SOC 2 vs. SOC for Cybersecurity: What’s the Difference?
With cyberattacks and data breaches making headlines regularly, companies want to partner with businesses that they know will take care of their data. The AICPA has developed multiple reporting frameworks for organizations to use to communicate the policies, procedures, and activities—also known as controls—they have in place. Having a SOC report lets your customers or potential customers know you have the controls in place to protect their data and mitigate risk. But with multiple different reporting frameworks, it can be a challenge to understand which report is right for your organization. With that in mind, let’s take a look at a few key differences between two similar reports: SOC 2 and SOC for Cybersecurity.
What is SOC 2?
The SOC 2 examination reports on one or any combination of the AICPA trust services criteria: security, availability, processing integrity, confidentiality, and privacy. It demonstrates an organization’s commitment to its customer and partner requirements and cybersecurity best practices.
The SOC 2 report is intended to meet the needs of a broad range of users who need detailed information and assurance about the controls at a service organization. The report can play an important role in oversight of the organization, vendor management programs, and internal corporate governance and risk management processes.
The report can be distributed to an organization’s stakeholders including user entities, CPAs providing services to such user entities, regulators, and business partners.
Organizations that should consider a SOC 2 report include cloud service providers (e.g., SaaS, IaaS, PaaS), enterprise systems housing third-party data, IT systems management, and data center colocation facilities. If you want to communicate that your organization’s controls are properly designed, implemented, and operating effectively, then a SOC 2 report may be right for you.
There are multiple benefits to obtaining a SOC 2 report. It provides assurance to prospective and current clients that you have procedures and controls in place to provide reliable services, which will differentiate your organization during the sales process. Additional benefits include:
Increased trust and transparency with your internal and external stakeholders
Reduced cost of compliance and number of on-site audits
Helps ensure controls are appropriately designed and operating effectively to mitigate risks
Satisfaction of audit requirements
What is SOC for Cybersecurity?
The SOC for Cybersecurity report was designed by the AICPA to help organizations communicate pertinent information regarding their cybersecurity risk management efforts, and educate stakeholders about the systems, processes, and controls they have in place to detect, prevent, and respond to breaches. It provides organizations with objective assurance that the appropriate systems, processes, and controls exist to manage a cyberattack, enabling stakeholders to make informed decisions.
The report can be distributed to an organization’s senior management, board of directors, analysts and investors, and business partners.
Benefits of obtaining a SOC for Cybersecurity report include:
Increased transparency and assurance about cybersecurity program effectiveness
Elevated stakeholder confidence in an organization’s preparedness
Ability to promote internal operational efficiency
How does the subject matter differ?
A SOC for Cybersecurity report hones in on an organization’s cybersecurity management program, whereas a SOC 2 report focuses on the AICPA trust services criteria and includes a wider variety of controls.
How does the purpose and use of each report differ?
While a SOC 2 report communicates that an organization’s controls are properly designed, implemented, and maintained effectively in order to handle customer or partner’s data, a SOC for Cybersecurity report communicates more specifically on your organization’s cybersecurity management program.
Do the reports have different audiences?
A SOC for Cybersecurity report is typically for general use by anyone interested in or impacted by the organization’s cybersecurity controls, both internally and externally. In contrast, a SOC 2 report often plays a larger role when it comes to vendor management or meeting customer requirements by communicating how an organization’s controls match the AICPA trust services criteria.
If I already have a SOC 2 report, should I consider a SOC for Cybersecurity report?
If you already have a SOC 2 report, your organization could potentially benefit from a SOC for Cybersecurity report depending on your organization.
No matter where you are on your security and compliance journey, Audora can help. Contact us to learn more about how SOC reports can benefit your organization.
