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SOC 2 Compliance: A Step-by-Step Guide to Preparing for Your SOC 2 Audit

Fedir Kompaniiets
Fedir Kompaniiets
DevOps and Cloud Architecture Expert Co-founder of Gart
SOC 2 Compliance
Table of contents
  1. What is SOC 2?
  2. Trust Services Criteria
  3. Pre-Audit Preparations
  4. SOC 2 Audit Process
  5. Critical Controls for SOC 2 Compliance
  6. Post-Audit Steps
  7. SOC 2 Audit Checklist
  8. Human Factors in SOC 2 Compliance
  9. SOC 1 vs. SOC 2
  10. Key differences between SOC 2 and ISO 27001
  11. Conclusion

SOC (Service Organization Control) audits are a way to show that your internal processes are up to standard—whether it’s managing financial data or protecting sensitive information like customer privacy.

SOC 2 compliance is a set of guidelines that helps companies manage and protect customer data. It’s especially important for businesses that offer services to other companies, like those in IT and cloud services.

If your business handles sensitive information, SOC 2 compliance audit is crucial. Preparing for a SOC 2 audit means following clear steps to make sure your data protection measures are working effectively.

In today’s digital age, being SOC 2 compliant shows your customers that you prioritize data security, building trust and confidence in your business.

What is SOC 2?

SOC 2 (System and Organization Controls 2) is a set of compliance standards developed by the American Institute of Certified Public Accountants (AICPA).  It is aimed at service organizations that store customer data in the cloud.The audit assesses a company’s systems and processes based on five trust service criteria: security, availability, processing integrity, confidentiality, and privacy.

Unlike other frameworks that are rigid, SOC 2 is flexible and allows companies to select which trust service criteria they need to focus on, depending on their operational needs.

Trust Services Criteria

SOC 2 focuses on five key trust services criteria:

  1. Security: Ensuring that systems are protected against unauthorized access (both physical and digital).
  2. Availability: Making sure systems are available for operation and use as expected.
  3. Confidentiality: Protecting sensitive information from unauthorized access.
  4. Processing Integrity: Ensuring that data processing systems operate correctly, delivering accurate results.
  5. Privacy: Protecting personal information collected and ensuring it is used appropriately.

Out of these five criteria, security is the only mandatory one. However, most organizations also focus on availability and confidentiality, as they are critical for maintaining customer trust.

SOC 2 Trust Services Criteria Overview

Pre-Audit Preparations

Defining the Audit Scope

The first step in preparing for a SOC 2 audit is clearly defining the scope. This scope outlines the specific systems and processes that will be evaluated. It is essential to ensure that the defined information system – infrastructure, software, people, data, and processes – still meets the current business needs. If there have been changes, adjustments to the scope may be necessary.

Control Customization

SOC 2 allows organizations to customize controls based on their operational environment. For example, if your organization has shifted from a waterfall to an agile development process, the controls should reflect this change. Ensuring that controls align with how the business operates helps auditors understand your environment better, leading to a smoother audit process.

Team Readiness

Preparing the internal team for the audit is crucial. Assigning clear roles, setting agendas, and conducting control spot-checks beforehand can save time and ensure that everyone knows what is expected during the audit. Key personnel must understand their roles in explaining controls, providing evidence, and participating in system walkthroughs.

Ask how Gart Solutions can help you with SOC 2 compliance. Contact us today.

SOC 2 Audit Process

The SOC 2 audit is not a one-size-fits-all. Organizations can choose which of the trust service criteria they want to be audited on. This flexibility allows businesses to tailor their audit based on specific operational needs. For example, an e-commerce platform might focus on security and availability, while a healthcare provider might prioritize security and confidentiality.

The audit process itself involves several steps:

  1. Documentation: It is essential to document all processes and policies. Auditors will review this documentation to verify that security measures are in place and that they are being followed. For example, if a company states that it conducts annual access reviews for AWS, it must provide evidence that these reviews actually took place.
  2. Audit Execution: Auditors will examine the company’s controls to ensure compliance. This can involve reviewing data logs, verifying access permissions, and conducting interviews with key personnel.
  3. Audit Types:
    • Type 1 Audit: A snapshot of the organization’s compliance at a specific point in time.
    • Type 2 Audit: Reviews the operational effectiveness of controls over a period, typically 12 months.

*The key difference between Type I and Type II audits is time. A Type I audit checks if the controls you have in place are working at a single point in time. A Type II audit goes further by testing whether those controls actually worked over a longer period, usually at least six months. Both SOC 1 and SOC 2 audits can come in either Type I or Type II formats, which is why it can get confusing.

Critical Controls for SOC 2 Compliance

SOC 2 compliance requires several key controls across the organization. Some of the most important include:

  • Access Controls: Implementing principles like “least privilege,” where only necessary personnel have access to sensitive data. Multi-factor authentication is also required for accessing sensitive systems like cloud services.
  • Encryption: Both encryption at rest (data stored) and encryption in transit (data moving between systems) are crucial. Encryption protects sensitive information from unauthorized access.
  • Change Management: In software companies, it’s important to maintain strict version control and require independent approval of changes. This ensures that code changes are securely managed and that no unauthorized changes affect the system.

Post-Audit Steps

Reviewing the System Description
After the audit fieldwork is completed, the next step is reviewing the system description. This section of the SOC 2 report details the organization’s systems and processes. It must be reviewed annually to ensure that it reflects any changes in the company’s operations. The system description can be lengthy, often around 30 pages, so early preparation is necessary.

Maintaining Compliance for Future Audits
Once the initial audit is done, it is important to establish an ongoing compliance program. This includes regular control checks, ensuring that controls continue to operate as expected. For example, if a control requires quarterly user access reviews, these must be conducted regularly. Assigning responsibility for each control ensures accountability and reduces the risk of future non-compliance.

