Business relationships are founded on trust, and in today’s digital world, trust around data security is especially critical. Organizations that outsource their services and handle stakeholder data need to be able to demonstrate their ability and commitment to safeguard that data on an ongoing basis.
SOC 2 audits are one of the most popular ways of affirming their compliance with industry standards and their proactive approach to data security.
What is soc2?
SOC 2 audit reports provide a reliable attestation of your organization’s security controls that stakeholders can use when assessing your security practices. Unlike SOC 1, which is tailored toward financial reporting, SOC 2 is specific to companies managing non-financial data. Conducted by an independent Certified Public Accountant (CPA) or licensed CPA firm accredited by the American Institute of Certified Public Accountants (AICPA), the audit evaluates your security measures against one or more of the applicable Trust Services Criteria set by the AICPA. To learn more about the five Trust Services Criteria and which ones may apply to your organization, check out this blog post.
There are two types of SOC 2 audits: Type 1 and Type 2. SOC 2 Type 1 examines the design of security controls at a specific point in time, whereas SOC 2 Type 2 evaluates the operational effectiveness of these controls over a period of time. Both are valuable, but the dynamic assessment provided by SOC 2 Type 2 offers more telling insight into an organization’s security posture.
We dive deeper into each type of SOC audit in our blog; SOC Audit Report Basics: The What, Why, Who and How.
Undergoing any SOC 2 audit is a great starting point for demonstrating robust data security, but the real challenge – and opportunity – lies in keeping those audits current.
the case for annual soc 2 audits
Security and compliance are continuous efforts, not one-time accomplishments. Emerging threats and advancing technologies can swiftly make even the strongest security measures outdated. SOC 2 Type 2 audits, which validate an organization’s controls over a specific period, do not guarantee indefinite security into the future.
Cybersecurity needs are constantly evolving
Threat actors are continuously devising more sophisticated ways to circumvent current defense strategies. At the same time, your own digital ecosystem is constantly in flux. Changes in cloud environments, applications, devices, users, data sharing, and storage strategies all contribute to an ever-changing attack surface with new vulnerabilities and new security requirements. Annual audits help to ensure that a company’s controls adapt and respond to this changing landscape effectively.
An increasing number of organizations are now requiring annual audits to do business
Regular SOC 2 audits have become crucial for forming and sustaining business relationships, as an increasing number of companies now demand up-to-date SOC 2 reports from their vendors and partners as a key element of their risk management strategies. By holding an updated SOC 2 report, organizations can swiftly meet these demands, ensuring they remain attractive for both existing and potential business engagements. Beyond compliance, a current SOC 2 audit is a powerful indicator of reliability and trustworthiness to investors, partners, and clients, enhancing credibility across the board.
Incorporating the audit cycle into the yearly rhythm of business enhances efficiency
Regular audits are essential for upholding security, but finding the right frequency is key. Too long between audits risks leaving your security measures outdated. But conducting them too often can detract from actual security enhancements, as resources are diverted to demonstrating compliance rather than improving it. Annual audits strike the ideal balance by ensuring security measures are up-to-date and effective while still leaving breathing room to test and develop controls during downtime. This schedule also aligns well with typical business cycles, making it easier to incorporate the stages of preparation, execution, and review into regular operations.
what's holding organizations back from annual audits?
Despite the advantages of annual audits, many organizations find them challenging to maintain consistently. The audit process is not only complex and resource-demanding, but it also requires specialized expertise that’s often beyond the scope of most in-house teams. Moreover, the substantial costs associated with these audits and the financial loss of an imperfect report may lead many to shy away from the process. This apprehension frequently results in a superficial compliance approach, neglecting the deeper aim of sustained security improvement and failing to establish a more streamlined and effective operational cycle.
enhance the opportunity of annual SOC 2 audits with the right partner
Given the specialized expertise required to navigate these audits effectively, many companies opt to partner with external vendors. This can be an excellent strategy to ensure proper preparedness and offload the complex, time-intensive tasks. However, who you choose as that partner matters. You don’t want an organization that will just come in a few weeks or months prior to the audit to check the box, only to disappear the rest of the year. To truly embrace the opportunity of the annual audits, you need a partner who is committed to compliance and security as an ongoing, collaborative project.
Avertium takes a long-term, holistic, consultative approach to SOC 2 compliance. One that lasts year-round, not just in the weeks leading up to the audit. Throughout the year, you will work closely together toward defined milestones and objectives broken down by Trust Criteria. This systematic strategy lays the groundwork for a pain-free audit process and reduces both the risk and cost of having to reconduct an imperfect audit. Even outside the active audit period, Avertium actively works to test and refine controls, utilizing their deep industry expertise to keep your security measures robust and effective.
Annual SOC 2 audits are more than a compliance requirement; they are a cornerstone of maintaining trust and security in the digital age. With the right partner, you can transform the challenge of annual audits into an opportunity for security excellence and stakeholder trust, year after year.
Learn more about our SOC 2 offerings.
