SOC 2 report explained: everything you need to know

SOC 2 is one of the most requested audit standards in the IT industry. The report gives clients and partners insight into how your organization handles security, availability and confidentiality of data.

The SOC 2 report was developed by the American Institute of Certified Public Accountants (AICPA) and focuses on five trust service criteria: Security, Availability, Processing Integrity, Confidentiality and Privacy. When clients or partners request a SOC 2 report, they want assurance that your organization meets strict control standards.

A SOC 2 audit report is always performed by an independent auditor. This auditor examines your business processes, IT systems and controls against the criteria of the AICPA framework. The report describes in detail which controls are in place and how effectively they operate.

SOC 2 comes in two forms: Type I and Type II. Type I is a more limited version that indicates which controls are present at a specific point in time. Type II is more comprehensive and demonstrates that controls were operating effectively over a period of at least six months. Most large clients request a Type II report because of the stronger evidence of effectiveness.

For many SaaS companies, cloud providers and IT service organizations, a SOC 2 report is essential. It gives clients confidence and helps close business deals. At the same time, it provides your organization with an independent validation of your security practices.

Wondering if SOC 2 is right for your organization? We help you determine the right audit standard for your situation. Contact us for a no-obligation consultation.