Introduction
For any Organisation managing Customer Data in the cloud, Data Security is no longer optional it is a necessity. Understanding how to get SOC 2 certified is the first step toward proving your Company meets high standards for Data Protection, Privacy & Operational Integrity. This article provides a step-by-step guide to the SOC 2 Certification Process, explains how to maintain Compliance over time & covers challenges Businesses often face. You will also learn about the different SOC 2 types, the role of Trust Service Criteria & how this Framework compares to others like ISO 27001 & HIPAA.
What is SOC 2 & Why does it Matter?
SOC 2 stands for System & organisation Controls 2, a Security Framework developed by the American Institute of Certified Public Accountants [AICPA]. It assesses how well a Service Organisation protects Customer Data across five areas: Security, Availability, Processing Integrity, Confidentiality & Privacy.
Getting SOC 2 certified assures Clients that your Systems are managed with a strong focus on Data Protection. It is particularly vital for Software-as-a-service [SaaS] Companies & Cloud Service Providers that deal with Sensitive Data.
You can find additional details on AICPA’s official page.
Understanding the Five (5) Trust Service Criteria
To successfully complete the SOC 2 Certification Process, your Systems & Policies must meet one or more of these Trust Service Criteria [TSC]:
- Security: The Core Principle. Ensures Systems are protected against unauthorised access.
- Availability: Ensures Systems are operational & accessible as promised.
- Processing Integrity: Checks that System processing is complete, accurate & timely.
- Confidentiality: Safeguards Sensitive Data like Trade Secrets & Internal Reports.
- Privacy: Focuses on how Personal Information is collected, used & stored.
Not all Organisations need to include all five (5) criteria most start with security & expand as necessary.
How to get SOC 2 Certified : Step-by-Step Process
Here’s a simplified roadmap for how to get SOC 2 certified:
1. Define Scope & Objectives
Start by selecting the Systems, Processes & Trust Criteria relevant to your Services. This sets the foundation for your Readiness Assessment.
2. Conduct a Readiness Assessment
A Consultant or Internal Team evaluates current Controls & identifies Gaps. This step helps you prepare for the formal Audit.
3. Remediate Gaps
Address the issues discovered during the Readiness Assessment. This often includes Policy updates, Technical Controls & Employee Training.
4. Choose a CPA Firm
Only a licensed CPA or affiliated firm can issue a SOC 2 Report. Choose one with industry experience & strong references.
5. Undergo the Audit
The Auditor evaluates your controls & prepares a SOC 2 Report. Type 1 reviews design of controls at a specific point, while Type 2 observes effectiveness over time.
6. Receive your Report
If successful, you receive your SOC 2 Report, which you can share with Clients & Partners.
Common Challenges & How to Overcome Them
Many Companies struggle with these key issues:
- Incomplete Documentation: Make sure Policies & Procedures are written & accessible.
- Tool Overload: Using too many tools can cause complexity. Standardise where possible.
- Employee Awareness: Employees often underestimate the importance of Data Handling practices. Regular training is essential.
Maintaining SOC 2 Compliance after Certification
Certification is not a one-time event. SOC 2 Type 2 requires controls to operate effectively over a defined time period (usually six (6) months to a year).
Steps to maintain Compliance:
- Continuous Monitoring: Use tools that track control effectiveness in real time.
- Policy Reviews: Update Security & Privacy Policies at least annually.
- Internal Audits: Conduct regular check-ins to spot new Risks or Failures.
These practices help sustain trust with Clients & prepare you for future Audits. A helpful resource is the NIST Cybersecurity lifecycle.
Distinctions Between SOC 2 Type 1 & Type 2
Both types serve different Business needs:
- SOC 2 Type 1: A snapshot Audit. Confirms your controls are designed correctly at a specific time.
- SOC 2 Type 2: Longitudinal. Assesses how well Controls function over a set timeframe.
If you are early in your security journey, start with Type 1. As your systems mature, move to Type 2 for deeper Client trust.
SOC 2 Certification vs Other Frameworks
It is important to know how SOC 2 compares with other standards:
- SOC 2 vs ISO 27001: ISO is internationally recognised & more prescriptive. SOC 2 is flexible but U.S. focused.
- SOC 2 vs HIPAA: HIPAA is Healthcare-specific, while SOC 2 applies across Sectors.
- SOC 2 vs PCI-DSS: PCI-DSS targets Payment Data. SOC 2 is broader in Scope.
SOC 2 often complements these frameworks rather than replacing them.
Final Thoughts on Staying Compliant
Learning how to get SOC 2 certified is not just about passing an Audit. It is about embedding trust into your everyday operations. With careful preparation, the right tools & regular Audits, you can both earn & maintain your SOC 2 Certification and assure your Clients that their data is in safe hands.
Takeaways
- SOC 2 focuses on how well your organisation protects Customer Data.
- The five (5) Trust Service Criteria define your Compliance Scope.
- Certification involves Readiness, Remediation & an Audit.
- SOC 2 Type 2 offers deeper insight than Type 1.
- Compliance is a continual commitment rather than a one-time milestone.
FAQ
What does SOC 2 Certification involve?
SOC 2 Certification involves selecting relevant Systems & Trust Criteria, conducting a Readiness Assessment, remediating Gaps & passing an Audit by a CPA.
Who needs SOC 2 Certification?
Any Company that handles Customer Data in the Cloud especially SaaS, Fintech or B2B Services should consider SOC 2 Certification to build Client trust.
What is the timeline for achieving SOC 2 Certification?
It typically takes between three (3) to six (6) months to prepare for & complete SOC 2 Type 1 certification & up to twelve (12) months for Type 2.
What is the cost of SOC 2 Certification?
Costs vary widely depending on Company size & Scope, but most Businesses can expect to spend between $ 10,000 & $ 30,000.
Can I perform a SOC 2 Audit internally?
No. Only Licensed CPAs or Affiliated Firms can conduct & issue official SOC 2 Reports.
How often do I need to renew SOC 2 Certification?
SOC 2 Type 2 Reports are generally renewed annually to ensure continuous compliance.
Is SOC 2 mandatory for SaaS Companies?
It is not legally mandatory, but many Enterprise Clients require it before signing Contracts with SaaS Providers.
What is the difference between SOC 2 & SOC 1?
SOC 1 focuses on Financial Controls, while SOC 2 evaluates Security & Operational effectiveness related to Customer Data.
Need help for Security, Privacy, Governance & VAPT?
Neumetric provides organisations the necessary help to achieve their Cybersecurity, Compliance, Governance, Privacy, Certifications & Pentesting needs.
Organisations & Businesses, specifically those which provide SaaS & AI Solutions in the Fintech, BFSI & other regulated sectors, usually need a Cybersecurity Partner for meeting & maintaining the ongoing Security & Privacy needs & requirements of their Enterprise Clients & Privacy conscious Customers.
SOC 2, ISO 27001, ISO 42001, NIST, HIPAA, HECVAT, EU GDPR are some of the Frameworks that are served by Fusion – a SaaS, multimodular, multitenant, centralised, automated, Cybersecurity & Compliance Management system.
Neumetric also provides Expert Services for technical security which covers VAPT for Web Applications, APIs, iOS & Android Mobile Apps, Security Testing for AWS & other Cloud Environments & Cloud Infrastructure & other similar scopes. Reach out to us by Email or filling out the Contact Form…
