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Introduction to SOC 2 Compliance Framework

SOC 2 compliance is a critical framework for organizations that manage sensitive customer data, ensuring robust security, availability, confidentiality, processing integrity, and privacy controls. Designed by the American Institute of Certified Public Accountants (AICPA), SOC 2 attestation demonstrates an organization's commitment to safeguarding information and building trust with stakeholders

Certifyi simplifies the SOC 2 compliance

The primary purpose of SOC 2 is to provide assurance to customers, stakeholders, and regulators that a service organization has implemented effective controls to ensure the security, availability, processing integrity, confidentiality, and privacy of the data it processes. SOC 2 reports are based on the Trust Service Criteria (TSC), which include five key principles:

  • Security: The system is protected against unauthorized access, both physical and logical.
  • Availability: The system is available for operation and use as committed or agreed.
  • Processing Integrity: System processing is complete, valid, accurate, timely, and authorized.
  • Confidentiality: Information designated as confidential is protected as committed or agreed.
  • Privacy: Personal information is collected, used, retained, disclosed, and disposed of in conformity with the commitments in the entity’s privacy notice and criteria set forth in the AICPA’s Privacy Criteria.

Control implementation and management

Create a defensible position by tracking and managing your internal controls required to maintain SOC 2 compliance in 6clicks. With certifyi, organizations can track controls through the full lifecycle, including point-in-time assessments. Assign control tasks, track progress, and communicate effectively to ensure alignment and control accountability across the organization.

Audit preparation

As you work towards SOC 2 compliance, Certifyi enables you to prepare for audits by generating comprehensive reports and evidence of control implementation. These reports can be customized to meet the specific requirements of your auditors. Additionally, you can use the platform to maintain a centralized repository of evidence and documentation easily shared with the certifyi Trust Portal, saving time and effort during the audit process.

Continuous monitoring and improvement

SOC 2 compliance is not a one-time activity but an ongoing process. certifyi helps you establish a framework for continuous monitoring, evaluation, and improvement of your controls and practices to maintain compliance over time. Organizations can track the implementation of controls, assess their effectiveness, and identify any gaps or deficiencies that need to be addressed to achieve a satisfactory SOC 2 report.

SOC 2 Compliance Process Flow

Certifyi streamlines the three phases of SOC 2 compliance:

Initial Setup

  • Define scope based on applicable Trust Services Criteria.

  • Implement controls for identified gaps using Certifyi’s pre-built templates.

  • Conduct internal self-assessments to ensure readiness for external audits.

External Audit

  • Collaborate with auditors by providing centralized evidence via Certifyi’s platform.

  • Facilitate walkthroughs and testing with organized documentation.

  • Receive the final audit report validating compliance.

Ongoing Compliance

  • Automate recurring control testing schedules.

  • Continuously gather evidence and address issues proactively.

  • Retest controls after remediation to maintain certification year-round.

What does SOC 2 stand for?

SOC 2 stands for System and Organization Controls 2. It was created by the American Institute of Certified Public Accountants (AICPA) as a way to help organization’s verify their security and reduce the risk of a security breach. The name relates to which controls are being assessed, which for the case of SOC 2, is an organization’s data security controls across their technical system and day-to-day operations.

When you get your SOC 2, it means you have implemented the appropriate security controls and have had those controls investigated by a third-party auditor. Your auditor will assess your information security against five categories, known as the five Trust Services Criteria (TSC):

Security (CC): Your systems and data are protected against unauthorized access and disclosure.
Availability (A): Your information and systems are available for their intended use.
Confidentiality (C): Confidential information is kept confidential.
Processing integrity (PI): Data processing is complete, valid, accurate, and timely.
Privacy (P): Consumer data is protected and consumers are informed about the collection, use retention, and disposal of their data.

Control implementation and management

Create a defensible position by tracking and managing your internal controls required to maintain SOC 2 compliance in 6clicks. With certifyi, organizations can track controls through the full lifecycle, including point-in-time assessments. Assign control tasks, track progress, and communicate effectively to ensure alignment and control accountability across the organization.

