How to Prepare for an SOC 2 Audit Checklist

SOC 2 compliance can be an extensive, time-consuming process that takes considerable planning and preparation. To be effective, it requires performing an independent readiness assessment with an auditing firm, conducting risk analysis, and identifying gaps.

First, identify which Trust Services Criteria you would like to audit such as Security, Availability, Processing Integrity or Confidentiality. Next, implement and deploy internal controls related to each criteria.

Defining Scope

Acquiring SOC 2 compliance can be a complicated and time-consuming process, with many steps involved. Once your organization has decided which categories it wants audited, then gap analysis and readiness assessment need to be performed on them.

As part of its scoping process, your company must determine which Trust Services Criteria are relevant to its business model. In general terms, these criteria include security, availability, processing integrity and confidentiality.

Your company must also identify products, data, systems, vendors and scope within which the audit will focus their examinations according to AICPA attestation standards. This will assist the auditor in tailoring his examinations accordingly.

As part of a periodic audit, it's important to decide between conducting a point-in-time audit and one that evaluates controls over an extended period. If the latter option is chosen, document your internal procedures, perform gap analyses and prepare reports as quickly as possible; alternatively you could use an automated gap analysis tool which checks systems against SOC 2 criteria and highlights any areas for improvement.

Identifying Risks

One of the first steps in preparing for a SOC 2 audit is performing a gap analysis. This assessment reviews your current procedures, policies, and controls to identify any gaps that need to be filled; additionally it helps you select appropriate internal controls based on Trust Services Criteria (TSC).

Once you've determined the categories to evaluate, the next step should be identifying risks. Pay particular attention to availability, integrity, confidentiality, processing completeness and privacy; as well as their potential impacts on meeting objectives of service organizations.

Once your scope has been decided upon, deciding which TSCs to include can determine both how much work is involved and the duration of your audit window - for instance a Type II audit requires setting an audit window between 6-12 months - this process may seem daunting for technology businesses with an already complex workload.

Performing a Gap Analysis

Executing a gap analysis is the next step in audit preparation, helping identify problem areas within your information systems and creating a plan to close any gaps before your SOC 2 audit begins.

An extensive gap analysis will also allow you to pinpoint which specific controls need to be put into place or updated prior to an audit, such as two-factor authentication, removal of insecure services and hardening network devices, as well as creating compliance and training norms for teams.

SOC 2 certification can open doors into larger companies by providing them with access to your security practices, and boost profitability as it does so. However, becoming certified is no one-time event; therefore it's crucial that a continuous monitoring practice be established along with automated processes for updating and maintaining controls to stay compliant and avoid security incidents.

Identifying Specific Controls

Once your audit scope has been defined, the next step is identifying specific controls associated with each Trust Services Criteria - security, availability, processing integrity and confidentiality. While some criteria may be universal across industries, others will depend on how your services are provided and any unique risks those systems present.

At this stage, it is necessary to review your existing internal procedures, documents, and systems as well as perform a gap analysis on them. Doing this allows you to identify any gaps present between what exists now and your desired vision of how things should be.

SOC 2 compliance can take time, so it is crucial that you begin the process as early as possible. Doing so will save money, gain access to enterprise accounts that require this assessment type and build customer trust and brand reputation which in turn could open doors for increased sales opportunities and faster growth.