 2 Type 2 compliance can vary greatly depending on the size and needs of your Organisation. However, a good rule of thumb is to expect anywhere between $5,000 and $10,000 per year for maintenance costs (annual reports).

What is a SOC 2 Type 2 audit report?

A SOC 2 Type 2 audit report is a document that lists all of your Organisation’s controls and how they are put in place. This is important because it allows your clients to verify that you are doing what you say you are doing. It also allows them to know that their data is safe with you.

How many controls are in a SOC 2 audit?

SOC 2 is made up of 5 Trust Service Criteria [TSC] which totals to 64 individual criteria rather than controls. They are implemented to meet or exceed a specific standard requirement as its name implies — it’s easier simply to think of the 64 individual criteria as requirements themselves.