What is a SOC 2 Type 2 report?
The cloud helps businesses stay flexible with cost-effective solutions, but is it secure? Learn how SOC 2 Type 2 reports ensure cloud providers maintain the highest levels of security.
Have you ever wondered how companies keep your personal information safe? They use a Service Organization Control (SOC) 2 Type 2 report, which is an important document in the world of cybersecurity and data management. SOC 2 Type 2 reports provide organizations and their stakeholders with valuable insights into the security controls and practices used by service providers. This report goes beyond the Type 1 version by offering a much more detailed assessment of the effectiveness and consistency of these controls over a specified period, typically anywhere from six months to a year.
What is a SOC 2 Type 2 audit report for?
Cloud service providers manage a lot of important user data, which is why it’s essential to follow the strictest security guidelines to keep information safe.
A SOC 2 Type 2 report outlines a company’s internal controls and details how well they safeguard customer data, specifically for cloud service providers. Specifically, it’s a third-party audit that shows if the security protocols are safe and effective.
When a service provider passes a SOC Type 2 audit, it proves that their internal controls continue to work well over an extended period of time.
What businesses need a SOC 2 Type 2 report?
A SOC 2 Type 2 report isn’t a one-size-fits-all document — it’s tailored for specific types of businesses and industries, especially those that handle sensitive data or provide services that other companies depend on. Here are some common scenarios where businesses need a SOC 2 Type 2 report:
- Technology and cloud services. Providers of cloud services and IT solutions rely on SOC 2 Type 2 reports to assure clients of data security.
- Finance and banking. Financial institutions use these reports to meet regulatory requirements and safeguard customer financial data.
- Healthcare. Healthcare providers and related service companies use SOC 2 Type 2 reports to protect patient information and ensure compliance with healthcare regulations.
- Ecommerce and retail. Online retailers utilize these reports to build customer trust by demonstrating data security during transactions.
- Professional services. Businesses offering HR, payroll, legal, and similar services rely on SOC 2 Type 2 reports to showcase their commitment to data protection.
SOC 2 Type 2 audit checklist of criteria.
All SOC 2 audits cover the five Trust Services Criteria:
- Security — protects information from both physical and logical unauthorized access
- Availability — allows customers to readily access the system for information
- Processing integrity — processes information in a timely manner
- Confidentiality — secures sensitive information with appropriate controls
- Privacy — works in accordance with the company’s privacy notice
How much does a SOC 2 Type 2 audit cost
The cost of a SOC 2 Type 2 audit can vary widely depending on several factors:
- Size and complexity. The scale of your business operations, as well as the complexity of your IT infrastructure and data handling processes, can significantly impact the cost.
- Scope of audit. The number of systems and services included in the audit scope will influence costs. A broader scope covering more areas will generally result in higher expenses.
- Service provider expertise. The chosen audit firm’s experience and reputation can affect costs. Established firms with a track record of SOC 2 audits might charge more.
- Duration. The length of the audit engagement, which depends on the audit scope and the efficiency of the audit process, can also impact costs.
- Geographic location. The cost of living and business expenses in your region can also influence audit pricing. Major metropolitan areas tend to have higher costs.
- Compliance requirements. Specific industry regulations or additional compliance needs can increase the complexity of the audit and, subsequently, the cost.
SOC Type 1 vs. Type 2 report.
A Type 1 report audits all these principles at one point in time. A SOC 2 Type 2 report audits the Trust Service Criteria over several months or more to ensure long-term control. This makes it more secure than a Type 1 and shows that providers can protect information over an extended time period. Companies must get audits annually to maintain their SOC 2 Type 2 certification.
Make sure to stay in SOC 2 Type 2 compliance.
Whenever you use online services that manage sensitive information, like cloud services or electronic signature software, make sure the provider has an active SOC 2 Type 2 report — especially when working with sensitive government documents like taxes or services applications. Use only certified, audited software, like Adobe Acrobat Sign, to store and send sensitive information over the internet.
Discover more about what you can do to add your signature to documents online without sacrificing security.
