How to Pass a SOC 2 Audit: Essential Steps and Tips

The rise of cloud technology has revolutionized business operations, enabling remote work but also increasing cyber vulnerabilities. Ransomware and phishing attacks have become more prevalent, making security measures in B2B commerce increasingly complex. In response, the AICPA has developed comprehensive compliance guidelines, including the globally recognized SOC 2 audit certification. SOC 2 audits, conducted by accredited CPAs, involve a thorough examination of an organization’s control systems. This rigorous process evaluates both the design and operational effectiveness of security measures. SOC 2 certification ensures that service providers securely manage data, protecting the interests and privacy of their client organizations.

What is SOC 2 audit?

A SOC 2 audit is the final stage in the SOC 2 attestation process that evaluates controls against the five Trust Services Criteria (TSCs) — security, availability, processing integrity, confidentiality, and privacy, as stated by the AICPA.

Please take note: SOC 2 audit process largely revolves around the Trust Services Criteria. Nevertheless, it is important to acknowledge that not all five principles universally apply to every organization.

For example, in cases where data storage involves personal information, the privacy principle becomes relevant. Similarly, the security and availability principle assumes significance for organizations that operate data centers and provide storage services to customers.

Companies generally adopt SOC 2 audits to show their clients and partners that they comply with all rules and regulations.

What is the purpose of SOC 2 auditing?

SOC 2 auditing evaluates an organization’s controls according to trust services criteria, aiming to pinpoint security and compliance weaknesses. The process involves implementing security measures, safeguards, and risk assessments. The SOC 2 audit encourages organizations to address vulnerabilities, protect data, showcase compliance commitment, meet security objectives, and continuously enhance internal controls. Ultimately, SOC 2 audits instill confidence in customers, business partners, and stakeholders regarding the service organization’s ability to manage and protect data securely.

Who needs to go through the SOC 2 audit process?

It is a norm for all technology-based service organizations that store client information in the cloud to go through the SOC2 audit process. In simple terms, this requirement will apply to all businesses that offer SaaS and other cloud services, wherein the cloud is the main source for storing client data.

What are the types of SOC 2 audit?

There are 2 types of SOC 2 compliance: Type 1 and Type 2 audits. Type 1 and Type 2 audits have distinct uses based on the business requirement and the scope of SOC 2.

A Type 1 SOC 2 audit process attests to your company’s use of compliant systems and processes at a specific time. It evaluates the design and how you implement certain relevant controls to TSCs.

Overall, it provides a snapshot of your company’s compliance status and whether it offers assurance that the proper systems and processes meet the standard during the audit. 

In contrast, a Type 2 SOC 2 audit attests to compliance over a designated period, typically 12 months. This type of audit evaluates the design and implementation of controls like Type 1 and assesses their effectiveness and operational integrity over the duration.

Overall, it provides a complete analysis of how well your system’s controls have been operating and whether they have consistently met the TSC throughout the assessment period. 

Soc 2 audit readiness assessment

A SOC 2 audit readiness assessment is part of the audit evaluation that examines whether an organization securely maintains its data processing systems. The assessment captures the lapses or misses in your organization’s processes, policies, and gaps before the final audit. Typically, your SOC 2 readiness assessment will involve 2 the following steps:

Audit scope

The first step is assessing your audit scope and examining how well your internal controls align with the Trust Service Criteria (TSC) chosen. This involves thoroughly examining your controls, documentation (such as management assertion letter, system description, and policies), and understanding what systems need to be included in scope. The readiness assessment identifies missing controls or processes, allowing you to address gaps before the SOC 2 compliance audit. It’s essential to have sufficient time for remediation.

Short on time? Experience the Sprinto Advantage: Streamline your SOC Readiness Assessment with Sprinto, a smart compliance automation solution. Sprinto’s security program evaluates your control environment, automates security controls, conducts gap analysis, performs risk management, manages audit documentation, and enables you to adhere to the SOC compliance framework—all within a user-friendly dashboard. 

