Why Must Organisations Apply For SOC 2 Certification?
Organisations these days are moving to cloud-based services. These digital platforms help ensure that clients’ data is safe and a top priority for businesses. Clients want to work with businesses that ensure that their service provider understands the importance of handling complex data. SOC 2 certification is one of the most important tools that helps organisations to demonstrate their accountability in protecting data.
What is SOC 2 certification?
SOC 2 certification is a framework developed by the American Institute of Certified Public Accountants (AICPA). It evaluates how well a service organisation manages data. It ensures the stakeholders that the business is aware to protect the privacy and interests of clients. SOC 2 certification helps in the preparation of reports that help to assess an organisation based on the Trust Services Criteria:
- Security
- Availability
- Processing Integrity
- Confidentiality
- Privacy
Why SOC 2 Certification Matters
SOC 2 certification helps clients have peace of mind, protecting them from cyber threats and vendor risks. It shows that a service provider has:
- Agreed to follow controls for data security
- Reduced the risks for breaches in the system
- Adopted the latest technology to be compliant with IT governance
- Establish transparency in their working mechanism
SOC 2 Certification is not only a compliance but also a requirement and a business differentiator that helps an organisation compete in the marketplace.
Benefits of SOC 2 Certification
Achieving SOC 2 Certification is an essential step as it helps different organisations to offer a range of benefits:
- Customer confidence
- Strong protection against data
- Better compliance with laws
- Standardised IT and security management
- Improved internal governance
SOC 2 Type I vs. Type II
There are two different types of SOC certifications that the organisations can choose from:
- SOC 2 Type I certification helps to evaluate whether an organisation’s systems and controls are suitably designed at a specific point in time.
- SOC 2 Type II certification helps businesses by assessing the operational effectiveness of those controls over a defined period/
SOC 2 Certification is an important milestone that helps businesses provide technology without any threat. It assures the clients that the data is safe and in reliable hands.
Frequently Asked Questions (FAQ)
- Is SOC 2 Certification mandatory?
SOC 2 is not mandatory, but the organisations that want to win the trust of their clients prefer taking the certification to show their seriousness on data privacy. - How long does it take to achieve SOC 2 Certification?
It can vary from 3 to 6 months depending on your business and the documents that you have submitted. - Who issues SOC 2 reports?
Only licensed Certified Public Accountant (CPA) firms that the AICPA accredits can perform SOC 2 audits. - What is the difference between SOC 1 and SOC 2?
SOC 1 focuses on financial reporting controls. On the other hand, SOC 2 assesses operational and information security controls. - How long is the SOC 2 Certification valid?
SOC 2 reports are typically valid for 12 months, but organisations undergo annual audits to maintain compliance.
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