SOC 2 Compliance Checklist: A Detailed Guide for 2024

With cloud-hosted applications becoming a mainstay in today’s world of IT, staying compliant with industry standards and benchmarks like SOC 2 is becoming a necessity for SaaS firms. Therefore, getting SOC 2 compliance isn’t a question of ‘why’ as much as it is a ‘when’. With that in mind, here’s a handy SOC 2 compliance checklist to help you plan and kickstart your compliance journey.

But before we get into the SOC 2 requirements checklist, let’s understand the various nuances of the SOC 2 framework that will help you prepare better.

Getting audit-ready involves months of preparation, planning, and ticking things off on a rather lengthy checklist. Defining a scope, choosing the right trust service criteria, internal risk implementing, and assessing controls – these are just a few of your obligations before the reward – is certification. Lets understand what each step under SOC 2 compliance checklist entails and also an easy shortcut at the end.

What is the SOC 2 compliance checklist?

The SOC 2 compliance checklist acts as a guide that helps organizations assess how customer data is collected, processed, stored, and accessed, thereby ensuring compliance with the Service Organization Control 2 (SOC 2) framework.

The SOC 2 checklist also reviews vulnerability management and risk mitigation. The checklist enables organizations to meet SOC 2 requirements, demonstrating effective controls over customer information security, availability, processing integrity, confidentiality, and privacy.

Why should you implement a SOC 2 checklist?

Implementing a SOC 2 checklist provides comprehensive coverage and simplifies the audit readiness process. It showcases your commitment to security, reassuring customers that their data is safeguarded. The SOC 2 audit prompts organizations to formalize and document policies, procedures, and controls.

Documenting these essential practices significantly diminishes business risks, enhances vendor management, and frequently streamlines operational efficiency.

SOC 2 compliance checklist

A well-designed SOC 2 requirements checklist will lay out actionable steps organizations can take to meet the extensive criteria of the framework across security, availability, processing integrity, confidentiality, and privacy. Based on our experience of having helped hundreds of businesses become SOC 2 compliant, 

here’s a 9-step SOC 2 checklist for your reference:   

• Choose your objectives
• Identify the type of SOC 2 report
• Define scope
• Conduct an internal risk assessment
• Perform gap analysis and remediation
• Implement stage-appropriate controls
• Undergo readiness assessment
• SOC 2 audit
• Establish continuous monitoring practices

1. Choose your objectives

The first action item of the SOC compliance checklist is to determine the purpose of the SOC 2 report. The specific answers to why SOC 2 compliance is important to you would serve as the end goals and objectives to be achieved in your compliance journey. 

With a clear understanding of your objectives, you can ensure the SOC 2 process addresses your particular reasons for pursuing compliance. This clarity will help drive decision-making as you work through defining the scope, assembling a cross-functional team, evaluating controls, undergoing auditing, and taking necessary actions to remediate gaps. 

Here are some examples:

• Your customers have asked for it
• You are entering a new geography, and SOC 2 compliance will add to your strength
• You want to bolster your organization’s security posture to avoid data breaches and the financial and reputation damage that comes with it

That said, not wanting SOC 2 compliance because customers aren’t asking for it or because none of your competitors has it isn’t advisable. It’s never too early to get compliant. And it’s always an advantage to be proactive about your information security.  

Also read: How to make compliance your superpower

2. Identify the type of SOC 2 report you need

A SOC 2 report comes in Type 1 and Type 2. You can decide which one you want depending on what your customers require of you and the timelines you are ready to work with. 

While a SOC 2 Type 1 report affirms that your internal controls are in place to meet SOC 2 checklist requirements at that point in time (it’s like a snapshot), Type 2 confirms that the controls in place are actually working too over a period of time; the one we think you will need eventually.

For instance, choose SOC 2 Type 1 if you are starting your compliance journey, or are pressured for time and need to show compliance intent to prospects or customers. Choose SOC 2 Type 2 if you are already compliant with other frameworks, completed your SOC 2 Type 1 and the three to six month observation period, or if your customers have specifically asked for it. The level of detail required regarding your controls over information security (by your customers) will also determine the type of report you need. The Type 2 report is more insightful than Type 1.

