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Importance of SOC 2 Type 2 Audit and ISO 27001 Certification

In this digital world, the cyberattack is the most common and easy way to steal data, and a breach in data can be dangerous for the data handler as well as the breach of the privacy of the individual that has submitted his data to any organization. The organization which holds sensitive data requires the services of those organizations that safeguard their data against any cyber-crime. The organization must hold Software-as-a-service (SaaS) and be certified from SOC 2 Type 2 Audit Compliance and ISO 27001 certification.

Getting SOC 2 Certification by an accredited organization builds a sense of trust between customers that the company holding their data manages to keep all aspects of security to safeguard the data of their precious client. The client remains in peace of mind against any security threat posed by a group of hackers or cyber thieves that the organization is following the strict cyber security protocols to keep their data safe and secure. The ongoing compliance with SOC 2 Type 2 Audit and ISO 27001 certification is a demanding process by organizations, but we have to believe the demanding process of the third-party organization to provide the certificate of the SoC 2 Type 2 Audit.

What is SOC 2 Audit?

SOC stands for “System and Organization Control” and it was created and developed by the American Institute of Certified Public Accountants (AICPA) to make way to address growing concern over data privacy and protection. A SOC 2 report is designed in such a way to audit the process and controls of the service provider’s organization that stores customer data in the cloud server.

 A SOC 2 audit is done by an independent third-party organization that reviews and tests everything of an organization like non-financing reporting controls as they are related to security, availability, processing integrity, confidentiality, and the privacy management of the system.

What does SOC 2 require?

The SOC 2 Audit has two levels of inspection. SOC 2 Type 1 Audit requires taking control that goes in line with five trust factors provided by the AICPA.

The five factors are as follows: -

Security: The protection of the information at the collection and creation, use, processing, transmission, and storage and protecting the system used for processing the electronic information to make the entity complete its objective.

Availability: All the information and the system used in the maintenance of the data are available for processing operation and monitoring by the concerned authority.

Processing Integrity: This term is used for the completeness, validity, accuracy, timeliness, and authorization of the system processing.

Confidentiality: Confidentiality refers to the protection of the information that is termed as confidential from its collection and creation to the final disposition and removal of the data.

Privacy: Privacy is the key in every organization as it ensures the use of the personal information that is collected, used, retained, disclosed, and disposed of in line with the privacy policy drawn by the organization.

An SOC 2 type 2 goes a step ahead by allowing a third party to monitor and test the process that how well an organization is doing to control work over a certain period. The certification process in SOC 2 type 2 Audit from a third party usually takes time from six months to one year.

What is ISO 27001?

ISO 27001 is the internationally acclaimed standard that specifies the requirements of the things in ISMS (Information Security Management System).  ISO 27001 is the cornerstone of effective information security risk management.

ISO 27001 demands from the organizations are doing and checking systematically the organization’s information security lapse, making note of all the threats, vulnerabilities, and impacts. To create and implement all aspects of security threat from all angle that is deemed unacceptable. Adopt an overall security management system to counter any threat or breach of security in the organization system of information security controls.


Accorp Partners is the leading and qualified financial advisors and handles all types of SOC audit and SOC reporting like SOC 2 audit, SOC 2 Type 1 Type 2 audit, ISO 27001, SOC 1 audit, SOC 2 certification. Do check our website to find more about investing rules and regulations in different companies.

2022-01-21 02:36:00

What You Need To Know About SOC 1 Type 1 Type 2 Audit?

At many times, it may appear like your responsibility as your company’s manager — in its diverse and assorted aspects— never finishes. The rush and growth of technology related with compliance and inspecting may clasp somewhere between “a boon and bane” in your calculation, and that is as right in your duties with SOC 1 Audit or SOC 2 Audit as in any other work or method that you direct. Although, when we will talk about prime financial reporting for your clients, SOC is an important equipment to retain everyone liable and preserved.

What are the Major Advantages of the SOC 1 Report?

These are the main focal things of SOC 1 Report:

It assists to verify that you are performing your job to ensure your service organization manages absolute and frequent compliance when it is about standards, rules, and movements.

Each SOC auditing and SOC reporting company provides its own distinct “seal of importance” to SOC 1 audit, SOC 1 Type 1 Type 2 audit beneficiaries with uncertified audit opinions. Such executive augmentation and clarity can assist grow your stakeholders’ and clients’ reliance on your company, making good communication that takes to robust and long-term professional connections.

SOC 1 Type 1 Audit

Technologically known as a “Management’s Description Report of a Service Organization’s System and the Suitability of the Design of Controls,” the SOC 1 Type 1 audit provides you, operating as the user spectator, the chance to perform hazardous risk assessment methods to study whether you can gain the associated control purposes on a particular date. The report also gives a brief of your company's system and how it works to acquire the objectives you set to fulfill your customers. With the SOC 1 Type 1 audit report, you also get the suggestion on the impartiality of your management and the design of the controls.

