Key Takeaways
Stakeholder Assurance: A SOC report is an essential third-party attestation that validates the operational effectiveness and design of your organization’s security and system controls, building client and partner trust.
Targeted Reporting Focus: Compliance reporting is tiered: SOC 1® concentrates on controls relevant to client financial reporting, while SOC 2® focuses on operational security using the Trust Services Criteria.
Gateway to New Business: Demonstrating SOC compliance is increasingly crucial in sectors like technology, finance, and healthcare, acting as a non-negotiable proof point to secure new client relationships and business opportunities.
Industry Reliance on SOC* Reporting
Have your clients been asking about your SOC* report status? While not a formal requirement in many sectors, more businesses are relying on SOC* reports for reassurance regarding their partner’s security environment.
A SOC* report demonstrates the effectiveness of your security controls, and shows that you take protecting sensitive data seriously.
What is a SOC* Report?
A SOC* report shows your clients and business partners that your systems are trustworthy and are available to meet their needs. This helps you establish credibility in your industry.
Speak to a Compliance Specialist.
What is a SOC 1®* and SOC 2®* Report?
The biggest difference between a SOC 1® report and a SOC 2® report is what aspects of your systems the assessment focuses on:
- A SOC 1® report focuses on services that are relevant to a company’s financial reporting.
- A SOC 2® report is based on the Five Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. It analyzes the operational risk for third-party services outside of financial reporting.
When Do You Need a SOC* Report?
SOC* report adoption is widespread, but the technology, financial, and healthcare sectors are currently seeing particularly large growth. As more companies adapt to cloud technologies or prepare for cybersecurity threats, many are seeing the benefits of ensuring SOC compliance.
SOC* reports offer third-party validation of the effectiveness of the operation and design of your organization’s cybersecurity controls. In our ever-evolving, digital landscape, being able to offer demonstrable proof of your organization’s data security measures can help build trust with current and future clients, possibly opening the gateway to further business opportunities.
Choose Auditwerx for Your SOC* Report
Partnering with an experienced firm can help simplify the SOC* compliance process so you can get back to helping your organization grow. If you are searching for a third-party assessor, contact Auditwerx today.
FAQs
What is the fundamental purpose of a SOC* attestation report?
A SOC report serves to formally assure current and future clients that your systems are reliable and your security controls are effective. It provides a formal, independent statement that your organization takes the protection of sensitive data and system integrity seriously.
When does an organization need to pursue SOC* compliance reporting?
You generally need SOC compliance reporting when your services could impact a client’s internal controls over financial reporting (SOC 1®) or when clients require assurance over your operational security, availability, and data protection (SOC 2®). It is often requested by partners in the cloud, technology, and financial industries.
What are the key distinctions between the SOC 1® and SOC 2® reporting frameworks?
The main difference is the scope of the assessment. SOC 1® is relevant to controls that affect a client’s financial statements, whereas SOC 2® is based on the Five Trust Services Criteria and analyzes your operational risk management outside of financial reporting.
What are the Five Trust Services Criteria evaluated in a SOC 2® assessment?
A SOC 2® assessment evaluates system controls based on five categories that clients rely on: Security, Availability, Processing Integrity, Confidentiality, and Privacy.
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