Here’s a SOC 2 questionnaire that will give you an overview of the SOC 2 requirements checklist before undertaking an audit.

Connect with Sprinto’s SOC experts to know more about the type of SOC report suitable for your organization.

3. Define scope

Defining the scope of your audit is crucial as it will demonstrate to the auditor that you have a good understanding of your data security requirements as per SOC 2 compliance checklist. It will also help streamline the process by eliminating the criteria that don’t apply to you. 

You must define the scope of your audit by selecting the TSC that applies to your business based on the type of data you store or transmit. Note that Security as a TSC is a must. Regulatory requirements will also have a bearing on your criteria selection. That said, in our experience, most SaaS businesses typically only need Security, Availability and Confidentiality (or their combination) as TSC in their SOC 2 journey. 

Here are some examples:

• Choose Availability if your customers have concerns about downtime.
• Choose Confidentiality if you store sensitive information protected by non-disclosure agreements (NDAs) or if your customers have specific requirements about confidentiality.
• Include Processing Integrity if you execute critical customer operations such as financial processing, payroll services, and tax processing, to name a few.
• Include Privacy if your customers store PII such as healthcare data, birthdays, and social security numbers.

On that note, a bad example here would be leaving a relevant TSC out of your SOC 2 scope. Such oversight could significantly add to your cybersecurity risk and potentially snowball into substantial business risk.

A SOC 2 audit looks at your infrastructure, data, people, risk management policies, and software, to name a few items.  So, at this stage, you must also determine who and what within categories will be subject to the audit. For instance, you can keep some of your non-production assets from the scope of the audit. 

4. Conduct an internal risk assessment

Risk mitigation and assessment are crucial in your SOC 2 compliance journey. You must identify any risks associated with growth, location, or infosec best practices, and document the scope of those risks from identified threats and vulnerabilities. You should then assign a likelihood and impact to each identified risk and then deploy measures (controls) to mitigate them as per the SOC 2 checklist.

Here are some questions to help you in this process:

• Have you identified the potential threats to your business? 
• Can you identify your critical systems based on the risks identified?
• Have you analyzed the significance of the risks associated with each threat?
• What are your mitigation strategies for those risks?

Any lapses, oversights or misses in assessing risks at this stage could add significantly to your vulnerabilities. For instance, missing to identify the risks for a specific production entity (endpoint) in the case of an employee on extended leave or lapses in risk assessment of consultants/contract workers (not employees) could leave a gaping hole in your risk matrix. 

5. Perform gap analysis and remediation

You must examine your procedures and practices at this stage and compare their compliance posture with the SOC checklist and best practices. Doing this will help you understand which policies, procedures, and controls your business already has in place and operationalized and how they measure against SOC 2 requirements.

Remediate the gaps with improved or new controls, as applicable. These may include modifying workflows, introducing employee training modules, and creating new control documentation, among others. The risk ratings (carried out earlier) will help you prioritize the remediation. 

Here are some questions to point you in the direction: 

• Do you have a defined organizational structure?
• Do you have authorized employees to develop and implement policies & procedures?
• What are your background screening procedures?
• Do your clients and employees understand their role in using your system or service?
• Are your software, hardware, and infrastructure updated regularly? 

Remember, SOC 2 audit requires you to produce evidence for the processes, policies and systems you have put in place. Evidence can be your information security processes and procedures, screenshots, log reports, and signed memos, to name a few.  Your inability to show demonstrable proof of SOC 2 compliance requirements can get flagged as exceptions by the auditor. And you don’t want that! 

6. Implement stage-appropriate controls

Based on the TSC chosen, align and deploy controls to demonstrate how your organization meets SOC 2. To put it in perspective, each of the five TSC in SOC 2 comes with a set of individual criteria (totaling 61). You will, therefore, need to deploy internal controls for each of the individual criteria (under your selected TSC) through policies that establish what is expected and procedures that put your policies into action.