SOC 1 Type 2 Audit

The SOC 1 Type 2 audit includes all the similar info as the SOC 1 Type I audit have, but it incorporates in a divergent element. The SOC 1 Type 2 audit inscribed the development and testing of the authorities over a certain interval of time, which is most over six months, as against to the particular date used in a SOC 1 Type 1 report. It also displays the testing executed and the outcomes. This type of SOC 1 report is far more meticulous and thorough than SOC 1 Type 1 audit, as it covers a longer period of time and needs that your spectators to do a more comprehensive and detailed investigation of your system’s structure and methods.

How are SOC 1 Type 1 Type 2 Audit Reports Related?

The first similarity is that both SOC 1 Type 1 Type 2 reports cover major challenges in your organization’s control related to the specific control objectives. They give essential information to your organization and the systems its serves about control design and progress toward certainty objectives.

Second, if authorized, any SOC 1 auditing and outcomes abide rigidly between your service organization, user authorities, and user auditors.

Difference Between SOC 1 Type 1 Type 2 Audit Reports?

As profitable as SOC 1 reports are, the distinct types of these SOC audits (Type 1 and Type 2) lead to cause hesitation for many IT experts. If you fight to differentiate the precise definition between the two SOC 1 Type 1 Type 2 Audit, take some time to learn closely about each type of SOC 1 report before getting into it.


At Accorp Partners, we can make the process convenient for you and your diligent company until you all comprehensively know the differences and advantages to handle on your own. We are providing financial advisor and accounting services including USA incorporation, HIPAA Compliance, SOC 2 Certification, FDI, and many more. Get in touch with our professional and experienced chartered accountants to understand all SOC 1 audit compliance.

2022-01-21 02:32:17

What is HIPAA Compliance? HIPAA Laws & Rules

The Health Insurance Portability and Accountability Act (HIPAA) puts the standard for diplomatic patient data security. Organizations that manage protected health information (PHI) must set physical, web, and operate security parameters in place and obey them to maintain HIPAA Compliance. Secured companies (anyone offering treatment, transaction, and operations in health protection) and business connections (anyone who has the right to patient data and gives service in treatment, revenue, or operations) must converge HIPAA Compliance. Other companies, like small business partners or any other business associates, must follow HIPAA compliance.

Requirement of HIPAA Compliance

HHS (Department of Health & Human Services) says that as health care service providers and other companies handling PHI upgraded to digital operations, involving Electronic Health Records (EHR), Computerized Physician Order Entry (CPOE) management, radiology, pharmacy, and other management, HIPAA compliance is very significant than ever. Likely, health care plans offer rights to claim as well as care system and self-service requisition. While all of these digital processes offer increased effectiveness and strength, they also substantially increase the safety risks of meeting healthcare data.

Data Protection for Healthcare Organizations

The requirement for data privacy has enhanced with the rapid growth in the use and distribution of digital patient information. Nowadays, high-standard care needs healthcare companies to level this boosted requirement for data while following a HIPAA set of rules and protecting PHI. Getting a data protection plan in place permits healthcare entities to:

- Make sure the privacy and accessibility of PHI maintain the belief of medical practitioners and patients

- Meet HIPAA Compliance for right, inspection, ethics controls, data sharing, and device privacy

- Keep high visibility and management of confidential data all over the organization

The best data privacy techniques consider and safe patient information in all aspects, including organized and unorganized data formats, emails, contact numbers, and documents, while permitting healthcare organizations to share data privately to make sure the best viable patient care.

Data Breaches Under HIPAA

As we suggested to prior, a data breach doesn’t importantly need to be an outer hack. Under HIPAA Compliance, a data violation is usually unsanctioned workforce or people examining Protected Health Information when they should not. It might be a destructive cyberattack structured to snatch PHI, it’s also any secured organization accessing or going through PHI in a time or way when they shouldn’t do this.

HIPAA says a data violation is “the possession, right, use, or opening of protected health information in a way not allowed which includes the security or privacy of the safest health care data.” To restrict data violation, organizations will have a strong network security system to keep breaches away, as well as an absolute internal security parameter.

Considering Usual HIPAA Violations

We’ve covered a few usual outlines of where HIPAA breaches happen, however, companies will have to teach in themselves multiple situations and cases that can activate any violation.

Here are a few general reasons that can lead to a HIPAA violation:

- Snatching of tool that contains PHI

- Hacking, virus, or malicious software

- Sending PHI to the unauthorized individual or community

- Disclosing PHI at a public place

- Sharing PHI on social media platforms


HIPAA was generated to verify patient or customer PHI data and information stays private. The parameters that HIPAA needs are developed to assist your company or organization take all the right actions to save healthcare information.

