February 10, 2025
Would you do business with an organization you don’t trust?
Safeguarding the sensitive data your organization receives from donors, customers, employees, and other stakeholders is a strategic imperative today. That’s where a SOC 2 audit comes in. This audit assesses an organization’s controls related to security, availability, processing integrity, confidentiality, and privacy of customer data. Undergoing this audit demonstrates a commitment to data protection and security, fostering greater trust among your clients, employees, and prospects.
In essence, a SOC 2 audit not only helps safeguard your data but also significantly enhances your organization’s reputation. Best of all, this audit is easily accessible to small and medium sized organizations.
What is a SOC 2 Audit?
SOC 2 (System and Organization Controls 2) is a framework created by the American Institute of CPAs (AICPA). The SOC 2 audit evaluates how an organization manages customer data through five Trust Service criteria (TSC).
A SOC 2 Type 2 Audit shows the efficiency of your organization’s controls over an entry of time (three to twelve months). The SOC 2 audit includes 5 trust service criteria, but only the security criterion is mandatory. Each of the other 4 trust service criteria noted below are optional, but can offer added assurance to clients, members, and stakeholders based on the type of services your organization delivers.
1. Security – Information and systems are protected against unauthorized access, unauthorized disclosure of information, and damage to systems that could compromise the availability, integrity, confidentiality, and privacy of information or systems and affect the entity’s ability to achieve its objectives.
2. Availability — The systems are available for operation and use to meet the entity’s objectives. If your organization’s offering is down or unavailable, will your client’s organization be impacted? If so, this criterion should be a priority for your organization. Example organizations include SaaS or IaaS.
3. Processing Integrity –System processing is complete, valid, accurate, timely, and authorized to meet the entity’s objectives. It is especially useful for e-commerce platforms, payment processors, and logistics companies.
4. Confidentiality – Information designated as confidential is protected to meet the entity’s objectives. Adhering to this criterion will be beneficial for organizations that deal with trade secrets, proprietary information, or intellectual property. Examples include law firms and research organizations.
5. Privacy – Personal information is collected, used, retained, disclosed, and disposed of to meet the entity’s objectives. Those companies accessing and processing personal data, such as marketing agencies, Human Resource platforms, and healthcare providers may want to consider including the privacy criteria.
Why would a SOC 2 be important for organizations?
1. Building Trust with Clients, members, and stakeholders
They ask for reassurance that their data is being handled securely by you. A SOC 2 certification is independent verification that your organization has adequate security controls. This is crucial for post-pandemic organizations as they compete against larger organizations.
2. Meeting the regulatory and contractual requirements
Security standards such as SOC 2 are now required in many industries. In fact, certain organizations might mandate SOC 2 compliance as a condition to work with your organization. This certification proves that your organization satisfies these demands.
3. Enhancing Internal Processes
Going through a SOC 2 audit challenges your company to discover and correct weaknesses in your systems. This can strengthen your overall security posture, minimize risks, and maintain operational agility.
4. Competitive Advantage
A SOC 2 accreditation differentiates you from competitors who may not have gone through the same rigorous examination of their security practices. It’s a strong differentiator that implies reliability and professionalism.
The Process of SOC 2 Audit
Here’s a step-by-step overview of what to expect:
- Scoping: Determine which systems, processes, and Trust Service Criteria are relevant to your organization.
- Readiness Assessment: Conduct a readiness assessment to identify areas where your organization may fall short.
- Implementation: Address any gaps by implementing or strengthening controls and policies.
- Audit Period: Allow the controls to operate over the defined period (6-12 months).
- Audit Execution: An independent auditor reviews your controls and issues a detailed report on their effectiveness.
- Report Issuance: Receive your SOC 2 report, which you can share with clients and stakeholders.
Challenges Organizations May Face
Limited Resources
If your organization has limited resources available, consider working with an auditor who partners with an automated compliance solution designed to help free up your resources.
Maintaining Compliance
Obtaining a SOC 2 report is not a one time, check-the-box activity. Regular training, monitoring, and updating of controls are needed to ensure ongoing compliance.
Final Thoughts
A SOC 2 audit is more than a compliance checkbox. It’s an opportunity to showcase your organizations’ reputation, security, and growth. By demonstrating your commitment to data protection and operational excellence, you can secure client trust, meet industry demands, and position your organization for long-term success.
If you’re considering a SOC 2 audit and don’t know where to start, reach out to us online, or at the contact info below. With the right guidance, the process can be streamlined, efficient, and ultimately rewarding for your organization.
