8-Step SOC 2 Audit Checklist

Getting SOC 2 compliant can be tricky. To aid in your compliance journey, here is a SOC 2 audit checklist to help you prepare and optimize your chances of passing the audit.

Ensuring data security and privacy is now imperative for organizations across all sectors. SOC 2 compliance offers a solution to guarantee the protection of your data. It has become a vital standard for evaluating and confirming an organization's security and privacy controls. However, navigating the steps for SOC 2 compliance can be overwhelming for IT and security teams.

To simplify the process, we present a complete SOC 2 audit checklist, offering insights into the key areas and criteria organizations must address to achieve SOC 2 compliance. From understanding the scope of the audit to preparing for the audit process, we will explore the SOC 2 audit checklist and help organizations navigate the path toward successful SOC 2 compliance.

What Is A Soc 2 Audit?

A SOC 2 audit is a structured evaluation process determining if an organization's control measures align with SOC 2 compliance standards. These standards are defined by the American Institute of Certified Public Accountants (AICPA) and encompass five key areas known as trust service criteria (TSC): security, availability, processing integrity, confidentiality, and privacy.

Formerly known as Trust Services Principles, these criteria serve as a guideline for evaluating how well a service organization manages and safeguards information and systems in compliance with SOC 2 requirements.

During SOC 2 audits, service organizations' security, availability, processing integrity, confidentiality, and privacy controls are rigorously assessed against the AICPA's Trust Services Criteria, following the standards outlined in SSAE 18. A SOC 2 report is typically requested by existing or potential clients seeking assurance about the service organization's adherence to these criteria.

SOC 2 Audit Report: What Does It Include?

The SOC 2 audit report is a comprehensive document offering detailed insights and assurances regarding the service organization's security, availability, processing integrity, confidentiality, and privacy controls. It includes:

• Opinion Letter: A professional assessment and conclusion regarding the service organization's compliance with the Trust Services Criteria.
• Management Assertion: The service organization's management statement affirms its commitment to maintaining effective controls aligned with SOC 2 standards.
• System or Service Description: A thorough description outlining the scope and nature of the system or service under evaluation.
• Selected Trust Services Categories: This section provides specific details regarding the trust service criteria (security, availability, processing integrity, confidentiality, and privacy) selected for assessment.
• Control Tests and Results: Information about the tests conducted on controls and the outcomes of these tests, highlighting strengths and areas for improvement.
• Optional Additional Information: Supplementary details such as technical specifications, future plans for system enhancements, business continuity strategies, or clarifications on contextual matters.The SOC 2 audit report concludes by determining whether the service organization complies with the Trust Services Criteria, providing valuable assurance to stakeholders and clients regarding the organization's commitment to data security, privacy, and operational integrity.

For Which Organizations Is SOC 2 Audit Designed For?

SOC 2 audits are specifically designed for organizations that offer services and systems to client organizations across various industries. These audits are particularly relevant for:

• Cloud Service Providers: Companies that offer cloud-based services such as infrastructure as a service (IaaS), platform as a service (PaaS), or software as a service (SaaS) are prime candidates for SOC 2 audits. These audits help demonstrate the security, availability, processing integrity, confidentiality, and privacy of the cloud services provided.
• Software Providers and Developers: Organizations involved in developing and providing software solutions, applications, or platforms to clients may undergo SOC 2 audits to assure clients of the security and reliability of their software products.
• Web Marketing Companies: Companies engaged in web marketing activities, including digital advertising, analytics, and data processing, often handle sensitive client data. SOC 2 audits help showcase the effectiveness of their security and privacy controls.
• Financial Services Organizations: Banks, financial institutions, payment processors, and other entities in the financial sector often undergo SOC 2 audits to assure clients and regulatory bodies of their data security and privacy practices.

When a client organization entrusts sensitive data or critical operations to a service organization, it may request a SOC 2 audit report as part of its due diligence process. This report assures the effectiveness of the service organization's controls in safeguarding client data and ensuring the integrity and availability of services.