While HIPAA compliance may appear intimidating, a step-by-step procedure can help you complete it efficiently. If you find it very complex, make sure to consult with the financial advisors, i.e., Accorp Partners. At last, you should connect with a professional HIPAA compliance associate to verify everything on your HIPAA checklist — from the implementation of HIPAA Compliance to maintenance — gets verified properly.

2021-12-13 02:42:21

What is the difference between SSAE 16 and SSAE 18?

Nowadays, many companies are bothered by the technical and security control applications used by third-party providers/suppliers. Corporates are demanding liberated audits of the IT and security control parameters of their third-party companies. In many situations, they are asking for some type of SSAE-16 audit or an SSAE-18 audit.

What is SSAE 16 Audit?

SSAE 16 audit is the Statements on Standards for Attestation Engagements no. 16. It offers a set of conditions and advice for documentation reporting on administrative controls and actions at service organizations. Audits using SSAE 16 usually outcome in (System and Organizational Control) SOC 1 reporting. Unlike prior standards, SSAE 16 audit needs written documentation from a service company’s governance, declaring that its explanation perfectly displays organizational controls, system goals, and operational activities that influence customers. SSAE 16 audit was succeeded by SSAE 18 audit in 2017.

What is SSAE 18 Audit?

SSAE 18 audit is the ongoing set of rules and guidance for reporting on a company's management and processes at service firms. It replaces SSAE 16 audit and is deliberated to update and clarify a prior set of standards. Like SSAE 16 audit, SSAE 18 audit is also used in SOC 1 reports, however, also in SOC 2 reports and SOC 3 reports, which were earlier directed under AT Section 101. Among other replacements, SSAE 18 audit also requires that service organizations recognize subservice firms and offer risk audits to SOC auditors.

SSAE 16 Audit vs. SSAE 18 Audit

SSAE 16 18 Audit and SOC have repeatedly been used conversely, and the audience discusses SSAE 18 reports and SOC 1 audits. But the two are different, and it’s necessary to realize the variance.

SSAE 18 — SSAE is the Statement on Standards for Attestation Engagements no. 18. As the name shows, it talks about standards and guidance for accomplishing attestation arrangements. These are the standards and methods CPAs go after when conveying out SSAE 18 audits.

SOC Report is the System and Organization Controls Report. It is the audit or report that CPAs generate after directing an attestation engagement under the SSAE 18 set of standards. Thus, SSAE 16 18 audits denote the standards, and SOC refers to the report.

In 2016, the Association of International Certified Professional Accountants upgraded the Statement on Standards for Attestation Engagements No. 16 SSAE 16 audit to No. 18 SSAE 18 audits. This transform was made to clarify and intersect attestation standards related to SOC 1 audits. SSAE 18 audit has also been enlarged to cover more kinds of SOC reports, whereas SSAE 16 was restricted to only SOC 1 reports.

How to move to the New SOC 1 Audit?

The very initial thing all companies should perform in order to get ready for the movement in the SOC 1 audit standard is to do an official risk assessment. Accorp Partners is assisting organizations to complete this by providing our expertise and resources to ease the SOC audit for them. There are also many resources handling risk assessment and equipment to assist you to get started with reporting your own.

The next thing service organizations should perform in arrangements for the new SOC 1 audit is to start vendor compliance administration. When we talk about managing your vendors, organizations must question themselves what those challenges are that your dealers or suppliers present to your company and the services you depend on them to offer. Accorp Partners is here to assist you with all SOC compliances and SOC 1 audits, SOC 2 audits, SOC reporting, and many more that service organizations are preferring to maintain and monitor vendor compliance.

If you have any queries related to the updates to SOC 1 audit, contact our financial advisors.

2021-12-10 05:25:09

Why ISAE 3000 Audit is Significant for Your Business?

The variation between ISAE 3000 3402  audit is that ISAE 3402 audit & report covers a service company's internal managements that are most probably authentic to a user company's internal operation over financial reporting, the ISAE 3000 level covers independent assurance engagements other than inspects or reviews of previous financial data. The ISAE 3000 audit can be used to convey a suggestion on a service organization’s security, accessibility, and privacy of the information as well as the processing integrity of the organization's management.

Under the ISAE 3000 audit, it is possible to manifest a suggestion on all the above SOC 2 audit factors (i.e., security, availability, privacy, and processing integrity) or on only specific or more factors. For instance, a suggestion can be conveyed on only privacy. A viewpoint can also be demonstrated on only security like compliance with ISO 27001.

