Master SOC 1, SOC 2, and SOC 3 reporting requirements, Trust Services Criteria, and data protection controls for service organizations.
Explore SOC RequirementsService Organization Control (SOC) reports, developed by the American Institute of Certified Public Accountants (AICPA), provide independent assurance about the controls at a service organization relevant to security, availability, processing integrity, confidentiality, and privacy. These reports have become essential for organizations that provide services involving sensitive data or critical business processes.
SOC reports serve multiple stakeholders including customers evaluating service providers, auditors of user organizations, and regulatory bodies requiring evidence of control effectiveness. A SOC report demonstrates that a service organization has been examined by an independent CPA firm and has appropriate controls in place.
The SOC framework provides a standardized approach to evaluating and reporting on controls, replacing the older SAS 70 standard. SOC reports are conducted according to attestation standards established by the AICPA and involve examination by a licensed CPA or CPA firm with appropriate qualifications.
For organizations processing personal data or providing data services, SOC compliance often complements other regulatory requirements like GDPR, HIPAA, and CCPA. While SOC compliance is not a legal requirement, it is frequently requested by customers and can be a significant competitive differentiator in the marketplace.
AICPA provides different SOC report types designed for different purposes and audiences.
Reports on controls relevant to user entities' internal control over financial reporting. Based on SSAE 18, SOC 1 reports are used by auditors of user organizations when evaluating financial statement audit risks. Appropriate for payroll processors, loan servicers, and other services affecting financial statements.
Reports on controls relevant to security, availability, processing integrity, confidentiality, and privacy (Trust Services Criteria). Intended for management, stakeholders, and regulators. Most relevant for technology service providers, SaaS companies, and data processors handling sensitive information.
A public-facing summary report based on the same Trust Services Criteria as SOC 2, but without detailed control descriptions or test results. Suitable for marketing purposes and general distribution to demonstrate commitment to security without disclosing sensitive control details.
Type I reports describe controls and opine on their design at a point in time. Type II reports include testing of control operating effectiveness over a period (typically 6-12 months). Type II reports are generally more valuable as they demonstrate sustained control effectiveness.
The Trust Services Criteria (TSC), formerly Trust Services Principles, provide the framework for SOC 2 and SOC 3 examinations. Organizations select which criteria to include based on their services and customer requirements. Security is required; other criteria are optional but often included based on the nature of services provided.
Security (Common Criteria): Information and systems are protected against unauthorized access, unauthorized disclosure of information, and damage to systems. This is the only mandatory category and forms the foundation of SOC 2 reports.
Availability: Information and systems are available for operation and use as committed or agreed. Includes controls for system monitoring, disaster recovery, and capacity management.
Processing Integrity: System processing is complete, valid, accurate, timely, and authorized. Important for organizations where data processing accuracy is critical to customers.
Confidentiality: Information designated as confidential is protected as committed or agreed. Addresses protection of sensitive business information beyond personal data.
Privacy: Personal information is collected, used, retained, disclosed, and disposed of in accordance with commitments in the entity's privacy notice and criteria established by AICPA. Most relevant for organizations processing significant amounts of personal data.
The Privacy Trust Services Criteria address how organizations handle personal information throughout its lifecycle.
Organizations must provide notice about their privacy practices. This includes informing data subjects about what personal information is collected, how it will be used, and with whom it may be shared.
Organizations must obtain appropriate consent for collection and use of personal information and honor individual choices about how their information is used.
Personal information must be retained only as long as necessary for the purposes for which it was collected and securely disposed of when no longer needed.
Our anonymization solutions support SOC 2 privacy controls while enabling valuable data analytics.
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