SOC 1, SOC 2, and SOC 3 reports serve different purposes. SOC 1 addresses controls relevant to customers’ financial reporting. SOC 2 addresses controls relevant to security, availability, processing integrity, confidentiality, or privacy within the examination’s scope. SOC 3 is a less detailed, general-use report. Organizations select the appropriate engagement for their services and stakeholders; the reports are not three mandatory stages.
Main components for SOC2 access control compliance #
SOC2 compliance is governed by five fundamental attributes described in section 100 of TSP principles. Among those principles, the ‘Security’ directly governs the SOC2 access control compliance. All major components that are also closely associated with the SOC2 access control compliance include:
- Security
- Privacy
- Confidentiality
- Availability
- Processing integrity
Let’s expand upon those main principles in the perspective of SOC2 physical security compliance of an organization.
The complete protection from external access – both the physical and logical, should be properly restricted. The access procedures to the resources, assets and data should be properly designed as per rules and regulations based on the authorized access. The authorized access should be ID based and events should be easily traceable.
The personal information should be properly protected both physically and logically. The collection, storage, usage and disposal of the personal data should be according to the privacy policy commonly implemented in the privacy notice and data disclosure notices.
Confidentiality should be maintained as per the standard policy agreed upon by the users, clients and other stakeholders of the company. Similarly, the availability and processing integrity should comply with the standard policy and agreements made with the users. An independent CPA firm assesses whether these controls are suitably designed and, for a Type 2 report, operating effectively over a period of time.
When might an organization need a SOC 2 report? #
SOC 2 is not a universal legal requirement for every company collecting customer information or delivering services remotely. Customers, partners, or contracts may require a report as part of vendor assurance. The appropriate scope depends on the services provided and the needs of report users. Industries where customers commonly request SOC 2 reports include:
- Cloud Service Providers
- Data Center Hosting
- Web Hosting
- Intellectual Property Protection
- Finance and Healthcare services
Simplify access control across every location
Centralize security management without increasing operational complexity.
How does an organization prepare for a SOC 2 examination? #
Preparing for a SOC 2 examination typically involves the following steps:
- Develop proper policies that are required for SOC reporting platform
- Implement all procedures and requirements set forth by AT 101 and TSP section 100
- Assess the system, controls and organizational resources with respect to above rules
- Create documents like ‘Statement of assertion’ and description of ‘System’
- Complete presentation of the people, service, subservice, system boundaries, and other aspects of the organization and its controls
- Undergo an examination by an independent CPA firm and receive the SOC 2 report
SOC 2 readiness checklist #
- Company policies
- Standard operational procedures
- Communication policies in place
- Monitoring and feedback mechanism
- Coordination and commitments