How often should a SOC 2 audit be done?

How Often Must a Service Organization Schedule a SOC 2 Audit? Most SOC 2 reports cover a 12-month period, but there are times when service organizations perform this audit every six months, depending on the client’s preference and any ongoing concerns in the operational control environment.

Is SOC 2 only for SaaS?

SOC 2, which was developed by the American Institute of CPAs (AICPA), is specifically designed for service providers storing customer data in the cloud, which means that it applies to nearly every SaaS company operating today.

What is a SOC 1 and SOC 2 audit?

The Simple Answer: A SOC 1 Audit is focused on internal controls related to financial reporting (ICFR). A SOC 2 Audit is focused on information and IT security identified by any of 5 Trust Services Categories: security, confidentiality, information privacy, processing integrity and availability.

Who must comply with SOC 2 requirements?

SOC 2 requirements are mandatory for all engaged, technology-based service organizations that store client information in the cloud. Such businesses include those that provide SaaS and other cloud services while also using the cloud to store each respective, engaged client’s information.

How long does a SOC 2 Type 2 audit take?

The audit should take place over 6-12 months. Some organisations that are gaining SOC 2 compliance to satisfy a customer requirement may need to speed up this timeframe.

Can you fail a soc2 audit?

It’s important to know that the SOC 2 audit does not grade as pass or fail. But if there are more significant exceptions, such as failing to provide adequate evidence of a control or not following a control altogether, your audit may claim a qualified or adverse opinion.

What does soc2 mean?

Service Organization Control 2
Soc 2, pronounced “sock two” and more formally known as Service Organization Control 2, reports on various organizational controls related to security, availability, processing integrity, confidentiality or privacy.

Who uses soc2?

What is SOC 2 Compliance? Developed by the AICPA, SOC 2 is specifically designed for service providers storing customer data in the cloud. That means SOC 2 applies to nearly every SaaS company, as well as any company that uses the cloud to store its customers’ information.

Does soc2 cover soc1?

A SOC 1 audit’s control objectives cover controls around processing and securing customer information, spanning both business and IT processes. A SOC 2 audit’s control objectives cover any combination of the five criteria. Readers and users of SOC 1 reports often include the customer’s management and external auditors.

What is soc1 compliance?

SOC 1 compliance affirms the security of your services and gives your organization the ability to provide clients with evidence from an auditor who has actually seen your internal controls in place and operating.

Who conducts soc2 audits?

Who can perform a SOC audit? A SOC audit can only be performed by an independent CPA (Certified Public Accountant) or accountancy organization. SOC auditors are regulated by, and must adhere to specific professional standards established by, the AICPA.

What is a soc2 Type 2 audit?

A SOC 2 Type 2 report is an internal controls report capturing how a company safeguards customer data and how well those controls are operating. These reports are issued by independent third party auditors covering the principles of Security, Availability, Confidentiality, and Privacy.

Is SOC 2 compliance necessary for SaaS providers?

When companies choose a SaaS provider, being able to prove good security practices with something like SOC 2 compliance is either helpful or a requirement. For your customers, having SOC 2 provides a sense of confidence that you have sound controls and procedures to achieve reliable and constant services.

What is the best SoC audit for a SaaS company?

The SOC 2 report is typically the most appropriate for a SaaS solution, but, a SOC 1 (SSAE 16 – now SSAE 18 as of May 1, 2017) is the most requested (although not always the most relevant). The cost for an audit can vary greatly depending on the number of controls, size of the company, and complexity of the IT infrastructure.

What are the challenges of SOC 2 auditing?

Of course, it does not happen without challenges. SOC 2 auditing has some challenges. Among them, two are more significant. Although SOC 2 reports are beneficial, they do consume a lot of time! An organization and its staff will be put under a lot of strain during audits.

Which cloud computing platforms have we issued SOC 2 reports?

Additionally, we’ve successfully issued SOC 2 reports for clients that utilize the three (3) main cloud computing platforms – Amazon AWS, Microsoft Azure, and Google Cloud.