SOC 2 is not a certification; it is an attestation report. It represents a voluntary audit conducted by an independent Certified Public Accountant (CPA) firm. This report focuses on controls within a service organization’s systems that are relevant to security, availability, processing integrity, confidentiality, or privacy. This process provides stakeholders with a formal assessment of how a company manages customer data.
What SOC 2 Is If Not a Certification
The framework is formally known as Service Organization Control 2, established under the oversight of the American Institute of Certified Public Accountants (AICPA). The AICPA created this standard to help service organizations, particularly those that handle customer data, build trust with their clients. The resulting report is issued under the Statement on Standards for Attestation Engagements (SSAE) 18, specifically referencing the AT-C Section 205 framework.
This framework allows service organizations to demonstrate to clients and stakeholders that their controls are suitably designed and operating effectively. The report details the organization’s system and controls, assuring user entities that a vendor has appropriate safeguards for managing the data and systems they rely upon.
The Difference Between Attestation and Certification
The fundamental distinction between an attestation and a certification lies in the authority and the resulting document. A certification, such as ISO 27001, is typically granted by a non-CPA certification body and often results in a certificate or badge confirming general adherence to a defined standard. This process usually involves a conformance assessment against a set of predefined requirements.
An attestation report, by contrast, is a formal, detailed opinion issued exclusively by an independent CPA firm. The CPA is not merely checking off a list of requirements; they are attesting to the reliability of the service organization’s description of its system and the suitability and operating effectiveness of its controls. The CPA’s professional opinion adds a layer of formal assurance and credibility.
The involvement of a licensed, independent accounting firm performing a detailed audit defines the SOC 2 report as an attestation engagement. The report itself is the final product, containing the auditor’s findings and concluding statement.
The Five Trust Services Criteria
A SOC 2 engagement focuses on controls related to a set of principles known as the Trust Services Criteria (TSCs), which define the scope of the audit. The Security criterion is mandatory for every SOC 2 report and serves as the common criteria against which all other controls are measured. This criterion involves protecting the system against unauthorized access and ensuring data integrity.
The remaining four TSCs are optional and selected based on the specific services the organization provides and the nature of the data it handles for clients. Availability addresses whether the system is operational and usable as agreed upon in contracts, covering aspects like performance monitoring and disaster recovery. Processing Integrity ensures that system processing is complete, valid, accurate, timely, and properly authorized, particularly relevant for transaction processing services.
Confidentiality concerns the protection of confidential information from unauthorized disclosure, typically through encryption and access controls. The Privacy criterion specifically deals with the collection, use, retention, disclosure, and disposal of Personal Identifiable Information (PII) in conformity with the service organization’s privacy commitments.
Understanding SOC 2 Report Types
SOC 2 reports are distinguished by two types that reflect the timeframe and scope of the auditor’s examination. A Type 1 report describes the service organization’s system and assesses the suitability of the design of its controls to meet the relevant Trust Services Criteria at a specific point in time. This report confirms that the controls are designed correctly but does not confirm that they have been operating effectively for any sustained duration.
The Type 2 report evaluates the operating effectiveness of those same controls over a period of time. This observation period typically spans between six and twelve months, allowing the auditor to test whether the controls have been consistently applied in practice. The Type 2 report provides stakeholders with assurance that the controls are not only well-designed but also function reliably day-to-day.
The Process of Obtaining a SOC 2 Report
The path to obtaining a SOC 2 report follows a structured sequence that begins well before the formal audit. The initial step is a readiness assessment or gap analysis, where the organization identifies its current control deficiencies and determines the necessary improvements. Following this, the company must clearly define the audit scope by selecting the appropriate Trust Services Criteria and outlining the system boundaries for the examination.
Next, the service organization focuses on control implementation and thorough documentation, ensuring all policies and procedures are formally established and evidence of their operation is collected. For a Type 2 report, this phase transitions into the audit fieldwork, which is the required monitoring period where the controls are actively tested for operational effectiveness. Finally, the independent CPA firm conducts the formal examination, reviews the collected evidence, and issues the final attestation report containing their professional opinion.