In the modern world, SOC 2, which stands for Systems and Organization Controls, has become a crucial framework for assessing data controls, security, and privacy based on established Trust Service Criteria. This framework assists organizations in managing risks, increasing confidence among customer and partners, differentiating themselves from competitors, and improving security measures for other compliance models. Essential for its role in verifying an organization’s commitment to protecting the privacy of customer data, SOC 2 specifies stringent measures to counter internal and external threats. SOC 2 compliance is crucial as data breaches can result in significant financial losses and severely damage an organization’s reputation and consumer trust.

SOC 2 audit reports provide detailed evaluations of an organization’s internal controls related to security, availability, processing integrity, confidentiality, and privacy of customer data and are divided into two types:

• SOC 2 Type 1 report: evaluates the design and implementation of a service organization’s controls at a specific point in time, providing assurance of data security and compliance with Trust Service Criteria, which can enhance competitiveness and meet increasing customer demands for data protection.
• SOC 2 Type 2 report: provides higher assurance than SOC 2 Type 1 by thoroughly examining a company’s internal control policies over a specified period of time, demonstrating best practices in data security and control systems, and making the service provider more attractive to potential customers despite the significant investment required.