As the need for data security grows, auditing standards such as SOC 2 are becoming increasingly important for enterprises and regulated industries as a means of verifying internal security processes. As large enterprises often require security certification from potential vendors, many software companies and SaaS businesses heavily rely on SOC 2 validation as documented proof that their security measures are up to date. 

SOC 2 compliance and certification is a massive (and often necessary) asset for any organization that works with data in regulated industries. Achieving this status strengthens security protocols, validates security processes, and helps streamline security assessment and procurement. 

Achieving SOC 2 compliance is no easy feat. We’re going to walk you through some of the essentials, including general SOC 2 standards, planning for an audit, and some tips to achieve SOC 2 certification.

What is SOC 2?

SOC 2, or System and Organization Controls 2, is a complex auditing framework developed by the American Institute of Certified Public Accountants (AICPA). Designed to test and provide a report surrounding an organization’s internal security controls, a SOC 2 report can be provided to potential organizations, clients, customers, and other third-parties, as proof of compliance. A SOC 2 report increases transparency, highlighting essential information regarding the oversight of an organization, including vendor management programs, internal corporate governance, risk management processes, and regulatory oversight.

Unlike laws and regulatory standards like HIPAA, PCI DSS, or SOX, there is no legal requirement or law requiring an organization to comply with SOC 2. In short, SOC 2 is a voluntary auditing standard that an organization adopts in order to validate and prove its security posture.

The Two Types of SOC 2 Reports

Under SOC 2, there are two types of audits and reports — Type 1 and Type 2:

 

SOC 2 Type I: This type of report focuses on an organization’s system and the design of its security controls related to the Trust Services Criteria (TSC).

A type 1 evaluation is based on an organization’s description of its service organization system, including the suitability of the design and operational effectiveness of its controls. In other words, its security controls are evaluated at a specific point in time.

 

SOC 2 Type 2: This second type of report focuses on an organization’s system and the design of its security controls related to the Trust Services Criteria (TSC) and operational effectiveness of controls.

Regarding type 2, the security evaluation and auditing standards are more rigorous compared to type 1. During a SOC 2 audit, not only does an auditor assess the description and controls of an organization, but the operational effectiveness of the security controls are also assessed. As it is much more intensive, this type of audit takes place over the course of several weeks.

Click here, for more information on Type 1 and Type 2 SOC reports and what they entail.

Benefits of Becoming SOC 2 Compliant

In order to avoid serious penalties and fines, regulated industries such as healthcare and finance must comply with strict security measures. For this reason, it is up to large industries to ensure that any potential new vendors and/or software solutions have up-to-date security measures in place that will not jeopardize their organization. These rigid measures are in place for a good reason: a staggering 44% of enterprises have reported having experienced a data breach caused by a vendor — the importance of a SOC 2 audit simply cannot be overstated. 

Many vendors and organizations that obtain SOC 2 compliance can expect the following benefits: 

• An overall strengthened security program with a low-risk potential for security breaches.
• A stamp of approval that makes it easier to go through enterprise procurement and security reviews.
• As companies or prospects may require their vendors to achieve SOC 2 certification, the chances of reaching an agreement are vastly increased.

Note: Before preparing for a SOC 2 audit, it is important that you read and understand the guidelines and controls laid out in the Trust Services Criteria (TSC), previously known as the Trust Services Principles (TSP). 

Five Steps to Achieving SOC 2 Certification

In order to prepare for and achieve SOC 2 certification, security teams must establish security controls, consult with a reputable auditing firm, and validate and prove the effectiveness of their security standards. For best results, it is recommended that teams create and follow a roadmap dedicated to enhancing security programs and work with assessors to resolve any potential security concerns. 

To achieve SOC 2 certification quickly and effectively, an organization must be properly prepared before the formal auditing process begins. The auditing process can be expedited and rendered as painless as possible by gathering and providing the appropriate SOC 2 evidence, including administrative policies, and technical security standards. 

Be sure to carefully read over the following steps:

1. Approach Credible Third-Party Auditor and Determine Any Existing Gaps

In order to obtain an objective and valid report, an organization must be audited via a reputable third-party provider.

