SOC2 Overview

Service Organization Control 2 - Trust Services Criteria

What is SOC2?

SOC2 (Service Organization Control 2) is a framework developed by the American Institute of CPAs (AICPA) for service organizations to demonstrate their security, availability, processing integrity, confidentiality, and privacy controls.

Unlike SOC1, which focuses on financial reporting controls, SOC2 is specifically designed for technology and cloud service providers to demonstrate their operational controls to customers and stakeholders.

Trust Services Criteria

SOC2 is built around five Trust Services Criteria, though organizations typically focus on the first two:

1. Security (CC6.1-CC6.8)

Protection against unauthorized access, both physical and logical. Includes access controls, system monitoring, and incident response.

2. Availability (CC7.1-CC7.5)

System availability for operation and use as committed or agreed. Includes system monitoring, capacity planning, and disaster recovery.

3. Processing Integrity (CC8.1)

System processing is complete, valid, accurate, timely, and authorized. Includes data validation and processing controls.

4. Confidentiality (CC9.1)

Information designated as confidential is protected as committed or agreed. Includes data classification and handling procedures.

5. Privacy (CC10.1-CC10.3)

Personal information is collected, used, retained, disclosed, and disposed of in conformity with the commitments in the entity's privacy notice. Includes privacy notice compliance and data subject rights.

SOC2 Report Types

SOC2 Type I

  • Point-in-time assessment of control design
  • Covers a specific date (usually end of fiscal year)
  • Faster to obtain (3-6 months)
  • Lower cost and complexity

SOC2 Type II

  • Assessment of control design AND operating effectiveness
  • Covers a period of time (typically 6-12 months)
  • More comprehensive and trusted by customers
  • Takes 6-12 months to complete

Key SOC2 Requirements

Security Controls (CC6)

  • Logical and physical access controls
  • System access monitoring and logging
  • Data encryption in transit and at rest
  • Network security and firewall management
  • Incident response procedures
  • Vulnerability management program

Availability Controls (CC7)

  • System monitoring and alerting
  • Capacity planning and performance monitoring
  • Backup and recovery procedures
  • Disaster recovery planning
  • Change management processes

SOC2 Implementation Process

1

Scope Definition

Define the system boundaries, services, and Trust Services Criteria to be included in the assessment.

2

Gap Analysis

Assess current controls against SOC2 requirements and identify gaps that need to be addressed.

3

Control Implementation

Implement missing controls, update policies and procedures, and establish monitoring mechanisms.

4

Testing & Documentation

Test control effectiveness, gather evidence, and prepare comprehensive documentation for the audit.

5

Audit & Certification

Engage a CPA firm to conduct the SOC2 audit and issue the final report.

Why SOC2 Matters

  • Customer trust and competitive advantage
  • Required by many enterprise customers
  • Demonstrates commitment to security and availability
  • Reduces customer security questionnaires
  • Improves internal security posture

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