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The Importance of SOC2 Audits in Today’s Business Environment

IARM Information Security > Blog > The Importance of SOC2 Audits in Today’s Business Environment

Most companies often are on cross-roads on how to choose the right SOC type of Audit for their organization. Organization can choose either SOC1 or SOC2 audits types based on the requirements and controls that they have implemented. 

The control objectives related to both business process and information security which may impact the client’s financial reporting, shall choose SOC 1. Under the SOC 1, the organization can just opt for Type 1 which is just the Description of Controls of what  they have implemented. If they choose SOC 1 and Type II, the organization should demonstrate the description of controls and also provide the results of testing as part of evidence exercise.

Similarly if the organization would like to opt for SOC2 Type2 Audit, which is much more than the SOC1 but also addresses the Trust Principle (i.e) Availability, Security, Process Integrity, Confidentiality and Privacy. Like SOC 1, SOC 2 also has Type I and Type II which states the Description of Controls and also Description of Controls and Testing with results.

The Importance of SOC2 Audits in Today’s Business Environment

When it comes to the audit, the SOC2 is one of the most common types of audits. It is a type of compliance audit that ensures that a company is complying with security and privacy standards. SOC2 audits are often used by companies in order to show their customers and partners that they are compliant with all requirements.

soc2-audits

The real challenge in choosing the right service provider to help you with the attestation of the Audit report be it SOC1 or SOC2. The following are the suggestions that organization intend to go in for Attestation Process.

  • Even though this is attested by the CPA (Financial Auditors), it is equally important that the CPA is backed up by a capable Information/Cyber Security Organization. SOC reports are in-depth and require multiple validation and verification both technically and Process wise as well. 
  • Most attestations fail to qualify due to lack of technical controls assessed or improper validation of technical controls implemented. It is important that the technical of various flavors are involved in the assessment such as Physical Security, Operating System Security, Application Security, Database Security, Network Security and operation Security. The technical validation list is endless but is determined by the level of controls that is required for the identified organization.
  • Attestation of report is for the historical information irrespective of the type of SOC chosen. So it is important that the organization understand that scope and the criteria of the report that is required to be attested.
  • SOC attestation helps organizations limit the number of security queries being bombarded by various Client and Customer on a periodic basis. Once when the SOC reports are attested, they can share the report with their client and customer who almost ask the same set of questions on their security compliance.
  • Organizations are required to perform the SOC audit every 12 months, else the attestation of the period 12 months can not be held valid for the next subsequent 12 month. It is purely time bound.
  • Organization may have ISO 27001: 2013 certification in place, but SOC audit and attestation gives an edge over and complement the ISO 27001:2013 Certificate.

Conclusion

The SOC 2 Type II audit is a comprehensive assessment of an organization’s security management system. It is a process of evaluating the effectiveness of an organization’s information security program and its compliance with the requirements of the standard.

SOC2 audits compliance has become a necessity for many businesses, as it provides a way to demonstrate that their data is being securely managed and protected.

In today’s business environment, where security has become a major concern, the need for SOC2 audits has become prevalent. If you want to be sure your services are in compliance with the SOC 2 audit standard, IARM can help.

IARM provides IT Compliance and audit consulting services to clients in the manufacturing, distribution and service industries. Our professionals have deep industry experience in a variety of sectors, including electronics, food and beverage, healthcare, defense and security. Contact us today for more information

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