While GRC tools are invaluable for continuous monitoring and preparing for compliance, it’s crucial to understand that a SOC 2® report issued by an accredited, independent assessment firm holds significantly more credibility, depth, and recognition than a report generated from a GRC tool’s automated output.
Scope of the SOC 2® Compliance Report
- GRC Tool: The GRC tool identifies areas of concern when mapped to their predetermined listing of controls. It is a good starting point, but it lacks the comprehensive insights of a thorough evaluation from a qualified assessor. These tools are automated to track and assess security controls for ongoing maintenance and a quick compliance snapshot, often with a narrower scope centered around security.
- Assessment Firm: An assessment firm evaluates the five Trust Service Criteria—security, availability, processing integrity, confidentiality, and privacy, relevant to your organization’s services. The resulting SOC 2® report is much more comprehensive, examining all aspects of your organization’s policies and controls which gives your clients and investors the trust in your services that the reporting is designed for.
SOC 2® Compliance Methodology: Automated vs. Manual Evaluation
- GRC Tool: GRC tools are highly automated, collecting data from your existing systems to monitor security controls in real-time. These tools generate reports based on preset rules and patterns, meaning they perform automated compliance checks. While effective for tracking security, they may not capture the unique nuances of your organization’s specific context. A human assessor understands the nuance of your unique systems and processes. That is why the human touch is so important in compliance reporting.
- Assessment Firm: An assessment firm follows a streamlined approach to assess your organization’s systems. This includes collecting evidence, which can be captured from the GRC tool and conducting interviews. The firm evaluates how your controls align with SOC 2® compliance standards and offers recommendations for improvement. This hands-on approach provides a more thorough, contextual report.
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Level of Detail in the SOC 2® Report
- GRC Tool: While it identifies areas of concern, it won’t provide the deep contextual analysis of a full assessment. It’s a good starting point, but it lacks the comprehensive insights of a thorough evaluation.
- Assessment Firm: The firm’s assessors provide a deep analysis, evaluating the effectiveness of your controls and offering actionable feedback. This ensures that you receive tailored recommendations for improvement based on your organization’s needs.
Examination Period for SOC 2® Compliance
- GRC Tool: A GRC tool cannot complete a true SOC 2® report. What they can do is recommend a SOC 2® report, typically a three-month examination period, with an assessment partner in their network. GRC tools assess against their own framework, not the official AICPA SOC 2® standards.
- Assessment Firm: A reputable assessment firm recommends a six-month examination period, over a three-month period like with the GRC tools. The resulting report is much more comprehensive, offering detailed, actionable insights for your organization’s improvement. Investors particularly appreciate the distinction of utilizing a top assessment firm like Auditwerx.
Which Approach Is Right for Your SOC 2® Compliance?
In summary, while GRC tools are excellent for internal compliance management and continuous monitoring, they do not produce the formal, independent SOC 2® report required for external assurance.
For organizations that need a comprehensive, credible, and widely accepted SOC 2® report—one that truly reflects their security posture and builds trust with clients, investors, and partners—engaging a specialized assessment firm is not just an option: it’s the best and most reliable path forward. Their in-depth evaluation ensures your report carries the weight and respect necessary to meet the highest standards of assurance.
