How to Prepare for a SOC 2 Audit

How to Prepare for a SOC 2 Audit

Preparing for a SOC 2 audit involves important steps to ensure readiness and security posture. Being SOC 2 audit-ready strengthens SaaS companies’ security framework while building customer trust. 

Hence, proper preparation ensures that you don’t have to endure surprises down the road and that you have the necessary protocols and resources in place to protect client data. Not only that, you will also be ahead in complying with regulatory requirements.

Moreover, it minimizes the risk of SOC 2 audit process delays, costly remediations, or continuous compliance failures, which can negatively impact your reputation and operations.

You must start by defining the scope, assessing risks, and documenting your existing control activities. 

SOC 2 Meaning SOC 2, or Service Organization Control Type 2, is a cybersecurity compliance framework that ensures that third-party service providers handle client data securely. Developed by the American Institute of Certified Public Accountants (AICPA), SOC 2 is built around five key trust service criteria: Security (Mandatory) Availability Processing Integrity Confidentiality Privacy

Step 1. Define Your Audit Scope

The scope of a SOC 2 audit varies based on whether you’re pursuing a Type 1 or Type 2 report, and it’s usually determined during the initial phase of the audit.

• Type I: This report focuses on evaluating your organization’s internal controls at a specific point in time or a period of time. It’s less complex and quicker to complete, making it ideal for companies new to SOC 2 compliance.
• Type II: Unlike Type 1, the SOC 2 Type 2 audit report assesses how effectively your controls perform over a period, typically six months. It provides a deeper dive into the ongoing effectiveness of your security measures, offering greater assurance to clients.

When it comes to SOC 2 preparation, defining the scope involves focusing on the systems and services your customers rely on. What are they expecting from your organization? Where is their data processed and stored? 

These questions guide the scope, which is typically centered around the software systems your clients interact with.

The SOC 2 report’s introduction, overview, or scope sections should clearly outline the critical components of this scope. This includes the Trust Service Criteria Security, Availability, Processing Integrity, Confidentiality, and Privacy—and a detailed account of the services provided. 

Beyond that, it must highlight  the following:

• Infrastructure
• Software
• People
• Policies
• Procedures
• Data relevant to your services.

Step 2. Identify Trust Services Criteria

SOC 2 compliance revolves around five critical trust services criteria:

• Security: Protecting information and systems from unauthorized access, disclosure, or damage.
• Availability: Ensuring systems meet service objectives and are operationally available as agreed.
• Processing Integrity: Guaranteeing data is processed accurately, completely, on time, and in line with business goals.
• Confidentiality: Managing non-personal data responsibly, including proper retention and disclosure.
• Privacy: Handling personal information in line with regulations and internal policies.

While Security is mandatory, others, like Privacy or Confidentiality, are strongly recommended if you are handling sensitive data. 

Hence, take time to select the right criteria for your compliance audit. Deciding which TSC to include in your SOC 2 audit isn’t something you do in isolation. It should be a decision typically involving the service organization and the auditor. 

The process begins with defining the system and its boundaries, which includes looking at all the service elements you provide, such as:

• Software
• Infrastructure
• Procedures
• Data
• People

While you can start defining this scope independently, it’s always a good idea to involve the auditor early on. They can guide you in selecting the right criteria based on your company’s needs.

It’s also worth noting that prior assessments, like risk evaluations or security reviews, can play a big role in identifying which TSCs are most relevant. 

Step 3. Assess Your Risks

The risk assessment phase uncovers potential vulnerabilities in your data assets, infrastructure, software, users, procedures, and sensitive information flow. Essentially, this could jeopardize your organization’s objectives.

Start by creating a detailed inventory of the critical systems aligned with the scope defined under the TSCs for your SOC 2 audit. This exercise cuts out unnecessary clutter and streamlines your audit process.

Keep in mind that the specific risks you need to address will vary depending on the TSCs you’ve selected. Here are some common risks associated with each TSC:

• Security. Unauthorized access to sensitive systems or data.
• Availability. Service interruptions due to system failures or resource constraints.
• Processing Integrity. Errors or delays in data processing that impact operational accuracy.
• Confidentiality. Exposure of sensitive business or client information.
• Privacy. Non-compliance with data protection laws or mishandling of personal data.

Once you’ve identified these “in-scope” systems, they’ll become the focus of your audit. During this stage, external auditors will test how well your controls are designed against trust services principles and how effectively they operate to mitigate risks.

Step 4. Conduct Gap Analysis & Remediation

This phase involves taking a hard look at your security practices and comparing them against the SOC 2 framework. 

The goal? To spot where your controls fall short—your “gaps”—and address them to meet SOC 2 standards. 

This is where you need to give extra attention to reviewing documentation, mapping your controls to SOC 2 compliance requirements, assessing risks tied to those gaps, and creating a remediation plan to close them.

Here is how you develop a remediation plan:

• Identify Gaps. Clearly define the specific issues found during your gap analysis.
• Categorize Gaps. Group these gaps into relevant categories such as technical, administrative, procedural, or operational. 
• Prioritize Actions. Rank gaps based on their risk level and potential impact.
• Define Solutions. Specify the changes needed—technical updates, policy revisions, or process improvements.
• Assign Responsibilities. Allocate tasks to appropriate team members or departments.
• Set Timelines. Establish realistic deadlines for each remediation activity.
• Monitor Progress. Track implementation efforts and address roadblocks promptly.

