SOC Masters

What is SOC Report and Audit ?

what is soc report

Overview of What is SOC Report

A System and Organization Controls (SOC) report  is like a report card for a company’s security and safety measures. It’s done by an independent group (not the company itself) to check if the company is doing a good job protecting important information and running things properly.

  1. Controls: These are like rules or tools the company uses to keep everything safe and organized. For example, making sure only the right people can access sensitive data or checking that their systems are working correctly.

  2. Risks: These are the bad things that could happen, like hackers stealing data, systems breaking down, or mistakes happening. The SOC report looks at how well the company is prepared to handle these risks.

  3. Infrastructure: This is the company’s tech setup—like servers, computers, and software. The report checks if everything is built and managed in a safe and reliable way.

Why are SOC reports important?

  1. They help customers understand potential risks
    SOC reports show customers what risks a company might face, like hackers or system failures. This helps customers feel more informed and confident.

  2. They help organizations understand their risk levels
    SOC reports give companies a clear picture of their weaknesses and strengths. This helps them fix problems and stay safe.

  3. They help companies establish trust with their customers:
    When a company has a SOC report, it’s like saying,  We take safety seriously. This builds trust and makes customers feel more comfortable working with them. 

Who creates SOC reports?

Certified Public Accountants (CPAs) or organizations approved by the American Institute of Certified Public Accountants (AICPA) are experts who check and confirm that a company’s financial and security practices are correct and trustworthy. They’re like professional inspectors who make sure everything is done the right way

2. Service Organizations Provide Information

  • The company being audited is called a service organization (e.g., cloud providers, IT services, payment processors).
  • They must prepare documents, implement security controls, and cooperate with auditors during the review process.

3. AICPA Sets the Standards

  • The American Institute of Certified Public Accountants (AICPA) develops the rules and guidelines for SOC reports.
  • These standards ensure that SOC reports are consistent, reliable, and widely accepted.

4. Independent Auditors Ensure Trustworthiness

  • SOC reports must come from a neutral, independent party to be considered credible.
  • This unbiased evaluation helps customers trust the security and compliance efforts of a business.

What are the different types of SOC reports?

  1. SOC 1 Report
    This focuses on outsourced services (like payroll or billing) that could affect a company’s financial reports.

  2. SOC 2 Report
    This includes everything in a SOC 1 report and also checks how well the company’s processes and controls work over time.

  3. SOC 3 Report
    This is a shorter, simpler version of the SOC 2 report. It gives a summary of the company’s security and compliance controls to build trust and transparency with customers and stakeholders. 

Introduction

What Do SOC Reports Cover?.

Businesses today need to prove they can keep customer data safe. SOC (System and Organization Control) reports help companies show that they follow strong security and compliance practices. But what exactly do these reports cover? Let’s break it down.

1. Security Measures

  • SOC reports evaluate a company’s security controls to ensure that data is protected from threats.
  • This includes firewalls, encryption, access controls, and monitoring systems to prevent cyberattacks.

2. Availability of Services

  • Businesses must ensure their services are reliable and available for customers.
  • SOC reports check for backup systems, disaster recovery plans, and uptime guarantees to prevent downtime.

3. Processing Integrity

  • Companies need to process data accurately and without errors.
  • SOC reports assess whether systems operate correctly, ensuring that transactions and data processing are reliable.

4. Confidentiality of Information

  • Many businesses handle sensitive data, such as customer records and financial details.
  • SOC reports examine how companies protect confidential information from unauthorized access.

5. Privacy Controls

  •  Organizations must follow privacy regulations when handling customer data.
  • SOC reports check whether a company properly collects, stores, and shares personal information in compliance with privacy laws.

SOC 1

  • What It Is: A review of a company’s financial reporting practices.
  • Who Needs It
    Companies that handle financial tasks for their customers, like payroll companies or payment processors.

  • What It Covers
    It checks if the company has proper systems to keep financial data accurate and trustworthy.

  • Who Requests It
    Customers who depend on the company for correct financial information, often their accountants or auditors.

SOC 2

  • What It Is: A review of the company’s information security measures to protect customer data.
  • Who Needs It
    Companies that store or manage sensitive data, like cloud services or software companies.

  • What It Covers
    It looks at how well the company protects customer data, keeps it private, and handles it securely.

  • Who Requests It
    Customers who care about data safety, like banks, hospitals, or tech businesses.