Audit preparation

As you work towards SOC 2 compliance, Certifyi enables you to prepare for audits by generating comprehensive reports and evidence of control implementation. These reports can be customized to meet the specific requirements of your auditors. Additionally, you can use the platform to maintain a centralized repository of evidence and documentation easily shared with the certifyi Trust Portal, saving time and effort during the audit process.

Continuous monitoring and improvement

SOC 2 compliance is not a one-time activity but an ongoing process. certifyi helps you establish a framework for continuous monitoring, evaluation, and improvement of your controls and practices to maintain compliance over time. Organizations can track the implementation of controls, assess their effectiveness, and identify any gaps or deficiencies that need to be addressed to achieve a satisfactory SOC 2 report.

Certifyi's Implementation Approach

SOC 2 is not legally required by any organization, however, it may be required by your prospects before they agree to do business with you. Your SOC 2 report helps your customers reduce the risk of bringing you on as a vendor and verifies what measures you have in place to protect their data. For this reason, many businesses and investors in North America can only do business with organizations that demonstrate their information security with a SOC 2 report. There are several advantages to getting a SOC 2 that can impact your business: ‍

  • Show you have a strong data security posture.  
  • Ensure via an audit that you’ve lowered your chances of a possible data breach. 
  • Unlocks deals with high-value clients and business partners that require a SOC 2. 
  • Demonstrate trustworthiness with your stakeholders. 
  • Build a strong data security posture.
 

SOC 2 Type 1

SOC 2 Type 2

Audit window

At a single point in time

Over a period of time, typically 3, 6, 9, or 12 months

Tests effectiveness of controls

Data service organizations

Data service organizations

Timeline

Often faster

Often takes longer

Cost

Usually cheaper

Tends to be more expensive

Report depth

Provides less insight into security posture

Provides more insight into security posture

SOC 1 vs SOC 2 vs. SOC 3

There are three types of SOC audits: SOC 1, SOC 2, and SOC 3. A SOC 1 audit evaluates financial reporting procedures, while SOC 2 focuses on information security, and SOC 3 reviews security controls for public sharing. SOC 2 is intended for stakeholders like customers and partners, whereas SOC 3, with less confidential information, is designed for public display, like on your website.Below is a table that compares the different types of SOC reports:

 

SOC 1

SOC 2

SOC 3

What it’s

Audits of your financial reporting practices

Audits your information security practices to protect your customer’s data

Audits the same controls as SOC 2 but for public viewing

Who gets one

Organizations that could impact their customer’s financial reporting

Data service organizations

Data service organizations

What it reports on

Your control for keeping accurate financial records

Your security posture and the controls in place to protect your data

The same controls as SOC 2 but in far less detail

Who requests it

Customers

Customers

No one—used for marketing purposes

FAQ

No, a SOC 2 is not legally required by any organization. However, your customer may require you to obtain one in order to do business with you. 

SOC 2 compliance is not legally required for any organization. It’s completely voluntary for businesses to get and there are no fines or penalties for not having a SOC 2. This standard is commonly used by SaaS companies, organizations that provide business intelligence or analytics, and managed IT providers.‍

You can’t technically "fail" a SOC 2 audit, as there’s no pass or fail system. Instead, the auditor provides an objective report on your security posture. If your controls or their execution don’t meet the required criteria, the report may include a “qualified opinion,” signaling areas that need improvement. 

Being SOC 2 Compliant is essentially having a valid SOC 2 report by an independent third-party CPA firm. Technically, SOC 2 is not a certification – it is the auditor’s opinion of control efficacies on protecting data, also known as a ‘SOC 2 Attestation’. A SOC 2 attestation is based on the Trust Services Criteria and is provided  by a registered CPA firm authorized by the AICPA. Usually, a SOC 2 report is valid for a year and the organization is required to engage the same or a different CPA firm to conduct the next SOC 2 audit.

SOC 2 audits are conducted every 12 -18 months and the SOC 2 report is valid for 12 months.

Discover how Certifyi can simplify your organization’s journey toward SOC 2 compliance.

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