For organizations providing cloud services, having a SOC 2 audit report can significantly enhance trust among customers and stakeholders. It is tangible evidence of the organization's commitment to security and compliance standards.

Additionally, many tier-one companies in supply chains require service organizations to undergo SOC 2 audits as a prerequisite for partnership or service provision, highlighting the importance of SOC 2 compliance in today's business landscape.

Why Do Organizations Need A SOC 2 Audit Checklist?

Organizations need a SOC 2 Audit checklist for several crucial reasons:

1: Demonstrating Compliance

A successful audit achieves SOC 2 compliance, indicating that an organization's operational controls align with the specified trust services criteria. This assurance is invaluable in demonstrating to customers that their data is safeguarded effectively, enhancing trust and confidence in the organization's services.

2: Unlocking Business Opportunities

SOC 2 compliance is critical in winning over potential clients and partners. Organizations can overcome negotiation barriers by showcasing adherence to stringent data security standards, expediting the sales cycle, and accessing new market segments. This can ultimately lead to increased revenue streams and business growth.

3: Enhancing Market Reputation

Possessing a SOC 2 report powerfully endorses an organization's commitment to data security and integrity. It serves as a testament to the organization's proactive approach to mitigating risks and protecting sensitive information. This enhanced reputation can attract a wider customer base, strengthen existing partnerships, and foster stakeholder trust.

4: Marketing Advantage

Leveraging the SOC 2 compliance status as a marketing tool can set an organization apart from competitors. It provides a tangible demonstration of the organization's dedication to maintaining high standards of security and compliance. This can be particularly impactful in industries where data security is a primary concern for clients and regulatory bodies.

5: Mitigating Risks

Undertaking a SOC 2 audit and adhering to the resulting recommendations help organizations identify and address potential vulnerabilities in their systems and processes. By proactively addressing these weaknesses, organizations can minimize the likelihood of security breaches, regulatory violations, and reputational damage.

6: Meeting Customer Expectations

Customers expect their service providers to demonstrate robust data protection measures in an increasingly security-conscious business environment. Obtaining a SOC 2 report reassures customers that their data is being handled according to industry-leading standards, thereby meeting and exceeding their expectations.

While obtaining a SOC 2 report can yield numerous benefits, it's essential to recognize that the process requires significant time, financial resources, and organizational efforts. However, the long-term advantages of an enhanced trust, expanded market opportunities, and improved risk management far outweigh the initial investment, making SOC 2 compliance a strategic imperative for organizations committed to data security and integrity.

SOC 2 Compliance Checklist

Becoming SOC 2 compliant isn't just about passing an audit. It involves implementing controls to meet specific trust services criteria, identifying and closing gaps, and fostering a culture of best practices in information security within your team.  

Here, we've crafted an 8-step checklist designed to guide you toward audit readiness.

1: Determine Your SOC 2 Report Type

When starting the SOC 2 audit checklist, selecting the appropriate report format is the first decision. There are two options available:

• Type 1: This evaluates the effectiveness of controls' design at a specific point in time.
• Type 2: This assesses the design and operational effectiveness of controls over a designated period, usually 3 to 12 months.

Type 1 focuses on the design aspect of controls, while Type 2 provides a more comprehensive view by evaluating how controls perform in real-world scenarios.

Type 1 reports are less demanding in terms of time and resources since they assess design effectiveness at a single instance. On the other hand, Type 2 reports are more thorough and carry greater significance in demonstrating both the design's quality and operational effectiveness, making them more appealing to customers.

The choice between Type 1 and Type 2 depends on your priorities and the client's demands. Generally, opt for Type 2 if showcasing real-world control functionality is crucial, whereas Type 1 may suffice if your focus is primarily on well-designed controls and resource optimization.

2: Define SOC 2 Audit Scope & Objectives

The next step in preparing for your SOC 2 audit is carefully defining the goals and scope.