Know that the controls you implement must be stage-appropriate, as the controls required for large enterprises such as Google differ starkly from those needed by startups. SOC 2 criteria, to that extent, are fairly broad and open to interpretation. 

For instance, you may implement two-factor authentication to prevent unauthorized access to your network, while another organization may choose to implement firewalls, while others may deploy both!

7. Undergo readiness assessment 

Undertake a readiness assessment with an independent auditor to see if you meet the minimum SOC compliance checklist requirements to undergo a full audit. 

Here are your focus areas for the assessment:

Client cooperation – Your clients must perform a guided assessment to create a profile of their activities and scope.

Gap analysis – It aims to detect vulnerabilities and gaps and generate a list of specific recommendations and actions. It takes around 2-4 weeks from start to finish.

Controls matrix – It lists the objectives map, internal controls identification, and control characteristics.

Auditor documentation – It involves drafting the request list for auditors and testing procedures.

Based on the auditor’s findings, remediate the gaps by remapping some controls or implementing new ones. Even though technically, no business can ‘fail’ a SOC 2 audit, you must correct discrepancies to ensure you receive a good report.

Get SOC 2 compliant with ease. Talk to our experts today!

8. SOC 2 audit

Authorize an independent certified auditor to complete your SOC 2 audit checklist and generate a report. While SOC 2 compliance costs can be a significant factor, choose an auditor with established credentials and experience auditing businesses like yours. 

Expect a long-drawn to and fro with the auditor in your Type 2 audit as you answer their questions, provide evidence, and discover non-conformities. Typically, SOC 2 Type 2 audits may take between two weeks to six months, depending on the volume of corrections or questions the auditor raises. Type 2 has a mandatory monitoring period of three-six months. A Type 2 report, therefore, offers more significant insights into your organization’s controls and its effectiveness.  

Here is a detailed guide on SOC 2 audit

Here are some questions the auditor may ask:

• Can you share evidence to show that all your employees undergo background verification? 
• Can you show proof of how you ensure that the changes in your code repositories are peer-reviewed before it is merged? 
• Can you demonstrate with evidence that you remove access to emails and databases once an employee resigns from your organization?
• Can you show proof that you run background checks on all your employees?
• Can you share proof of how you maintain the endpoint security of all systems?

The audit for Type 1, in comparison, doesn’t require a monitoring period, is less intrusive, and requires you to give a snapshot (with evidence) of the various checks and systems (read as controls) you have put in place to meet the SOC compliance checklist requirements. Note that after you clear your SOC 2 Type 1 audit, you will need to go through an observation period of three-six months before you can apply for Type 2.

9. Establish continuous monitoring practices 

Getting your SOC 2 compliance report isn’t just a one-time event. The report is just a start as security is a continuous process. It, therefore, pays to establish a robust continuous monitoring practice as SOC 2 audits happen annually. For instance, when an employee leaves your organization, a workflow should be initiated to remove access. If this doesn’t happen, you should have a system to flag this failure so you can correct it. 

Here are some guidelines on what a robust continuous monitoring practice can achieve: 

• It should be scalable; it should grow with your organization 
• It should make evidence collection easy and streamlined
• It shouldn’t get in the way of your employees’ productivity
• It should alert you when control isn’t deployed or deployed incorrectly
• It should give you the big picture as well as an entity-level granular overview of your infosec health at any point in time

These apart, you will need to undertake measures (at additional cost) such as mobile device management (MDM) software, vulnerability scanners, incident management systems, update of security measures, and pen-testing, among others, all these measures should be part of your SOC compliance checklist.

Aligning Your Checklist with SOC 2 Trust Service Criteria

When going through a SOC 2 audit, your organization will be evaluated based on five Trust Service Criteria (TSC) defined by the AICPA. To properly prepare, you should review your internal controls and procedures to ensure they address each of these criteria.

