Blog  Ultimate SOC 2 Checklist: A Comprehensive Guide for Compliance in 2023

SOC 2 Compliance, governed by the American Institute of Certified Public Accountants (AICPA), is all about checking how well a company protects customer data. It evaluates based on five Trust Services Criteria: Security, Availability, Confidentiality, Processing Integrity, and Privacy. These aren’t just generic standards; they’re picked based on each company’s needs. Take SaaS companies, for instance — they usually focus on security and confidentiality because they deal with loads of cloud-based apps and customer information daily. 

Achieving SOC 2 compliance is undoubtedly a major milestone in data security. Generally regarded as necessary for cloud-based applications and SaaS-oriented companies, it is hard to overstate its significance. Meeting the SOC 2 requirements proves that the institution takes care of clients’ information and adheres to complex legal requirements. 

These principles provide an opportunity for companies to enhance their clients’ trust in different sectors since they assure them that the organization is committed to information security. The managed control it provides can save the organization from losing money due to breaches and helps build the image of the organization more so with the growing competition in the market. 

The Five Trust Services Criteria for SOC 2 

SOC 2 Compliance is built on five core “Trust Services Criteria,” namely security, availability, processing integrity, confidentiality, and privacy.  

— Security 

Information and systems are protected against unauthorized access, unauthorized disclosure of information, and damage to systems that could compromise the availability, integrity, confidentiality, and privacy of information or systems and affect the entity’s ability to achieve its objectives. 

Security refers to the protection of    

i. information during its collection or creation, use, processing, transmission, and storage, and   

ii. systems that use electronic information to process, transmit, transfer, and store information to enable the entity to meet its objectives. Controls over security prevent or detect the breakdown and circumvention of segregation of duties, system failure, incorrect processing, theft or other unauthorized removal of information or system resources, misuse of software, and improper access to or use of, alteration, destruction, or disclosure of information.

Conducting a risk assessment is necessary to identify risk factors or threats to your data. First-class devices like vulnerability scanning and mist management tools form an integral part of maintaining these security measures. 

— Availability 

Maintaining system availability is a high priority in the pursuit of SOC 2 compliance. The TSC categorizes it as one of the Five Trust Service Criteria because consistent accessibility and operation are integral to any service-bound entity. 

Measures within this criterion address more than just preventing service outages; they also detect and correct interruptions that could potentially verge on total shutdowns when left unchecked. 

Standard areas covered by availability include: 

• • Physical security. 
  • Risk assessment factors. 
  • Monitoring activities for optimal performance. 
  • Managing changes in protocols or processes with minimal service disruption.  

Additionally, it is noteworthy that monitoring is very important in managing compliance after an audit, given that it trends all aspects of performance, indicating what areas are working and what areas need immediate correction. 

— Processing Integrity 

This principle requires that the operations of any system under the organization’s authority are complete, accurate, timely, and authorized with respect to cloud-hosted applications, better referred to as SaaS firms, processing integrity is fundamental in data security and privacy. 

Attaining this level of standard calls for the tactical introduction of a range of controls and measures. Such strategies target error occurrence, unauthorized intrusion, and intentional deformation of relevant information within business processes. 

Additionally, organizations show that they take processing integrity seriously by implementing policies and procedures as well as taking all the necessary measures on the audit readiness such as the use of vulnerability scanners or incident management systems for ongoing monitoring. 

— Confidentiality 

Confidentiality takes center stage in the realm of SOC 2 compliance. It is important to safeguard customer information and protect it from access by unauthorized persons, which is even more important for SaaS companies with data-rich applications hosted in the cloud. 

A well-established Confidentiality protocol ensures alignment with the Compliance standards set by the American Institute of Certified Public Accountants (AICPA). Firms successfully ticking off these Trust Service Criteria significantly ramp up their data security practices, shielding classified business intelligence and protecting Personally Identifiable Information (PII) entrusted to them by service users or clients. 

— Privacy 

Being a key trust service criterion in the SOC 2 compliance checklist, privacy is all about protecting personal data. It is imperative for organizations to implement and maintain comprehensive operational policies and practices, such as the use of encryption and pseudonymization techniques. 

It can also prevent the unauthorized leakage or inappropriate use of private sensitive data. Organizations understand the necessity of privacy mechanisms and their correspondence with the effective attainment and maintenance of the SOC 2 trust services certification. 