SOC 2 audits include various topics, including software functionality, staff roles, infrastructure, data handling procedures, risk management protocols, and more. Determining which particular components within each of these categories will be examined in-depth during the audit procedure is essential.

The next stage after that is to specify the goals with reference to the systems or services that fall under the purview of the audit. What guarantees have you given your clients about how these systems or services would operate? Contracts, service level agreements (SLAs), and publicly accessible resources like your company website are usually where this information is recorded. Making these goals clear guarantees congruence between the audit evaluation.

3: Identify Trust Services Criteria

When preparing for a SOC 2 audit, it is essential to select the trust services criteria that align with your organization's objectives and priorities. These criteria are the benchmarks against which your controls within the audit scope will be assessed, following the guidelines set by the AICPA.

There are five key trust services criteria integral to SOC 2 compliance:

• Security: Ensuring protection against unauthorized access, disclosure, or damage to information and systems.
• Availability: Meeting service objectives and maintaining operational availability as per agreements and organizational needs.
• Processing integrity: Ensuring accurate, complete, timely, and valid processing of data to meet organizational goals.
• Confidentiality: Properly handling, retaining, and disclosing non-personal data and information.
• Privacy: Proper management of personal information in accordance with privacy regulations and organizational policies.

Security is mandatory, while others, like privacy or confidentiality, are recommended, especially for organizations handling sensitive data. When choosing criteria for the audit, consider resource availability and ROI, balancing scope and cost based on your needs and capabilities.

4: Perform a complete Risk Assessment

In this phase, your goal is to pinpoint potential risks across various facets, such as data assets, infrastructure, software, users, procedures, and data. These risks could threaten your organization's ability to achieve its objectives.

During the assessment, you'll evaluate the likelihood of each risk occurring and assess its potential impact on your business operations. This evaluation enables you to prioritize risks based on their overall impact and likelihood.

Once ranked, you can devise tailored strategies to address each risk effectively. This may involve updating or creating a business continuity plan, investing in relevant technology solutions, or implementing access controls and other security measures to mitigate risks to an acceptable level.

5: Conduct Initial Readiness Assessment

After implementing policies, processes, and controls to mitigate risks, the next step is an initial readiness assessment and a simulated SOC 2 audit. While you can conduct a self-assessment if you're knowledgeable, engaging an auditor or third party is often recommended for their expertise and unbiased viewpoint.

During the assessment, the auditor thoroughly examines your systems, processes, and controls, documenting key procedures that mirror those in an official audit. At the conclusion, they issue a management letter outlining any weaknesses or deficiencies related to each trust service requirement, accompanied by recommendations for resolution.

The initial readiness assessment is vital for identifying areas needing improvement and understanding the auditor's focus. However, auditors cannot directly address weaknesses or implement suggestions to maintain impartiality.

6: Conduct Gap Analysis & Remediation

After the readiness assessment, a gap analysis will be conducted to align with SOC 2 standards. This involves identifying and fixing issues based on initial assessment results. Remediation involves implementing controls, interviewing and training employees, updating control documentation, and adjusting workflows. This process typically takes several months to complete. Consider outsourcing the analysis or using compliance automation tools for efficient gap identification and remediation.

7: Establish A Continuous Monitoring Process

After addressing identified gaps, it's crucial to establish a robust monitoring process for your controls to ensure their ongoing effectiveness.

One efficient way to handle this is through a compliance automation tool. This tool automates monitoring, offering real-time insights into control effectiveness and the organization's overall security posture. By automating data collection, analysis, and reporting, organizations can monitor a wide range of security metrics with increased accuracy, frequency, and sample sizes, all while conserving resources.

Once you are confident that you have adequately addressed all relevant aspects within your scope and trust services criteria, you are ready to formally request a SOC 2 audit.

8: Engage A Qualified SOC 2 Auditor

While any CPA firm can conduct a SOC 2 audit per AICPA guidelines, selecting one specializing in information systems for optimal results is crucial.

