The majority of organizations deal with sensitive data. It’s no no-brainer that they have to be SOC 2 compliant to succeed in this threat environment. However, going deep into the framework requirements can feel challenging.

SOC 2-  Service Organization Control 2, requires organizations to assess security controls based on specific Trust Service Criteria (TSC)—a process that can take a lot of time.

The good news? A SOC 2 compliance checklist can simplify this journey. By following a structured approach, organizations can scope their program, prepare for the audit, and implement necessary controls more efficiently.

This will accelerate compliance and strengthen your data security further. Here, we bring up a simple yet comprehensive SOC 2 checklist that secures your business while building trust with your customers.

What is SOC 2 Audit?

A SOC 2 audit is the final step in the SOC 2 attestation process, where an organization’s controls are assessed against the five Trust Service Criteria (TSCs) which are:

• Security
• Integrity
• Availability
• Privacy
• Confidentiality

These criteria help evaluate how well an organization protects data and systems. However, not all five criteria apply to every business.

For example, a company that only provides cloud storage may prioritize security and availability, while one handling financial transactions may also need processing integrity only.

Why Get a SOC 2 Audit and Who Needs It?

SOC 2 compliance does require efforts to put in but it’s worth it. The following statistic would tell you that data breaches can be far more costly and putting in time and effort is far better than being a victim of certain data breaches. As per IBM’s 2023 Data Breach Report, the average global breach cost reached $4.45 million and that’s huge!

Passing a SOC 2 audit shows that your organization meets the required TSCs you’ve chosen. This helps build customer confidence by proving that you have the right controls to protect their data. As a result, it can speed up sales and help you attract larger clients.

What Businesses Need to be SOC 2 Compliant?

If you think Soc 2 doesn’t comply with you then you are mistaken. Every company storing customer data in the cloud needs a SOC 2 audit in their compliance journey. This includes:

• SaaS providers
• Other cloud-based businesses

Why? For the above businesses, securing client information is mandatory for maintaining trust and compliance.

SOC 2 Compliance Requirements

SOC 2 compliance requirements are based on TSC which are mentioned in the previous section. we‘ll define them in detail below;

1. Trust Service Criteria (TSC)

Organizations undergoing a SOC 2 audit must comply with one or more of the five TSCs:

• Security (Required) – Protects systems and data from unauthorized access, breaches, and cyber threats.

• Availability – Ensures systems are reliable and operational as agreed in service-level agreements (SLAs).

• Processing Integrity – It assures the system processing is accurate, authorized, and right on time.

• Confidentiality – The word says it all. It protects sensitive data from unauthorized access.

• Privacy – Ensures personal data is processed according to privacy policies and regulations.

All SOC 2 reports must include the Security criterion, while the others are selected depending on the kind of business.

2. Risk Management and Assessments

What is necessary is necessary! Organizations need to conduct regular risk assessments to identify security threats. If any risk appears then smart strategies should be in place to address vulnerabilities to mitigate any risk involved.

3. Access Controls and User Authentication

Limiting unwanted access for official documents should be the first priority. For this, implement RBAC-role-based access control to restrict access to sensitive data.

Use MFA- multi-factor authentication for critical systems and cut off any access for former employees and block unused accounts are some of the protocols that should be followed.

4. Incident Response and Monitoring

Establish a formal incident response plan in case of security breaches. Organizations can also use real-time monitoring and logging to detect unauthorized activities.

5. Data Encryption and Protection

This isn’t negotiable! Encrypt data at rest and in transit using encryption protocols that are used in industries. Implement DLP- data loss prevention measures to prevent unauthorized access.

6. Vendor and Third-Party Risk Management

Assess third-party vendors for security compliance before integrating with their services. Organizations should maintain vendor agreements that align with SOC 2 security standards.

7. Security Policies and Employee Training

Establish clear security policies and procedures for employees. Conduct regular security awareness training to prevent human errors and phishing attacks.

