The short answer is no. There is no such thing as a SOC 1 certification or a SOC 2 certification or SSAE 16 certification (SSAE 16 is the previous standard for a SOC 1) or SSAE 18 certification (SSAE 18 is the current standard for both SOC 1 and SOC 2). If a SOC Audit is not a Certification, What is it?
Full Answer
What does SSAE-16 SOC 2 Type 2 mean?
What does SSAE-16 SOC 2 Type 2 mean and how is SSAE-16 SOC 2 Type 2 compliance determined? SSAE-16 SOC 2 Type 2 stands for Standards of Attestations Engagement No. 16, System and Organizations Controls Report 2, Type 2.
What is a SOC 2 Type I report?
Essentially what this means is that a SOC 2 Type I report looks at a point in time at the system that is in scope, how the management of the organization describes the system, and what controls are in place around that system. The key to this specific report is that it is a point in time, or an "as of" date.
What does it mean to be SOC 2 compliant?
Attaining SOC 2 certification means ensuring compliance. And compliance with SOC 2 comprises meeting minimum levels of maturity and fidelity across the TSC. The TSC’s five main criteria related to SOC 2 compliance standards are: Security – The most important principle, security comprises safeguarding from internal and external risks.
How difficult is SOC 2 for small businesses?
Here at RSI Security, we understand that the complex world of SOC 2 can entail difficulty and frustration for businesses of all sizes. This is especially true for small to medium-sized businesses with overburdened technology departments.
What does it mean to be SOC 2 Type 2 compliant?
A SOC 2 Type 2 report is an internal controls report capturing how a company safeguards customer data and how well those controls are operating. Companies that use cloud service providers use SOC 2 reports to assess and address the risks associated with third party technology services.
How do I become a SOC 2 Type 2 compliant?
In SOC 2 terms, these areas are called trust principles.Step 1: Bring in Credible Outside Auditors. ... Step 2: Select Security Criteria for Auditing. ... Step 3: Building a Roadmap to SOC 2 Compliance. ... Step 4: The Formal Audit. ... Step 5: The Road Ahead — Certification and Re-Certification.
Are you soc2 compliant?
In simple terms, here's what you are required to do to become SOC 2 compliant: Establish data management policies and procedures based on the five trust service principles, Demonstrate that these policies are applied and followed religiously by everyone, and. Demonstrate control over the systems and operations.
Do I need to be SOC 2 compliant?
System and Organization Controls for Service Organizations 2 (SOC 2) compliance isn't mandatory. No industry requires a SOC 2 report. Nor is SOC 2 compliance law or regulation. But your service organization ought to consider investing in the technical audit required for a SOC 2 report.
What is SSAE 16 Type II certification?
The SSAE 16 Type II compliance designates that the host delivers reliable and secure operating environments with the proper controls for conducting high-availability data center operations.
What is SOC Type 2 certification?
SOC 2 is a voluntary compliance standard for service organizations, developed by the American Institute of CPAs (AICPA), which specifies how organizations should manage customer data. The standard is based on the following Trust Services Criteria: security, availability, processing integrity, confidentiality, privacy.
Who needs a SOC 2 Type 2 report?
Who needs a SOC 2 report? Organizations that need a SOC 2 report include cloud service providers, SaaS providers, and organizations that store client information in the cloud. A SOC 2 report proves a client's data is protected and kept private from unauthorized users.
What is soc2 compliance checklist?
This SOC 2 checklist lays out the infrastructure, software, people, processes, and data that will be evaluated during the SOC 2 audit process, including what your auditor will specifically be looking for. A SOC 2 report is a far-reaching document that can affect many areas of organizational governance.
What is SOC 1 Type 2 and SOC 2 Type 2?
A SOC 2 Type I report—also written SOC 2 Type 1—is an attestation of controls at a service organization at a specific point in time. SOC 2 Type I reports on the description of controls provided by the management of the service organization and attests that the controls are suitably designed and implemented.
Is soc2 only for cloud?
Developed by the AICPA, SOC 2 is specifically designed for service providers storing customer data in the cloud. That means SOC 2 applies to nearly every SaaS company, as well as any company that uses the cloud to store its customers' information.
Is SOC 2 a security framework?
What Is The SOC 2 Framework. The SOC 2 framework is an internal auditing procedure. This audit is to report how your organization securely manages business-critical information and client privacy.
What are the other compliance standards similar to SSAE-16 SOC 2 Type 2?
What other compliance standards are similar to SSAE-16 SOC 2 Type 2? SOC 2 Type 2 is one of three major reporting options used under SSAE-16 reporting standards. The others are SOC 1, which analyzes an organization’s financial reporting controls; and SOC 3, which analyzes the subject matter as SOC 2 but organizes results more for ...
What is SOC 2 type 1?
Organizations can also request SOC 2 Type 1 reports, which only reports how the organization’s security, confidentiality, and server safeguards are performing at a single point in time.
What is SSAE16 type 2?
If your Company (the ‘Service Organization’) performs outsourced services that affect the financial statements of another Company (the ‘User Organization’), you will more than likely be asked to provide an SSAE16 Type II Report, especially if the User Organization is publicly traded.#N#Some example industries include: 1 Payroll Processing 2 Loan Servicing 3 Data Center /Co-Location/Network Monitoring Services 4 Software as a Service ( SaaS) 5 Medical Claims Processors
What is SSAE 16?
SSAE 16 is an enhancement to the current standard for Reporting on Controls at a Service Organization, the SAS70. The changes made to the standard will bring your company, and the rest of the companies in the US, up to date with new international service organization reporting standards, the ISAE 3402. The adjustments made from SAS 70 ...