There is some uncertainty between ISAE 3000 SOC 2 audit and ISO 27001 so that PwC currently introduced a report that describes the divergence between the both. ISO 27001 has long been seen as the standard in data security but the coming of the SOC 2 audit has released new sheets in data and info security guarantee. ISAE 3000 SOC 2 is explained by PwC as ‘permitting for the examining of the operational efficacy of security managements over a phase.

What IS ISAE 3000 Audit SOC 2?

If a company, like Accorp Partners, is ISAE 3000 SOC 2 authorized, then you are reliable in auditing and compliance with the five main factors of Security, Availability, Processing Integrity, Confidentiality, and Privacy. These aspects have been progressed in adjustment with the requirement for security – this is one of the factors that are compulsory– and to make sure that companies are offering formal documentation at the conclusion of the audit activity. It’s more than only the authorization of compliance provided by ISO 27001.

The ISAE 3000 SOC 2 report usually verifies that any service company that you collaborated with has followed with the needs and maintains your data safe and secure. This results that any data or information you assign to a service organization with this formal documentation being managed to the highest levels of security, compliance, and privacy.

Moreover, ISAE 3000 3402 SOC 2 certification offers you assurance in a challenging world. And that’s the thing which every company demands.

SOC 1 & 2 Type 1 and Type 2 Audits

Both the ISAE 3402 (SOC 1) and ISAE 3000 (SOC 2) levels permit for the proclaiming of two types of SOC reports:

SOC Type 1 Report

This SOC 2 report exhibit a recommendation on only the structure and introduction of internal controls. For example, a design carelessness directs to the lack of dominance or a badly designed control or deficient execution. The SOC Type 1 audit is usually issued the first time when a utility organization hasn’t found a SOC 1 audit or SOC 2 audit earlier.

SOC Type 2 Report

This SOC 2 Type 2 report exhibit an opinion on not just the plan and execution of internal authorities, however, also the potential of controls – e.g., control impotence directs an existing (well organized and executed) control that doesn’t gain its control goals; i.e., it is not working and gaining its aims as an organization has evaluated it to do.


To search out more for ISAE 3000 3402 Audit and SOC 2 Report, get in touch with our professional accountants. We will help you plan your needs, give you solid insights that will assist your company to assess the authority in your organization.


2021-11-25 00:12:15

5 Step Guide to Getting SOC 2 Certification

A SOC 2 audit may appear menacing, but corporates can take action to create the method easier and efficient. Many businesses and startups are familiar with the word “audit” and hold—even the plan of an audit demands the number of hours following down filing and digital verification, making company alterations, and many days of work. While a SOC audit may come across as overwhelming at the start, companies can take action to build the process aerodynamic, smooth, and effective.

One of the most normal audits that service companies use is a (System and Organization Controls) SOC 2 audit, which targets to make sure that the company workers have ample controls to maintain customer data and information. Fulfilling the AICPA’s (American Institute of Certified Public Accountants) SOC 2 processes can look a bit distinct for every company, and businesses must gain a report from a Certified Public Accountant company like Accorp Partners to document the evidence. We have discussed five major steps to begin the SOC 2 audit compliance.

What is SOC 2?

SOC 2 is one of the most in-demand standards in safety and consent. SOC audit encircles everything from how you manage your internal systems, to HR activities like operating job interpretation and enlisting new employees.

SOC 2 displays the highest level of greatness in systems and management control. A company can go after SOC 2 certification in many areas of their company– Safety & Security, Availability, Processing Authenticity, Confidentiality, and Privacy. In SOC 2 Audit, these terms are known as trust factors.

There are two types of SOC Reports:

SOC Type 1 Audit describes a trader's management and whether their structure is appropriate to match relevant trust factors.

SOC Type 2 Audit features the operational success of those managements.

SOC 2 Certification

SOC 2 certification is provided by external accountants or bookkeepers. They examine the area to which a trader follows with one or more of the five trust factors based on the operations and processes in the company.

Trust aspects are mentioned below as follows:

1. Security

The security factor is all about the safety of management information and resources against the unsanctioned attempt. Access controls assist in stopping potential system exploit, threat or unauthorized deletion of data, dissipate of the operating system, and unbalanced change or revealing of company's information.

IT safety and security tools such as network and WAFs, two-factor verification, and withdrawal observation are beneficial in averting security threats that can process uncertified access of data and information.

2. Availability

The availability factor led to the readiness of the system, goods, or services as specified by an agreement or SLA. As such, the least acceptable performance standard for system accessibility is fixed by both associations.

This aspect does not direct system features and advantages, although, does involve safety and security-related processes that may influence accessibility. Operating network usability and availability, site redundancy and security event handling are expository in this condition.