Here are some tips for aligning your SOC 2 readiness checklist with the TSC: 

1. Security

It must be in scope for every SOC 2 audit and is, therefore, referred to as the common criteria. It requires you to enable access control, network firewalls, and other operational/governance controls to protect your data and applications. Enable entity-level controls that establish baseline security policies.

2. Availability

Requires you to demonstrate that your systems meet operational uptime and performance standards. So, implement monitoring for system uptime and performance. Have disaster recovery and incident response processes ready as well.

3. Confidentiality

Shows how you safeguard sensitive data throughout its lifecycle. Implement access controls so only authorized users can access data.

4. Processing Integrity

Have quality assurance checks to validate the accuracy and reliability of data processing. Monitor systems to ensure timely processing and intended outcomes. It includes quality assurance procedures and SOC tools to monitor data processing.

5. Privacy

Requires you to protect Personally Identifiable Information (PII) from breaches and unauthorized access through rigorous access controls, two-factor authentication, and encryption.

Challenges of implementing SOC 2 compliance checklist

Achieving SOC 2 compliance is a major undertaking that comes with some substantial challenges. One hurdle is the time-intensive process of thoroughly documenting all controls, policies, and procedures to SOC 2 standards. You can expect this to take quite some time and effort. There will also likely be costs associated with making required updates to infrastructure or systems to meet compliance criteria.

Even after achieving compliance, the work doesn’t stop. Maintaining SOC 2 requires rigorous ongoing internal control audits. With strict standards to meet, the process of becoming compliant is far from easy. However, for organizations handling critical customer data, the effort is worthwhile to gain trust and demonstrate security commitments.

The Sprinto Advantage: With the help of the SOC 2 automation platform, you can streamline the whole process to eliminate manual repetitive tasks. Talk with Sprinto’s experts to know more about SOC 2 automation and beyond.

How can you enable the SOC 2 compliance checklist with Sprinto?

The SOC 2 certification process is heavy on documentation, evidence gathering, testing, and implementing controls. Manually, it can take hundreds of hours and still be an error-prone process. Automating the SOC 2 compliance checks removes the grit and grinds from infosec compliance by automating repeatable tasks. 

With Sprinto, the entire process – from checklists to policy creation and implementation is error-free and automated and can be tracked on a single dashboard. Smart workflows accelerate compliance, allowing you to obtain a SOC 2 certification in weeks. You can automate your SOC 2 check with Sprinto in 3 easy steps listed below.

Read more: SOC 2 Automation: What Is It, and Why Do You Need It.

Make your SOC 2 journey easy and error-free

Compliance automation platforms such as Sprinto can add value and ease to your continuous monitoring practices and make your compliance experience fast and error-free. 

When you work with Sprinto, the entire process from checklists to policy creation and implementation is error-free and automated and can be tracked on a single dashboard. Smart workflows accelerate the compliance process allowing you to obtain a SOC 2 certification in weeks.

What’s more, you can now catalog all your evidence that demonstrates your SOC 2 compliance and present it to the auditors seamlessly, saving you a ton of time and resources.  

Sprinto’s compliance platform also does away with many additional costs – you only pay the auditor and the pen testing vendor with Sprinto (not including company-specific incidentals).

The result? You save hundreds of hours, fix issues quickly with continuous monitoring, and obtain a hassle-free SOC 2 report. Book a free demo here to see how Sprinto can help you successfully start and sail through your SOC 2 journey.

FAQs

What is SOC 2 compliance?

SOC 2 is a voluntary information security compliance standard developed by the American Institute of CPAs (AICPA) for cloud-hosted organizations. The compliance framework is based on the Trust Services Criteria of security, availability, processing integrity, confidentiality, and privacy.

Who must be SOC 2 compliant?

Cloud-hosted organizations that handle sensitive customer information can consider getting SOC 2 compliant. This is because SOC 2 compliance demonstrates that your organization provides a secure, available, confidential, and private solution to your customers and prospects.