SOC 3 Compliance: The Complete Guide 

As cloud computing gains popularity, security incidents are becoming more commonplace. Consumers are becoming increasingly more conscious about how their data is used and are demanding more of the companies they work with. This is pressuring organizations handling sensitive customer data to prove publicly that they have the right systems in place. One widely accepted way to do this is SOC 3 compliance. 

In this blog, let’s take a look at the SOC 3 reporting structure, why you need it, best practices to ensure compliance, and the easiest way to get the report.

What is SOC 3 compliance?

SOC 3 compliance is a reporting framework that assesses internal controls relevant to the five trust service criteria (security, availability, processing integrity, confidentiality, and privacy). Developed by the AICPA, it has a similar scope to that of SOC 2, given that it is basically a public version of your SOC 2 report.

However, it is meant for public consumption and therefore, does not contain confidential information about the controls. It is also important to note that a company cannot become SOC 3 compliant without getting a SOC 2 attestation first.

When should you consider SOC 3?

The SOC 3 report is designed to accommodate service providers looking to demonstrate compliance with the applicable TSC. However, the primary goal is to market to your potential customers and the wider audience. 

A SOC 3 attestation targets prospects who are general public and don’t need detailed or comprehensive reports. If you store sensitive customer data in the cloud, SOC 3 is a good way to gain their confidence by demonstrating the effectiveness of your internal security controls.

Why is SOC 3 important? What are its benefits?

SOC 3 compliance helps you conduct an independent assessment to evaluate if the internal security policies and controls are in place. The assessment report helps to build customer trust and improve the effectiveness of your security controls. 

• SOC 3 reports provide assurance and peace of mind to customers concerned about the privacy and security of their sensitive information. 
• As the report describes how you approach data security, it demonstrates security readiness to new prospects. 
• Organizations use it as a marketing tool to gain customer assurance based on good security practices.  
• Lastly, SOC 3 is a widely accepted reporting framework. When you adopt an industry approved practice, it improves the brand reputation. Many organizations make it publicly available on their website.

SOC 3 compliance report: what does it cover?

According to AICPA, SOC 3 reports are “designed to meet the needs of user entities who need assurance about the controls at a service organization relevant to security, availability, processing integrity, confidentiality, or privacy, but do not have the need for or the knowledge necessary to make effective use of a SOC 2 Report”. 

The key difference between a SOC 2 and a SOC 3 report boils down to the depth of details covered in it. Unlike a SOC 2 report, it does not contain a list of controls, a section on the auditor’s report, or confidential information. 

To help you understand this better, here is Amazon’s SOC 3 report, made available to the general public.

IBM Security also made the SOC 3 compliance report of their security measures available for public consumption. 

Steps to get SOC 3 compliant?

On a high level, you can become SOC 3 compliant and get the audit report by following this four step process: 

Assess your infrastructure 

Conduct a readiness assessment of your organization’s security posture to assess gaps in the controls. This helps to prepare for internal compliance audits. This includes both technical and non-technical components of your security controls like access control, encryption, email security, training programs, configuration management, and more

Choose an auditor

Select an auditor from a CPA firm that specializes in conducting SOC audits. The firm should be certified and accredited by the AICPA. The auditor may ask questions to evaluate your practices better and gain a better understanding of the security environment.

Assessment report

The auditor conducts an assessment of the controls based on the selected TSC. This includes on-site assessment, testing systems, and reviewing documents, checking the transmission process for sharing data, reviewing access controls, and other weaknesses. You can close the gaps in the report before the final report is issued. 

Share your report

Post evaluation, the auditor prepares the report containing an overview of the assessment, limited to data that can be revealed to the public. This is followed by a statement of assurance which declares the organization’s compliance with the TSCs. 

Once the auditor has created the attestation report, you can share the status with prospective customers and utilize it for marketing purposes.

There are two ways to demonstrate compliance with SOC 3 – you can create an internal team and consult an auditing firm, or use compliance automation tools. The first way works and gets the job done. However, it is time-consuming, bleeds the bandwidth of your teams, and often leaves out a lot of gaps. 

Automated tools like Sprinto eliminates the need for multiple tools and consultants. It consolidates siloed systems in a centralized dashboard that gives you a comprehensive view of everything – control progress, vulnerabilities, gaps, risks, policies, and more. 

Sprinto automates all activities, at least up to 90 percent, so you get compliant in weeks, not months. You can choose an auditor from an auditor network and communicate with them to ensure audit success easily.

How much does SOC 3 cost?

If you want a SOC 3 report, it will cost you anything between $5,000 to $50,000. The prices may vary depending on factors such as security posture, size of company, and selected trust services criteria. 

Want a more accurate assessment of SOC 3 costs? Try our cost calculator. 

Get SOC 3 compliant without breaking your stride

Managing security audits can be challenging without the right processes and systems in place. Things can quickly escalate into chaos and confusion, leaving you stressed and eating up your bandwidth.  

Sprinto is a compliance automation and risk assessment tool that helps you fast-track your SOC 3 compliance efforts in weeks, not months. Sprinto helps you: 

• Continuously monitor your controls to detect security risks and show the health status of your cloud environment. 
• Connect you with a network of SOC service auditors to help you pass audits with minimum friction.
• Map risks to the right control and run automated checks in real-time to ensure you don’t fall out of compliance. 
• Automatically capture evidence of compliance and corrective actions and store it in an auditor-friendly dashboard for review.

Check how NimbleBox.ai aced their SOC2 Type 2 audit in under 4 months

Ready to get started? Talk to our compliance expert today. 

FAQs

What is the difference between SOC 1, SOC 2, and SOC 3 reports? 

The major difference between SOC 1 is concerned with the internal controls over financial reporting, while SOC 2 and 3 with the controls for security related to Trust Service Criteria. 

 Is SOC 2 necessary to get SOC 3?

In short, yes. Since SOC 3 is based on the controls of SOC 2, you cannot be SOC 3 compliant without getting SOC 2 compliance first. 

How often are SOC 3 reports required?

As SOC is not mandated by law and is voluntary in nature, you do not need to re-evaluate your status after a given period of time. Rather, it should be based on how often you see fit to gain customer trust and attract new clients.