3. Processing Integrity

The processing integrity factor directs whether or not management gains its objective (i.e., delivers the right information at a suitable price at the best time). Therefore, data processing must be finished, reasonable, perfect, promptly, and recognized.

But processing integrity does not importantly infer data robustness. If data accommodate issues before being input into the management, finding them is not generally the accountability of the processing system. Operating of information processing, integrated with standard assurance processes, can assist ensure processing integrity.

4. Confidentiality

Data is contemplated sensitive if its right and revelation are limited to an identified group of individuals or companies. Cases may involve data deliberated only for firm personnel, as well as business ideas, conceptual property, private price lists and other kinds of confidential financial processes.

Data encryption is a significant operation for preserving confidentiality while data transfer. Network and application firewalls, together with diligent controls, can be used to protect data being handled on operating systems.

5. Privacy

The privacy principle defines the system’s accumulation, advantages, detention, revelation and disposal of individual information in resemblance with a company's private information, as well as with the process described in the AICPA’s generally accepted privacy principles (GAPP).

Some individual information related to well-being, race, gender and caste is also observed sensitive and normally needs an extra defense.

Getting Started on SOC 2 Compliance

Companies starting the SOC 2 audit and SOC 1 Type 1 Type 2 Audit process for the initial time will come out with the five principles above. By considering and managing controls, acquiring into form internally with regard to terms and procedures, getting ways to brutalize the audit procedure, and joining groups with a genuine partner, the company or organization will get SOC 2 certification, get in touch with the Accorp Partners accountants to consult about your business.

2021-11-21 22:57:24

How regular you are required to perform a SOC 2 Audit

How regular you are required to perform a SOC 2 Audit

Typically speaking, (and whereas there's no onerous and quick rule), SOC two reports needed annually from service organizations as validation that their controls are designed and operating effectively. The once a year rule has been the agreement in this if you conduct your initial SOC two audit in year one, then or so twelve months later, a service organization ought to give one more report on the operative effectiveness of their controls. It’s a yearly method, as a result of meant users of a SOC two report (i.e., clients, prospects, etc.) can wish to achieve assurances of a service organization’s management atmosphere on a yearly basis – at a minimum.

Things to understand regarding SOC 2 Reports

Initiate with a Scoping & Readiness Assessment. It’s basically necessary to perform associate direct scoping exercise for decisive project scope, gaps that require to be corrected, thirdparties that reaching to be enclosed within the audit, and far additional.

Remediating deficiencies in policies and procedures, security tools and solutions and remediating deficiencies in terms of operational problems. Together, these 3 areas will take time – absolute confidence regarding it

Documentation is critically necessary. After we talk about documentation, we’re talking regarding policies and procedures that require to be in situ. Suppose access management, information backup, incident response, modification management, and far additional. Does one have policies and procedures in situ for these areas – if not – you’ll have to be compelled to begin documenting them, and now.

Here's a short-list of knowledge security policies and procedures you’ll would like for changing into – and staying – SOC two compliant:

     1. Access management policies and procedures

     2. Data retention and disposal policies and procedures

     3 . Incident response policies and procedures

     4. Change management policies and procedures

     5.  Contingency designing

     6.   Wireless Access

      7.  Usage policies

Security Tools and Solutions can have to be compelled to be no inheritable. The AICPA SOC framework is changing into additional technical of late that means that variety of security tools and solutions needed for SOC two compliance. Suppose File Integrity watching (FIM), Two-Factor Authentication (2FA), Vulnerability scanning, information Loss hindrance (DLP) and additional. This needs associate investment in each time and cash that several service organizations unaware of till they start the method.

Continuous watching of Controls is essential. There’s an idea known as “continuous monitoring” that’s in situ and it means that somebody must take possession of assessing one’s internal controls on an everyday basis. If not, once the auditors re-appear for the annual SOC two audits, management deficiencies might have arisen – one thing you are doing not wish.

It’s associate Annual method. Finished your initial SOC two audit – congratulations – however detain mind that as a service organization, you’ll be expected to endure associate annual SOC two compliance assessment

We believe, that the article what have enhance your understanding of the SOC audit performance. Please reach out us if you still have any queries or for any further information.


2021-11-06 06:14:16

SOC 2 for Startups

Security has been an all-time concern for the business organizations which has become more significant in rapidly changing technology world with increasing reliance on the cloud infrastructure. With growing security number of vulnerabilities, it is important to stay compliant and protect your organization from any security threats irrespective of the size of your organization.

One might think that it’s easy to obtain a SOC 2 report for a startup due to its small size, limited locations and limited number of applications. However, startups may miss on key things like elaborated policies & procedures, mature change management processes, addressing incidents in a timely manner which are important from a compliance perspective.

In this blog we will talk about why a SOC 2 compliance is important for small organizations like startups and how it can help them build a mature and robust control environment.

