In this lesson,
we will learn about Security Organization
Control Type 2 or SOC 2.
The SOC 2 framework is an auditing process
that assesses the effectiveness
of an organization's information security controls,
either at a point in time
or over approximately a 6 to 12 month period.
SOC 2 focuses on five key trust service principles,
security, availability, processing integrity,
confidentiality, and privacy.
Its reports are critical for demonstrating
that an organization is effectively managing
and protecting data according to industry standards.
Next, a SOC 3 report is the public-facing summary
of a SOC 2 report.
Let's learn more about the SOC 2 framework,
specifically SOC 2 Type I,
SOC 2 Type II,
and SOC 3 reports.
The SOC 2 framework is designed
to ensure that companies,
especially those offering technology
or cloud-based services,
handle customer data securely.
The SOC 2 framework was developed
by the American Institute of Certified Public Accountants
and focuses on five main categories
called the trust service criteria.
The trust service criteria includes security,
which ensures the system is protected
from unauthorized access,
availability, which checks if the system
is reliable and available when needed,
processing integrity,
which makes sure that the data
is processed accurately and completely,
confidentiality, which ensures
sensitive information is protected,
and privacy, which covers how personal data
is collected, stored, and managed.
The SOC 2 framework offers two types of evaluations
for organizations, SOC 2 Type I,
and SOC 2 Type II.
The SOC 2 Type I evaluation
assesses the design of an organization's controls
for managing sensitive customer data
at a specific point in time.
For example, consider a company
that stores customer data.
A SOC 2 Type I evaluation
examines whether that company has systems in place
to protect their data,
such as encryption and access controls.
SOC 2 Type I evaluations take a snapshot
of the security measures and checks
to see if they are properly designed
to meet the trust service criteria.
However, a SOC 2 Type I evaluation
does not check whether these systems
work consistently over time,
just that they exist
and are set up correctly
at the time of the evaluation.
For a more comprehensive evaluation,
SOC 2 Type II evaluates not only the design
of the controls, but also their operational effectiveness
over a period of time, typically 6 to 12 months.
For instance, if the same company
claims to use encryption and monitoring systems,
the Type II evaluation would look
at whether those systems functioned correctly
and protected data throughout the entire evaluation period
of 6 to 12 months.
So if the company says it's monitoring
for unauthorized access,
the Type II report would confirm
that its controls were consistently in place
and effective during the entire evaluation period.
Next, let's discuss a SOC 3 report.
A SOC 3 report is a simplified public version
of the more detailed SOC 2 reports.
It's designed for organizations that want to show clients,
customers, or the public that they have strong security
and data protection practices in place,
but without revealing all the technical details
of their evaluation.
Unlike SOC 2, which is meant for internal
or detailed accounts,
SOC 3 reports provide a high level overview
of the organization's controls related to security,
availability, processing integrity,
confidentiality, and privacy.
This makes it easier for businesses
to share their SOC 3 report
with potential customers or partners
to demonstrate their commitment to data security.
A SOC 3 report is a great way for companies
to provide reassurance and transparency
to anyone interested in their data protection practices.
So remember, the SOC 2 framework is an auditing process
that evaluates an organization's ability
to manage and protect data across five key areas,
security, availability, processing integrity,
confidentiality, and privacy.
SOC 2 Type I reports
assess the design of these controls
at a specific point in time.
SOC 2 Type II reports evaluate
the operational effectiveness of these controls
over a period of approximately 6 to 12 months.
SOC 2 Type I, and SOC 2 Type II reports
are critical for companies,
especially in the technology
and cloud service sectors,
to prove that they meet industry standards
for data protection.
A SOC 3 report is a simplified public-facing version
of a SOC 2 report designed to provide
a high-level overview
of the organization's security practices
without diving into technical details.
SOC 3 reports are often shared with clients
and partners to demonstrate a company's commitment
to data security in a more accessible format.