Understanding SOC 2: What It Is and Who Oversees It
Learn what SOC 2 is, who regulates it and why it is so important for maintaining corporate security. In addition, learn about the principles of trust services, how SOC 2 is implemented and evaluated, its parameters and validity.
Introduction
In this eBook, we will explore a very important topic in the world of cybersecurity: SOC 2, a fundamental tool in these times when cyberattacks such as ransomware, phishing, and vishing are proliferating. These issues are a challenge for companies regardless of their size or the sector they work in. We will learn what SOC 2 is, who regulates it, and why it is so important to maintain the security of companies. Additionally, we will cover the trust service principles, how SOC 2 is implemented and evaluated, its parameters, and its validity.
Let’s begin this journey with SOC 2!
What is SOC 2?
Contrary to what many believe, SOC 2 is not a certification; it is a standard that helps companies demonstrate that they are effectively protecting the information of their clients and employees, indicating that there is an external entity qualified to confirm that the established requirements are being met.
Who regulates it?
SOC 2 is regulated by the American Institute of Certified Public Accountants (AICPA). This organization establishes the standards that companies must follow to manage information securely.
Only Certified Public Accountants (CPAs) can perform SOC audits, which is why the AICPA has professional standards to regulate the work of those who carry out these tasks. They must also follow the declared guidelines regarding planning, execution, and supervision of the audit. All these processes must be continuous to ensure their correct application.
It should be noted that SOC 2 has two types of reports:
Type 1: Conducted at a specific moment to determine whether the controls are appropriately designed and suitable.
Type 2: A historical review to verify that the controls function properly. It evaluates the company’s controls over a specific period.
Trust Service Principles
The trust service principles are the pillars upon which SOC 2 is built. There are 5 key principles, each ensuring that the information handled by companies is secure. Here they are:
- Security: Ensures that information is protected against unauthorized access.
- Availability: Ensures that information and systems are accessible when needed.
- Processing Integrity: Ensures that information is accurate and systems function correctly.
- Confidentiality: Ensures that sensitive information is kept private.
- Privacy: Focuses on protecting users’ personal information.
How is SOC 2 implemented and evaluated?
Here are the main steps to implement and evaluate SOC 2, a process that ensures companies are following the appropriate security standards:
- Step 1: Initial Assessment
This first phase involves a thorough review of the organization’s current practices and controls. The analysis helps identify areas for improvement and to develop a plan to meet SOC 2 requirements. - Step 2: Implementation of Controls
Once the areas for improvement have been identified, security controls must be implemented to address them. This can include technical measures such as encryption and firewalls, as well as organizational policies and procedures to ensure data is handled securely. - Step 3: Continuous Monitoring
To ensure that the implemented controls remain effective over time, continuous monitoring is required. This involves conducting internal audits and periodic reviews to identify and correct any issues. This helps maintain a high level of security and constant compliance. - Step 4: Evaluation by an External Auditor
Here is where the auditor’s role comes into play. They must review the organization’s practices and controls to ensure they meet SOC 2 standards. This process includes reviewing documents, conducting tests, and evaluating the effectiveness of the implemented controls. This step demonstrates to clients and partners that the organization handles their data securely.
SOC 2 Parameters
Companies must follow specific rules to ensure adequate protection of information. Here are some important parameters:
Access Control
Ensures that only authorized individuals can access information. This includes the use of secure passwords, two-step verification, and role-based access policies to limit access to sensitive data.
Encryption
Converts information into a secret code that can only be read by authorized persons, protecting data both in transit and at rest. This way, sensitive information cannot be intercepted without permission.
Audits and Records
Document all activities related to information, allowing a detailed review of how data is handled. This includes creating access logs, information changes, and security events that can be reviewed to detect and correct problems.
Backup and Recovery
Ensures that data is regularly backed up and can be recovered in case of an incident by using methods such as creating data backups and implementing disaster recovery plans to minimize the impact of any disruption.
Validity
The validity of SOC 2 varies and can be determined by whoever requests the report. Therefore, your company can choose what is most convenient. Generally, SOC 2 reports are valid for one year, meaning organizations must undergo annual audits to maintain their certification. This validity ensures that security practices remain updated and effective over time.
Pirani is a tool that helps you to perform the security management system to comply with standards such as SOC 2, create your free account or schedule a meeting with our experts and find out how you can do it.