Following are key aspects to be taken care by a startup when planning for a SOC compliance

Starting with Scoping & SOC Readiness Assessment

The first step for a startup when planning for SOC 2 assessment is scoping & readiness assessment. This will help you obtain an end to end understanding of the SOC 2 auditing process and the intermediary phases. Following are the key points covered during a readiness assessment:

Brief overview of the AICPAs SSAE18 attestation standards and the SOC 2 framework

? Assessing the internal control, policies, procedures, and processes, and identify any gaps need that may need to be fixed before getting into an actual SOC 2 audit.

? Deciding the scope of audit including the business processes to be covered, people who will be involved, physical locations to be covered and any third-parties to include within the scope of the audit

? Preparing an engagement plan for the audit to ensure timely completion of SOC engagement

Correcting the Documentation

Startups tend to have less number of people performing a wide range of tasks, one often may find that people are more focused on business activities and may not have developed the standard set of policies and procedures (information security and operational policies). Below are some of the key policies to be taken care of:

? Logical and Physical access policies

? Application change management procedures

? Financial data backup policies and procedures

? Incident management policies and procedures

? Acceptable usage policies and procedures

Accorp also offers a service for developing your key policies and help you prepare for the SOC audit.

Fixing Security and Operational Areas

After you have your standard policies in place, it’s time to implement them and make sure that the IT systems are aligned with the standards documented in the policies. It’s important to devote time in remediating and putting in place the security and operational measures that have been found during the actual SOC 2 scoping & readiness assessment. Following are few the implementation measures to be considered:

? Reconfiguring the IT infrastructure

? Implementing two-factor authentication solutions

? Implementing vulnerability scanning and application monitoring tools

? Setting up data encryption and security solutions

? Conducting security awareness trainings

? Testing the incident response plan

Apart from the above mentioned, you can also consider implementing any other solutions that may be required to bridge the gaps identified during the readiness assessment.

Performing a demo

By this step, we have remediated any identified gaps in Step 1 with a SOC 2 scoping & readiness assessment. It’s now time to perform an official “dry run” before the actual audit starts. The best way is to follow the AICPA SOC 2 standards (SSAE18) and evaluate your internal controls and policies, procedures, and processes against the applicable Trust Services Criteria. Once you are confident enough, you are good to go ahead and get into an engagement with a CPA firm for performing the actual SOC 2 audit.

Expectations from the Audit

Generally auditors send out a standard list of deliverables for the audit. Many auditors refer to this as a PBC List (A “Prepared by Client” list of items). A fair number of these items will be asked to be provided to auditors prior to showing up onsite, just so they can get a better idea of your internal controls and relate processes.

Further, auditors look for the following types of evidences:

Policies and procedures: Having well-written information security and operational documentation is key to the success of your overall audit as mentioned earlier

Screenshots of system settings: Expect to provide screenshots of various system settings, such as server configuration, software versions etc

Proof of operational evidence: Auditors will request materials that can validate you have performed an annual risk assessment, performed security awareness training and tested your incident response plan

Interviews: Auditors will often spend a considerable amount of time interviewing personnel for finding out more about their roles, responsibilities, and related processes

Signed memos: Auditors will often ask you to document a control via a signed memo

Last but not the least, communication with your auditors is absolutely key to the success of your SOC 2 audit. Don’t make assumptions as the auditors are just doing their jobs. It’s important to be transparent with them at all times.


Since, majority of the software companies are making use of cloud solutions to store customer data. SOC 2 is one of the most important and sought after security compliances to go for. Getting SOC 2 certification for your company will not only increase credibility and trust, it will also produce security benefits that will help the organization to become mature.

Please contact us if you would like to know more about data security or need any help to perform a SOC/ GDPR certification for your organization.

Visit our website or visit to read more articles related to SOC reporting.




2021-01-20 05:33:55

SOC 2 vs. PCI DSS Compliance

In the er? ?f rising te?hn?l?gies ?nd in?re?sing de?enden?ies ?n netw?rk systems, ?n-line inf?rm?ti?n se?urity ??uld be ? m?ssive ??n?ern f?r ?ny individu?l/?rg?niz?ti?n, ??rti?ul?rly th?se wh? s?ur?e their key business ??er?ti?ns t? third-??rty sh???ers (su?h ?s S?ftw?re-?s-?-Servi?e ?l?ud-??m?uting ?r?viders). ?ny event ?f kn?wledge mish?ndling, ??rti?ul?rly the inf?rm?ti?n with ???li??ti?n ?nd netw?rk se?urity su??liers, will reve?l vulner?bilities resulting in inf?rm?ti?n thieving ?nd m?lw?re mis??ndu?t.

