Soc2 Type 2 Compliance

Exciting News: Audintel acquires SOC 2 Type II Attestation

Cyber attacks are rising as the world is more interconnected than ever. Cybercriminals use various methods to commit thefts, such as online shopping fraud, credit card fraud, etc. They get easy access to personal data like social security numbers, financial information, etc. Organizations can lose millions of dollars in data breaches. Investing in Artificial Intelligence and automation can prevent data theft.

An alternative way of safeguarding sensitive data is partnering with a SOC 2 Type II compliant company. SOC 2 compliance is recommended for companies handling sensitive data.

Shipping is an integral part of the e-commerce landscape. E-commerce retailers generate loads of shipping data relating to customers and their businesses. Shippers connect with professionals to manage their data and conduct audits. A company like Audintel, which is SOC 2 compliant, ensures shippers their data security. We are excited to inform our stakeholders that we recently acquired SOC 2 Type II attestation. What does SOC 2 Type II attestation mean for shippers? And how is it useful? These queries will be a part of this article.

What is SOC attestation?

The System and Organizations Control (SOC) attestation is a cybersecurity attestation. The American Institute of Certified Public Accountants (AICPA) gives SOC attestation. Independent, third-party auditors conduct a detailed audit of a service organization for maintaining controls and procedures. There are three types of SOC audit reports- SOC 1, SOC 2, and SOC 3.

SOC 1 reports cover the internal controls for financial statements and reports of an organization.

SOC 2 reports outline the internal controls related to data security, privacy, integrity, confidentiality, and availability that are maintained over a specific period.

SOC 3 reports are for general use. They are voluntary and simplified SOC 2 reports giving an overview of controls.

SOC 2 Type II Compliance & Attestation

SOC 2 is a cybersecurity framework. It guides auditors in checking the effectiveness of the security controls of a service organization. It helps companies improve their handling of client data stored in the cloud. SOC 2 compliance is customary among SaaS companies and data hosting providers. A SOC 2 audit is a voluntary process that protects business and customer data from cyber theft.

Types of SOC 2 audits

Two types of SOC 2 audit reports exist based on comprehensive evaluation requirements.

  • Type I: gives an overview of the systems and controls of an organization for a specific day and time.
  • Type II: provides an in-depth report on the operational effectiveness of controls. It is conducted over time (6-12 months).

SOC 2 Type I attestation is an attestation from third-party auditors. It validates the security systems to be credible and efficient to protect customer data at a point in time.

SOC 2 Type II compliance ensures protection against data breaches. It is proof that sensitive data is safe and it is observed over a period of time. (Usually 6 months to 1 Year)

What Are the SOC 2 Compliance Requirements?

SOC 2 compliance is based on five SOC 2 Trust Services Criteria

  • Security: It is the foundation of any SOC 2 report. The security controls protect the information and systems from unauthorized access or disclosure. For instance, firewall management, endpoint security, identity,etc., are a part of the security controls.
  • Availability: Employees and customers can access systems and information for use—for example, services critical for business continuity.
  • Processing Integrity: Appropriate data must be delivered at the right time and price. System processing must be accurate, valid, authorized, timely, and complete.
  • Confidentiality: Data access is restricted to specific people to maintain confidentiality, like encrypted data during transmission.
  • Privacy: Protectpersonal information and sensitive data collected, used, and disclosed by the system. Take, for example, social security number, name, address, etc.

Every organization can opt out or add the last four criteria depending on their business, goals, data stored, or client demands.

The steps in the SOC 2 Type II audit process

SOC 2 audit process varies in every company depending on the chosen Trust Services Criteria. Further, it varies based on the complexity of the systems. The steps in the audit process include:

  1. Outlining the scope of the SOC 2 Type II report

The focus should be on certain areas such as:

  • Infrastructure like physical components of facilities, equipment, and networks that support the IT environment and help in service delivery
  • Operating software consisting of applications and utilities for system data processing
  • Personnel such as managers, operators, and users who provide services to customers
  • Information such as files, databases, etc., used within the service organization
  • Manual and automated processes that run the entire system in the service organization
  • Assessments against the SOC 2 Trust Services Criteria

The auditor will evaluate the processes of a service organization. It can be either an internal or external readiness assessment. It will examine the existing policies and controls to understand the security aspects. In addition, it will look at the controls required to meet the SOC 2 Trust Services Criteria.

  • Rectify control gaps following the assessment.

The auditor will identify any anomalies in the internal controls and provide a remedy. The remedy will involve reviewing policies, making alterations to software, integrating new hardware, etc.

  • Attestation and auditor report

The auditor will examine the suitability of the controls and operating effectiveness of the systems. And whether they are relevant to the applicable SOC 2 Trust Services Criteria in a particular time frame. The auditor will deliver the SOC 2 Type II report according to AICPA requirements.

The SOC 2 Type II report summarizes the auditing process and observations. The report will highlight the opinions of the auditors. Their thoughts on the management claims about their systems and organization controls. Further, it gives an in-depth overview of the services provided, internal controls, and risk assessment processes.

A SOC 2 Type II report validity is twelve months. It requires renewal annually. However, service providers can opt for an audit if significant changes occur in the organizational controls.

Why Is SOC 2 Type II Compliance Important for Shippers?

Highly-regulated companies such as financial and healthcare entities require their data to be protected. They usually choose to work with  SOC 2 Type II compliant organizations. Shippers who use cloud and IT-related services get reassurance that their data is secure. Further, a service organization with SOC 2 compliance assures shippers of data protection. Shippers feel assured that their data is highly secure with an organization that holds SOC 2 Type II attestation.

Audintel: Reinforcing customer trust with SOC 2 compliance and attestation

The SOC 2 attestation is a testimony to Audintel’s expertise in managing and protecting data. Data security is an integral part of our ecosystem. We are continuously working to improve our data controls and systems. In a previous blog post, we reported that Audintel had achieved SOC 2 Type I compliance. Following a rigorous audit over several months, Audintel has now attained SOC 2 Type II attestation. This SOC 2 attestation means that shippers and their data are safe, secure, and confidential.

Audintel stores and manages shippers’ data on cloud-based platforms in a highly secure manner. This fact confirmation is the SOC 2 attestation, the prestigious standard on data security. We continue to follow our commitment to maintaining data privacy and security to a high standard.

Finally

According to reports, B2C e-commerce will grow to 1.23 trillion USD by 2025. Businesses are rising globally with increasing instances of cyber theft. And so, service organizations must prove to companies that they are committed to protecting their sensitive data. SOC 2 Type II attestation verifies the service provider’s compliance in handling and securing data. Further, service organizations with SOC 2 attestation get enhanced credibility from customers and thus increase the competitive advantage for getting new business.

Audintel’s SOC 2 Type II certification elevates us above the competition. By partnering with us, you gain the peace of mind that comes with knowing your data is protected by the industry’s most rigorous security standards. Ready to experience the Audintel difference? Contact us today at +1 (619) 354 8539 or visit audintel.com to learn more.