SOC 3

  • What It Is: Similar to SOC 2 but designed for public sharing.
  • Who Needs It
    The same companies that need SOC 2, but SOC 3 is used to share with everyone.

  • What It Covers
    It shows the company’s security in a simple way, without too many details.

  • Who Requests It
    No one usually asks for it—it’s used for marketing or to show the public that the company is secure.

What are the different types of SOC reports?

What is a SOC 1 Report?

  • SOC 1 stands for Service Organization Control 1.
  • It is a report that checks how a company manages financial processes.
  • It shows if the company has good controls to handle financial data properly.
  • Businesses use it to make sure their data is handled securely and accurately by service providers.
  • The report focuses only on financial transactions and reporting.
  • It is usually requested by companies that outsource services like payroll, accounting, or billing.
  • SOC 1 Reports are important for trust between businesses and their service providers.

What is a SOC 2 Report?

  • SOC 2 stands for Service Organization Control 2.
  • It checks how a company manages data security, privacy, and operations.
  • It ensures the company follows strict guidelines to protect sensitive information.
  • The report is based on five principles:
  • Security: Protecting data from unauthorized access.
  • Availability: Ensuring systems are always accessible.
  • Processing Integrity: Making sure data is handled correctly.
  • Confidentiality: Keeping sensitive information private.
  • Privacy: Protecting personal information

What is a SOC 3 Report?

  • SOC 3 stands for Service Organization Control 3.
  • It is similar to a SOC 2 Report but easier to share with the public.
  • The report shows that a company follows strong data security and privacy standards.
  • It is shorter and doesn’t include sensitive details, making it ideal for marketing or public trust.
  • SOC 3 focuses on the same five principles as SOC 2:
  • Security
  • Availability
  • Processing Integrity
  • Confidentiality
  • Privacy
  • It is used by companies to show customers and partners that their systems are secure and reliable.
  • A SOC 3 Report is like a certificate of trust for businesses.

What is a SOC for Cybersecurity Report?

  • SOC for Cybersecurity is a report that evaluates a company’s cybersecurity risk management program.
  • It shows how well a company protects its systems, data, and customers from cyber threats.
  • The report is prepared by independent auditors to ensure trust and transparency.

     

  • It includes details about
  • Cybersecurity controls the company has in place.
  • How the company manages cyber risks.
  • Whether the company’s cybersecurity measures are effective.
  • It is helpful for building trust with customers, investors, and partners.
  • This report is important for organizations that handle sensitive data or operate in industries with high cybersecurity risks.
  • In simple terms, it proves a company is serious about keeping data safe from cyberattacks.

What is a SOC for Supply Chain Report?

  • SOC for Supply Chain is a report that checks how well a company manages risks in its supply chain process.
  • It focuses on ensuring that the company’s products or services are reliable and secure.

  • The report helps identify potential risks, such as:
  • Poor quality control.
  • Data breaches in the supply chain.
  • Delays or disruptions in delivering products or services.
  • It shows that the company has strong controls to manage suppliers and third-party vendors.
  • This report is useful for businesses that rely on complex supply chains, like manufacturing or logistics companies.
  • It builds trust with customers, suppliers, and partners by proving that the supply chain is well-managed and safe.
  • In simple terms, it ensures the smooth and secure flow of products and services.

Should You Choose a Type 1 or Type 2 Report?

Type 1 Report

  • What it is: Evaluates the design of controls at a specific point in time.
  • Best for: Showing that your controls are in place and designed effectively.
  • When to choose:
    • You need a quick report to show controls exist.
    • Your company is new to SOC reporting.
    • Customers or partners request proof of control design.
  • Limitation: Does not test if the controls work over time.

Type 2 Report

  • What it is: Evaluates the design and operating effectiveness of controls over a period of time (e.g., 6-12 months).
  • Best for: Proving that your controls work consistently over time.
  • When to choose:
    • You want to build deeper trust with customers and partners.
    • You handle sensitive data and need long-term verification.
    • Your industry requires ongoing operational assurance.
  • Benefit: Provides stronger evidence of reliability.

Which to choose?

  • Type 1: If you need something faster and simpler to show your controls are in place.
  • Type 2: If you need a more detailed report to show that controls work consistently over time.

How to Choose the Right SOC Report for You

1. Understand Your Business Needs

  • Think about what you need to prove: security, financial controls, or data protection.
  • Determine who will see the report (customers, partners, or internal teams).

