SOC 2 Type II compliance is a critical certification for any software provider involved in the handling or management of data. In this post, we break down exactly what SOC 2 Type II covers and why it’s so important.
The massive growth and widespread dependence on cloud-based software solutions for the management and optimization of data have made the security and privacy of that data more important ever. SOC 2 Type II has emerged as the new benchmark in data security, setting rigorous standards that ensure the highest level of protection for sensitive information.
The SOC 2 Type II framework not only demonstrates a company’s commitment to safeguarding data but also builds trust with clients by validating said company’s adherence to critical security practices. Today, we’re exploring why SOC 2 Type II is a game-changer in data security and what it means for businesses striving to uphold their reputation and secure their operations.
What Is SOC 2 Type II Compliance?
SOC 2 (System and Organization Controls) Type II certification is a rigorous audit conducted by independent third-party experts to assess an organization’s ability to manage data securely. Specifically, it verifies a company’s adherence to specific standards for data security, availability, processing integrity, confidentiality, and privacy. Regular re-certification helps demonstrate that a company is consistently applying these principles over time, ensuring reliable protection of sensitive information.
What Are the Key Principles of SOC 2 Type II Certification?
Established by the American Institute of CPAs (AICPA), SOC 2 Type II certification evaluates a service provider’s systems and processes based on five trust service criteria:
- Security: Ensuring that the system is protected against unauthorized access.
- Availability: The system is available for operation and use as committed or agreed.
- Processing Integrity: The system’s processing is complete, valid, accurate, timely, and authorized.
- Confidentiality: Information designated as confidential is protected as committed or agreed.
- Privacy: The organization’s privacy notice governs how personal information is collected, used, retained, disclosed, and disposed of.
How Is SOC 2 Type II Different from SOC 2 Type I?
SOC 2 Type I assesses the design of controls at a specific point in time. SOC 2 Type II goes beyond this initial assessment by evaluating the effectiveness of the same controls over an extended period (typically 6-12 months). This offers a deeper validation of an organization’s commitment to maintaining secure and reliable systems.
Who Conducts a SOC 2 Type II Audit?
A SOC 2 Type II audit is conducted by a Certified Public Accountant (CPA) firm or an independent third-party audit organization with experience in auditing for SOC 2 compliance. These firms are typically specialized in information security and have the expertise to evaluate a company’s adherence to the SOC 2 Trust Service Criteria. The audit assesses not just the design of the company’s controls but also their operational effectiveness over a specified period.
What Does SOC 2 Type II Certification Signify? 4 Biggest Benefits
Achieving SOC 2 Type II certification is not just a testament to a company’s robust data security practices—it’s a commitment to their clients that a company is continuing their diligence surrounding the protection of client data. There are many benefits:
Enhanced Security Across All Offerings: Whether you’re using Cyber Data Mining, eDiscovery Review, or Data Minimization solutions, you can trust that your data is managed within a secure environment that meets the highest industry standards.
Increased Trust and Reliability: The certification assures clients that a SaaS platform has undergone thorough testing and validation, reinforcing a position as a trusted partner in data management.
Compliance and Peace of Mind: For organizations handling sensitive data, SOC 2 Type II certification provides an additional assurance that their information is protected in compliance with stringent regulatory requirements.
Scalability and Future-Readiness: As a business grows, so do your data security needs. With SOC 2 Type II certification, SaaS platforms must be prepared to scale alongside you, ensuring continuous protection and reliability.
Getting SOC 2 Type II Compliant: A Rigorous Commitment
Obtaining SOC 2 Type II certification is no small feat. It requires companies to undergo a comprehensive audit that examines cloud-based security controls, policies, and procedures over an extended period. This process typically involves the following:
- Evaluation of Security Controls: Companies must demonstrate that their systems are designed to protect against internal and external threats.
- Assessment of Availability and Processing Integrity: The Platform’s availability and processing integrity are scrutinized to ensure clients can rely on services without disruption.
- Confidentiality and Privacy Assurance: Safeguarding confidential and personal data, aligning with the highest privacy standards are all paramount in ensuring data integrity.
What Keeps a Company from Achieving SOC 2 Type II Compliance?
Aside from the dedication required to get certified, there are a few other challenges software companies can face.
- Complexity of Requirements: Understanding and implementing all SOC 2 criteria is complex and time intensive.
- Resource Investment: Getting compliant demands a dedicated allocation of time and financial resources.
- Ongoing Maintenance: The ‘ongoing’ nature of SOC 2 Type II requires continuous monitoring and improvement of controls, which can be demanding and uncomfortable for organizations, especially at first.
- Employee Training: Ensuring all employees understand and adhere to security policies requires a higher degree of organization and communication.
What Are the Costs of SOC 2 Type II Compliance?
Certification is always an investment. Companies attempting SOC 2 Type II compliance should be prepared to budget for the following costs.
- Consulting Fees: Hiring contracted vendors for help with preparing and implementing controls.
- Audit Fees: This is what a company should expect to pay the CPA firm that is conducting the audit.
- Internal Costs: Expenses for covering internal resources that handle ongoing monitoring and compliance efforts.
- Remediation Costs: Extra costs reserved to address any issues identified during the audit.
How Often Does a Company Need a SOC 2 Type II Audit?
SOC 2 Type II audits are typically conducted annually. This ensures that the company maintains its compliance status and continues to uphold the required standards over time.
Conclusion
In a world where data breaches and cyber threats are becoming increasingly common, achieving SOC 2 Type II certification is a powerful affirmation of a software platform’s commitment to data security. When evaluating options for your data needs, make sure you’re not just selecting a provider based on marketing parameters—look for a team that prioritizes safety and success.
iCONECT is SOC 2 Type II-compliant platform. You can learn more about our certification and what it means for our product offerings and you. For further information or to access our certification report, please contact our customer support team at support@iconect.com.
