A SOC 2 Audit is an independent examination of an organization’s controls and processes, specifically related to the handling of sensitive data, to ensure compliance with the Trust Service Criteria. These criteria are centered around the principles of security, availability, processing integrity, confidentiality, and privacy.

SOC 2 audits are most commonly relevant for organizations in the technology and cloud computing sectors, especially those providing Software as a Service (SaaS) or other data-related services. The audit assesses how well the organization manages the data and ensures that it aligns with industry best practices and regulatory requirements.

There are majorly 2 types of SOC 2 Audits:

1. SOC 2 Type I: Assesses the design and implementation of controls at a specific point in time.
2. SOC 2 Type II: Evaluates the design and operating effectiveness of controls over a defined period (typically 6-12 months).

Key Trust Service Criteria (TSC) for SOC 2

1. Security: Ensures that the system is protected against unauthorized access, both physically and logically.
2. Availability: Ensures that the system is available for operation and use as agreed or committed.
3. Processing Integrity: Ensures that system processing is complete, valid, accurate, timely, and authorized.
4. Confidentiality: Ensures that sensitive information is protected according to agreements or regulations.
5. Privacy: Ensures that personal information is collected, used, retained, and disclosed in compliance with privacy regulations.

Key Objectives

1. Evaluate Internal Controls: To assess the effectiveness of the organization’s internal controls in managing risks related to security, availability, processing integrity, confidentiality, and privacy.
2. Ensure Regulatory and Industry Compliance: To verify that the organization complies with relevant legal, regulatory, and industry-specific requirements, ensuring adherence to best practices and standards.

Deliverables

• SOC 2 Audit Report (Type I or Type II): A detailed report that outlines the findings of the audit, including an evaluation of the organization’s internal controls, processes, and adherence to the relevant trust service criteria (security, availability, confidentiality, etc.).
• Action Plan for Remediation: If the audit identifies any gaps or weaknesses in controls, a list of recommended corrective actions and timelines for addressing those issues may be included as part of the deliverables.

Procedure

• Step 1: Defining the Scope and Objectives: In this step, the relevant Trust Service Criteria (TSC) will be determined based on the business nature and data handled, along with defining the reporting period for evaluating the effectiveness and compliance of controls. This sets the foundation for a focused audit.

• Step 2: Preparation for the Audit: In this step, relevant documentation will be gathered, including policies, procedures, risk assessments, control activities, and evidence of control operations, in alignment with SOC 2 standard requirements. A readiness assessment will also be conducted to identify any gaps or weaknesses in the controls before the audit begins. Additionally, communication with the auditor will be established to set clear expectations and timelines for the audit process.

• Step 3: Performance of a Preliminary Audit: In this step, walkthroughs and interviews will be conducted to observe the organization’s controls in action and engage with key personnel to understand their operation. Our team will then test the design and effectiveness of the controls through methods such as observation, inquiry, and analytical procedures. Finally, any findings or exceptions identified during the mock audit will be addressed with a management response.

• Step 4: External Audit, Reporting and Communication: In this step, the external auditor issues a SOC report, expressing their opinion on the effectiveness of the organization’s controls based on the Trust Service Criteria (TSC). The report will then be communicated to stakeholders, including clients and partners, to demonstrate the organization’s commitment to security and compliance.

Project Timeframe

The project typically requires about 6 to 12 (six to twelve) months for Type I and 12 to 18 (twelve to eighteen) months for Type II. However, the timeframe may vary depending upon the size of the organisation, the number of departments and the scale and magnitude of processing activities.

Benefits

1. Enhanced Trust and Credibility: Demonstrates to clients, partners, and stakeholders that the organization follows best practices in security, privacy, and operational integrity, building confidence in the business.
2. Risk Mitigation: Identifies vulnerabilities and weaknesses in the organization’s processes, allowing the business to implement corrective measures and reduce security and operational risks.
3. Competitive Advantage: Differentiates the organization in the market by showcasing a commitment to transparency and high standards, making it more attractive to potential clients and partners.
4. Improved Operational Efficiency: Provides insights into areas for improvement within internal processes, helping the organization streamline operations, enhance service delivery, and optimize resource management.