2. Know the Different SOC Reports

  • SOC 1: For financial controls (e.g., payroll, billing).
  • SOC 2: For data security, privacy, and system reliability.
  • SOC 3: A public version of SOC 2, easy to share for marketing.
  • SOC for Cybersecurity: Focuses on cyber risk management.
  • SOC for Supply Chain: Focuses on managing supply chain risks.

3. Consider Your Audience

  • Clients/Partners: Often prefer SOC 2 or SOC 3 for security assurance.
  • Regulators: May require SOC 1 for financial reporting.
  • Public: Use SOC 3 for sharing trust publicly without too much detail.

4. Assess How Detailed You Need It

  • For quick proof of controls: Type 1 Report.
  • For proof of consistent control performance: Type 2 Report.

5. Think About Industry Requirements

  • Industries like banking, healthcare, or technology may need specific SOC reports (e.g., SOC 2 or SOC for Cybersecurity).

6. Consult with Experts

  • Work with auditors or compliance experts to decide which report suits your business best.

What Is SOC Reporting, and Why Does Every Organization Need It?

What Is SOC Reporting?

  • SOC stands for Service Organization Control.
  • It is a type of audit report that evaluates a company’s controls for managing data and services.
  • These reports are conducted by independent auditors to verify the effectiveness of a company’s systems.
  • The goal is to build trust with customers, partners, and regulators.

Why Does Every Organization Need SOC Reporting?

  • Builds Customer Trust: Shows that your company can manage data securely and reliably.
  • Proves Compliance: Helps meet industry standards and regulatory requirements.
  • Reduces Risk: Identifies and improves weak areas in your systems or processes.
  • Attracts Business: Many clients require SOC reports before working with a company.
  • Enhances Reputation: Demonstrates transparency and commitment to quality.
  • Supports Growth: Opens doors to partnerships and larger contracts.

Who Benefits from SOC Reporting?

  • Businesses handling sensitive data, such as financial, healthcare, or customer information.
  • Organizations offering outsourced services like cloud computing, payroll, or IT management.

In short, SOC Reporting is a key tool to show your organization is trustworthy, secure, and reliable!

Types of SOC Reports

1. SOC 1 Report

  • Focuses on financial controls.
  • Ensures a company’s processes are designed to handle financial data securely and accurately.
  • Useful for businesses like payroll services, accounting firms, or billing providers.
  • Example: Ensuring payroll calculations are done correctly.

2. SOC 2 Report

  • Focuses on data security, privacy, and system reliability.
  • Based on five principles:
    • Security: Protecting systems from unauthorized access.
    • Availability: Ensuring systems are accessible.
    • Processing Integrity: Data is handled correctly.
    • Confidentiality: Sensitive information stays private.
    • Privacy: Personal data is protected.
  • Ideal for cloud service providers, IT companies, and businesses handling customer data.

3. SOC 3 Report

  • A public version of the SOC 2 report.
  • Shorter and easier to share with customers or the public.
  • Demonstrates a company’s commitment to security and reliability.

4. SOC for Cybersecurity

  • Focuses on a company’s cybersecurity risk management program.
  • Proves that the company has strong defenses against cyber threats.
  • Useful for businesses handling sensitive data or operating in high-risk industries.

5. SOC for Supply Chain

  • Focuses on managing supply chain risks.
  • Ensures that products or services are reliable and secure throughout the supply chain.
  • Helpful for manufacturing, logistics, and companies relying on third-party vendors.

The Benefits of SOC Reporting

  • Builds Customer Trust
    • Shows that your company takes data security and privacy seriously.
    • Helps customers feel confident in your ability to protect their information.
  • Ensures Compliance
    • Helps you meet industry standards and legal requirements.
    • Reduces the risk of fines or penalties from regulators.
  • Reduces Risks
    • Identifies potential weaknesses in systems and processes.
    • Helps improve security and operational controls.
  • Improves Business Reputation
    • Demonstrates transparency, reliability, and commitment to quality.
    • Sets your company apart from competitors.
  • Attracts New Business
    • Many clients or partners require SOC reports before starting a relationship.
    • Shows potential clients that your company is trustworthy.
  • Supports Growth
    • Makes your company eligible for larger contracts and partnerships.
    • Increases confidence from investors and stakeholders.
  • Enhances Internal Controls
    • Provides a detailed look at your internal processes, helping improve them.
    • Helps management ensure that controls are functioning effectively.