To achieve SOC 2 certification quickly and painlessly, we recommend preparing for the auditing process with Dash. Often, an organization will perform a SOC 2 scoping and readiness assessment; this exercise acts as a gap assessment and provides security teams with a better understanding of which security controls require special attention or remediation action. With help from Dash, Teams can work together to easily create security policies and maintain all necessary security controls with continuous compliance monitoring.

List of Potential SOC 2 Gaps

• Lack of Formal Administrative Policies
• Undefined Security Roles and Responsibilities
• Lack of Risk Management & Incident Response Plans
• Missing Technical Security or Logical Controls
• Issues with Third-Party Access and/or Confidentiality 

2. Select Criteria for Auditing

As an organization may be assessed on one or more of the following Trust Services Criteria, special care must be taken to ensure the following categories of criteria are reinforced.

Outside of the Security Criteria, organizations must determine the scope of TSC criteria that will be evaluated in a SOC 2 audit. Due to the fact that not all criteria may be applicable to an organization, teams must work with their assessors in order to determine the scope and value of achieving certification across criteria. 

Organizations must manage controls including the following for individual TSC criteria:

 

Security: network/application firewalls — two-factor authentication — intrusion detection

Availability: performance monitoring — disaster recovery — security incident handling

Privacy: access control — two-factor authentication — encryption

Confidentiality: confidentiality agreements — access controls — encryption

Processing Integrity: quality assurance — processing monitoring

 

3. Build a Roadmap for SOC 2 Compliance

Once an organization has identified potential security gaps and standards that must be improved, it is recommended that teams develop a roadmap outlining how these security controls will be implemented. Consider developing a timeline and practice delegating preparation tasks to appropriate staff members. If applicable, teams should review any previously conducted audits to help identify areas for improvement.

It is recommended that teams gather data and security evidence well ahead of the auditing process and have an open line of communication during the actual auditing process — be ready to ask/answer questions and provide additional documentation during the evaluation.

Consider including the following categories in your SOC 2 roadmap:

• Creating an Inventory of Vendors and Third Parties
• Setting Administrative Security Controls
• Implementing Technical Controls
• Performing a SOC 2 Audit
• Monitoring the Security Program

4. Perform a Formal Audit

Once all of the necessary SOC 2 security controls have been implemented and tested to meet the Trust Services Criteria (TSC), an organization is then ready to schedule a SOC 2 security audit. During the auditing process, teams will be asked to answer relevant security questions and provide policies and evidence relating to their security controls.

When ready, an organization should look for an audit firm/assessor with the following qualities:

Experience: Look for a firm that has considerable experience conducting SOC 2 audits. A firm that has performed numerous assessments on the latest SOC 2 criteria is highly recommended.

Project Fit: For best results, consider an auditing firm that has worked with similar types of organizations in the past. This will ensure your team will receive valuable insight that directly relates to their industry or company. 

Excellent Communication: Only work with an auditing firm that has a reliable track record in communication, that responds to concerns and inquiries within a 24-hour period. A good communication loop allows teams to better address issues and progress through the assessment process with ease.

5. Certification and Recertification

Once an organization has reached the end of the auditing process, if it was determined that the team was compliant and all standards were met, the organization will then receive a SOC 2 report, otherwise known as SOC 2 certification.

This report outlines an organization’s proficiency in regards to security principles. Teams that receive a SOC 2 report can then use this report to prove the validity of the company’s security program.

In reality, this is only the beginning. In order to maintain certification, teams will have to undergo annual audits to ensure that security measures are properly implemented within their organization. We recommend using Dash security reports to keep an inventory of compliance controls and evidence for audits and certification.

Maintaining SOC 2 Compliance

Upon obtaining SOC 2 certification, an organization must continue to prove the ongoing effectiveness of its security controls. As most SOC 2 reports only cover a 12-month period, an organization must complete a SOC 2 audit every year in order to stay up-to-date within the current SOC 2 requirements. 

Dash ComplyOps is an effective solution for streamlining the collection of security evidence, creating security policies, and ensuring security controls remain in accordance with continuous compliance monitoring.

Head on over to Dash to learn more about how security teams can streamline SOC 2 compliance and achieve SOC 2 certification quickly and painlessly.