SOC 2

SOC 2 reports are designed to provide assurance to customers and stakeholders that a service organization has implemented adequate controls to protect the data it processes. Unlike PCI DSS, which has rigid requirements, SOC 2 is based on principles, giving organizations flexibility in how they design and implement controls to meet each criterion.

There are two types of SOC 2 reports. A Type I report evaluates the design of controls at a specific point in time, while a Type II report assesses both the design and operating effectiveness of controls over a defined period, typically six to twelve months. Type II reports are generally considered more valuable because they demonstrate sustained compliance.

The five Trust Service Criteria form the foundation of SOC 2 evaluations. Security, also known as the Common Criteria, is required for all SOC 2 engagements. The remaining four criteria (availability, processing integrity, confidentiality, and privacy) are optional and selected based on the nature of the services provided and customer expectations.

SOC 2 compliance has become a de facto requirement for SaaS companies and technology service providers. Prospective enterprise customers frequently request SOC 2 Type II reports during vendor evaluation. The audit must be performed by an independent CPA firm, and reports are typically refreshed annually to maintain their relevance.