References

  1. SOC 1 Report
    This report looks at how well a company manages controls that affect financial reporting. It helps businesses show they’re following good financial practices.
    Example: It’s like checking if the company is keeping their financial records in order and following the right rules.

  2. SOC 2 Report
    This one checks how well a company protects data, ensures privacy, and keeps systems secure. It’s important for companies that deal with sensitive information like customer data.
    Example: Think of it like a safety check to make sure the company is protecting your personal details online.

  3. SOC 3 Report
    This is a simpler version of SOC 2. It’s made to be shared easily with the public, so anyone can see that a company is following good security practices.
    Example: It’s like a public badge that shows a company is safe to do business with.

  4. SOC for Cybersecurity
    This report checks a company’s practices for protecting against cyber threats like hacking, viruses, and data breaches.
    Example: It’s like a test to make sure the company’s digital walls are strong enough to keep hackers out.

  5. SOC for Supply Chain
    This report looks at how well a company manages risks in its supply chain. It helps ensure that the suppliers and vendors they work with also follow good security and safety practices.
    Example: It’s like making sure all the companies you buy from are also keeping their systems safe and secure.

Why is a SOC Report Important?

  • Builds Trust with Clients
    • Shows that your company is serious about protecting data and maintaining security.
    • Helps customers feel safe when using your services.
  • Proves Reliability
    • Demonstrates that your business follows best practices for security and data handling.
    • Provides evidence that your systems work as expected.
  • Ensures Compliance
    • Helps meet industry regulations and legal requirements.
    • Reduces the risk of non-compliance penalties.
  • Identifies Risks and Weaknesses
    • SOC reports help find potential issues in your company’s processes.
    • Allows you to fix these issues before they cause problems.
  • Improves Operational Efficiency
    • Provides insights that help improve your internal controls and systems.
    • Helps ensure your processes are running smoothly and securely.
  • Attracts New Business
    • Many businesses require SOC reports before working with a company.
    • Shows potential clients that your company is trustworthy and secure.
  • Enhances Reputation
    • Builds credibility in the market and with stakeholders.
    • Positions your company as a leader in security and reliability.

How to Use a SOC Report

  • Build Trust with Clients and Partners
    • Share the SOC report to show that your company has strong controls in place.
    • Use it to demonstrate your commitment to security and compliance.
  • Ensure Compliance
    • Use the SOC report to prove you meet industry standards and legal requirements.
    • Helps to avoid penalties and fines for non-compliance.
  • Assess Vendor Risks
    • Review SOC reports from your suppliers or partners to ensure they have secure systems.
    • Helps you identify potential risks in the supply chain.
  • Improve Internal Processes
    • Use the report’s findings to improve your company’s controls and systems.
    • Address any weaknesses or gaps identified in the report.
  • Respond to Audits
    • Use SOC reports to support your organization during audits or reviews.
    • It serves as a documented proof of your controls and security measures.
  • Market Your Business
    • Include the SOC report in marketing materials to show clients that you meet high security and operational standards.
    • Makes your company stand out from competitors.
  • Monitor and Improve Over Time
    • Use the SOC report as a baseline to track improvements in your controls over time.
    • Plan for regular SOC audits to stay up-to-date and compliant.

Challenges in Getting a SOC Report

  • High Costs
    • SOC audits can be expensive, especially for small or medium-sized businesses.
    • Costs include auditor fees, preparation time, and the implementation of new controls.
  • Time-Consuming Process
    • Preparing for and completing the audit can take weeks or even months.
    • Collecting all necessary documents and evidence can delay the process.
  • Complexity of Controls
    • Depending on your company’s operations, your controls may need to be more sophisticated or tailored.
    • If your processes are complex, it may require additional resources to meet the requirements.
  • Finding the Right Auditor
    • It can be challenging to find an experienced, trustworthy auditor.
    • You’ll need to ensure the auditor is certified and familiar with your industry.
  • Internal Resource Allocation
    • You may need to assign dedicated team members to manage the audit process.
    • Internal resources may need to be trained or redirected from their usual tasks.
  • Compliance Gaps
    • If your company’s controls aren’t up to standard, you’ll need to fix them before the audit.
    • This may involve updating policies, procedures, or security measures.

