Difference Between SOC 2 Type 1 & SOC 2 Type 2 Attestation


 Did you know that over 4,100 data breaches took place in 2022, summed up to 22 billion exposed records? The rising number of security breaches is provoking organizations to pay attention to information security. 


SOC 2 attestation ensures the effectiveness of the organization’s security controls and protects against data breaches and non-compliance penalties. But which companies should obtain SOC 2 attestation? What is SOC 2 Type 1 & SOC 2 Type 2? What is the difference between SOC 2 Type 1 and SOC 2 Type 2 attestation?


In this blog, we will answer your questions about SOC 2 compliance. Dive in!

Which Companies Must Comply with SOC 2?

SOC 2 (System and Organization Controls 2) applies to any organization that stores, processes, or transmits private data. This incorporates businesses that offer services like data hosting, cloud computing, Software-as-a-Service (SaaS), and other technology-related services.


The SOC 2 audit is designed to evaluate the effectiveness of an organization's controls over its information systems and data, focusing on five key areas known as Trust Services Criteria (TSC). These areas include:


  • Security - The systems are protected against unauthorized access, use, or disclosure.


  • Availability - The systems are available for operation and use as committed or agreed.


  • Processing integrity - System processing is complete, timely, precise, and authorized.


  • Confidentiality - Information that is designated as confidential is protected as committed or agreed.


  • Privacy - Personal information is collected, used, retained, disclosed, and disposed of in conformity with the privacy notice and criteria set forth by relevant laws and regulations.


Any organization that handles sensitive data can benefit from SOC 2 attestation, including healthcare providers, financial institutions, and e-commerce companies. SOC 2 assures customers and stakeholders that an organization has appropriate controls in place to protect its data and maintain the privacy, security, and availability of its systems.


What is SOC 2 Type 1 & SOC 2 Type 2?

There are two types of SOC 2 — SOC 2 Type 1 and SOC 2 Type 2. Understanding what SOC 2 Type 1 and SOC 2 Type 2 serve. 


SOC 2 Type 1 is a detailed report that gives an overview of the security controls that the service organization has implemented at a particular point in time. It assesses the architecture of the safeguards and whether they are appropriate to accomplish the company’s objectives.


Whereas, SOC 2 Type 2 is a report that assesses the effectiveness of the safeguards over a set period of time (generally six months to a year). It involves the design assessment of Type 1 along with testing the operating effectiveness of the safeguards. Type 2 reports provide more assurance to customers and stakeholders that the service organization has effective controls in place to meet their needs.


In summary, SOC 2 Type 1 assesses the design of controls, while SOC 2 Type 2 evaluates the operating effectiveness of those controls over a period of time.

Difference Between SOC 2 Type 1 and SOC 2 Type 2 Attestation?

The primary difference between SOC 2 Type 1 and SOC 2 Type 2 attestation is that Type 1 evaluates the design of controls at a specific point in time, while Type 2 evaluates the effectiveness of controls over a period (usually six months to a year).


SOC 2 Type 1 attestation provides an overview of the controls that are in place at the service organization at a specific point in time. It evaluates the design of controls and whether they are suitable to achieve the organization's objectives. Type 1 reports provide a snapshot of the service organization's control environment and give customers and stakeholders a better understanding of the controls in place to manage risks.


SOC 2 Type 2 attestation evaluates the operating effectiveness of controls over a specified period (usually six months to a year). It includes the design evaluation of Type 1, as well as testing the operating effectiveness of the information security controls of an organization. Type 2 reports provide more assurance to customers and stakeholders that the service organization has effective controls in place to meet their needs.


Simply, SOC 2 Type 1 attestation provides a point-in-time snapshot of the design of controls, while SOC 2 Type 2 attestation evaluates the effectiveness of those controls over a specified period.

Bottom Line

Organizations must know the difference between SOC 2 Type 1 and SOC 2 Type 2 audit reports and implement these as per the requirements to avoid penalties and any room for security vulnerability. 


Additionally, adhering to SOC 2 compliance helps service organizations provide assurance to user organizations and build a reputation in the industry. If you are not SOC 2 compliant, look for an independent auditor or agency to conduct an audit within your organization to check the effectiveness of the implemented security controls and processes. 


Pro tip: Contracting an agency for SOC 2 audit is more beneficial compared to an independent auditor.

Comments

Post a Comment

Popular posts from this blog

IoT Penetration Testing 101: A Practical Guide to Evaluate IoT Security in 2023

Image
  IoT has emerged as a massive game-changer in the digital world. According to statistics, the global IoT testing market was predicted to be valued at US$ billion in 2022. The way it revolutionizes the interaction with commonplace systems and products is a crunch point. IoT is influencing every part of our daily lives, starting from smart homes and wearable technology to industrial automation and medical equipment. IoT integration is becoming more widespread, but that’s an alert for the upcoming potential threats. IoT penetration testing has developed into a vital practice for both individuals and organizations to protect against cyber attacks. We will take a look at the field of IoT penetration testing in 2023 in this guide, exploring its importance, businesses with their testing services, and the best practices followed. Relevance of IoT Penetration Testing in 2023 The evaluation of the IoT security posture of IoT devices, networks, and systems is done through IoT penetration t...
Read more

Emerging Web Application Testing Trends in 2023

Image
  As digital reliance grows, protecting data, user trust, and complying with regulations is crucial. By dissecting apps, identifying vulnerabilities, and using techniques like assessments and penetration testing, organizations bolster web security.  Organizations can find and fix potential security flaws before attackers can take advantage of them by regularly conducting vulnerability assessments and penetration testing. The attack surface of online applications can be greatly decreased by implementing security features like access restriction and encryption. We'll guide you through methodologies and attack vectors like XSS and SQL injection, creating a safer digital landscape. Explore our blog delving into web application security testing.  Significance of Web Application Testing  Testing for web application security is essential for various reasons:   It assists you in finding application errors and vulnerabilities that attackers might use, helping you a...
Read more

Virtual CISO: An Irresistible Alternative To CISO

Image
The elevation of data breaches and compliance violations invoked concerns among cyber security experts and other associated professionals. As per a report published by the Identity Theft Resource Centre (ITRC), a registered figure of 1862 data breaches took place in the US in 2021, which was 68% higher compared to the data breaches that occurred in the US in 2020. According to security experts, the stats of cyber threats will rise in 2023 and the forthcoming years. Industries like finance, healthcare, SaaS, businesses, and retails are among the most invaded sectors, affecting millions of US residents every year. The rise in security breach events has also brought a lot of hassle to Chief Information Security Officers of different organizations. Although it’s not a prime concern here. The matter of concern here is that there are several organizations out there that don’t even have a CISO to maintain the security posture within the organization. And irrespective of the size, every compan...
Read more