M?ny ?rg?niz?ti?ns ?re unsure ?n the distin?ti?n between ? S?? 2 (System ?nd ?rg?niz?ti?n ??ntr?l) re??rt ?nd ??I DSS (??yment ??rd business kn?wledge Se?urity St?nd?rd) ??m?li?n?e. H?wever, the tw? might h?ve ?verl???ing ?re?s ?f f??us, they're quite ??m?letely different. ? ??I DSS ??m?li?n?e is restri?ted t? businesses th?t settle f?r ??rd ??yments ?nd S?? 2 ??vers ? br??der v?ry ?f ?rg?niz?ti?ns th?t h?ld, st?re, ?nd/?r meth?d ?lient d?t?. Neither st?nd?rd is required by l?w, but n?n-??m?li?n?e with either ?ne h?s ??nsider?ble ??nsequen?es.

S?? 2 Re??rting

S?? 2 re??rts ?re ??m?rehensive reviews ?f y?ur ?rg?niz?ti?n’s d?t? se?urity ??ntr?ls, in line with the st?nd?rds determined by the ?meri??n Institute ?f ?ertified ?ubli? ????unt?nts (?I???). The trust servi?es ?riteri? ?f the S?? 2 ?re derived fr?m five Trust Servi?e ?riteri?:

Se?urity: Inf?rm?ti?n ?nd systems ?re ?r?te?ted ?g?inst un?uth?rized ???ess, un?uth?rized dis?l?sure ?f inf?rm?ti?n, ?nd d?m?ge t? systems th?t ??uld ??m?r?mise the ?v?il?bility, integrity, ??nfidenti?lity, ?nd ?riv??y ?f inf?rm?ti?n ?r systems ?nd ?ffe?t the entity’s ?bility t? meet its ?bje?tives.

Availability:- Inf?rm?ti?n ?nd systems ?re ?v?il?ble f?r ??er?ti?n ?nd use t? meet the entity’s ?bje?tives.

Processing integrity: System ?r??essing is ??m?lete, v?lid, ???ur?te, timely, ?nd ?uth?rized t? meet the entity’s ?bje?tives.

Confidentiality:Inf?rm?ti?n design?ted ?s ??nfidenti?l is ?r?te?ted t? meet the entity’s ?bje?tives.

Privacy: ?ers?n?l inf?rm?ti?n is ??lle?ted, used, ret?ined, dis?l?sed, ?nd dis??sed t? meet the entity’s ?bje?tives..

The TS? th?t must be in?luded in ? S?? 2 re??rt is Se?urity (?ls? kn?wn ?s the ??mm?n ?riteri?). ?ther TS?s (?v?il?bility, ??nfidenti?lity, ?r??essing Integrity, ?nd ?riv??y) ??n be in?luded ?t the dis?reti?n ?f m?n?gement ?t the servi?e ?rg?niz?ti?n de?ending ?n the ?riteri? ???li??ble t? the ?rg?niz?ti?n’s system ?nd servi?es. The servi?e ?udit?r ??n ?ls? ?ssist m?n?gement in determining wh?t ?riteri? ?re ???li??ble ?n?e the s???e ?f the ex?min?ti?n h?s been set.

Gener?lly, S?? 2 ex?min?ti?ns ?re ?erf?rmed by ? li?ensed ??? ?uditing firm with ex?erien?e in Inf?rm?ti?n Se?urity ?udits.

PCI DSS Certification

The ??yment ??rd Industry D?t? Se?urity St?nd?rd (??I DSS) is ? set ?f se?urity st?nd?rds est?blished j?intly by ?meri??n Ex?ress, VIS?, M?ster??rd, Dis??ver Fin?n?i?l Servi?es ?nd J?B Intern?ti?n?l. The ?ertifi??ti?n ?ims t? se?ure ?redit ?nd debit ??rd tr?ns??ti?ns ?g?inst ??ssible d?t? theft ?nd fr?ud. It hel?s ?r?te?t sensitive d?t?, ?nd ?ssist businesses in building ? trust rel?ti?nshi?s with ?ust?mers.

??I-??m?li?nt se?urity servi?es ?r?vide businesses d?t? se?urity st?nd?rds, ?nd en?bles ?ust?mers kn?w th?t their ?ers?n?l d?t? is ?r?te?ted. ? ??I ??m?li?n?e is kn?wn f?r ?ffering se?ure tr?ns??ti?ns t? its ?ust?mers.

??I ??m?li?n?e ??nsists ?f f?ur levels b?sed ?n the t?t?l number ?f ??rd su???rted tr?ns??ti?ns f?r business ?r??esses ?n ?n ?nnu?l b?sis. The ?l?ssifi??ti?n level determines wh?t ?n enter?rise needs t? d? t? rem?in ??m?li?nt.

