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The importance of SOC 2 Type II certification for data protectionData security has come a long way. What began as the SAS 70 audit evolved over time, taking on new iterations such as SSAE 16 and SOC 1 along the way. Today, the SOC 2 report stands as the gold standard for ensuring the safe handling of customer data by service organizations. Unlike its predecessors, SOC 2 goes beyond basic controls to establish trust in a provider’s capacity to safeguard sensitive information.

SOC 2 certification is an independent verification originally created by the American Institute of Certified Public Accountants (AICPA). It relies on five key principles: security, availability, processing integrity, confidentiality, and privacy. Each principle examines  different aspects of data management and protection. Together, they provide a comprehensive assessment of a service organization’s security posture.

This article delves into the SOC 2 audit report, exploring its benefits for both service organizations and their customers. It also dissects the five trust service principles that underpin a SOC 2 report.

What Is a SOC Report?

A SOC (System and Organization Controls) compliance report is an independent assessment conducted by a qualified auditor. It is obtained through a formal audit performed by a licensed Certified Public Accountant (CPA) or accounting firm. The report validates how a service organization manages customer data security and controls. Think of it as a report card that gives you peace of mind regarding the handling of your data.

Different Types of SOC Reports for Different Needs

A SOC 1 report is ideal for businesses that outsource financial reporting tasks. It assesses controls that could impact your financial statements.

On the other hand, SOC 2 is a broader report that focuses on the five trust service principles. Each principle addresses specific aspects of data management and protection.

  • Security : Safeguard systems and data from unauthorized access.
  • Availability : Ensures systems, products, or services are accessible when needed.
  • Processing Integrity : Guarantee data accuracy and complete processing
  • Confidentiality : Limit access to confidential information to authorized personnel.
  • Privacy : Manage responsibly the collection, use, storage, and disposal of personal data.

Both SOC 1 reports and SOC 2 Type I reports outline the controls a service organization has in place for relevant trust principles. They describe what controls exist, not necessarily how effective they are in practice.

Going Beyond Design: SOC 2 Type II for Operational Effectiveness

While other SOC reports outline control design, SOC 2 Type II takes the crucial next step. It assesses the operational effectiveness of those controls over a defined period, typically ranging from 3 to 12 months. This in-depth examination verifies whether  designed controls are functioning as intended in real-world scenarios.

A SOC 2 Type II report holds particular significance for organizations utilizing cloud services or data centers . It provides a clear picture of how your cloud provider safeguards your data. It confirms that your supplier has designed sound safety measures and consistently implemented and applied them. Essentially, it grants peace of mind, assuring that your data is protected by a system that  is proven to work, rather than merely in theory.

Why Is SOC 2 Type II Important for Software Companies?

SOC reports play a critical role in fostering trust between businesses and the Software-as-a-Service (SaaS) providers they rely on. They offer independent verification that a SaaS provider prioritizes data security and has implemented the necessary controls to effectively protect your data.

Choosing a software provider with a SOC 2 Type II certification is especially important for any organization that:

Outsource Sensitive Tasks

When you delegate critical processes or sensitive data to a SaaS provider, a SOC 2 Type II report provides peace of mind, assuring you that your data is protected by robust security practices. For companies prioritizing data security, a SOC 2 Type II report becomes a fundamental requirement when selecting a SaaS provider. It demonstrates the provider’s commitment to meeting the highest security standards.

Handle Regulated Data

If your industry has strict data compliance regulations, a SOC 2 Type II report from your SaaS provider helps demonstrate your own adherence to those standards. A SOC 2 Type II report demonstrates your commitment to robust security practices, giving you a competitive edge when attracting new clients.

Prioritize Data Privacy

Recent changes in data privacy regulations and high-profile scandals have heightened customer appreciation for companies that prioritize data privacy. Choosing a provider with a SOC 2 Type II compliance report shows a clear engagement towards responsible data management. This assurance extends to employees, patients, customers and suppliers, indicating that their data is well-protected.

Selecting a service provider with the appropriate SOC certification offers valuable assurance regarding your information security and the controls surrounding your data. At Nomadis, our dedication to information security goes beyond words. We take pride in our SOC 2 Type II certification, which signifies that our controls and processes have undergone independent verification to adhere to the strictest criteria. This rigorous audit ensures your data is protected with the most effective measures available.

For software companies, attaining SOC 2 Type II compliance is a critical step in building trust with clients and showcasing a commitment to data security. The rigorous audit readiness assessment offers valuable insights, making SOC 2 compliance a win-win for both service providers and their customers.

Ready to experience the peace of mind that comes with SOC 2 Type II certified security? Contact us today to learn more about our secure software solutions.

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