Audit Closure and Next Steps
Once the audit is complete, it is essential to schedule a closeout meeting with the auditor to discuss improvements and plan for future audits. This meeting should also cover how to use the SOC 2 report for business purposes, such as sharing it with stakeholders or using it as a marketing tool to demonstrate compliance. Additionally, preparing for the next year’s audit by scheduling key dates and responsibilities is recommended.

SOC 2 Audit Checklist

SOC-2-Audit-ChecklistDownload

Human Factors in SOC 2 Compliance

While SOC 2 compliance focuses heavily on technical controls, human factors also play a critical role. Processes like employee onboarding and offboarding must be managed consistently to ensure that no unauthorized individuals gain access to systems. For instance, an overlooked background check due to an HR error could compromise compliance.

Automation tools, such as Secureframe, are invaluable in mitigating risks associated with human error. By automating reminders for critical processes (like access reviews or background checks), companies can reduce the chance of non-compliance due to manual oversights.

SOC 1 vs. SOC 2

SOC 1 audits, also known as SSAE16 audits, look at how well your company controls financial reporting. SOC 2 audits focus on other important aspects like security, system availability, data processing accuracy, confidentiality, and privacy. Think of it like comparing apples to oranges—they’re both fruit but serve different needs.

Key differences between SOC 2 and ISO 27001

Table

AspectSOC 2ISO 27001
DefinitionSet of audit reports based on Trust Service Criteria (TSC)Standard for an Information Security Management System (ISMS)
Geographical ApplicabilityPrimarily used in the United StatesInternationally recognized
Industry ApplicabilityService organizations across various industriesOrganizations of any size or industry
ComplianceAttested by a Certified Public Accountant (CPA)Certified by an accredited ISO certification body
FocusProves security level of systems against static principles and criteriaDefines, implements, operates, controls, and improves overall security
Report TypesType 1 and Type 2 reportsCertification audit and surveillance audits
PurposeValidates internal controls related to information systemsEstablishes and maintains an ISMS

Conclusion

SOC 2 compliance is essential for organizations that handle sensitive data, particularly in the B2B sector. Achieving SOC 2 certification not only demonstrates that a company takes security seriously but also enables it to expand its business by selling to larger, security-conscious clients. SOC 2 is more than just a compliance program; it is a powerful tool for fostering customer trust and enhancing business opportunities.

How can Gart Solutions help with SOC 2 compliance?

Gart Solutions offers:

  • Gap assessments and remediation
  • Secure cloud infrastructure setup
  • Automated evidence collection
  • Policy documentation support
  • Post-audit compliance maintenance

    Our team helps you streamline the entire SOC 2 journey and stay ready for future audits.
Let’s work together!

See how we can help to overcome your challenges

Contact us

Fedir Kompaniiets
Fedir Kompaniiets
DevOps and Cloud Architecture Expert Co-founder of Gart

FAQ

What is SOC 2 compliance and who needs it?

SOC 2 compliance is a framework developed by the AICPA that evaluates how well a service provider secures customer data. It’s essential for companies — especially in SaaS, cloud, and IT services that store or process client data in the cloud.

What are the five trust service criteria of SOC 2?

SOC 2 is based on five trust service criteria: Security (required), Availability, Confidentiality, Processing Integrity, Privacy. Organizations can choose which criteria to include in their audit, depending on their services.

How does SOC 2 audit flexibility benefit organizations in different industries?

SOC 2 audit provides significant advantages for organizations across different industries due to its customizable framework. SOC 2 allows businesses to select the trust service criteria—such as security, availability, and confidentiality—that best align with their operational needs. This flexibility is particularly beneficial because every organization operates differently, and compliance needs can vary based on industry-specific requirements. For instance, an e-commerce company may prioritize security and availability to ensure uptime and protect customer transactions, while a healthcare provider may focus on confidentiality and processing integrity due to the sensitive nature of patient data. SOC 2’s ability to adapt to these unique needs helps organizations tailor their information security programs, making the audit more relevant and manageable for their specific sector. This adaptability not only simplifies the audit process but also ensures that businesses can meet compliance standards without having to implement unnecessary controls that don’t apply to their operations. Thus, SOC 2’s flexibility makes it a valuable tool for a wide range of industries.

How can a company modify the scope of its SOC 2 audit? 

Modifying the scope of a SOC 2 audit is an essential step, particularly when preparing for the audit. The scope defines the information system that will be assessed, including infrastructure, software, people, data, and processes. Before the audit begins, it is crucial to confirm whether this scope still aligns with the company’s current business objectives. If the business has undergone changes, such as adopting new technology or shifting to a different operational process, adjustments to the audit scope may be necessary to ensure it accurately reflects the company’s environment. SOC 2 audits are flexible in that while the criteria set by AICPA remain unchanged, the controls can be customized. If the company has changed how it manages its software development lifecycle (SDLC), for example, it may need to update the controls to reflect its current practices. These changes should be communicated to the auditor to avoid surprises during the audit and ensure that the audit stays relevant to the business needs.

What’s the difference between SOC 2 Type I and Type II?

SOC 2 Type I: Evaluates controls at a specific point in time. SOC 2 Type II: Tests the operational effectiveness of controls over a period (usually 6–12 months). Type II offers stronger validation for ongoing security practices.

How long does it take to complete a SOC 2 audit?

A SOC 2 Type I audit may take 1–3 months. A Type II audit typically takes 6–12 months to gather evidence and test controls over time. Preparation can take several weeks, depending on your existing processes.

Is SOC 2 mandatory for SaaS companies?

SOC 2 is not legally mandatory, but it is widely expected in B2B contracts. Many enterprise customers require a SOC 2 report before partnering with cloud or SaaS providers.
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