A SOC 2 Type 2 report provides an in-depth evaluation of an organization’s information security practices. These reports are important for companies that handle sensitive customer data and want to assure stakeholders that they have strong controls in place. But the process for obtaining a SOC 2 report can be complex. Here is a step-by-step guide on how to get a SOC 2 Type 2 report for your organization.
What is a SOC 2 Report?
SOC stands for System and Organization Controls. These are standards established by the American Institute of CPAs (AICPA) for reporting on cybersecurity risk management. There are two main types of SOC reports:
- SOC 1 – Evaluates controls related to financial reporting
- SOC 2 – Evaluates controls related to security, availability, processing integrity, confidentiality, and privacy of customer data
Within SOC 2, there are two types of reports:
- Type 1 – Reports on the design of an organization’s security controls at a point in time
- Type 2 – Reports on the design AND operating effectiveness of controls over a period of time (typically 6 months or more)
SOC 2 Type 2 reports are much more comprehensive than Type 1. They provide assurance that controls are in place and working effectively over an extended timeframe. For organizations handling sensitive data, SOC 2 Type 2 reports are usually required to satisfy compliance obligations and security requirements for customers and business partners.
Determine Your SOC 2 Type 2 Readiness
The first step is to evaluate if your organization is ready to undergo a SOC 2 Type 2 audit. Here are some key considerations:
- Do you have documented information security policies and procedures?
- Are controls in place to meet SOC 2 Trust Services Criteria? These include security, availability, processing integrity, confidentiality, and privacy.
- Have your controls been operating effectively for at least 6 months?
- Do you have audit evidence to show your controls are working?
If you answered yes to these questions, your organization is likely ready for a SOC 2 Type 2 audit. If gaps exist, you may want to start with a readiness assessment. This can identify areas to strengthen before undertaking the full audit process.
Determine the Right SOC 2 Type 2 Scope
An important early step is determining the appropriate scope for your SOC 2 audit. This involves deciding which systems and controls to include in the assessment. Some considerations for SOC 2 scope include:
- Trust services criteria – Which criteria are most relevant for your operations? Security, availability, processing integrity, confidentiality, and privacy.
- Business processes – What are the most important processes for customer data security and privacy?
- Systems/applications – Which systems and applications handle sensitive data? Which are most crucial for business operations?
- Data types – What types of customer data do you collect and process? Which require the highest levels of control?
- Location – Will the audit cover controls at a single site or multiple locations?
Defining the right scope focuses the audit on areas of highest risk and importance for your business and customers. An experienced SOC 2 auditor can provide guidance on setting an appropriate scope.
Choose a Qualified SOC 2 Auditor
Your SOC 2 Type 2 report must be performed by an independent auditor. The auditor should have technical expertise in information security and experience conducting SOC 2 engagements. Here are important qualifications to look for:
- Certified public accounting (CPA) firm
- Accredited by AICPA to perform SOC audits
- Industry experience relevant to your operations
- Technical resources skilled in testing controls
- SOC 2 team with qualified auditors and managers
A reputable CPA firm will stand behind their work and have a vested interest in performing a thorough, high-quality audit. This provides stronger assurance for your stakeholders. Be sure to request examples of past SOC 2 reports from potential auditors.
Gather Evidence of Controls
A SOC 2 auditor will need to gather audit evidence to confirm your controls are designed appropriately and operating effectively. You play a key role in this process by providing documentation, reports, logs, and other information to demonstrate security practices. Examples of audit evidence include:
- Information security policies, standards, and procedures
- Risk management frameworks
- Access control records and logs
- Change management forms
- Incident response plans
- Penetration test reports
- Employee security training materials
- System configuration standards
- Data classification guidelines
Take time before the audit to compile, organize, and review your documentation. Be prepared to walk auditors through your controls and answer their technical questions. Your collaboration facilitates an efficient audit process.
Undergo Audit Testing
The SOC 2 auditor will develop a detailed audit program for evaluating your organization’s security posture based on the agreed upon scope and criteria. This involves a combination of:
- Inquiry – Interviews with management and staff regarding controls
- Observation – Watching processes, systems, and people’s actions
- Inspection – Reviewing documentation and reports
- Re-performance – Auditors repeating controls to test them (e.g. password checks)
Testing typically occurs onsite at your facilities. Be prepared to have auditors present to conduct interviews, observe operations, inspect systems, and re-perform controls. Testing may take several weeks depending on scope.
Remediate Gaps and Deficiencies
Throughout the SOC 2 audit, the auditor will communicate any control gaps or deficiencies identified. You will have the opportunity to remediate these issues before the final report is issued. Remediation can involve actions such as:
- Implementing a new control
- Enhancing existing controls
- Updating policies, procedures, and documentation
- Conducting additional staff training
- Fixing system configuration issues
A qualified auditor will provide guidance on remediation based on industry standards and best practices. A longer audit timeline allows flexibility to resolve gaps before the testing period closes.
Receive and Distribute the SOC 2 Report
Once audit testing completes, the SOC 2 auditor will analyze results, finalize documentation, and compile their independent opinion on whether your controls meet the Trust Services Criteria. You will receive a final Type 2 report that includes:
- Auditor opinion and description of testing
- Overview of controls in place at your organization
- Details on the operating effectiveness of controls
- Any gaps or deficiencies identified
- Recommended remediations and management responses
This comprehensive report can be shared with your customers, vendors, and other parties as evidence of your commitment to security and compliance. Distributing your SOC 2 report is a key step in realizing its business value.
Plan for Ongoing Updates
A SOC 2 Type 2 report reflects a point in time snapshot of your controls. To maintain assurance, organizations should plan to undergo SOC 2 audits on at least an annual basis. Consider scheduling the next audit before the current report expires.
You can also discuss ongoing advisory services with your auditor. They can help monitor your controls and provide early warning of any issues between full audits. Staying up to date on the latest SOC 2 requirements is key to maintaining effective security over the long-term.
Conclusion
Obtaining and maintaining a SOC 2 Type 2 report requires commitment, diligence, and partnership with a skilled auditor. But the investment is worthwhile for organizations handling sensitive customer data that want to demonstrate their security posture and build trust. With an understanding of the process and requirements, any organization can implement the controls needed to achieve SOC 2 certification.