SOC2 Reports: Why They’re So Critical to Your IT Infrastructure Security

SOC2 Reports: Why They’re So Critical to Your IT Infrastructure Security

There’s nothing more important to a company’s well being – no matter what industry it’s in, or what types of product it sells – than trust. If your customers can’t trust you, then you might as well close your doors for good. Maintaining that trust in a complex technological age is not only more important than ever, it’s also more difficult.

System and Organization Controls, or SOC, audits – specifically, SOC 2 reports, are critical to helping you maintain the trust of your customers. They send the message you’re taking the appropriate steps to protect their privacy and security.

What exactly, are SOC 2 reports, and why are they so important?

SOC Reports – The Basics:  In a nutshell, a SOC 2 audit is an intensive examination of your organization’s internal controls, policies and procedures. It shows how good a job you’re doing of protecting the privacy, confidentiality and security of your sensitive data. All SOC 2 audits must comply with guidelines set by the AICPA (the American Institute of CPAs) as well as the Attestation Standards (AT) Section 101.

There are three main types of SOC reporting options. Here’s a quick look at each.

  • SOC 1 Reports – A SOC 1 report examines the processes that impact a company’s internal controls regarding their financial reporting (ICFR).
  • SOC 2 Reports – These reports cover non-financial reporting controls. They basically show the processes you have in place to keep sensitive data private.
  • SOC 3 Reports – SOC 3 reports are somewhat similar to SOC 2 reports, but there is one major difference between the two. SOC 3 reports are generally tailored to general audiences, while SOC 2 reports are designed for a specific organization.

Who Needs SOC 2 Reports, and Why?

SOC 2 reports are the primary options for service organizations – such as data canters, SaaS (software as a service) companies, cloud computing organizations, software development companies, and many others – to report on their controls outside the scope of financial reporting.

These controls help ensure that any sensitive information you give to third-party service providers is secure. When you think of all the data security standards your company has to comply with (such as FIPS, HIPPA, CCPA, PCI DSS and others), you would assume those third-party providers are as committed to security as you are. Unfortunately, that’s not always the case. That can leave you exposed to major security issues.

SOC 2 reports help eliminate that risk. They’re designed to help you rest easier, knowing that no matter what kind of companies you use to outsource services, your information will always be safe and secure.

These reports help ensure your system is protected against any type of unauthorized access, and that your system processing is accurate, complete and timely.

How We Can Help

You have a lot of important decisions to make regarding how to ensure your company complies with all security standards that apply to your specific organization. Trying to determine which types of reporting options are right for you – SOC 1 reports, SOC 2 reports, or SOC 3 reports –can be a complex undertaking.

The experts with NDB can eliminate the guesswork and clear up all the confusion. Get the facts today by calling us at 512-522-4943 (Austin), 214-272-0967 (Dallas), or 713-331-5492 (Houston) to learn more about our services. Or, you can send an email to This email address is being protected from spambots. You need JavaScript enabled to view it. for more information.

 

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