Key Takeaways
- Operational Inconsistency is the Main Cause: Control exceptions in a SOC 2® Type 2 report are most often attributed to a disconnect between the written documentation and real-world execution. The misalignment of day-to-day operational activities with documented policies and procedures is a more common factor than a simple lack of policies.
- Employee Training is Essential: Preventing exceptions requires consistent employee awareness and training. Personnel must understand not only the policies and procedures themselves but also the reason why they are important to follow as documented.
- Oversight is Non-Negotiable: A combination of minimal oversight on key activities or a lack of proper control monitoring is a significant factor in control exceptions. Proper management of all interrelated components of the compliance program and oversight from appropriate individuals is key.
The Focus of a SOC* Assessment
Did you know it is extremely common for SOC 2®* Type 2 reports to contain control exceptions? While this does not necessarily mean that this will lead to report qualifications, it may be more common than you realize. Let’s take a look at some factors that impact control exceptions in SOC 2® Type 2 reports.
What Factors Contribute to Control Exceptions in SOC 2®*Type 2 Reports?
Believe it or not, exceptions are not usually attributable to a simple lack of documentation. Most companies create documented policies ahead of their SOC 2® assessment (although the rare exception does happen).
Most commonly, control exceptions in a SOC 2® Type 2 can be attributed to:
- Lack of employee awareness of documented policies or procedures – training is key!
- Day-to-day operational activities not being aligned to documented policies and procedures.
- Minimal oversight on key activities or lack of proper control monitoring.
- A combination of all the above factors!
Speak to a Compliance Specialist.
4 Keys to a Successful SOC 2® Type 2
With this information in mind, you may be wondering what you can do about it in order to help your organization pass your SOC 2® Type 2 assessment with the best possible rating.
We have 4 key takeaways for you to consider:
| Strategy | Justification / Outcome |
| 1. Consistent Training | Ensures employees understand not just policies and procedures, but why they are so important to follow as documented. |
| 2. Operational Alignment | Policies that aren’t implemented won’t help the organization; operational activities must align with documented policies. |
| 3. Proper Oversight & Management | Proper management of all interrelated components of the risk management or compliance program will benefit compliance efforts; proper oversight from appropriate individuals is key. |
| 4. Holistic Assessment | A high-quality SOC 2® assessment should go way beyond your policies; choose a true compliance partner who is able to assist holistically with your compliance initiatives. |
Auditwerx Is Your SOC 2® Type 2 Partner
A quality SOC* assessment should approach your systems and controls from a holistic perspective. An experienced team is key to making sure the assessment process is smooth and works with your business needs. If you are ready to experience a quality assessment, with a team focused on your business needs, contact Auditwerx today.
FAQs
Is it common for a SOC 2® Type 2 report to contain control exceptions?
Yes, it is extremely common for SOC 2® Type 2 reports to contain control exceptions, though this does not necessarily mean that the report will be qualified.
What is the most common factor that contributes to control exceptions?
The most common factors include a lack of employee awareness of documented policies, minimal oversight on key activities, and, most notably, day-to-day operational activities not being aligned to documented policies and procedures.
Are control exceptions typically caused by a simple lack of documented policies?
No, exceptions are usually not attributable to a simple lack of documentation, as most companies create and document policies ahead of their SOC 2® assessment. The issue generally lies in the implementation.
What key actions can an organization take to achieve a better SOC 2® Type 2 rating?
Organizations should focus on consistent training for appropriate employees and ensuring that all operational activities align with documented policies. Proper oversight from management is also critical.
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Auditwerx Team
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