Who should have a SOC 2 audit?

SOC 2 requirements are mandatory for all engaged, technology-based service organizations that store client information in the cloud. Such businesses include those that provide SaaS and other cloud services while also using the cloud to store each respective, engaged client’s information.

Are SOC 2 reports required?

System and Organization Controls for Service Organizations 2 (SOC 2) compliance isn’t mandatory. No industry requires a SOC 2 report. Not only do many companies expect SOC 2 compliance from their service providers, but having a SOC 2 report attesting to compliance confers added benefits, as well.

Who does SOC 2 apply to?

What is SOC 2 Compliance? Developed by the AICPA, SOC 2 is specifically designed for service providers storing customer data in the cloud. That means SOC 2 applies to nearly every SaaS company, as well as any company that uses the cloud to store its customers’ information.

What is required for SOC 2 compliance?

What are the essential SOC 2 compliance requirements? SOC 2 compliance is based on specific criteria for managing customer data correctly, which consists of five Trust Services Categories: security, availability, processing integrity, confidentiality, and privacy.

What is SOC 2 Type 2 compliance?

SOC 2 is an auditing procedure that ensures your service providers securely manage your data to protect the interests of your organization and the privacy of its clients. For security-conscious businesses, SOC 2 compliance is a minimal requirement when considering a SaaS provider.

How much does it cost to get SOC 2 compliance?

All told, the average quote for a SOC 2 audit runs between $5,000 and $60,000. But at the end of the day, you’re paying for a lot more than just the auditor. For example, one firm certified by the AICPA to perform SOC 2 audits charges $20,000 for a SOC 2 Type I audit and $30,000 for a SOC 2 Type II.

What is SOC 2 Type 2 audit?

A SOC 2 Type 2 report is an internal controls report capturing how a company safeguards customer data and how well those controls are operating. These reports are issued by independent third party auditors covering the principles of Security, Availability, Confidentiality, and Privacy. …

How often do you need a SOC 2 audit?

How Often Must a Service Organization Schedule a SOC 2 Audit? Most SOC 2 reports cover a 12-month period, but there are times when service organizations perform this audit every six months, depending on the client’s preference and any ongoing concerns in the operational control environment.

How long does a SOC 2 audit take?

The audit should take place over 6-12 months. Some organisations that are gaining SOC 2 compliance to satisfy a customer requirement may need to speed up this timeframe. It’s advised that if this is the case, you should plan for a full 12-month audit period on your annual compliance renewal.

Is a SOC 2 a security audit?

A SOC 2 audit report provides detailed information and assurance about a service organisation’s security, availability, processing integrity, confidentiality and/or privacy controls, based on their compliance with the AICPA’s (American Institute of Certified Public Accountants) TSC (Trust Services Criteria).

How much does a SOC 2 Type 2 audit cost?

SOC 2 Type 2 reports cost an average of $30-60k for the audit alone, and can cost companies more than $100k altogether. Type 2 reports also come with associated costs like readiness assessments, team training, and lost productivity.

How long does it take to get SOC 2 compliance?

To get straight to the answer of how to get SOC 2 compliance and how long it takes – in general, you can expect 6 months to acquire SOC 1 Type 1 and 12 months for the SOC 2 Type 2 report.