The SOC 2 Type 1 framework overview is provided by NDB, North America’s leading provider of high-quality, competitively priced SOC 2 Type 1 and Type 2 assessments, along with SOC 1 reporting. Moreover, the SOC 2 Type 1 framework also requires numerous policies and procedures to be in place, for which NDB also includes a complimentary SOC 2 Policy Packet to all clients containing hundreds of pages of critical information security and operational specific policies, procedures, and much more.
With many companies now being required to perform annual SOC 2 Type 1 and SOC 2 Type 2 audits, it’s time to gain a strong technical understanding of the AICPA System and Organization Controls (SOC) framework and how NDB can help in meeting your growing regulatory compliance goals each year. Take note of the following subject matter regarding the SOC 2 framework, courtesy of NDB, one of the nation’s leading provider of high-quality, fixed-fee regulatory compliance services and solutions:
1. SSAE 18 SOC 1 vs. SOC 2: What’s the main difference between SSAE 18 SOC 1 and SOC 2 assessments; SOC 1 audits – which use the SSAE 18 professional standard – are audits performed on service organizations that offer services to clients that could impact the financial reporting of their actual clients. Think actuaries, banking, financial, and trust services, and others.
As for SOC 2, think technology companies, such as data centers, SaaS vendors – anyone in the technology space – these are ideal candidates for SOC 2 compliance. Thus, SSAE 18 SOC 1 is a financially driven third-party assessment, while SOC 2 is technology driven third-party assessment. Even with all this said, we still find many technology-associated service organizations performing annual SSAE 18 SOC 1 assessments, which we feel is technically incorrect.
2. Why a Readiness Assessment is Essential: Simple, you’ll want to thoroughly asses and understand all the necessary components of a SOC 2 audit, such as scoping boundaries, how to correct internal controls gaps and deficiencies, what personnel – internally – are expected to play a role in the assessment, what physical locations have to be visited, what auditors expect in terms of deliverables, and much more. In short, a SOC 2 scoping & readiness assessment brings about much needed clarity and understanding to all facets of the audit.
Without it, you’re simply creating immense challenges in the audit process, many of which can be solved by simply performing a SOC 2 scoping & readiness assessment. And lastly, the fee for a SOC 2 scoping & readiness assessment can be conveniently bundled into our fixed-fee pricing for a multi-year engagement, thus decreasing the direct impact and financial cost to your firm. You’ll learn a tremendous amount about your business – it’s an eye opener for some – but well worth it in terms of ROI.
Using AWS for Hosting? Here's What You Need to Know about Performing SOC 1 & SOC 2 Audits
3. Policies and Procedures are Critical: While tremendous efforts are always put into the technical aspect of SOC 2 compliance – ensuring information systems are functioning as necessary – what’s often left behind is the importance of developing all necessary documentation for SOC 2 compliance. Specifically, the SOC 2 framework requires a lengthy list of information security and operational policies and procedures to be in place – an incredibly time-consuming task, no doubt – and it’s why NDB offers a complimentary SOC 2 Policy Packet containing hundreds of pages of policies, forms, and other supporting templates.
The documentation is absolutely vital for helping ensure SOC 2 compliance is successfully met. Look, writing information security policies and procedures – especially starting from scratch – can take dozens and dozens of hours, sometime much more, so the ability to use high-quality, SOC 2 specific policy templates from NDB is a must!
4. Technical Remediation is Crucial: Also high on the list for SOC 2 remediation are all the technical and security initiatives that need to take place. From re-provisioning network devices to securely locking down servers – and much more – technical remediation is a must, and it can be time-consuming.
Common examples of technical remediation include the following: (1). Provisioning and hardening server settings, both on the o/s and the underlying applications. (2). Configuring rulesets and configuration files for network devices, such as firewalls, routers, and switches. (3). Implementing stronger access controls for user access.
Luckily, NDB offers comprehensive forms and checklists for all major vendors when it comes to essential provisioning and hardening guidelines – material that’s complimentary to our valued SOC 2 clients throughout North America. Becoming SOC 2 compliant within a reasonable timeframe – and within budget – is our goal for you, so let’s talk.
5. Assessing Subservice Organizations is a Must: Do you as a business/service organization outsource other services to businesses downstream – if so – then these “downstream” providers of services to you are what’s known as subservice organizations – at least in terms of your compliance requirements. Many times, auditors will want to assess the internal controls of these very subservice organizations, and many of them may have gone through a compliance audit already – perhaps even a SOC 2 audit, or an SSAE 18 SOC 1 assessment – but if not, auditors will need to take steps in assessing such entities. You need to be aware of subservice organization reporting requirements, so talk to the experts at NDB.
SOC 2 Type 1 Things You Need to Know
The SOC 2 Type 1 framework states that this type of an assessment is performed for an “as of” date, as opposed to the AICPA SOC 2 Type 2 framework, which are assessments conducted over a stated time period.
The SOC 2 Type 1 framework is largely different from the SOC 1 Type 1 framework
Receive a complimentary SOC 2 Policy Packet from NDB!
The SOC 2 Type 1 framework is a great fit for many of today’s information technology businesses.