Step 5. Collect Key Documents for a SOC 2 Audit

For a SOC 2 audit, you’ll need to gather relevant documents showing how your organization maintains security, compliance, and operational integrity. This includes:

• Business Operations. Corporate governance manuals, company code of conduct.
• Risk Management. Risk management plans and compliance program budgets.
• Vendor Agreements. Contracts that define relationships with third-party vendors.
• Business Continuity & Incident Response. Plans that outline how you’ll handle disruptions or security incidents.
• HR Documentation. Organizational charts and employee handbooks.
• IT & Technical. Network device inventories, equipment maintenance records, data retention policies, and encryption protocols.
• Privacy. Notice of privacy practices and data use agreements.
• Compliance: Previous compliance reports, risk assessments, and penetration testing results.
• Security Training: Logs of employee security training sessions.

Any document that shows how your organization maintains its security controls and procedures across different areas of operations will be crucial for the audit.

Step 6. Choose The Right Auditor 

Auditors play a crucial role in guiding organizations through their SOC 2 compliance journey, assisting in two key phases: SOC 2 readiness and the actual audit. 

During the readiness phase, auditors identify gaps, guide improvements, review documentation for SOC 2 alignment, and help define the audit scope. In the actual audit phase, they assess the design and operational effectiveness of internal controls, verify compliance evidence, test risk mitigation, and issue the SOC 2 report upon successful evaluation.

Choosing the right SOC auditor is essential for a smooth process. Look for certifications such as CISA, review their track record, seek references, and interview multiple auditors to evaluate their communication skills and audit approach. This ensures you select a partner capable of effectively supporting your compliance efforts.

That’s where The Pun Group comes in. We’re dedicated to continuously improving your organization’s internal security controls. 

Our SOC 2 audit services equip service organizations with the tools to confidently navigate control assessments, remediation, and audits, all based on the right SOC 2 Trust Services Criteria. From assessment to delivering your SOC report, we handle every step of the SOC audit process.

Step 7. Establish Continuous Monitoring

SOC 2 compliance doesn’t stop once you’ve received your attestation, it’s an ongoing effort. Maintaining compliance requires consistent monitoring and upkeep of the processes and controls you’ve established. Neglecting this can lead to lapses in compliance, putting your organization at risk.

Here is the best way to implement continuous monitoring:

• Set Up a Monitoring Framework. Regularly review controls to ensure effectiveness.
• Automate Tracking. Use tools to monitor access logs, anomalies, and threats.
• Conduct Periodic Audits. Test controls and identify gaps regularly.
• Update Documentation. Revise policies and procedures as systems evolve.
• Provide Employee Training. Keep staff updated on security practices.
• Plan for Reassessments. Prepare early for the next audit cycle.

Common Challenges to SOC 2 Preparation and Appropriate Solutions

SOC 2 preparation can be a daunting process, with several common challenges threatening to derail timelines if not addressed early. According to Bernard Gallagher, Director of Advisory Services at The Pun Group, “Documentation deficiencies are one of the most significant hurdles, as incomplete or misaligned policies and controls can derail progress.” 

Many organizations fail to anticipate the level of effort required to create comprehensive documentation, leading to rushed efforts that fall short of SOC 2 standards.

Resource constraints also play a major role, as internal teams often lack the expertise or bandwidth to manage the intricate requirements of SOC 2 compliance. Gallagher highlights another critical bottleneck: dependency on third-party vendors. “Delays in obtaining SOC reports or assurances from vendors often disrupt the timeline, especially when these dependencies aren’t identified and managed early,” he notes.

Other common issues include incomplete gap analyses, poorly managed system or process changes, and employee resistance due to a lack of awareness about SOC 2 requirements. Gallagher stresses the importance of clear ownership and planning, stating, 

“Assigning a dedicated project manager to oversee tasks and ensure accountability can streamline the process and avoid unnecessary delays.”

To overcome these hurdles, organizations should prioritize thorough readiness assessments, use pre-designed policy templates, and engage employees with targeted training. Proactive vendor management and freezing major changes during the preparation phase can also help ensure a smoother path to successful SOC 2 compliance.

Best Practices for a Successful SOC 2 Audit Preparation

SOC 2 compliance demands meticulous preparation and cross-organizational collaboration. Let’s break down the steps to ensure audit readiness and their critical importance.

1. Assign a Compliance Leader

Designate a skilled professional to lead the charge on SOC 2 readiness. Ideally, this person should have expertise in security compliance and a strong understanding of your business operations. 

Their role includes coordinating between departments, setting timelines, and addressing all aspects of SOC 2 requirements.

2. Engage Key Stakeholders

SOC 2 preparation requires buy-in from the organization. Hence, you must involve executive management, department heads, and other critical players early. Their support can be of huge help and bring in necessary resources.

• Pro tip. Host a kick-off meeting to align everyone on objectives and timelines while addressing any questions or concerns.

3. Implement Robust Information Security Policies

Develop administrative policies tailored to your organizational structure, technologies, and workflows. These policies should be clear, actionable, and straightforward so employees can easily understand and follow them.

4. Deploy Technical Security Controls

Your organization must implement corresponding technical controls to safeguard your systems and data. These controls should align with the information security program policies and cover access control, encryption, and system monitoring areas.

• Pro tip: Use automated tools to monitor and implement controls for ongoing compliance.

Ace Your SOC 2 Audit With the Help of The Pun Group

Various business regulations and SOC 2 certification processes can be complex, especially as you approach your official audit. At The Pun Group, we understand the importance of meeting SOC 2 requirements to establish trust and secure your services.

Our team, with deep expertise and a client-first approach, will guide you through every step of the audit—from the initial readiness assessments to the final report. We customize our services to fit your unique needs and compliance goals.

Partner with The Pun Group auditing firm today and see how our dedication and expertise can turn your SOC 2 journey into a strategic advantage for your business.

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