Budgeting for SOC Reports

  • Set Aside a Budget
    • Allocate funds in your business budget specifically for SOC audits.
    • Include costs for auditors, internal staff time, and possible upgrades to systems.
  • Plan for Audit Preparation
    • Factor in time and resources for preparing your company for the audit.
    • Budget for possible improvements in security and internal controls.
  • Consider Ongoing Costs
    • A SOC report isn’t a one-time cost. You’ll need periodic audits to maintain your compliance.
    • Budget for yearly or bi-yearly audits depending on your needs.

Budgeting for SOC Reports

  • Understand the Costs
    • SOC audits can be expensive, so it’s important to plan your budget accordingly.
    • Costs include auditor fees, time for preparation, and any necessary improvements to your systems.
  • Allocate Resources
    • Set aside funds for both the audit itself and for any internal resources that may be needed.
    • Make sure to budget for both the initial audit and any follow-up audits.
  • Plan for Future Audits
    • Since SOC reports are typically done annually or bi-annually, plan for recurring costs.
    • Include money for regular updates to systems or controls as needed.

Challenges You May Face When Getting a SOC Report

  • High Costs
    • Audits can be expensive, especially for small businesses.
    • Costs include auditor fees, preparation time, and improving your company’s processes.
  • Time-Consuming Process
    • Preparing for the audit and gathering all the necessary documents can take time.
    • The audit itself might also take a few weeks to complete.
  • Resource Intensive
    • You may need to allocate internal staff to manage the process and help with documentation.
    • This could take time away from other important tasks.
  • Complexity of Controls
    • If your systems are complex or not fully compliant, you may need to make adjustments before the audit.
    • This can lead to extra work, which can increase costs and delay the process.
  • Finding the Right Auditor
    • It can be hard to find an experienced and trustworthy auditor who understands your industry.
    • Researching and selecting the right auditor may take time and effort.
  • Potential Compliance Gaps
    • If there are gaps in your controls or processes, you will need to fix them before the audit.
    • Addressing these issues can be costly and time-consuming.

Why Does My Company Need a SOC Report?

  • Builds Trust with Clients and Partners
    • Shows that your company takes data security and privacy seriously.
    • Builds confidence with customers, making them feel safe doing business with you.
  • Meets Industry Standards
    • Helps you comply with legal and industry regulations, avoiding fines or penalties.
    • Proves that your company follows best practices in security and operations.
  • Protects Sensitive Information
    • Helps ensure that your systems are secure, reducing the risk of data breaches.
    • Protects both your company’s and your clients’ sensitive information.
  • Identifies Risks and Weaknesses
    • A SOC report helps uncover any security risks or gaps in your operations.
    • By addressing these risks, you can improve your systems and reduce vulnerabilities.
  • Improves Internal Controls
    • Helps you improve your internal processes and systems to work more efficiently.
    • Ensures that your company is consistently following best practices for security.
  • Enhances Company Reputation
    • A SOC report makes your company look more reliable and trustworthy.
    • It can set you apart from competitors by showing your commitment to security and quality.
  • Attracts New Business
    • Many potential clients and partners require SOC reports before doing business.
    • Helps you gain more clients and grow your business by proving your security standards.

How Does a SOC Report Work?

  • Assesses Your Controls
    • The report evaluates your company’s systems and controls in areas like security, privacy, and availability.
    • It shows if your controls are working effectively to protect data and meet customer needs.
  • Conducted by an Auditor
    • An independent auditor examines your company’s processes, security, and systems.
    • The auditor then writes the SOC report based on their findings.
  • Describes the Control Environment
    • The report describes how your company’s systems are designed to meet specific objectives.
    • It includes details about your security policies, risk management, and how data is handled.
  • Highlights Key Findings
    • The auditor will list any issues or risks found in your systems.
    • It may also provide recommendations for improving your controls.
  • Helps Build Trust
    • By having an independent auditor review your controls, it shows clients and partners that your business is secure and reliable.

The SOC report is a way to prove that your company takes security seriously.

Which SOC Report is Right for My Company?

  • SOC 1 Report
    • Best if your company provides services that could affect your clients’ financial reporting.
    • Ideal for companies in industries like accounting, payroll, or finance.
  • SOC 2 Report
    • Ideal for technology companies or businesses that handle sensitive data.
    • Use this report if your company focuses on security, privacy, and availability of systems.
  • SOC 3 Report
    • A more general report, designed for public sharing.
    • If you want to showcase your company’s commitment to security without sharing detailed internal controls.
  • SOC for Cybersecurity Report
    • Best if your company needs to demonstrate its ability to protect data and systems from cyber threats.
    • This report is for companies wanting to emphasize their cybersecurity measures.
  • SOC for Supply Chain Report
    • Ideal if your company is part of a supply chain and needs to show you are secure and reliable.
    • Helps businesses in manufacturing, logistics, or retail demonstrate the security of their operations.

