The SOC 2 (Service Organization Controls) standard was introduced by the American Institute of CPAs in 2013. SOC 2 is a technique for ensuring that service providers safely manage your data to safeguard your business’ interests and the privacy of your clients. It is built on the five guiding principles of security, confidentiality, availability, integrity, and privacy to protect customer data. SOC 2 is applicable to SAAS businesses that rely on technology, as well as to outside vendors and other partners that are required to follow these guidelines to ensure the integrity of the data.
SOC 2 is a methodology for confirming that all SAAS and cloud-based technology providers have controls and procedures in place to protect the security and privacy of client data. SOC 2 attestation is offered by outside auditors. Implementation will help you spot the underlying irregularities in terms of the protocols and security measures that an organisation should have in place to earn the trust of its clients.
The policies and procedures for ensuring Trust Service Criteria at a specific moment are the main emphasis of a Type 1 report. In order to verify that a company satisfies the required standards for control, an auditor will evaluate it once based on a set of criteria and controls.
Internal controls reports of Type 2 describe how a company safeguards customer information and how well such controls are operating. These reports, which cover the ideas of security, availability, confidentiality, and privacy, are created by independent third-party auditors.