Furthermore, it entails continuous monitoring and assessment of these measures and their capabilities in achieving the set level of security to ensure the end user’s confidence. 

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Step-by-step SOC 2 Compliance Checklist for 2023 

From assembling your compliance team to establishing critical monitoring practices – all vital facets of achieving and maintaining SOC 2 certification seamlessly. 

1. Assign a Compliance Team 

To kick off your SOC 2 compliance journey, it’s crucial to pull together a dedicated compliance team. All the members of this group should possess a comprehensive insight into data security measures and the SOC 2 compliance framework. 

The responsibilities allocated to this particular group involve:

• • Overseeing the overall execution of compliance requirements.
  • Navigating through any challenges that may present themselves during your compliance journey. 
  • Ensuring that each aspect aligns with the Trust Service Criteria, the American Institute of Certified Public Accountants (AICPA) outlined. 

Another critical function they perform is streamlining SOC conformity and implementing automated checks in security as per applicable norms. Firms predominantly leveraging cloud-hosted applications, particularly those specializing in SaaS, stand to benefit significantly from effectively assigning responsibilities within this team for simultaneous adherence to multiple compliances. 

2. Select the Applicable Trust Service Criteria 

Your SOC 2 compliance journey begins with identifying which of the five Trust Service Criteria (TSC) are relevant to your SaaS business. Security is always a must, but it may also include availability, processing integrity, confidentiality, and privacy – depending on client requirements or regulatory stipulations. 

In many cases, multiple trust service criteria will be applicable. Determining their relevance requires understanding what each encompasses. For instance, while ‘security’ focuses on protecting resources against unauthorized access, ‘availability’ ensures system functionality upon demand by an agreed-upon party; ‘confidentiality’ safeguards data from prying eyes; ‘processing integrity’ confirms that processes function as intended without disruption or alteration; and ‘privacy’ aims at protecting personally identifiable information according to established policies. 

3. Conduct Initial Gap Analysis 

Start the journey to SOC 2 compliance by conducting an initial gap analysis. The thorough SOC 2 requirements and methodology are compared to security practices in this important procedure. 

Through this detailed examination, potential areas of non-compliance surface, guiding the direction for remediation and control implementation efforts. Accurately detecting these gaps will be made easier with the use of technologies like incident management systems and vulnerability scanners. 

Establishing a picture of preparedness for the impending SOC 2 audit and highlighting the need of data protection impact assessment depend heavily on the findings of this preliminary analysis. 

Aim to find every weak link during this stage – it is better to locate these issues now than during an external audit conducted by an AICPA-accredited firm. 

4.  Prepare a Pre-assessment Report and Mitigation Roadmap 

Continue the compliance process by conducting a thorough internal risk assessment. Engage all relevant departments and stakeholders to review your current practices against SOC 2 standards. 

Upon completing this critical step, generate a comprehensive pre-assessment report detailing areas of non-compliance, potential vulnerabilities, and expected challenges on the journey towards complete SOC 2 compliance. 

Following that, create an implementation plan for remedial actions and include that within the larger strategy for compliance with all relevant requirements. Your roadmap should include: 

• • Strategies for addressing identified gaps. 
  • Implementing stage-appropriate controls to address each trust service criterion. 
  • Review readiness assessments with independent auditors to decide if the organization meets the minimum requirements for a full SOC 2 audit, among other vital tasks. 

The better prepared you are in these early stages will translate into smoother audits later and help establish continuous monitoring practices crucial for ongoing adherence to regulations. 

5. Supervise Gap Mitigation Process 

Once you’ve conducted a gap analysis and outlined your mitigation roadmap, the following essential stage in SOC 2 compliance is supervising the gap mitigation process. This supervision involves watching over how your implemented measures address each identified gap. 

You will need to ensure that any activities will be consistent with the principles of SOC 2 to improve data protection and privacy within the organization concerned. Regular check-ins with this process can spot potential issues early, making it easier to make improvements. 

6.  Prepare for External Audit 

Planning and preparation take center stage when diving into the external audit for SOC 2 compliance. SaaS firms keenly focused on data security set apart significant time to ensure that all operations adhere to the Trust Service Criteria. 