What are the benefits of having SSAE 16?
Some benefits of having an SSAE 16 performed: Ability to perform outsourcing services for Public Companies.
When was SSAE 16 effective?
SSAE16 is now effective as of June 15, 2011, and if you have not made the necessary adjustments required, now is the time to find a quality provider to discuss the proper steps. All organizations are now required to issue their Service Auditor Reports under the SSAE 16 standards in an SOC 1 Report. The soon to be effective, SSAE-18, is expected ...
What is SOC1 report?
A SOC 1 Report ( System and Organization Controls Report) is a report on Controls at a Service Organization which are relevant to user entities’ internal control over financial reporting. The SOC1 Report is what you would have previously considered to be the standard SAS70, complete with a Type I and Type II reports, ...
What is SOC 2?
The SOC 2 is a separate report that focuses on controls at a service provider relevant to security, availability, processing integrity, confidentiality, and privacy of a system. It ensures that your data is kept private and secure while in storage and in transit and that it is available for you to access at any time.
What is SOC report?
SOC (‘Service Organization Control’) reports were created by the AICPA in order to set compliance standards and keep pace with the rapid growth of cloud computing and businesses outsourcing their services to third-party providers.
When does SSAE 18 go into effect?
The SSAE 18 standard will go into effect for reports dated after May 1, 2017. It is important to note that the SSAE 16 standard was specific to service organizations and the SSAE 18 is for all attestation engagements which essentially means that referring to a SOC 1 as an SSAE 16 examination will go away and will not be replaced by ...
What is the difference between a SOC 2 type 1 and a SOC 2 type 2 report?
There are several difference between a SOC 2 Type I and a SOC 2 Type II report but the biggest ones are the testing of the controls (operating effectiveness) and the length of time as the SOC 2 Type II takes much longer to complete.
What is SOC 2?
As you might recall, SOC stands for Service Organization Controls , and the SOC 2 focuses on the internal controls at an organization related to compliance or operations, wrapped around the 5 Trust Principles (Security, Confidentiality, Processing Integrity, Availability, and Privacy).
Statement on Standards for Attestation Engagements No. 16 (SSAE 16)
The Statement on Standards for Attestation Engagements No. 16 (SSAE 16) is a set of auditing standards, and guidance on using the standards, published by the Auditing Standards Board (ASB) of the American Institute of Certified Public Accountants (AICPA).
SOC 2 Type 2
The reports generated by an SSAE 16 audit follow the Service Organization Control (SOC) framework. SOC 1 covers financial reporting, while SOC 2 is based on the five “trust principles” of security, availability, processing integrity, privacy and confidentiality.
GDS Hosting Solutions
GDS undergoes the rigorous process of updating our SSAE 16 and SOC 2 certifications each year to validate not only our capabilities but our commitment to protecting our customers’ systems and data. We are also compliant with a variety of government and industry regulations.
Benefits of Managed IT Services from Global Data Systems
Strategic Managed IT: We help you solve your technology related business problems.
What is SOC 2?
SOC 2 is the first and only audit and report that sets a pre-defined, consistent set of criteria specifically around the services that a company provides. That means that when you read and compare the SOC 2 reports from two different companies, you can finally compare apples to apples.
What is a SOC 2 audit?
There are actually two types of SOC 2 audits: a Type I and Type II. Just like SSAE 16/SOC 1, the Type I report just means that the company has stated that the controls are in place and functional. The Type II report is the real measurement and auditor validation that the stated controls actually ARE in place and actually ARE working. ...
Can a company claim Sarbanes Oxley compliance?
Even though any company that passes an SSAE 16/SOC 1 audit can claim Sarbanes-Oxley (SOX) compliance, only a detailed scrutiny of the independent audit report will reveal what the company has elected to have audited, and the auditor’s opinion. No two SSAE 16/SOC 1 reports are the same!
What is SOC 2 type 1?
The SOC 2 Type 1 report is a measurement of an organization’s designed system and infrastructure relative to the TSC detailed above. But specifically, it measures the TSC at a fixed point in time.
What is SOC 2?
SOC 2 refers to a standardized form of auditing and reporting. It assesses the state of privacy and security of a service organization when it interacts with other businesses to process client data. Formerly known as the Service Organization Controls, the SOC now represents System and Organization Controls.
What are the TSC requirements for SOC 2?
The TSC’s five main criteria related to SOC 2 compliance standards are: Security – The most important principle, security comprises safeguarding from internal and external risks. It’s labeled as “common” and is the only one fully required for SOC 2 compliance. Essential controls required and measured include:
Why is SOC 2 important?
Performing an audit and attaining SOC 2 compliance is one of the best ways to show your customers that you care about their safety. Even in the absence of a legal requirement, for instance at the local level, SOC 2 can provide business advantages you can’t pass up.
What is SOC compliance?
As briefly noted above, SOC compliance applies to service organizations, or businesses that work in concert with others to process, store, and transport client data. SOC compliance requirements across SOC 1 and SOC 2 differ depending on a company’s business model.
What is a type 2 report?
Unlike SOC 2 type 1, a type 2 report seeks to measure the practical implementation of the five TSC over a duration in time. This wider and broader scope makes SOC 2 Type 2 reporting a much more complex and potentially burdensome process.
How much does a type 1 report cost?
According to one estimate, a type 1 report can cost anywhere from $20 to $60 thousand dollars, and a type 2 report can exceed $80 thousand dollars. But these prices aren’t just for the reports themselves. There are various other costs involved beyond the actual price paid to an auditor.