What Is Soc 2 Stand For

The soc 1 vs.

What is soc 2 stand for.

A soc 2 is a system and organization control 2 report. Since our software is specifically designed to capture personal data during customer interactions security measures like bank grade encryption two factor authentication and more are a key component of how our software works. Soc 2 ensures that a company s information security measures are in line with the unique parameters of today s cloud requirements. There are three types of soc reports.

The soc 2 report was created in part because of the rise of cloud computing and business outsourcing of functions to service organizations. The standard for regulating these five issues was formed under the aicpa trust services. Soc 2 is an auditing procedure that ensures your service providers securely manage your data to protect the interests of your organization and the privacy of its clients. The need for greater trust and transparency into vendors operations processes and results is a strategic imperative.

What does soc 2 stand for. Soc 2 requires companies to establish and follow strict information security policies and procedures encompassing the security availability processing integrity and confidentiality of customer data. Some companies struggle with the differences between soc reports and whether they should get a soc 1 soc 2 or soc 3. Soc 2 pronounced sock two and more formally known as service organization control 2 reports on various organizational controls related to security availability processing integrity confidentiality or privacy.

While soc 1 reports are primarily aimed at service organizations who provides essential services that could impact financial reporting for their clients soc 2 reports are geared towards the large and. There are a few different types of soc reports simply put soc 1 deals with financial information and soc 2 deals with non financial information. Soc 2 stands for system and organization controls for which there are two 2 main types of soc reports soc 1 reports and soc 2 reports. See the aicpa website comparing the reports.

Soc 1 soc 2 and soc 3 reports fulfill your attestation reporting needs and deliver an independent tailored and customized attestation. Soc stands for service organization control. We start by asking prospective clients about the type of. What does soc stand for.

Soc 2 discussion is well under way thanks in large part to the american institute of certified public accountants aicpa launch of their new service organization reporting platform known as the soc framework officially soc standards for system and organization controls which allows qualified practitioners i e licensed and registered certified public accountants to. These are called user entities in the soc reports. Soc 2 service organization control 2. Specifically soc 2 gives information service providers like software companies a way to verify their controls for.

Liability concerns have caused a demand in assurance of confidentiality and privacy of information processed by the system. What does soc 2 stand for.