What is SOC Compliance (and Why Does It Matter?)

We recently wrote about Pacesetter completing the SOC 2 Type 2 audit, an achievement we’re still incredibly proud of. While we know that this audit ultimately demonstrates to the world that we are committed to providing our clients with the very best levels of service we can. In this post, we wanted to share with you a little more information about what SOC compliance actually is, why it matters, and the benefits of working with an organization that has attained this status.

SOC 2 Compliance Explained

SOC 2, which stands for System and Organization Control, was originally developed by the American Institute of Certified Public Accountants (AICPA for short). A SOC 2 audit looks at an organization’s security, privacy/confidentiality controls, availability, and processing integrity.  These audits are designed to give the organizations who successfully pass through the process an accreditation that demonstrates credibility and build trust.

Why is the SOC2 accreditation important?

In some industries or circumstances, a client may request to work with a SOC2 certified business. In fact, it is occasionally viewed as a prerequisite for service-oriented businesses to provide services to high-profile or tier-one organizations.

Who Should Have a SOC2 Report for their Business?

This is typically needed if you are an information provider who stored or processes financial data. If you are thinking about outsourcing all or aspects of your data storage, then you must ensure you only work organizations that are secure and compliant. The cost of data loss, data breaches, and/or mismanagement of data is too high to dismiss. Getting a SOC2 compliance report gives you a definitive level of assurance regarding the security practices and risk levels associated with the organization.

Who undertakes the audits for SOC2?

All audits for SOC 2 certifications are handled by an accountancy organization or an Independent Certified Public Accountant. It is a highly regulated certification with strict professional standards. Aside from their own processes, each individual auditor undergoes regular peer review to ensure the highest of standards is maintained at all times.

File Integrity Monitoring (FIM) solutions are ideal for maintaining security controls over time, making them an outstanding tool for achieving SOC 2 Type 2 compliance.https://t.co/G2KlLX2MDt #infosec #itsecurity #cybersecurity #compliance

— CimTrak Integrity (@cimtrak) October 19, 2020

What is SOC ii Report Criteria for SOC2

This compliance report outlines a range of criteria that is dedicated to the secure management of customer data. There are five main principles of SOC2 Compliance; here, we expand on what these are. 1 – Security Including two-factor authentication, intrusion detection, network and application firewalls. 2 – Privacy Access control, encryption, two-factor authentication.  3- Confidentiality Encryption, access control, network and application firewalls. 4 – Process Integrity Quality Assurance, process monitoring 5 – Availability  Security Incident Management, Disaster Recovery, Performance Monitoring

Is SOC 2 Better Than ISO 27001?

Whether or not ISO27001 is better than SOC2 depends on the individual needs of the business. For some, ISO27001 is best; for others, SOC2 is more relevant. Here’s a quick breakdown of the key differences between each.

ISO 27001 Explained

The ISO certification will typically confirm and validate whether a set of specific standards and requirements are being met, or not. Oftentimes a business will be asked to show proof of, or obtain such a certification. This certification will outline different requirements for the maintenance, implementation, and establishment of an information security management system. It will consider future improvements, along with data handling and assessment of information security risks that matter on an organizational basis. All of the regulatory requirements in the ISO 27001 are generic and do not relate to the individual company, their size, or what they do.

SOC2 Explained

SOC2 compliance is focussed on the specific controls that a service organization implemented with respect to the five-trusted services criterion. They are designed to cover a specific point in time or a period of time. From a global perspective, the U.S. utilize SOC2 reports more than most of the continents; in Europe, the ISO27001 is more typically requested. These controls play an integral part in the provision of the following:

• Internal Management of Risk
• Vendor Management Programs
• Organizational Overviews
• Regulatory Oversights

Essentially, the goal of a SOC2 report is to give organizations a clear way to demonstrate their security and risk mitigation standards to the world. It builds confidence; it builds trusts and helps organizations to prove their operational excellence. On the other hand, the goal of an ISO27001 is a good guide or an outline of best practice for the establishment of a system for information security management. 

Conclusion

Going through the SOC2 certification process takes time, dedication, and usually, the involvement of third-party organizations to ensure you achieve the accreditation. Where it comes to information security, privacy, integrity, and retaining control over information that’s in your care, it’s important to demonstrate to those who wish to work with you that you take information security seriously. When you work with a business holding a SOC2 certification, particularly those with any compilatory or IT governance requirements, this audit can provide an immediate reassurance of the stringent working practices in relation to data security and storage. Essentially, it’s a sign of quality and secure cloud infrastructure and a robust set of internal protocols that are designed to mitigate risk and offer protection to all parties.