In today’s digital landscape, Businesses need to ensure they are safeguarding Sensitive Data while meeting legal & regulatory requirements. One of the best ways to show compliance with Security, Availability, Processing Integrity, Confidentiality & Privacy Standards is by obtaining a SOC 2 Type 2 Report. But how exactly can a Business obtain this Report & what does the process involve? This guide will break down the steps for how to get SOC 2 Type 2 Report, along with the key points you need to consider along the way.
Introduction
SOC 2 is a widely recognised framework for assessing the effectiveness of a Company’s security controls. It is especially critical for Businesses that handle client data & need to prove their commitment to protecting it. The SOC 2 Type 2 Report is a more comprehensive audit that evaluates not only the design but also the operational effectiveness of these controls over time. So, how to get SOC 2 Type 2 Report? In this article, we will guide you through the process, discuss the key requirements & explore what the Report actually means for your Business.
What is SOC 2 Type 2?
SOC 2 stands for System & Organisation Controls 2, a framework created by the American Institute of Certified Public Accountants [AICPA]. It is designed to help Businesses demonstrate they are managing Customer Data securely.
- SOC 2 Type 1 Reports assess the design of a Company’s controls at a specific point in time.
- SOC 2 Type 2 Reports, however, go further by evaluating how effectively these controls operate over a defined period (usually six months or more).
To obtain a SOC 2 Type 2 Report, Businesses must undergo a thorough Audit conducted by an Independent Third Party Auditor who assesses their Systems & Processes based on the five Trust Services Criteria [TSC]: Security, Availability, Processing Integrity, Confidentiality & Privacy.
Steps to Get a SOC 2 Type 2 Report
1. Understand the Trust Services Criteria
Before you begin the process of obtaining a SOC 2 Type 2 Report, it is crucial to understand the five (5)Trust Services Criteria [TSC] that Auditors will use to assess your Business:
- Security: Ensures systems are protected against unauthorised access or attacks.
- Availability: Ensures systems are available for operation & use as committed.
- Processing Integrity: Ensures systems process data accurately, completely & in a timely manner.
- Confidentiality: Ensures Sensitive Data is protected according to Customer Agreements & Laws.
- Privacy: Ensures personal data is collected, used, retained & disclosed in a secure manner.
2. Conduct a Self-Assessment
Start by evaluating your current systems & processes against the SOC 2 criteria. This will help you understand where you might have gaps in your Controls or Processes. You can use Tools or Checklists available online or even hire a Consultant for this step. The goal is to get an internal sense of readiness before moving to the formal Audit.
3. Implement Necessary Controls
Once you have identified any gaps during your self-assessment, it is time to implement the necessary controls to meet the requirements of the SOC 2 Type 2 Report. This might involve setting up Security Protocols, Access Controls, Data Encryption, Employee Training & more. It is important to document these controls thoroughly.
4. Engage an Auditor
SOC 2 Reports can only be issued by an independent, Certified Public Accountant [CPA] or Firm. You will need to engage an Auditor who is familiar with the SOC 2 process & has experience auditing Businesses in your Industry. The Auditor will assess your security posture, reviewing your internal controls & how they have been implemented.
5. Complete the Audit Period
Unlike SOC 2 Type 1, which evaluates controls at a specific point in time, SOC 2 Type 2 evaluates the operational effectiveness of controls over a defined period (usually six months or more). During this time, the auditor will review your Business processes, perform Tests & verify that your Controls are functioning as expected.
6. Receive the Report
Once the audit is completed, the auditor will provide you with a SOC 2 Type 2 Report that details your Company’s Compliance with the Trust Services Criteria. The Report will outline the Auditor’s Findings, including any issues or weaknesses discovered during the Audit & whether or not your Controls were effective throughout the period.
Practical Considerations When Getting a SOC 2 Type 2 Report
Cost & Time Investment
The process of obtaining a SOC 2 Type 2 Report can be costly & time-consuming, depending on the size & complexity of your Organisation. The cost typically ranges from aten thousand dollars ($ 10,000) to to thirty thousands dollars ($ 30,000). Larger, more complex Businesses may need more time to prepare & undergo a longer audit period. However, the investment can pay off by building trust with Clients, enhancing your Security Practices & staying competitive in your Industry.
Ongoing Maintenance & Reassessment
Obtaining a SOC 2 Type 2 Report is not a one-time task. After receiving the Report, your Business must continue to monitor & maintain your security controls to ensure compliance is upheld. Many Companies choose to undergo annual audits to maintain their SOC 2 Type 2 certification, demonstrating an ongoing commitment to Security & Data Protection.
Limitations & Challenges
While obtaining a SOC 2 Type 2 Report is a valuable accomplishment, it is important to acknowledge its limitations. First, the Audit does not cover all areas of a Business’s Operations – it focuses only on the aspects related to the Trust Services Criteria. Secondly, a SOC 2 Type 2 Report is just one part of a broader Compliance & Risk Management strategy. It does not guarantee that your Company is completely free of security risks. Additionally, the Report is often used in specific industries & not all clients may require it.
Conclusion
Obtaining a SOC 2 Type 2 Report is an important milestone for any Business looking to prove its commitment to Data Security & Privacy. By following the necessary steps – understanding the Trust Services Criteria, assessing your current systems, engaging with a qualified Auditor & maintaining your Controls over time – you can ensure your Company meets the rigorous standards set out by the SOC 2 framework.
Takeaways
- SOC 2 Type 2 Reports evaluate the effectiveness of security controls over time.
- The process involves Self Assessment, implementing necessary Controls & undergoing an Audit by an Independent CPA.
- SOC 2 Type 2 Certification can be a valuable asset, but it requires ongoing maintenance & reassessment.
- The Report helps Businesses build trust with Clients & demonstrates commitment to Data Security.
FAQ
How long does it take to get a SOC 2 Type 2 Report?
The process of obtaining a SOC 2 Type 2 Report usually takes anywhere from three (3) to twelve (12) months, depending on the complexity of your Business & readiness for the Audit.
What is the difference between SOC 2 Type 1 & SOC 2 Type 2?
SOC 2 Type 1 Reports evaluate the design of Controls at a specific point in time, while SOC 2 Type 2 evaluates the effectiveness of these controls over a period of time.
How much does a SOC 2 Type 2 Report cost?
The cost of obtaining a SOC 2 Type 2 Report can range from a ten thousand dollars ($ 10,000) to to thirty thousands dollars ($ 30,000), depending on the size & complexity of your Business.
Is a SOC 2 Type 2 Report required for all Businesses?
No, SOC 2 Type 2 Reports are typically required for Businesses handling Sensitive Data, especially in industries such as Tech, Finance & Healthcare. However, not all clients will require one.
Can a SOC 2 Type 2 Report guarantee that a Business is completely secure?
No, while a SOC 2 Type 2 Report assesses the effectiveness of Controls, it does not guarantee that a Business is entirely free of Security Risks. It is part of a broader risk management strategy.
