What Is a SOC 2 Type 2 Audit? A Comprehensive Guide for Businesses

Ensuring information security and data privacy today is paramount. One way businesses can demonstrate their commitment to data protection is by undergoing a SOC 2 Type 2 audit. But what exactly does this entail, and why could it be important for your business? Let's explore.

Understanding a SOC 2 Type 2 Audit

SOC 2, or Service Organization Control 2, is a set of standards developed by the American Institute of Certified Public Accountants (AICPA). These standards are designed to help organizations manage and protect data to safeguard the interests and privacy of their clients. SOC 2 focuses on five key Trust Services Criteria:

• Security: Protecting systems against unauthorized access.
• Availability: Ensuring systems are available for operation and use.
• Processing Integrity: Guaranteeing that system processing is complete, valid, accurate, timely, and authorized.
• Confidentiality: Protecting information designated as confidential.
• Privacy: Ensuring personal information is collected, used, retained, disclosed, and disposed of in conformity with privacy principles.

These criteria provide a framework for organizations to establish robust data security practices.

SOC 2 Type 1 vs. SOC 2 Type 2

There are two types of SOC 2 audits.

• SOC 2 Type 1: This audit assesses the design of an organization's controls at a specific point in time. It answers the question: "Are the controls appropriately designed?"
• SOC 2 Type 2: This audit evaluates not only the design but also the operating effectiveness of these controls over a defined period, typically between six months to a year. It addresses: "Are the controls operating effectively over time?"

While both audits are valuable, SOC 2 Type 2 provides a more comprehensive review, providing assurance that controls are not only well designed but also consistently effective.

The SOC 2 Type 2 Audit Process

Undergoing a SOC 2 Type 2 audit involves several key steps:

1. Preparation: Reviewing and documenting existing controls related to the five Trust Services Criteria.
2. Gap Analysis: Identifying any areas where current practices may not meet SOC 2 requirements.
3. Remediation: Implementing necessary changes to address identified gaps.
4. Audit: Engaging an independent auditor to evaluate the design and operating effectiveness of your organization’s controls over the audit period.
5. Reporting: Receiving a SOC 2 Type 2 report detailing the findings and any areas for improvement.

This process ensures that your organization not only meets the necessary standards but also maintains them consistently.

Benefits of SOC 2 Type 2 Auditing

Successfully completing a SOC 2 Type 2 audit provides your organization with several advantages:

• Risk mitigation: Helps identify and address potential vulnerabilities before they become issues.
• Regulatory alignment: Complements compliance efforts with other regulatory frameworks and requirements.
• Enhanced trust: Clients gain confidence knowing their data is handled securely.
• Competitive edge: Differentiates your business in the marketplace by showcasing a commitment to data security.

For businesses handling sensitive customer data, a SOC 2 Type 2 audit is a testament to your dedication in maintaining the highest standards of data security and privacy.

Final Thoughts on SOC 2 Type 2 Auditing

Pursuing a SOC 2 Type 2 audit is not merely a checkbox but an ongoing strategic commitment that underscores your organization's commitment to excellence in data security and privacy. By investing in this rigorous auditing process, you reassure your clients, fortify your market position, and stay ahead of potential risks. Embracing these standards fosters a culture of trust and reliability, setting a strong foundation for enduring success and client satisfaction.

At EO Johnson and Locknet, we value information security as much as you do. If your organization is in a regulated industry, or you simply have a strong focus on information security, our SOC 2 Type 2 audit and companion report can provide the peace of mind you are looking for in a Managed IT Service Provider. Let’s talk.