A SOC 2 report is a type of audit that evaluates the security, availability, processing integrity, confidentiality and privacy of a service organization’s systems, infrastructure and processes. It helps organizations verify their controls meet industry standards to provide external assurance to customers that their data is safe. The assessment looks at whether or not IT controls are in place to protect the confidentiality and integrity of customer data or systems. The report is based on the Trust Services Principles, Framework and Criteria set out by the American Institute of Certified Public Accountants (AICPA). It is an essential tool for any SaaS business to get customers’ trust and prove their commitment to security.
There are two types of SOC 2 reports: Type 1 and Type 2.
A Type 1 report provides an assessment of the design of an organization’s controls that are in place at a specific point in time. It is used to show how an organization’s practices and procedures meet the Trust Services Principles and Criteria set out in the AICPA standards.
A Type 2 report provides evidence that a service organization’s controls have been operating effectively over a specified period of time. It is used to show how an organization’s practices and procedures meet the Trust Services Principles and Criteria set out in the AICPA standards for the entire duration of the assessment.
In addition, there is a SOC 3 report, which is a summary of a Type 2 report. It provides customers with an independent third-party assurance that the service organization’s IT systems have been assessed and meet security criteria based on AICPA standards. The SOC 3 report does not contain any detailed information about the service organization’s IT systems. Take a look at the SOC 2 report example from TrustNet certified auditors.
Overall, a SOC 2 report is an important tool to help organizations protect their customers’ data and prove their commitment to security. It provides customers with assurance that the service organization’s IT systems meet the industry standard for security, availability, processing integrity, confidentiality and privacy. It also helps build trust between organizations and customers, which is essential for any SaaS business.