Develop a comprehensive remediation plan

Following the SOC 2 readiness assessment, a detailed remediation plan is crafted to address identified deficiencies in controls, design, and operational oversight about SOC 2 compliance requirements. This includes conducting vulnerability scanning, risk assessments, and penetration tests to pinpoint areas of improvement.

External consultants provide recommendations and remediation plans, suggesting enhancements such as process redesign, implementation of security awareness training programs, and improvements in evidence collection. A management letter outlines observations, recommendations, and opinions on your SOC 2 readiness.

What are the steps involved in SOC 2 audit?

The SOC 2 audit involves several steps to assess the controls established by. Here are the six steps for SOC 2 audit:

1. Identify Your Scope

First, take into account the TSCs defined by the AICPA. These criteria serve as the foundation for evaluating the systems and processes within your firm. However, not all SOC 2 auditing necessarily have to have all 5 criteria categories.

Hence, it is important to determine which specific systems, policies, and procedures are relevant to supporting the applicable principles.

For example, if your company’s services revolve around data security and availability, the scoping process involves identifying the systems, policies, and procedures related to that aspect. Hence, this scoping exercise ensures that the audit focuses on the relevant areas and provides a clear framework for assessment.

Throughout the audit process, the auditor will carefully examine both your documentation and your systems to gauge how effectively they operate. The documentation you might be required to provide covers various aspects, such as:

• Lists of your assets
• Details about changes you’ve made and how you manage them
• Records of equipment maintenance
• Logs for system backups
• Your code of conduct and ethical policies
• Plans for business continuity and responding to incidents

2. Choose your report type

The initial step in the process is to determine the suitable SOC 2 attestation report for your service organization before inviting an auditor over.

SOC 2 Type I: This audit assesses if your systems are designed in alignment with the TSCs.

Type I audits are quick and cost-effective (often within a month), but they offer less comprehensive insights. 

SOC 2 Type II: A type 2 audit evaluates your systems’ design and their operational effectiveness.

Type II SOC reports require more time (possibly up to a year) as auditors conduct tests on your information systems. Yet, once you pass, your compliance and security standards are unquestionable.

Your choice of audit type should consider your budget and the urgency of your situation.

Find out: How to get SOC 2 Type 2 certification

3. Conduct a risk assessment 

SOC 2 compliance journey, the risk assessment is a vital step to safeguard your information assets. It’s like a safety check to identify potential dangers and protect your valuable data.

The risk assessment helps you figure out what risks your information assets might face. 

For example, you might discover that there’s a chance of unauthorized access to your customer database, putting their sensitive information at risk.

Next, you assess how severe the impact of each risk would be if it were to happen. Then, you determine the likelihood of each risk occurring. 

4. Control mapping and gap analysis

The second step in the audit involves conducting a thorough Gap Analysis & Control Mapping exercise. The readiness assessment or gap analysis is done to understand the alignment between the internal control environment and the TSC.

This assessment helps identify gaps or deficiencies in compliance, enabling proactive measures to address them before the audit. 

For instance, if the criteria highlight the need for regular monitoring and logging of system activities, the gap analysis would help assess whether the existing controls fulfill these requirements.

5. Conduct internal audit

Internal audit step in SOC 2 as a way to ensure the safety and protection of your business assets. The goal is to make sure that everything is secure and that your business is following its own rules.

For example, let’s say your company stores sensitive customer data. With an internal audit, you can regularly check if this data is properly protected from potential threats like hackers or unauthorized access.

This way, you can be confident that your customers’ information is safe.

Moreover, the internal audit program helps your management team and stakeholders by identifying any risks that might be lurking around before the main SOC 2 audit.

6. Choose external reporting

Now is the time to select a partner to conduct your SOC 2 audit process. You can either get in touch with a Certified Public Accountant or select a suitable third-party compliance app “Sprinto.”

Once you are audit ready, the auditors will conduct their independent testing and assessments, providing an unbiased opinion on your company’s controls with TSC.

Get SOC 2 the easy way with Sprinto. Our automated platform replaces manual work with smart workflows to collect evidence, document controls, identify compliance gaps, and enable you to adhere to the relevant SOC 2 requirements. Ready to see how it’s done? Speak to our experts today.