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SOC 2 is an auditing procedure that ensures your service providers securely manage your data to protect the interests of your organization and the privacy of its clients. For security-conscious businesses, SOC 2 compliance is a minimal requirement when considering a SaaS provider.
SOC 2 compliance is a component of the American Institute of CPAs (AICPA)'s Service Organization Control reporting platform. Its goal is to make sure that systems are set up so they assure security, availability, processing integrity, confidentiality, and privacy of customer data.
Developed by the American Institute of CPAs (AICPA), SOC 2 defines criteria for managing customer data based on five trust service principlessecurity, availability, processing integrity, confidentiality and privacy. Unlike PCI DSS, which has very rigid requirements, SOC 2 reports are unique to each organization.
A SOC 2 report, similar to a SOC 1 report, evaluates internal controls, policies, and procedures. However, the difference is that a SOC 2 reports on controls that directly relate to the security, availability, processing integrity, confidentiality, and privacy at a service organization.
Summary. A SOC 1 report is designed to address internal controls over financial reporting while a SOC 2 report addresses a service organization's controls that are relevant to their operations and compliance. One or both could be right for your organization.
Soc 2, pronounced "sock two" and more formally known as Service Organization Control 2, reports on various organizational controls related to security, availability, processing integrity, confidentiality or privacy.
There are two types of SOC 2 audit reports: Type I and Type II. A Type II report for a SOC 2 audit includes the exact same sections as I just mentioned in the Type I, but there's an additional section that talks about the operating effectiveness of those controls that you've put into place.
A SOC 2 Type 2 report is an internal controls report capturing how a company safeguards customer data and how well those controls are operating. These reports are issued by independent third party auditors covering the principles of Security, Availability, Confidentiality, and Privacy.
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