System and Organization Controls (SOC) refers to a suite of reports produced by external auditors to evaluate the operating effectiveness of a company's internal controls. These reports are essential for organizations that handle sensitive information or provide services that involve the storage, processing, or transmission of customer data.
Maintaining SOC compliance is an ongoing process, as organizations need to continually assess and update their controls to address evolving cyberthreats and changes in their operations. SOC compliance is an essential aspect of risk management and will enhance customer trust in an organization.
SOC reports are essential for organizations that handle sensitive data, as they provide a comprehensive assessment of internal controls.
cater to distinct needs and focus on different aspects of
control within the organization.
System and Organization Controls Type 1 (SOC 1) is a report that examines an organization's outsourced services and their potential impact on its financial reports.
System and Organization Controls Type 2 (SOC 2) is a cybersecurity compliance framework formulated by the American Institute of Certified Public Accountants (AICPA).
Evaluates the overall governance and management processes within the organization.
Examines and details how the organization identifies and responds to any potential risks that could impact relevant financial reporting processes.
Focuses on the various methods employed to communicate and exchange information related to financial reporting, both internally and externally.
Assesses the ongoing activities and processes the organization currently has that are used to monitor the effectiveness of its internal controls.
Guarantees the system's defense against unauthorized access, including physical and logical security measures.
Assesses whether the systems are functional and have the capability to take on needed tasks.
Examines whether system processing is complete, valid, accurate, timely, and authorized.
Focuses on the protection of confidential information and regulates who has access to it.
ISO 27001 is an information security standard formulated by the International Organization for Standardization (ISO). It offers a structure and recommendations for setting up, executing, and overseeing an information security management system (ISMS).
There is roughly an80%overlap between the requirements for SOC 2 and ISO 27001.
Assesses the security framework of an organization.
Voluntary framework.
Instills trust in customers and vendors.
Requires continuous monitoring practices in an organization.
that can help your organization demonstrate the various compliances that are mandated by regulatory institutions.