8. Audit Logging and Evidence Collection

Maintain logs of system access, changes, and security events. Provide evidence of compliance for auditors, including policies, security controls, and monitoring reports.

SOC 2 Compliance Frequency

The compliance frequency completely depends upon the type of SOC 2 report;

• SOC 2 Type 1 Report: One-time assessment of security controls at a specific point in time.

• SOC 2 Type 2 Report: Ongoing compliance review covering 3 to 12 months, with annual renewals required.

8-Step Checklist to Pass Your SOC 2 Audit

Your organization needs to follow these mentioned steps to achieve SOC 2 compliance smoothly, Here’s a breakdown of these;

1. Set Clear Compliance Goals

First, you need to clearly define the purpose of a SOC 2 report which is, why your organization even needs it.

Goals can vary, maybe you’re meeting customer demands, strengthening security, or want to expand into new markets. Clear objectives will guide your compliance efforts and keep your team focused throughout the process.

2. Choose the Right SOC 2 Report Type

Soc 2 reports are basically of two types. You need to decide between a SOC 2 Type 1 or Type 2 report for your business. Many organizations start with Type 1 and then move to Type 2, but it’s not always the case.

What do these respective reports do? Type 1 evaluates whether your security controls are properly planned at a specific point in time or not. While a Type 2 audit assesses their effectiveness over a period.

3. Define the Scope of Your Audit

Determine which systems, processes, and data your audit will cover. Select the Trust Service Criteria (TSC) based on your business model.

Security is mandatory, but SaaS companies often include availability and confidentiality. Tailoring your scope makes compliance more relevant and efficient.

4. Conduct a Risk Assessment

There are always risks involved that need to be handled properly. You need to identify potential security risks based on your company’s data handling and regulatory requirements.

Further, assess the likelihood and impact of these risks and implement SOC 2 controls to mitigate them. A thorough risk assessment helps you prepare for the audit and strengthen your security posture.

5. Perform a Readiness Assessment

Before the formal audit, conduct a gap analysis to evaluate your current security policies, procedures, and controls. Identify missing elements and address them to align with SOC 2 standards. This step helps minimize last-minute surprises during the actual audit.

6. Address Security Gaps

Based on your readiness assessment, fix any control weaknesses. Work with your team to:

• Update policies
• Refine procedures
• Implement security tools
• Improve workflows.

If you take corrective actions first before the start of the audit, it helps ensure a smoother review process.

7. Implement Continuous Monitoring

SOC 2 compliance isn’t a one-time effort. Set up ongoing monitoring to maintain compliance and detect real-time security issues. Consider using compliance automation tools to streamline monitoring, evidence collection, and reporting.

8. Select an Auditor and Start the SOC 2 Audit

You should choose an auditor with industry experience and a strong understanding of SOC 2 requirements. Then Initiate your SOC 2 audit right away.

The first thing is to provide the necessary documentation and participate in walkthroughs. Then your cooperation throughout the review process helps it be done smoothly. Once completed, you’ll receive a SOC 2 report, proving your organization’s commitment to security and compliance.

Conclusion

Partners and Associates at Quantisage has been helping with Digital transformation projects for over 25 years. We are dedicated to making the transitions as seamless as possible. With our comprehensive services, from assessment and planning to training and support, we ensure that our clients achieve the results and capabilities that drive their business forward.

SOC 2 compliance is more than just a regulatory requirement. How? It strengthens security and grows customers’ trust which surely opens up new business opportunities. Following a structured approach helps organizations prepare effectively and pass the audit with confidence. Moreover, businesses that meet SOC 2 standards help protect customer data and enhance their credibility as well.

Also, it’s not just a one-time process rather it’s ongoing and requires continuous monitoring and improvement. The security landscape evolves, and so do compliance expectations. How can your organization stay ahead of emerging risks and maintain compliance year after year?

Understanding the next steps is essential. If you want to ensure long-term success, what strategies will you implement to keep your security controls up to date?

Contact us today to explore how to maintain compliance and strengthen security in a rapidly changing environment.