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Introduction to SOC 2

We live in such a dynamic digital landscape where technology is advancing rapidly and so are cyber crimes. We should say that cybercriminals are getting more ingenious and come up with more sophisticated methods. That is why, it's becoming quite challenging for businesses to survive in this era of growing security and privacy risks. The latest wave of digital transformation has brought the demand for cloud-hosted apps. These, however, come with several concerns related to data privacy and security. Keeping data on the web is quite risky - attackers can spot loopholes in cloud infrastructure and access the data. If your business handles sensitive data, especially private customer data, you must take active measures in order to safeguard it by detecting vulnerabilities and mitigating risks.


According to IBM, a single breach can cost a company an average of 4.45 million dollars. Now aligning with industry compliance standards like SOC 2 becomes a prerequisite for businesses of various scales. In the upcoming years, 51% of organizations plan to increase security investments for incident response (IR) planning and testing, employee training, and threat detection and response tools. We've prepared a comprehensive ​​SOC 2 requirements checklist to make your journey to complete data security quick and smooth.


First things first. Let's figure out the basics of SOC 2. A SOC 2 audit is an independent assessment of a service organization's controls and processes related to the security, availability, processing integrity, confidentiality, and privacy of customer data. It is conducted to provide assurance to customers and stakeholders that the organization has effective control measures in place to protect their data and meet specific trust service criteria. The audit's result is documented in a report. These reports vary for each organization.


The SOC reports are segmented into two main types:

  1. A report that describes a vendor's systems and their correspondence to the relevant trust principles.

  2. A report that details the operational effectiveness of those systems.


​SOC 2 comes with a number of benefits that we will discuss further in this article. But now we should mention its significant versatility that allows revolving around a product, solution, or service.

SOC 2 is one of the most preferred options for small companies and startups due to its accessibility and flexible compliance standards that meet their immediate needs.


Talking about the most common types of service organizations SOC 2 compliance is applied, we can distinguish the following:

  • SaaS companies

  • Management, analytics, and business intelligence service providers

  • Organizations that manage, support, or offer advice on accounting or financial procedures

  • Customer service management providers

  • Managed IT and security services providers


Soc 2 Trust Service Criteria

SOC 2 is based on the following Trust Services Criteria:

  • Security means strong protection against unauthorized entry with the help of WAFs, two-factor authentication, and intrusion detection.

  • Privacy deals with the system's collection, use, retention, disclosure, and disposal of personal data in strict adherence with the company's privacy notice and the criteria set in the AICPA's generally accepted privacy principles.

  • Confidentiality is ensured if data access is restricted to a limited list of individuals.

  • Processing integrity checks whether the main task is completed.

  • Availability of cloud environment refers to the accessibility as specified in the agreement.

Adhering to this standard requires carrying out specific procedures and service controls so that a company can be sure the criteria are met.

Why Soc 2 Compliance Makes Sense

These days businesses all over the globe are experiencing digital transformation increasingly but at the same time, concerns associated with security and privacy are rising at a large scale. Organizations, in particular those leveraging the power of cloud services, are looking forward to maintaining customers' trust. Securing a SOC 2 report is the most reliable way to show your security practices and prove their ability to provide the customers' and prospects' data safety on your cloud. In other words, your SOC 2 certification is the best proof that your customers can trust your organization and feel free to share their data. Besides, there are a few more good reasons why you should get familiar with the SOC 2 requirements and the step-by-step checklist. See what gains it will bring to your business:

  • A robust security policy is ensured.

  • You can spot security issues early on and provide an effective risk management process.

  • Engaging new customers and gaining a noticeable increase in trust.

  • Better sales that lead to revenue increase.

  • Getting the ability to efficiently respond to IT, data security, and due diligence questionnaires.

  • Knowing that all your client's data is secure gives you absolute peace of mind.

  • Maintaining the organization's documentation of security accuracy.

How To Prepare For A Soc 2 Audit

Now that you have a clear insight into SOC 2 requirements, it's high time you moved on to the checklist. The SOC 2 compliance cannot take place without proper preparation. Check out the tips that will help you get ready for the formal SOC 2 audit:

  • Bring together a reliable team of highly skilled experts. You will require a mix of both technical and non-technical roles. The key positions include a compliance lead, IT and security team, legal team, HR, and administrative personnel.

  • Consider the audit not as a one-time activity but rather as a baseline to use for meeting SOC 2 requirements and reinforcing them later on.

  • Invest in a top-notch security tech stack. The tools and the features vary across industries and the TSC you're measuring against. Still, we can name a few general tools you will surely need: password manager, WAF, vulnerability scanner, and background check provider.

SOC 2 Requirements: Comprehensive Checklist

The SOC 2 compliance checklist requires completing a series of tasks to comply with the requirements of the framework. Proper process planning and organization is the key to the most efficient result. Here, see how to pass the compliance standard with flying colors:

  1. Decide whether you need a SOC 2 Type 1 audit prior to carrying out a more rigorous SOC 2 Type 2 audit. The Type 1 audit states whether controls were suitably designed as of a specific date while the Type 2 checks if the controls were operating effectively over a period of time to meet the SOC 2 requirements.

  2. Set clear objectives to understand what you need the audit for - to boost your security, gain a competitive edge over your competitors, or whatever.

  3. Define what system components are the the audit scope. Additionally, consider what TSC are to be included.

  4. Perform an internal risk mitigation and assessment to spot vulnerabilities and take immediate actions.

  5. Perform gap assessment also referred to as readiness assessment. This involves evaluating your current security posture to see what controls still have to be implemented.

  6. Conduct gap remediation. Pay attention to policies, procedures, and the software used. Consider integrating new tools, modifying the workflow, and preparing new control documentation.

  7. Select, align, and install the controls to generate reports as per the TSC. Deploy the internal controls through policies and procedures that comply with the TSC criteria.

  8. Undergo the SOC 2 audit. For this, find a reputable auditor who will conduct the SOC 2 audit and provide the report. Look for an auditor who is experienced in running audits for your business type. UnderDefense is a reliable partner to assist you with the SOC 2 audit performance and ensure your organization's security & privacy.

  9. Ongoing monitoring. The work doesn't stop once you receive the report. Continuous control must be ensured in order to maintain data security & privacy.

To Sum Up

The SOC 2 audit assures your potential clients, stakeholders, and regulatory authorities that their data is strongly protected through robust controls implementation. Adhering to these regulations is obligatory for businesses, SaaS vendors, and organizations using cloud services. This way customer and business data can be protected and managed properly.

Achieving SOC 2 compliance might be a challenge however it is worth all efforts. Keep in mind that issues related to data security and privacy lead to significant financial losses, customer trust decreases, and reputation damage. To avoid such consequences, find a seasoned auditor to assist you and get started with the SOC 2 audit!