If your current CPA firm lacks expertise in information systems, consider hiring a specialized firm for the audit. While your current firm may offer preparatory advice, partnering with an information security-focused firm enhances your chances of audit success.

It's important to note that although there's no formal certification, opting for a CPA firm with extensive SOC 2 experience adds credibility, bolstering your reputation among clients. However, prestigious firms often come at a higher cost.

With an experienced SOC 2 auditor in place, you're now prepared for the audit process.

How Does Zluri Help You In SOC 2 Readiness?

Zluri provides an access review platform that is instrumental in ensuring SOC 2 compliance by simplifying and enhancing access assessments. The tool is crucial for upholding the fundamental principle of SOC 2, safeguarding system resources from unauthorized access, breaches, and data theft.

Moreover, Zluri's robust access control feature empowers organizations to implement safe access management practices effectively. By providing a centralized platform for managing user access, Zluri facilitates the enforcement of access policies and the principle of least privilege, both vital components of SOC 2 compliance.

Conducting periodic access reviews, facilitated seamlessly by Zluri, becomes a cornerstone for demonstrating continuous compliance with SOC 2 regulations. This proactive approach helps mitigate security risks, enhance data protection, and maintain audit readiness, all essential to meeting SOC 2 requirements and ensuring a secure operational environment.

below we have shown how you can automate Miro Access review process with Zluri:

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So, why wait any longer? Schedule a personalized demo today and equip yourself with the tool to prepare you for SOC 2 audit readiness.

Meet Compliance Effectively with SOC 2 Audit Checklist

In conclusion, SOC 2 compliance is immensely important for organizations operating in today's digital landscape. It provides assurance to clients, partners, and stakeholders that an organization's systems and controls meet rigorous standards for security, availability, processing integrity, confidentiality, and privacy.

Completing a SOC 2 audit requires following a complete SOC 2 audit checklist. It offers several key benefits, including enhanced trust and credibility, improved risk management, strengthened data security practices, increased competitiveness, and better alignment with industry best practices and regulatory requirements.

By following a comprehensive SOC 2 audit checklist, organizations can effectively prepare for and navigate the audit process, ensuring they meet the necessary criteria and achieve successful compliance. This safeguards sensitive data and systems and demonstrates a commitment to maintaining high standards of security and trustworthiness in today's interconnected business environment.

Frequently Asked Questions (FAQs)

1: What is the difference between SOC 1 & SOC 2 audits?

SOC 1 audits focus on controls relevant to financial reporting, primarily for service organizations that impact their client's financial statements (e.g., payroll processing or data center hosting). On the other hand, SOC 2 audits assess security, availability, processing integrity, confidentiality, and privacy controls, focusing on SaaS and data security best practices. The choice between SOC 1 and SOC 2 audits depends on the nature of the services provided and the needs of stakeholders.

2: What does a SOC 2 audit include?

A SOC 2 audit assesses an organization's controls related to security, availability, processing integrity, confidentiality, and privacy. It evaluates how well these controls are designed and operated to meet the trust service criteria set by the AICPA (American Institute of Certified Public Accountants).

3: What are the 5 criteria for SOC 2?

The five criteria for the SOC 2 audit checklist are security, availability, processing integrity, confidentiality, and privacy. The AICPA defines these criteria and forms the basis for evaluating an organization's data security and privacy controls.

4: How do I prepare for a SOC 2 audit?

Preparing for a SOC 2 audit involves several steps, including:

• Identifying the audit scope and determining which trust service criteria are relevant.
• Documenting policies, procedures, and controls related to security, availability, processing integrity, confidentiality, and privacy.
• Implementing necessary controls and ensuring they are operating effectively.
• Conducting regular internal audits and assessments to identify and address any gaps or weaknesses.
• Engaging with an independent auditor to perform the SOC 2 audit and provide assurance on your organization's controls and compliance.