Numerous businesses amass extensive customer data during shipping, prompting concerns about potential cyber-attacks and data breaches. As a result, they seek assurance from their service providers regarding safeguarding this data. Companies offering software and audit services implement stringent compliance standards and security measures to ensure data protection. Various compliance standards, such as ISO 27001, SOC 1, SOC 2, CSA STAR, and ISO 27701, are employed for information security management. However, SOC 2 is the preferred choice for many software providers in the United States.
This article delves into the significance of SOC 2 compliance within supply chain management, highlighting its importance. Additionally, we are pleased to announce that Audintel has achieved SOC 2 Type 1 compliance, reinforcing our commitment to data security.
SOC 2 compliance
System and Organization Control 2, or SOC 2, focuses on proving an organization has implemented essential data security controls. As developed by the American Institute of CPAs (AICPA), SOC 2 defines criteria for managing customer data, including in the cloud. Further, SOC 2 is unique to each organization, its business practices, and controls. A company that undergoes a SOC 2 audit demonstrates its ability to provide safe and secure services. In addition, it ensures data protection from any theft.
Essentials of SOC 2 compliance
SOC 2 is an audit procedure that manages consumer data and works on five trust principles or criteria, namely,
- security – which involves safeguarding the company system from unauthorized access through logical or physical means. Utilizing software tools, one can effectively oversee and mitigate issues. The issues of unauthorized information manipulation, disclosure, deletion, theft, or misuse. These tools encompass features of two-factor authentication, network and application firewalls, and intrusion detection systems.
- availability – pertains to ensuring that the company system, service, or product remains accessible and fully operational by contractual commitments. Additionally, effective management necessitates implementing performance monitoring, incident management, disaster recovery plans, and related processes.
- processing integrity – entails ensuring that systems and data processing are thorough, precise, punctual, and conducted with proper authorization. Managing this aspect involves vigilant process monitoring and implementation of quality assurance (QA) procedures.
- confidentiality – involves safeguarding information identified as “confidential,” ensuring its security. It encompasses data such as Intellectual Property (IP) content, business strategies, and sensitive financial details, subject to strict access limitations. The preservation of confidentiality relies on tools such as encryption, access control measures, and network firewalls.
- privacy – entails ensuring that personal information, which is collected, stored, utilized, disclosed, and disposed of, aligns with the company data policies and adheres to the Generally Accepted Privacy Principles (GAPP) established by AICPA. Personal data consists of names, addresses, Social Security Numbers, and more, necessitates enhanced protection measures. Therefore, implementing rigorous access controls and encryption is crucial to thwart unauthorized access.
An external auditor awards SOC 2 certification to the service provider that follows the above five trust criteria. After the audit, the company will get a Type 1 or Type 2 SOC report.
SOC 2 Type 1 reports
SOC 2 Type 1 report describes the systems of a service provider. It reviews the design of its security controls at a point in time. It gives a competitive edge for start-ups against new companies offering the same service. It is a preliminary step towards achieving Type 2 certification.
SOC 2 Type 2 reports
SOC 2 Type 2 report details the operational effectiveness of the system. It is an extensive audit process to confirm the effectiveness of the security processes. SOC 2 Type 2 audit confirms the control processes are consistently working and effective. The review period for this certification is over 6-12 months.
Necessity of SOC 2 compliance in the supply chain industry
As the supply chain industry is inching toward complete digital transformation, shippers require software providers that are SOC 2 compliant. SOC 2 is a rigorous audit procedure by third parties to validate a service provider’s adherence to security compliance. In addition, SOC 2 compliance assures clients that the service provider is security conscious.
It is a testament to the integrity and commitment of a company to its customers to keep their data secure. Being SOC 2 compliant enhances the company’s reputation for storing sensitive information securely.
At Audintel, we emphasize safeguarding our customers’ data and maintaining strict confidentiality. Towards this commitment, we are delighted to announce that Audintel has achieved SOC 2 Type 1 compliance. Our business practices and policies underwent a comprehensive assessment by third-party auditors, successfully meeting all the requirements for Type 1 compliance. We take pride in offering state-of-the-art technology for transport spend management, revolutionizing shipping operations.
All the data on the Audintel website is encrypted and secure. Moreover, our teams are responsible for safeguarding user data. Further, we plan to achieve SOC 2 Type 2 compliance within a few months.
Information security is at the forefront of all businesses. Third-party vendors and cloud-computing service providers utilize data for various services. Thus, companies must partner with reliable third-party service providers that secure their data. SOC2 compliance is one of the most stringent compliance standards companies look for in their data security.
Audintel is SOC 2 compliant. Our commitment is to provide top-quality services. We give cutting-edge technological services to our clients with stringent security standards. Know more about our services by talking to us at +1 (619) 354 8539. Additionally, you can visit our Audintel website for further information.