Protecting customers’ data is a concern for all organizations regardless of industry or size. Most organizations outsource key aspects of their business to third-party vendors such as Software-as-a-Service (SaaS) solutions or cloud hosting providers (i.e. Amazon Web Services or AWS). As companies continue to share the responsibility of protecting sensitive data, there is increased importance and scrutiny on the cybersecurity practices implemented at these organizations. But how can SOC 2 examinations help?
Third-party assessments are a common way in which organizations prove their cybersecurity practices to vendors, customers, and prospects. SOC 2 examinations have become one of the de facto standards for organizations to prove how they are securely managing their customers’ data to protect their interests and privacy. For most organizations conducting business with a SaaS provider, a SOC 2 examination is a minimum requirement. SOC 2 reports are also common for other service organizations as well such as law firms, marketing agencies, accounting firms, healthcare organizations, and more.
How do SOC 2 reports help?
According to the AICPA, these reports can play an important role in:
- Oversight of the organization
- Vendor management programs
- Internal corporate governance and risk management processes
- Regulatory oversight
ByteChek wrote a whitepaper to provide a simple understanding of SOC 2 and how to do SOC 2 examinations. Use this whitepaper and the ByteChek Learning Center as your source of truth for all things SOC 2.
SOC 2 is a report on a service organization’s controls relevant to Security, Availability, Processing Integrity, Confidentiality, or Privacy. SOC 2 reports are intended to inform users of detailed information and assurance about the controls at the service organization. These reports are provided by qualified CPAs, who form an opinion about the service organization’s system and the control environment.
SOC 2 reports are becoming more prevalent in the market and more companies are asking for them in order to meet contractual obligations, supply chain management, due diligence, or other requirements. For the service organization, the report becomes not just a means to deliver on these obligations, but also a way of showcasing your security posture, as well as improving it through making sure your controls will operate properly.
Read everything there is to know about SOC 2 in this whitepaper.