SOC 2 is an auditing procedure designed to ensure that service providers securely manage data to protect the interests of your organization and the privacy of its clients. Developed by the American Institute of CPAs (AICPA), SOC 2 defines criteria for managing customer data based on five “Trust Service Principles” —

1. Security: the system is protected against unauthorized access, both physical and logical
2. Availability: the system is available for operation and use as committed or agreed
3. Processing integrity: system processing is complete, accurate, timely, and authorized
4. Confidentiality: information designated as confidential is protected as committed or agreed
5. Privacy: personal information is collected, used, retained, disclosed, and destroyed in conformity with the commitments in the entity’s privacy notice and with the criteria set forth in Generally Accepted Privacy Principles

A SOC 2 report comes in two formats:

• Type I: measures policies and procedures that are in place at a specific moment in time
• Type II: measures the effectiveness of policies and procedures as operated over a specified time period, with a minimum of six months