Level 1 – ???lies t? mer?h?nts ?r??essing m?re th?n six milli?n re?l-w?rld ?redit ?r debit ??rd tr?ns??ti?ns ?er ye?r. They must underg? ?n intern?l ?udit ?n?e ? ye?r ?nd must ?erf?rm ? ??I s??n by ?n ???r?ved S??nning Vend?r ?n?e ? qu?rter.

Level 2 – ???lies t? mer?h?nts ?r??essing between ?ne ?nd six milli?n re?l-w?rld ?redit ?r debit ??rd tr?ns??ti?ns ?nnu?lly. They’re required t? ??m?lete ?n ?ssessment ?n?e ? ye?r using ? Self-?ssessment Questi?nn?ire. In ?dditi?n ? qu?rterly ??I s??n m?y be required.

Level 3 – ???lies t? mer?h?nts ?r??essing between 20,000 ?nd ?ne milli?n e-??mmer?e tr?ns??ti?ns ?er ye?r. ? ye?rly ?ssessment using the relev?nt S?Q must be ??m?leted, ?nd ? qu?rterly ??I s??n m?y ?ls? be required.

Level 4 – ???lies t? mer?h?nts ?r??essing fewer th?n 20,000 e-??mmer?e tr?ns??ti?ns ?nnu?lly, ?r th?se th?t ?r??ess u? t? ?ne milli?n re?l-w?rld tr?ns??ti?ns. ?n ?ssessment using the relev?nt S?Q must be ??m?leted ?nnu?lly, ?nd ? qu?rterly ??I s??n m?y be required.

In line with these compliance standards, PCI CSS has identified 12 additional requirements for cardholder data management and network security. Below is a brief overview:

1. Secure network - Firewall configuration must be installed and saved

2. Safe card holder information - Cardholder data stored should be protected

3. The transfer of cardholder information to social networks must be encrypted

4. Risk management

5. Antivirus software should be used and updated regularly

6. Secure programs and applications must be designed and maintained properly

7. Access control - Cardholder data access must be restricted and each user with access must be given a unique ID

8. Physical access to cardholder information should be restricted

9. Network monitoring and evaluation

10. Access to details of card holders and network equipment should be monitored and monitored

11. Security systems and procedures should be monitored regularly

12. Information security policy relating to data security must be adhered to

The key differences

In summary, SOC 2 and PCI DSS are two different levels that work for different types of organizations. The following are the main differences between the two certificates:

SOC 2 Report PCI DSS Compliance
SOC 2 reporting is performed in accordance with SSAE 18 standard issued by AICPA PCI DSS standard is administered by the PCI SSC
SOC audits are performed by licensed CPA firms PCI DSS assessments are performed by qualified security assessors.
Applicable to organizations that hold, store, and/or process customer data Applicable to organizations that accept, store, process, or transmit cardholder data
SOC 2 allows much more flexibility in adhering to its trust service principles. A company striving to meet SOC 2 compliance standards can tailor its business and security strategies to meet its specific needs. PCI DSS standard is more detailed about what a business must do to secure payment card transactions.



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2021-03-15 01:11:46

Difference between CSAE 3416 and AT-C Section 320

  • Sampling :

Sampling Requirements are not included in AT-C Section 320 only if requirements in AT –C Section 105 and 205 are sufficient. Requirements which are derived from Canadian Auditing Standard (CAS) 530, 13 are still included in paragraph 34 of CSAE 3416 as no specific requirement related to sampling is stated by CSAE 3416.       

  • Written representations:

Certain representations from the extant standards which are no longer      included in AT-C-section 320 and also not addressed by CSAE 3000 are retained by Paragraph 41 of CSAE 3416.       

  • Extant terminology differences:

When compared with AT-C Section 320, certain terminology differences are still included by CSAE 3416, consistent with those in extent CSAE 3416. For example, Management’s Statement replaced management assertion.       

  • Using the work of internal audit function:

All requirements who dealt with use of internal audit are removed by AT-C Section 320. The basis of which is that all requirement in AT-C Section 105 and 205 are sufficient. Several requirements of CSAE 3000 dealing with internal audit were previously included in extant CSAE 3416. Depending on the above, extant requirements dealing with the use of internal audit are retained by paragraphs 39-40 of CSAE 3416. 

  • Identified or suspected instances of non-compliance with laws and regulations:

The service auditor, aware of any identified incidents of non- compliance with laws and regulations to determine the effect on the engagement.14 is required by AT-C Section 320. An auditor who determines the effect of both suspected and identified instances of non-compliance is required by CAS 25015. A similar addition which dealt with written representations from management was made to paragraph 41(b)(i) of CSAE 3416.




2021-11-25 01:20:41