System and Organization Controls (SOC) 2 is an attestation framework developed by theAmerican Institute of Certified Public Accountants (AICPA) to evaluate the controls a service organization has in place to protect its IT systems and data. It gives customers and other stakeholders independent assurance that a service provider's security practices meet a consistent, recognized standard.
SOC 2 is intended for service organizations whose customers need credible third-party verification of the controls protecting their applications and data. It applies to SaaS and cloud service providers, data processors, managed service providers and any other entity that hosts, stores or processes information on behalf of customers.
If your company maintains customer data in hosted systems that you control, a prospect may ask for a SOC 2 report before signing a contract.
SOC 2 is strictly an attestation framework. It is not a law or an industry regulation. A licensed CPA firm examines your internal system controls and issues an opinion on whether they are designed appropriately and whether they operated effectively over a period of time.
SOC 2 is not a certification or compliance process. The output is a report from an independent auditor, which prospects can consider when evaluating your company’s security posture.
A SOC 2 report gives your customers and business partners detailed, independently verified information about your internal controls. It provides several business benefits:
It builds trust. An independent report carries more weight with customers and prospects than your own claims.
It shortens security reviews. An up-to-date SOC 2 report answers most of what a customer's security questionnaire would otherwise ask, which saves time and shortens the decision process and sales cycle.
It's often a prerequisite for large enterprise deals. Many enterprise buyers require a SOC 2 report before they will evaluate a vendor at all, particularly for services handling sensitive data.
It strengthens internal risk management. Preparing for SOC 2 forces your organization to define controls, monitor their effectiveness and collect evidence, which tends to surface control gaps that might otherwise go unnoticed.
Every SOC 2 examination measures your company’s internal controls against the AICPA's Trust Services Criteria, organized into five categories: security, availability, processing integrity, confidentiality and privacy.
Security evaluates protection against unauthorized access, unauthorized disclosure and damage to systems.
Availability assesses system uptime and service-level agreements (SLA) commitments.
Processing integrity covers whether systems process data completely, accurately and only as authorized.
Confidentiality examines how sensitive information is protected.
Privacy investigates how personal information is collected, used, retained, disclosed and disposed of.
Security is mandatory in every SOC 2 engagement. The other four criteria are included only if they're relevant to the commitments your organization makes to its customers. If your company provides uptime SLAs, you would typically include availability. If your company maintains or processes personal data, you would typically include privacy.
All five trust services categories share a set of common criteria (CC1–CC9) that address foundational controls such as risk management, access control, system operations and change management.
The AICPA framework describes two types of SOC 2 engagements:
A Type 1 examination evaluates whether your organization's controls are appropriately designed and implemented at a specific point in time. It gives your customers assurance that the relevant controls were in place as of that date.
A Type 2 examination evaluates both the design of those controls and whether they operated effectively over a specified period. It gives your customers assurance that the controls weren't just documented on paper but actually functioned as intended over time.
You can pursue either a Type 1 or a Type 2 examination. Neither is a prerequisite for the other. Many organizations start with a Type 1 to establish that controls are designed correctly, then move to a Type 2 once they can demonstrate those controls operating over an extended period. Others start with a Type 2 to satisfy immediate customer requirements.
For many service organizations, a Type 2 report becomes the deciding factor in larger deals: Enterprise buyers routinely accept a Type 1 report early in a relationship, then require a Type 2 report before expanding or renewing a contract. Type 2 reports typically cover a 12-month period. Most enterprise customers expect a fresh report every year to keep that assurance current.
SOC 2 is one of several frameworks you can use to demonstrate security maturity. ISO/IEC 27001 is an international standard for establishing, maintaining and continually improving an information security management system (ISMS). You can have your ISMS independently audited and receive ISO/IEC 27001 certification.
HITRUST® CSF is a certifiable security and privacy framework that incorporates requirements from multiple standards and regulations, including ISO, NIST and HIPAA. It is prevalent in healthcare and other regulated industries. Unlike SOC 2, which results in an attestation report, ISO/IEC 27001 and HITRUST provide certifications.
Preparing for a SOC 2 examination requires coordination across the organization. Start by defining who will own the effort and what the examination will cover. Follow these best practices to get ready for a Type 1 or Type 2 examination.
Identify an executive sponsor who can provide support and help resolve issues that cross organizational boundaries. Include representatives from the teams responsible for controls within the examination scope, such as IT, security, engineering and HR.
Assign clear responsibility for documenting policies and controls, coordinating evidence collection and working with the auditor. Consider outside compliance expertise if your organization needs additional guidance or resources.
Determine which trust services categories apply before you begin documenting controls. Security and the common criteria apply to every SOC 2 examination. Include availability, processing integrity, confidentiality or privacy if they apply to the services you provide and the commitments you make to customers. A clearly defined scope helps your team focus its efforts on the controls and evidence the auditor will evaluate.
Make sure documented policies and controls reflect how your organization actually operates. Identify and address gaps, assign control owners and begin collecting evidence before the examination starts.
For a Type 1 examination, aim to close major gaps within a couple of months rather than delaying the audit in pursuit of a perfect environment. For a Type 2 examination, controls must operate consistently throughout the period being examined, so establish repeatable processes for monitoring controls, maintaining evidence and addressing exceptions.
CC6 logical access controls are a primary focus area for SOC 2 auditors. The Delinea Platform's just-in-time access and runtime authorization controls help you meet CC6 requirements by removing standing privilege and governing actions at execution time based on policy and real-time contextual data.
Every session is logged, giving your audit team a consistent, centralized record they can hand directly to an examiner instead of assembling evidence manually.