SOC 2 Compliance: What Buyers Need to Know

What is SOC 2?

SOC 2 is an auditing procedure developed by the AICPA that evaluates a service organization's controls related to security, availability, processing integrity, confidentiality, and privacy.

Type I vs Type II

SOC 2 Type I - Evaluates control design at a specific point in time - Answers: "Are appropriate controls in place?" - Faster to obtain (typically 2-3 months) - Less assurance about ongoing operations

SOC 2 Type II - Evaluates control effectiveness over a period (6-12 months) - Answers: "Are controls working as intended?" - Takes longer (12+ months for initial report) - Provides stronger security assurance

Trust Service Criteria

Security (Common Criteria) - Protection against unauthorized access - Network and application security - Logical and physical access controls

Availability - System uptime and reliability - Disaster recovery capabilities - Performance monitoring

Processing Integrity - Complete and accurate processing - Error handling and correction - Quality assurance procedures

Confidentiality - Protection of confidential information - Encryption and access restrictions - Data classification and handling

Privacy - Personal information handling - Consent and disclosure - Retention and disposal

Reading a SOC 2 Report

Key Sections 1. **Auditor's Opinion**: Overall assessment and any qualifications 2. **Management Assertion**: Vendor's claims about their controls 3. **System Description**: How the service operates 4. **Controls and Tests**: Specific controls and test results 5. **Complementary User Entity Controls**: Your responsibilities

Red Flags - Qualified opinion or exceptions - Narrow scope excluding critical components - Report older than 12 months - Missing Trust Service Criteria relevant to your use case