5 Steps to Prepare for SOC 2 Examination Success

Although undergoing a SOC 2 examination is not a mandatory security framework and as such, is not a legal or regulatory requirement for every business, it is often considered a necessity for companies. This is especially true for organizations that regularly store customer data and handle sensitive information.  

With SOC 2 remaining a mainstay in compliance for decades now, organizations may feel comfortable going into their assessments under the impression they are on the road towards obtaining a “clean report” (an unqualified opinion). However, they may be faced with unforeseen compliance roadblocks and avoidable pitfalls. Thankfully though, there are measures that can be taken to ensure your organization has proactively prepared for SOC 2 examination success. In any case, the benefits of obtaining a SOC 2 report are well worth the required efforts.  

The Benefits of a SOC 2 Report 

Undergoing a SOC 2 examination demonstrates your organization’s commitment to security and data integrity, supplying customers with confidence in your internal controls and safeguards to protect their data and privacy.  

The SOC 2 framework provides several additional benefits that can enhance your business operations, including: 

1. Improved security posture  
   Adhering to SOC 2 Trust Services Criteria ensures robust security controls are practiced, reducing the risk of data breaches and protecting customer data and privacy. It provides assurance to customers, vendors, and partners that your systems are secure 
   
   
2. Enhanced operational efficiency
   In your SOC 2 assessment, you may discover internal control vulnerabilities and areas for improvement which when addressed, enhances operational efficiency. It also promotes a culture of security awareness within your organization. 
   
   
3. Compliance with industry-specific standards  
   Meeting SOC 2 Trust Services Criteria positions your organization for success facing other industry-specific compliance regulations such as HIPAA, ISO, HITRUST, and others. 
   
   
4. Increased customer confidence  
   Obtaining a SOC 2 report demonstrates your organization’s commitment to practicing robust security measures. It allows you to build confidence and trust with customers and credibility with prospects while strengthening business retention and growth.    
   
   
5. Brand and reputation protection  
   By undergoing a SOC 2 examination, you take necessary steps to implement the appropriate control procedures that help protect your brand from being associated with data breaches and damaging security incidents that otherwise have the potential to bring devasting impacts to your reputation.
    
6. Competitive Advantage
   Having a SOC 2 report differentiates your organization from competitors who lack third-party security validation, which can be a key requirement in winning new business. Furthermore, it has become the standard for many companies to expect and require vendors to have a SOC 2 report, so much so that they won’t consider engaging with vendors who lack one. 

The Importance of SOC 2 Audit Preparation 

Given its numerous benefits and reputation as being a standard benchmark for data security and privacy, undergoing a SOC 2 examination is a clear choice for many companies. However, achieving it can be a challenging endeavor. It demands a comprehensive evaluation of the effectiveness of the current security controls in place, which can be both time-consuming and costly, depending on your organization's size and complexity. As such, thorough preparation and a strong understanding of the SOC 2 framework are required to ensure a smooth and successful audit experience. 

Proper preparation allows an organization to identify and address potential gaps in existing security controls, reducing the risk of delays or non-compliance findings and significantly increasing the chance of a successful audit outcome. It allows organizations to proactively implement necessary improvements before the audit begins, ensuring all policies, procedures, and technical controls align with SOC 2 requirements. By taking the time to prepare, businesses can also streamline evidence collection and reporting, making the audit process both more efficient and less disruptive to daily operations.  

How to Prepare for SOC 2 Examination Success in 5 Steps 

Here are five actionable steps to help your organization better prepare for a successful SOC 2 examination: 

1. Determine the Scope of the Engagement

When determining the scope of your SOC 2 report, define the systems, processes, services, and commitments that should be included. Key components of SOC 2 are your principal service commitments. Principal service commitments are the promises an organization makes to its broad base of customers and stakeholders regarding the security, availability, processing integrity, confidentiality, and privacy of its services. These commitments are typically outlined in contracts, service-level agreements (SLAs), privacy policies, and/or public-facing documentation. They represent the organization’s obligations to protect customer data and maintain system reliability, aligning with the Trust Services Criteria evaluated in a SOC 2 report. 

2. Understand the Trust Services Criteria

Experience has shown that the best way to reach an effective solution is by considering the needs of customers and other interested third parties. First, communicating and determining the information the user organization will want, need, and expect should help determine the best Trust Services Criteria (TSC) to select. Also, service organizations must look at their control environment and identify which TSCs are applicable based on their broad base of customers. Oftentimes an organization or the interested third-party will request specific TSCs, however, after reviewing the criteria, the organization’s business processes, and the control environment, the TSC(s) would not even be applicable in the environment. For example, a cloud service provider most likely wouldn’t need to focus on processing integrity, but it is vital for a payroll provider. 

3. Determine Preparedness

Once you understand your principal service commitments and different TSCs, consider your options and preparedness prior to determining how to proceed. If the environment to be examined is relatively new and has never been through an audit, it might be best to start with a readiness assessment and/or Type 1 examination and then move to a Type 2 examination. Be mindful of the examination date and examination period as they relate to Type 1 and Type 2, respectively. 

4. Identify Key Personnel within the Organization

5. Contract and Start Planning

To ensure an effective and successful examination experience, it is an important necessity to perform due diligence when selecting your service auditor. You should consider speaking with at least three different prospective firms and confirm they have:

• The proper licensing and credentials to operate in the state(s) that your services are located 
• Skilled and credentialed personnel 
• A cohesive fit overall with your organization  

Remember, the least costly firm is not always the best option and choosing the wrong auditor can lead to an inaccurate assessment of your organization. With an unreliable or misleading report, you risk missing and correcting damaging security gaps, leaving you vulnerable to cyberattacks, data breaches, and other avoidable security incidents. Contracting the right service auditor ensures a comprehensive audit experience resulting in an accurate report that demonstrates your security posture and practices. 

Questions to ask service auditors before selecting one:

• How many SOC 2 engagements have you performed as a company? 
• How many SOC 2 engagements have been performed for other companies in your industry?
• How much experience do your personnel have in performing SOC 2 engagements?
• How do you provide pricing? 

Following these preparation steps and landing a properly planned engagement with an experienced audit firm will help ensure your SOC 2 examination be successful. 

Starting Your Journey Towards Obtaining a SOC 2 Report 

To learn more about Schellman’s SOC 2 Compliance Attestation services and how we can assist you in your journey towards obtaining a SOC 2 report, contact our specialists today.  

In the meantime, discover additional insights about SOC 2 examination preparation in these helpful resources:  

• 4 Common SOC 2 Challenges Organizations Face 
• What to Expect from a SOC 2 Readiness Assessment 
• How to Perform a SOC 2 Risk Assessment