1. What is SOC 2 Type II / System and Organization Controls 2 Type II?
The SOC 2 Type II (System and Organization Controls 2 Type II) report evaluates your security controls over a period of time to test their effectiveness, making it more in-depth and detailed than the SOC 2 Type I report. Typically, the testing period is between three and twelve months.
The SOC 2 Type II report proves that your organization provides high-quality services based on robust controls in place:
- Ensures that your service complies with established requirements.
- Helps prevent mishandling issues.
- Gives confidence that your systems are functioning reliably and efficiently.
The SOC 2 Type 2 report is the better option if you want a report that demonstrates your strong security posture. It covers a period of time and includes an audit of both the design and operational effectiveness of your controls. This is a more comprehensive report and will show how effective your infrastructure is at keeping your data and your customers' data safe. This is especially important for organizations that handle confidential or highly sensitive data about their customers.
The SOC 2 Type II report offers a number of advantages, including:
- Strengthens customers' trust in you.
- Some of your partners may require such a report as part of their supply chain security policies.
- Reduces the risk of data breaches, system failures and fraud.
- Increases the security and reliability of your service.
- Facilitates the process of providing high quality services.
- Leads to higher customer satisfaction.
- Increases the chances of acquiring new customers.
- Improves competitiveness in attracting more significant projects.
The SOC 2 Type 2 report evaluates your security controls over a period of time and tests how effective they are. You choose the length of your audit window depending on how long your controls have been in effect. This window can be between three and twelve months. This type of report provides additional assurance to stakeholders as it demonstrates how effective your controls are over time.
2. What is the difference between SOC 2 type I and SOC 2 type II?
The main difference is that a SOC 2 Type I audit assesses in detail the design of security controls in place, while a SOC 2 Type II audit provides additional information on how effective those controls are. For this reason, SOC 2 type II is more comprehensive and shows the reliability of your systems. In other words, SOC 2 type I tests your control design and information security strategy in theory (mostly document review), while SOC 2 type II tests the effectiveness of your control in practice with some real examples and data for a specific period of time.
The main differences between Type I and Type II reports are timeline and scope.
A Type I report answers the question: Are you in compliance today and can you demonstrate to an auditor that controls are appropriately designed?
SOC 2 Type II verifies their effectiveness in action for a period usually exceeding six (6) months.
Because your controls will be tested over a longer period of time during a SOC 2 Type II audit, the audit process will take longer and likely be more expensive than a SOC 2 Type I audit.
In a SOC 2 Type II audit, the auditor reviews evidence of the effective operation of controls by analyzing the system and related documentation. The auditor also verifies that controls are working as intended and are correctly implemented throughout the organization.
3. Who needs a SOC 2 Type II report?
Organizations that store, process or transmit sensitive customer data are likely to need a SOC 2 Type II report at some point. Unlike a Type I report, a Type II report examines the design adequacy and operational effectiveness of your organization's controls over time. This provides greater confidence to customers and prospects that you will keep their data safe and indicates a level of maturity within your organization that can help unlock enterprise deals.
4. How long is the SOC 2 Type II report valid?
SOC 2 Type II reports do not technically expire, but customers and other stakeholders with whom you may share the report may request that you update it as "stale" if too much time has passed. The opinion expressed in a SOC 2 report is usually taken twelve months after the date the SOC 2 report is issued. This is why most companies plan annual SOC 2 Type II audits.
5. Benefits of SOC 2 Type II compliance
Companies are moving from on-premise software solutions to cloud infrastructure, which increases processing efficiency and reduces their costs. However, moving to cloud services has consequences, such as losing tight control over data security and system resources.
The SOC 2 report provides your customers with confidence that your security program is properly built and functioning effectively to protect data against potential threats.
This shows your responsibility in the following areas:
- Monitoring of the processes
- Control over encryption
- Detection of unauthorized accesses
- Authentication of user access
- Disaster recovery
Additional engagement with a SOC 2 Type II audit can bring significant value to your organization.
Other benefits of SOC 2 compliance are:
- Protection against data loss: The SOC 2 Type II report strengthens your brand reputation by enforcing optimal control practices and safeguarding against expensive data breaches.
- Improved internal processes: A SOC 2 Type II audit can highlight opportunities for process improvements and offers clear insight into the data security responsibilities of each employee.
- Competitive advantage: A SOC 2 report provides both potential and existing customers with clear evidence that you are dedicated to protecting their sensitive data. Possessing such a report gives your company a distinct edge over competitors who lack one.
6. SOC 2 Type II Audit Schedule.
The pre-audit phase usually takes between month 1 - month 9: (but can be extended up to 24 months)
I. Step 1: Prepare organization and provide necessary resources for SOC 2 Type II attestation
II. Step 2: Determine the scope of the audit
III. Step 3: Perform a gap analysis
IV. Step 4: Complete correction of the technical configuration
V. Step 5: Gather Documentation
VI. Step 6: Perform a readiness assessment
Audit window phase
VII. Step 7: Start a 3-, 6-, 9- or 12-month review period
Audit Phase, Month 9 - Month 12
VIII. Step 8: Start the formal audit process
IX. Step 9: Get your SOC II report
X. Step 10: Keep your SOC 2 report up to date.
In today's security world, it is essential to assure your customers and partners that you are protecting their valuable data. Achieving SOC 2 compliance is a popular form of cybersecurity audit that more and more organizations are using to demonstrate their serious approach to security. The SOC 2 report will give you a competitive edge in the market, helping to close deals faster and attract new customers.
ISCS suggests starting with a SOC 2 Type I assessment first to get the confidence you need that you are on the right track before moving on to a SOC 2 Type II assessment.
We have all the necessary capabilities and resources to start a SOC 2 Type II audit consulting process! Feel free to contact us through our contact form and we will get back to you as soon as possible!