SOC 2 stands for System and Organization Controls 2, which is a voluntary compliance standard for service organizations developed by the American Institute of CPAs (AICPA) . SOC 2 defines criteria for managing customer data based on five "trust service principles" - security, availability, processing integrity, confidentiality, and privacy. The SOC 2 audit provides the organizations detailed internal controls report made in compliance with the 5 trust service criteria. It shows how well the organization safeguards customer data and assures them that the organization provides services in a secure and reliable way.
Here are some key points about SOC 2:
- SOC 2 is a security framework that specifies how organizations should protect customer data from unauthorized access, security breaches, and other threats.
- SOC 2 reports are intended for a limited audience - specifically, users with an adequate understanding of the system in question. SOC 3 reports contain less specific information and can be distributed to the general public.
- SOC 2 requirements help companies establish airtight internal security controls, which lays a foundation of security policies and processes that can help companies scale securely. It also builds trust with customers.
- SOC 2 audits can only be performed by independent CPAs (Certified Public Accountants) or accounting firms.
- SOC 2 compliance is not mandatory, but it is becoming increasingly important for service organizations that handle sensitive customer data. Complying with SOC 2 provides a competitive advantage and can help organizations win new business.
In summary, SOC 2 is a security framework that specifies how organizations should protect customer data from unauthorized access, security breaches, and other threats. It is a voluntary compliance standard for service organizations developed by the AICPA, and it provides a competitive advantage for organizations that handle sensitive customer data.