How to Choose the Right SOC Report

  • Consider Your Industry
    • Think about your business’s focus (e.g., finance, technology, supply chain) and choose the report that aligns with your goals.
  • Assess Client Needs
    • If your clients are concerned about data privacy or system security, SOC 2 or SOC for Cybersecurity might be the best option.
  • Determine the Level of Detail
    • If you need a report that can be shared publicly, consider a SOC 3 report. If you need a detailed internal audit, go for SOC 1 or SOC 2.

What Can I Expect During the SOC Examination?

  • Initial Planning
    • The process begins with a meeting to discuss the scope of the audit.
    • You’ll work with the auditor to define the systems and controls that will be examined.
  • Document Review
    • The auditor will review your company’s policies, procedures, and other relevant documents.
    • This helps the auditor understand your operations and control environment.
  • Interviews with Key Staff
    • Expect the auditor to interview key team members about your company’s controls and processes.
    • These interviews help the auditor verify that controls are being followed properly.
  • Testing of Controls
    • The auditor will test the effectiveness of your controls.
    • For example, they may test security measures, data handling processes, or system access controls.
  • Evaluation of Risks
    • The auditor will assess any potential risks that could affect your systems, data security, or operations.
    • They’ll check whether your company is effectively managing these risks.
  • Time and Resource Commitment
    • The examination can take several weeks to months, depending on your company’s size and complexity.
    • You’ll need to allocate internal resources to assist with the process, such as providing documents or answering questions.
  • Report Drafting
    • After completing the audit, the auditor will prepare the SOC report, summarizing their findings.
    • If any issues or risks are found, the report will highlight them along with recommendations for improvement.
  • Final Review and Discussion
    • The auditor will review the final report with you to ensure accuracy.
    • You’ll have a chance to ask questions and clarify any points in the report.

What Happens After the Examination?

  • Address Findings
    • If there are any areas for improvement, you’ll need to address them.
    • This might involve updating security measures, policies, or procedures.
  • Ongoing Monitoring
    • The audit process is not a one-time event. You may need to make regular improvements and go through periodic SOC examinations to stay compliant.

Conclusion

In short, a SOC report is a detailed document that shows how well a company is managing security, privacy, and compliance to protect customer data. It gives customers, partners, and regulators confidence that the organization follows strong, industry-standard practices to keep information safe. Whether it’s about security controls, system availability, or protecting sensitive data, SOC reports help businesses build trust and ensure they are meeting their obligations.

FAQ's

1. What is a SOC report?

A SOC report shows how a company manages security and privacy to protect customer data.

There are three types:

  • SOC 1: Related to financial reporting.
  • SOC 2: Covers security, availability, confidentiality, and more.
  • SOC 3: A public summary of SOC 2.

Companies that handle sensitive data or provide services like IT or cloud computing may need a SOC report.

SOC reports are typically done every year, or when significant changes occur in a company.

SOC 1 looks at controls related to financial reporting.

SOC 2 is detailed, while SOC 3 is a simpler version meant for public sharing.

Independent auditors assess a company’s security measures and risk management to create SOC reports.

They help businesses prove they have strong security practices, build trust, and meet regulations.

SOC 2 looks at security, availability, data processing, confidentiality, and privacy.

SOC 3 reports are public, while SOC 1 and SOC 2 are shared with customers or under confidentiality agreements.

It can take a few weeks to a few months, depending on the company’s size and complexity.

SOC reports are not mandatory, but they are highly recommended for businesses handling sensitive data.

SOC audits are conducted by independent, certified auditors or firms.

SOC 2 audits check if a company follows good practices for protecting data and ensuring system reliability.

SOC reports help your business build trust, prove security efforts, and comply with industry standards.

No, SOC reports must be done by an independent auditor.

SOC reports show customers that a company follows strong security measures to protect their data.

Not all businesses need one, but those handling sensitive data or providing services often do.

The AICPA sets the standards for SOC audits to ensure consistency and reliability.

You can request a SOC report directly from the company or service provider you’re working with.

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