What Is SOC2 And How Does It Apply To Businesses?

SOC2 Application, An auditing strategy
SOC 2 is an auditing strategy developed by the American Institute of CPAs (AICPA) that tracks your service providers’ data management methods in order to protect your brand’s and its customers’ interests. SOC 2 is required for security-critical brands, especially when hiring a SaaS provider.

How Does SOC 2 Function?

The procedure is built around five fundamental principles: security, integrity, confidentiality, privacy, and availability. External vendors provide SOC 2 certification.

SOC 2 is also more adaptable than systems like PCI and DSS, as each brand receives a unique report based on the controls they choose to match their trust principles. The reports provide you and your business associates with information on the data management mechanisms used by the service provider. The reports are divided into two types:

Type I: Analyzes a vendor system and whether its design adheres to key trust principles.

Type II: Displays information about the effectiveness of the systems.

To Whom Does SOC 2 Apply?

SOC 2 is required for any technology service provider, including SaaSs. It is also critical to ensure that the service provider’s partners provide the same in order to ensure consistency of integrity across all levels.

Principles Of Trust In SOC 2


This aspect of the protocols is concerned with safeguarding resources against unauthorized access in order to prevent data theft, abuse, or omission. Two-factor authentication, Web Application Firewalls (WAFs), and intrusion detection are examples of good security features.


This principle is concerned with the accessibility of a system in the context of official agreements such as contracts. Both parties agree on a minimum level of performance to be expected.

However, rather than overseeing a system’s functionality, it addresses the security aspects that may interfere with availability. It could include things like site failover and security event management.

Processing Integrity

This factor is concerned with a system’s ability to deliver data as expected. It, for example, assesses the system’s ability to deliver valid, unbiased, complete, and authorized data at the appropriate time and cost. The procedure, however, is not intended to detect errors that existed before storing the data in a system.


Confidentiality only ensures that data is only available to the intended audience, which may be limited to certain personnel or organizations. This is especially important for sensitive data like business plans.

Confidentiality can be achieved through the use of network encryption, firewalls, and other access tweaks.


Privacy refers to the collection, retention, use, disclosure, and disposal of data by a system in accordance with brand privacy principles and the AICPA’s Generally Accepted Privacy Principles (GAPP).

Personal Identifiable Information (PII) is especially sensitive because it contains details that can be used to identify individuals, such as a social security number, race, sexual orientation, and religion.

Why Is SOC Important In Business?

An external technical audit party conducts SOC 2. It could take anywhere from a half-year to a year to determine the findings and ensure that all factors are in line with evolving cloud data protection.

It boosts credibility by assuring clients that their data is adequately protected from both external and internal intrusions.

It also assures them that you have the necessary tools for data protection.

Customers also appreciate the assurance that you will have all of the critical information regarding a data breach in order to respond quickly in the event of an unexpected incident.

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