• 12 December, 2022
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SOC 2 Compliance Checklist: All You Need To Know

Introduction

SOC 2 Compliance is a set of common standards for Service Organisations that guide the way they handle customer data. SOC 2 Compliance was designed to protect sensitive information and provide assurance that customers’ personal information is handled correctly and securely. The SOC 2 Compliance Checklist details all the steps you need to take to meet the requirements of this standard, which will help you reduce risk and stay on top of your security practices.

What Is SOC 2 Compliance?

SOC 2 Compliance is a set of security controls that are used to protect the Confidentiality, Integrity, and Availability of an Organisation’s sensitive information. SOC 2 Compliance is also a standard that helps Organisations evaluate their security controls. In fact, according to the National Institute of Standards and Technology [NIST], “SOC 2 reports provide assurance on the effectiveness of internal controls over financial reporting by providing an independent audit opinion on whether those internal controls are operating effectively.”

According to NIST the goal of SOC 2 is to ensure that you can trust in your IT systems’ ability to store your confidential data securely and make sure it won’t be compromised by hackers or other malicious parties.

Why is the SOC 2 Compliance Checklist included?

The SOC 2 Compliance Checklist is a good way to ensure that you are in compliance with the regulations. It’s also a good way to make sure that your service provider is in compliance and that they are following best practices.

The SOC 2 Compliance Checklist by Neumetric helps you understand the requirements of the SOC 2 and make sure that you are compliant with them. It’s a good idea to use this checklist before hiring a service provider or even starting your own IT Department so that you can ensure that they are doing things correctly from the beginning.

What makes SOC 2 Compliance crucial?

Organisations that handle sensitive data need to ensure that their IT infrastructure is secure and meets the highest standards. SOC 2 compliance helps to ensure proper handling of customer data, which can be very important in a number of industries including finance, healthcare and government.

SOC 2 compliance offers three main benefits:

• It helps to ensure that you have a robust security policy in place.
• It can help assure customers and investors that your systems are protected against attacks or other cybercriminals who may try to gain access to sensitive customer information.
• If an Organisation fails its SOC 2 audit, it could face fines from regulators as well as potential lawsuits from consumers who have been affected by the breach of their privacy rights due to inadequate protection measures put in place by their service providers (e.g., online merchants).

What happens during the SOC 2 audit?

A SOC 2 audit is a process of reviewing your Organisation’s security controls.

The auditor will review both your Organisation’s policies and procedures—including the security program—to ensure they’re in place. The auditor will also evaluate the effectiveness of your Organisation’s security controls by performing tests to ensure that they’re working properly. If any weaknesses are identified during the audit, they should be prioritised and addressed in order to help you improve your overall security posture.

The auditor will also determine whether you have the right security controls in place to protect data, privacy and systems. The audit report will contain the auditor’s findings and recommendations, including any corrective actions that need to be taken. This information can be used by your Organisation to determine where it should invest resources in order to improve security.

Who can conduct a SOC audit?

While most companies will hire a third-party auditor, there are other options. A SOC 2 audit can be conducted by any Certified Public Accountants [CPA] firm that is a member of the American Institute of Certified Public Accountants [AICPA]. It can also be conducted by any company that is a member of the Information Systems Audit and Control Association [ISACA].

Internal SOC Audits can be conducted by your IT department or by an outside security consulting firm. The benefit of hiring an external company is that they will bring fresh eyes to the situation and provide unbiased feedback. Internal SOC audits may be cheaper, but they may also overlook important issues due to familiarity with your systems.

The Five Trust Service Criteria of SOC 2

The five trust service criteria are the foundation of SOC 2 Compliance. They include:

1. Security: The system must be secure against external threats, such as hackers or disgruntled employees.
2. Privacy: Data subjects should have control over how their information is used and disclosed.
3. Availability: The system must be available when needed.
4. Confidentiality: The system must protect the confidentiality of data, including against unauthorised access and accidental loss.
5. Processing integrity: The data in the system must be accurate and reliable.

SOC 2 Checklist for Compliance

The SOC 2 Compliance Checklist is a thorough guide to making sure your company is prepared for a SOC 2 Audit. This article outlines a nine-step process SOC 2 Compliance checklist that can help your Organisation obtain SOC 2 Certification.

