SOC 2 compliance is vital for all businesses that manage data for consumers and businesses. So, What Does It Take to be Compliant?
SOC 2 compliance is vital for all businesses that manage data for consumers and businesses. It defines standards used to protect data and reduce the risk of exposure of the data or personal details to outsiders who could use the information for financial gains. For business owners more specifically, compliance means that the service providers used by the company protect the business and all its clients from data loss and theft. It is a necessity for any service provider using SaaS. Reviewing the 5 common questions about SOC 2 compliance helps business owners understand how they and their clients are protected.
1. What Principles Apply to SOC 2?
The principles of SOC 2 include availability, processing integrity, confidentiality, and privacy controls. To remain compliant with the standard, the systems used to store or use data must available to the company and meet all business objectives. Processing of the data must maintain the integrity of the data used and stored on the systems. All confidential data is protected with appropriate security schemes and limit access to authorized individuals only. All personal data is obtained from clients, stored, and disclosed according to current standards and federal regulations. Any data that is no longer needed is erased safely to prevent outsider access or acquisition of the confidential data. Service providers who need more details about the principles can learn more about how to get soc 2 compliance certification now.
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2. When Should a Service Provider Schedule An Audit?
A compliance audit is necessary for all organizations and service providers who store and use confidential data. It is recommended that the company use stringent measures to evaluate their information systems and ensure they are compliant with SOC 2 standards before scheduling an audit. If the audit determines that the company isn’t compliant, federal agencies and shut down the information systems and prevent the business from using them until they are compliant.
3. What is the Audit Exactly?
It is an evaluation that uses stringent measures to evaluate specific attributes of the service provider’s IT systems. It evaluates their availability and security of confidential data. Next, it defines whether or not the company is following necessary processing integrity controls. The confidentiality and privacy controls for the information system are tested to determine if the service provider has vulnerabilities that make them non-compliant with standards.
4. What Can the Service Provider Expect From the Audit Report?
Essentially, the report is the findings of the audit and explains what the company must do if they aren’t compliant. It explains a description of the systems the authority evaluated and explains all tests used to evaluate the controls. All results are disclosed to the service provider after the audit.
5. How is SOC 2 Different From Previous Standards?
SOC 2 is used for confidential information connected to a third party such as a client for example. It doesn’t have anything to do with the hosting of financial data like SOC 1 does. SOC 1 applies to financial reporting for the identified third party whereas SOC 2 doesn’t.
All service providers who manage confidential financial data for clients and businesses must remain compliant with SOC 2 standards. Certification for the standard requires ongoing risk mitigation and stringent controls to protect the information. Audits are conducted to determine if the systems remain compliant and don’t violate any federal laws. Reviewing frequently asked questions about the standards helps service providers avoid penalties for non-compliance and risks to their clients.
