SOC 2 Audit

SOC 2® - SOC for Service Organizations: Trust Services Criteria

A SOC 2 examination is a report on controls at a service organization relevant to security, availability, processing integrity, confidentiality, or privacy. SOC 2 reports are intended to meet the needs of a broad range of users that need detailed information and assurance about the controls at a service organization relevant to security, availability, and processing integrity of the systems the service organization uses to process users’ data and the confidentiality and privacy of the information processed by these systems.

A SOC 2 audit primarily benefits Service Organizations and their clients (service organization clients).  Similar to a SOC 1 audit.

Let’s define who is a Service Organization:

• SaaS Providers: Software-as-a-Service companies that offer applications processing any sensitive data. 
• Financial Technology Companies: Organizations providing financial technology solutions that process clients’ financial information.
• Financial Institutions: Banks, credit unions, and other financial entities that outsource services like loan processing or payment handling.
• Insurance Companies: Firms that outsource claims processing or policy management. Including companies that process healthcare ePHI data. 
• Payroll Processors: Companies that manage and process payroll services for other organizations.
• Data Centers: Providers hosting critical applications and data for their clients.

Let’s determine why a Client (service organization clients) should require SOC 2 audit be provided:

• Provides service organization clients assurance that an independent third-party auditor performed required audit procedures for the controls at a service organization relevant to security, availability, and processing integrity along with the and the confidentiality and privacy of the information processed by these systems as noted above. 
• Clients’ auditors and customers require a SOC 2 audit to obtain assurance of the processing and security of their data. 

Service organizations that comply and obtain a SOC 2 audit report will have a competitive advantage, provide trust and credibility along with satisfying many regulatory legal and data risk mitigation requirements.