SOC 2 statement explained: What does it mean?

Cybersecurity is high on the agenda as businesses increasingly lean on technology. By meeting SOC 2 standards, companies ensure they are taking the essential steps to protect their customers’ data.

What is SOC 2 statement?

SOC 2 stands for Service Organization Control 2, a set of standards developed by the American Institute of Certified Public Accountants (AICPA). These standards define criteria for managing customer data. Specifically, SOC 2 focuses on five trust principles: security, availability, integrity of processing, confidentiality and privacy.

To obtain the SOC 2 statement, companies must undergo an audit conducted by an independent third party. This auditor reviews the company’s business processes and controls to ensure they meet the criteria of the trust principles. If compliant, a report will be issued demonstrating the company’s commitment to data security.

Although SOC 2 declaration is not mandatory, it is becoming increasingly important for companies handling sensitive data. Meeting these standards can unlock new business opportunities and help companies prevent costly data breaches and maintain customer trust.

Why does SOC 2 declaration matter?

Data breaches can be costly and damage a company’s reputation. By achieving SOC 2 certification, companies demonstrate that they are taking the necessary steps to protect their customers’ personal information. Companies that adhere to the trust principles in SOC 2 emphasize their commitment to data security, gaining a competitive advantage in today’s technology-driven marketplace.

What is the difference between SOC 2 Type 1 and Type 2?

The key distinction between SOC 2 Type 1 and Type 2 is that Type 1 focuses exclusively on the design of controls at a specific point in time. In contrast, Type 2 evaluates both the design and operational effectiveness of controls over a period of time, usually six months to a year.

Who can conduct a SOC 2 audit?

When choosing an auditor, it is crucial to choose an AICPA-accredited institution. This ensures that the auditor has the necessary knowledge and expertise to assess a company according to the trust principles of SOC 2.

Conclusion:

In today’s technologically advanced world, data security is critical. SOC 2 statement is a tool that companies can use to demonstrate their commitment to data security. Are you looking for support in achieving SOC 2 certification? At ALTA-ICT, we have the expertise to guide you through this process. Contact us for more information and expert advice.