1. Select your goals: The first step is to identify your goals for SOC 2 compliance. This includes selecting the appropriate service level, developing a security and privacy policy and identifying the risks of data processing.
2. Determine the SOC 2 report type you require: You need to determine whether you require a SOC 2 Type 1 Report or a SOC 2 Type 2 Report. A Type 1 Report is the standard, non-audit opinion that an Organisation can use in lieu of third-party audits on an as-needed basis. A Type 2 Report requires an annual audit by a third party and covers all areas of SOC 2 Compliance.
3. Establish the audit’s parameters: You need to establish the parameters of the Audit, including when it will start, how long it will take and what specific services it covers. This helps you ensure that you have enough time to complete all necessary steps before the Audit begins.
4. Execute an internal risk analysis: You need to assess the risk of your Organisation’s security systems, policies and procedures. This will help ensure that you can effectively address any vulnerabilities before they become a problem. Conduct an internal risk analysis to identify any potential gaps in your Organisation’s security measures that could put customer data at risk of unauthorised access or unauthorised disclosure during processing or storage of such information (i.e., PII).
5. Conduct Gap Analysis and Repair: You need to analyse the current state of your security and identify any gaps in your coverage. You can then develop a plan to close those gaps by implementing new policies, procedures and protocols.
6. Put in place stage-appropriate safeguards: You need to put in place safeguards that are appropriate for the stage of your business. This may include using encryption, implementing firewalls and developing a disaster recovery plan.
7. Complete Readiness Evaluation: Once you’ve completed all of the steps above, it’s time to conduct a readiness evaluation. This will help you identify any remaining gaps in your security and determine what else needs to be done before you can become SOC 2 Compliant.
8. SOC 2 External Audit: Once you’ve completed your readiness evaluation and put in place all of the appropriate safeguards, it’s time to have an External Auditor perform a SOC 2 Audit. After the audit is complete, your Report will be sent to the CPA Firm for review and approval.
9. Implement Regular Monitoring Procedures: Once you’ve become SOC 2 compliant, it’s important to implement regular monitoring procedures. This will help ensure that your security controls are still in place and working properly—and will help you identify any issues before they become major problems.

Make the SOC 2 process simple and error-free

Make the SOC 2 process simple and error-free: The SOC 2 process can be time-consuming and complicated, but it doesn’t have to be. Many companies choose to hire a professional to handle the entire process for them—but if you want to do it yourself, there are plenty of resources available.

Use a checklist to ensure you don’t miss anything: The SOC 2 checklist can help you stay organized and ensure that nothing is forgotten. It will also help you make sure that you have all the necessary documentation, which is important because some of it may be difficult to locate.

Use a SOC 2 audit tool that will help you stay compliant: There are many SOC 2 audit tools on the market, but not all of them are as helpful and comprehensive as they could be. If you want to make sure that your company is in compliance with all of the standards, consider using a tool developed by an independent third party or one created specifically for this purpose. Auditor, an Audit Management Tool developed by Neumetric will help you carry out SOC 2 Audits with ease. Click here to know more about Auditor and how it can help you get through your SOC 2 Compliance process.

Have the right resources at your fingertips: If you want to be successful when it comes to SOC 2 audits, you need resources that will help you stay compliant. This includes a team of security professionals who are certified in this area and know what they’re doing. If you can find someone with experience in SOC 2 audits, even better! Neumetric, a cybersecurity products and services Organisation, can provide a team of experts that will handle your Organisation’s SOC 2 Certification process with ease. Click here to know more about the SOC 2 Certification Service provided by Neumetric.

Conclusion

In the end, SOC 2 Compliance is a complex process that requires careful planning and execution. The SOC 2 Compliance checklist will help you understand what are the necessary things to implement in your Organisation that will help you become SOC 2 Compliant. The first step towards achieving SOC 2 Compliance is understanding what it means for your Organisation. Once you have this knowledge, it’s time to start planning the right approach for your Organisation and its unique needs. By following these steps closely, you can make sure that your Organisation will be able to accomplish its goals with ease.

FAQs

What are the 5 SOC 2 Trust Principles?

The 5 SOC 2 Trust Principles are:

1. Security
2. Privacy
3. Availability
4. Confidentiality
5. Processing integrity

What is SOC 2 Type 2 compliance?

SOC 2 Type 2 compliance is when an Organisation has implemented the 5 SOC 2 Trust Principles and has documented evidence of this implementation. This documentation can be as simple as a report from your systems auditor (if you have one) or as complex as a full-blown third-party audit.

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