SOC 2 Compliance
SOC 2 compliance is a voluntary security framework that verifies how service organizations protect customer data through audited controls for security, availability, confidentiality, processing integrity, and privacy.
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What is SOC 2 Compliance?
SOC 2 compliance (System and Organization Controls 2) is a voluntary security framework created by the American Institute of Certified Public Accountants (AICPA). It gives service organizations a structured way to show how they manage and protect customer data through controls that have been independently audited.
The framework looks at an organization's information systems across five Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. Unlike HIPAA or GDPR, SOC 2 compliance isn't legally required, though it's part of broader regulatory compliance expectations. That said, it has become something of an industry expectation for SaaS companies, cloud vendors, and really any organization handling customer data. Prospective clients often ask for proof of security practices before they'll sign on the dotted line.
When a SOC 2 audit wraps up, a certified public accountant issues a report. This gives customers and stakeholders confidence that the right controls are in place to keep sensitive information safe.
Key Characteristics of SOC 2 Compliance
- Trust Services Criteria: Five categories (security, availability, processing integrity, confidentiality, privacy) that define what controls should achieve
- Independent Auditing: Reports come from licensed CPA firms following AICPA standards
- Customizable Scope: Organizations pick which Trust Services Criteria to include depending on what services they offer
- Report Types: Type I looks at control design at a single point in time; Type II examines how well those controls actually worked over a period (usually 6-12 months)
- Annual Renewal: SOC 2 reports need ongoing audits to stay current
SOC 2 Compliance Examples
Example 1: SaaS Company
A project management software provider goes through a SOC 2 Type II audit focused on security and availability. The auditors dig into access controls, encryption practices, backup procedures, and uptime monitoring over a 12-month window. Once the report is ready, the company shares it with enterprise clients during procurement reviews.
Example 2: Cloud Hosting Provider
A cloud infrastructure company pursues SOC 2 compliance across all five Trust Services Criteria. The audit covers data center security, system redundancy, data processing accuracy, how confidential data gets handled, and whether privacy policies are actually followed. The final report helps them land contracts with healthcare and financial services clients who need that extra assurance.
SOC 2 Type I vs Type II
| Aspect | SOC 2 Type I | SOC 2 Type II |
|---|---|---|
| Timeframe | Point-in-time snapshot | Period of time (6-12 months) |
| Focus | Control design and implementation | Control design and operational effectiveness |
| Duration | Shorter audit process | Longer observation period |
| Value | Good starting point for new programs | Stronger assurance for customers |
| Cost | Lower initial investment | Higher but more comprehensive |
How Glitter AI Helps with SOC 2 Compliance
Getting SOC 2 compliance means documenting your policies, procedures, and controls thoroughly. Glitter AI makes this easier by helping you create and maintain the standard operating procedures and process documentation that auditors will want to see.
With Glitter, teams can document security procedures, access control policies, and incident response workflows quickly using screen recordings and step-by-step guides. The platform's version control features help you keep an accurate audit trail of documentation changes, which is exactly what auditors look for when evaluating compliance.
Frequently Asked Questions
What does SOC 2 stand for?
SOC 2 stands for System and Organization Controls 2. It's a security compliance framework from the American Institute of Certified Public Accountants (AICPA) designed for service organizations.
Is SOC 2 compliance mandatory?
No, SOC 2 compliance is voluntary. That said, many enterprise clients won't sign contracts with SaaS vendors or cloud providers unless they can produce a SOC 2 report.
What are the five SOC 2 Trust Services Criteria?
The five Trust Services Criteria are security, availability, processing integrity, confidentiality, and privacy. Security is the only one required for every SOC 2 audit; the rest are optional.
What is the difference between SOC 2 Type I and Type II?
Type I looks at whether controls are designed properly at a single point in time. Type II goes further, testing whether those controls actually worked over a 6-12 month period. Type II carries more weight with customers.
How long does SOC 2 certification last?
SOC 2 reports are generally valid for 12 months. To stay compliant and provide customers with current reports, organizations need to go through annual audits.
Who needs SOC 2 compliance?
SOC 2 compliance matters most for SaaS companies, cloud service providers, data centers, and any business that stores or processes customer data in the cloud.
How much does SOC 2 certification cost?
Audit costs typically fall between $20,000 and $100,000 or more, depending on how big your organization is, what scope you're covering, and whether you're going for Type I or Type II. Preparation adds to those costs.
What documentation is needed for SOC 2 compliance?
You'll need documented security policies, access control procedures, incident response plans, change management processes, and evidence showing that controls are actually implemented and monitored.
How is SOC 2 different from ISO 27001?
SOC 2 produces an attestation report specifically for service organizations based on Trust Services Criteria. ISO 27001 is a certifiable international standard focused on information security management systems more broadly.
Can SOC 2 compliance help with sales?
Definitely. Enterprise security reviews and procurement processes often require SOC 2 reports. Having a current one can speed up sales cycles and build trust with potential customers.
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