Conducting regular internal audits in advance proves beneficial in relieving fears or doubts and preparing teams on what the auditors may look for. 

At this point, it is also crucial to set clear limits about the objectives, expected results, and coverage area. This, in turn, helps create effective routes and prevents any possible oversights further down the road.  

Bringing in qualified consultants and/or audit-ready tools may ease the process by offering specific instructions before the external assessment. 

7.  Provide Necessary Evidence for Audit 

Auditors conduct thorough reviews of an organization’s compliance procedures and controls. It is their responsibility to ensure that all actions undertaken are in accordance with SOC 2 standards, which also means that sufficient evidence has to be provided during the course of the audit. 

Data plays a critical role in this phase. Organizations must document everything from written policies to system configurations and employee training records as part of their proof – nothing should be left out. 

The assigned auditor will then study these materials thoroughly, attempting to identify conflicting or frail points that may potentially create problems of non-compliance. Involving a third-party vendor early on can assist in reducing the considerable cost associated, assisting monetarily, and boosting efficiency throughout this procedure by handling responsibilities like policy template creation that could otherwise consume valuable time. 

8.  Address any Gaps Identified by the Auditor 

During a SOC 2 compliance audit, the auditor aims to spot any gaps in your company’s processes and practices. It doesn’t stop there — you must then make strides to address these discovered issues, ensuring that they don’t pose an ongoing problem. 

Be it enhancing protocols for data encryption or changing the methods of backing up the data, taking corrective actions portrays one’s resolve in practicing security measures which is quite commendable. Showing that you’re committed to maintaining the right standards can really help build a good relationship with the auditors.  

Plus, taking the right actions here boosts your compliance efforts and protects your company from data breaches. 

9. Establish Continuous Monitoring Practices 

Continuous monitoring practices are a proactive and vigilant approach to SOC 2 compliance. Regular checks and audits enable organizations to be aware of their security stance. 

With the help of automated systems, real-time monitoring of events taking place in the system is possible, which eliminates the loss of any potential threat and mitigates the problem in the early stages of its development. For such continuous active observance, it is worth noting that SOC 2 Trust Service Criteria (TSC) requires the highest standards of data protection. 

The use of vulnerability scanners along with incident management systems is often recommended for this vital task within the information security landscape. Opting for penetration testing adds another layer of fortification, ensuring that your protocols stand up against potential cybersecurity breaches. 

Choosing the Right SOC 2 Audit Firm 

Selecting a reputable SOC 2 audit firm is essential for accurately and thoroughly analyzing your company’s system controls. The following guidelines can help ensure you make the optimal choice: 

• • Seek an auditing firm that has solid experience with SOC 2 compliance audits. 
  • Look for a team with knowledgeable auditors who stay abreast of emerging threats and industry developments. 
  • Consider a firm whose expertise aligns with your industry to get customized guidance relevant to your business operations. 
  • Opt for an AICPA-accredited firm as they are recognized authorities in carrying out SOC 2 evaluations.
  • Check how responsive the service provider is; prompt communication often reflects their commitment to client success. 
  • A priority should be to inquire about their confidentiality measures and how they safeguard clients’ information. 
  • Scrutinize if they use advanced tools like automated compliance platforms, which help monitor and collect evidence continuously throughout the year. 

The Risks of Independent Preparation for Certification 

Undergoing independent preparation for SOC 2 certification presents a handful of risks. Companies may lack technical expertise and resources, leading to ineffective compliance strategies. 

Automated checks can be overlooked, weakening overall data security practices. Dealing with trust services categories without professional guidance could result in non-compliance issues or financial penalties due to mistaken interpretations of the requirements. 

A self-audit might be incomplete or inaccurate because important parts are unknown or unclear to people who are not specialists in this field. 

TrustNet experts carry the expertise to navigate your organization through the complex landscape of SOC 2 compliance. Collaboration with TrustNet goes beyond just facilitating compliance. It equates to saving time and reducing costs as they manage strenuous pre-assessment responsibilities and overall workload – eliminating up to 80% of it. 

Our SOC Accelerator Program is designed to help businesses from the startup phase through to the finish line of a SOC assessment. TrustNet has performed hundreds of SOC assessments and has tremendous experience successfully guiding businesses through the process.