Government and commercial organisations rely heavily on information and data generated directly by them or from their peers. Any loss to confidentiality, integrity, availability of information or services can have adverse effects on the organisation.
There are a few factors like decentralisation of data storage and processing, innovation and technology, and the need of being connected at all times; that adds complexity to securing information and data.
The IT systems on which we rely to meet business goals are prone to failure due to inherent vulnerabilities, misconfigurations, human errors, underestimating threats etc.
The cybersecurity community realised at a very early stage that a 100% secure system, solution and infrastructure is a myth. We can only identify risks accurately and manage them to a certain acceptable level. But the other important question is how to ensure risks are managed properly by your vendor. Your vendor’s environment and practices are not in your control.
When dealing with vendors or external suppliers, it becomes even more difficult to ensure that they are dealing with cybersecurity adequately.
Consequently, the need to provide cyber security assurance aligned with industry standards arose in the industry. And this is where SOC2 reports come in handy.
What is the SOC2 report?
In very simple terms, the Service Organisation Control ( SOC) 2 report is the detailed result of the SOC2 audit. SOC2 is an auditing procedure that ensures your service providers securely manage your data to protect the interests of your organization and the privacy of its clients.
SOC2 auditing was developed by the Association of International Certified Professional Accountants (AICPA). Wait a minute!!!! An organisation dealing with certified accountants is dealing with cyber security??????
We will go a bit into the history of these requirements. Since its existence AIPCA is dealing with financial audits, most dealing with financial institutions like banks and private lenders to minimise financial frauds. The report is called the SOC1 report, which is focused on the financial aspect of the audit. However, with the increase of technology dependency in the financial sector AIPCA identified a requirement of an audit standard to avoid financial frauds with the use of technology. That is where AIPCA introduced the SOC2 report.
SOC 2 reports are meant specifically for audits related to security and privacy controls, whereas SOC 1 reports are for financial reporting.
SOC reports are also categorized as either SOC 2 Type I or SOC 2 Type II, depending on whether the SOC audit took place at a single point in time (Type I) or on an ongoing basis (Type II).
Trust Service Criteria
To achieve SOC2 compliance SOC reports use the trust services criteria, commonly known as TSC or TSP, a set of controls broken down into five main categories:
SOC 2 certification is issued by outside auditors. They assess the extent to which a vendor complies with one or more of the five trust principles based on the systems and processes in place.
- Processing integrity
“ SOC 2 is not a certification; It is an audit report”
The main goal of SOC 2 reporting is to guide the reader through an audit of a particular system and discuss whether that system meets the audit criteria. To meet this goal, a SOC 2 report must provide detailed information about the audit itself and information about the system and perspectives of management, hence its notoriously long length and heavy detail.
In any case, all SOC 2 reports have five main sections:
- Report from the auditor
- Management assertion
- System description
- Tests of controls
- Other information
SOC for Cybersecurity
SOC for Cybersecurity is a reporting framework that helps organizations communicate about their cybersecurity risk management programs and the effectiveness of program controls.
SOC for cybersecurity is an examination engagement that includes:
the description of the entity’s cybersecurity risk management program
the effectiveness of controls within that program to achieve the entity’s cybersecurity objectives.
The outcome of the examination is a report that includes three key components:
- The first component is a management-prepared narrative description of the entity’s cybersecurity risk management program. The description provides the context needed for users to understand the conclusions, expressed by management in its assertion and by the practitioner in his or her report. Management uses the description criteria to prepare and evaluate an entity’s cybersecurity risk management program.
- Management’s assertion. The second component is an assertion provided by management, which may be as of a point in time or for a specified period of time. The management assertion includes a description of the effectiveness of the controls within the entity’s cybersecurity risk management program.
- Practitioner’s report. The third component is a practitioner’s report, which contains an opinion, which addresses both subject matters in the examination.
Who needs a SOC 2 Compliance Reports or SOC for Cybersecurity?
Senior management and Boards of directors: A SOC2 report provides senior management with information about the status of controls and their effectiveness of the organisation. Ultimately leading to building a level of trust in the organisation. A cybersecurity risk management examination report provides senior management with information about the effectiveness of an organization’s cybersecurity risk management program and level of mitigation against threats to the entity’s sensitive information and systems.
Analysts and investors: SOC2 helps analysts and investors in understanding the cybersecurity risks that could threaten the achievement of the entity’s operational, reporting, and compliance (legal and regulatory) objectives and, consequently, have an adverse impact on the entity’s value and stock price.
Business partners: SOC2 helps determine matters such as whether there is a need for multiple suppliers for a good or service and the extent to which they choose to extend credit to the entity.
Why need a SOC2 compliance report?
Government entities and high-risk organisations like Banks, Insurance companies, organisations dealing with Children are required by law to protect data and information. They require the highest level of assurance on Cyber and information security. If you are one these organisation or you business is providing services to such organisation then you might need SOC2 compliance report.
Rabbon helps our client with SOC2 report readiness and with our partnership with Certified Public Accountant (CPA) we can deliver the SOC 2 Compliance report. Rabbon has developed 61 Control statements to perform SOC2 readiness assessment. Our readiness assessment with our in-house developed tools makes SOC2 compliance reports seamless and easy.
Cybersecurity is what we do
Rabbon is a Cybersecurity company based with offices in Sydney and Melbourne. We lead a team of Cybersecurity Consultants and GRC Consultants, who help organisations become cyber resilient by providing access to effective and affordable cybersecurity services. We believe that “Cybersecurity is for everyone“
You can contact our Cyber Security Consultants for an obligation free consultation.
Phone : +61 2 80513207
Email: [email protected]