Why Is SOC 2 an Attestation and Not a Certification?

What Is SOC 2 Attestation?

A SOC 2 attestation is a voluntary third-party assessment of a company’s security and compliance controls. It is provided by third-party auditors from licensed CPA firms who are specifically trained to assess SOC 2 compliance. 

Why Is SOC 2 Attestation Important?

Even though it’s not a legal necessity, many businesses in North America prefer working with vendors who have a SOC 2 attestation. 

This attestation provides reasonable assurance that the company has effective measures to safeguard sensitive data from unauthorized access and other security threats or data breaches. With SOC 2 compliance, you can set yourself apart from competitors, signaling to potential clients that you have assessed both operational and technology risks and have implemented controls to mitigate those risks. 

This often gives you a competitive edge and can be a deciding factor for clients choosing a service provider.

There are two types of SOC 2 attestation: SOC 2 Type 1 and SOC 2 Type 2. 

SOC 2 Type 1 Attestation	SOC 2 Type 2 Attestation
SOC 2 Type I attestation evaluates a service organization’s security and compliance program and related controls to meet specific service commitments and system requirements.  A Type I report describes the design of internal controls at a single point in time and assesses the organization’s compliance program with SOC 2 requirements.	SOC 2 Type II attestation evaluates a service organization’s security and compliance program and related controls to meet specific service commitments and system requirements. A Type II report assesses the design and operating effectiveness of the company’s controls over a period of time.

In both of these attestations, the auditor you choose will prepare a report, and this is not to be confused with a certification, as many Internet queries on “ SOC 2 certification or attestation” lead you to believe. 

Attestation vs Certification: Why Is SOC 2 an Attestation and Not a Certification?

SOC 2 is an attestation, not a certification, because it requires an independent assessment by a third-party auditor to verify the effectiveness of an organization’s controls. This process is voluntary and validated by a third-party auditor. 

The SOC 2 framework has no universally accepted structure for it to merit a certification. SOC 2 allows you to tailor the scope of your audit report to include the specific Trust Services Criteria most relevant to your operations and customer expectations. This customization is different from standard certifications, which often have fixed compliance requirements.

One of the Senior Partners at I.S. Partners shared this insight,

The outcome of a SOC 2 audit is a detailed SOC 2 attestation report. When an independent CPA reviews your company for SOC 2, the outcome isn’t a simple “pass or fail.” Instead, the CPA provides an opinion on the effectiveness of your internal controls based on the audit findings.

This report provides insights into your company’s security practices and controls. It includes the auditor’s opinion on whether the controls are suitably designed and operating effectively over a period of time.

Components of SOC 2 Attestation

The core step to achieving a SOC attestation starts with implementing Trust Services Criteria. However, a range of other elements also come into play. Let’s explain the key parts of SOC 2 attestation and why they matter. We’ll see how each piece helps ensure that a company’s controls are adequate. 

1. Trust Services Criteria
2. Independent Firm Issuing the Attestation Report
3. Report Dates
4. Description of System and Services
5. Auditor’s Report

Trust Service Criteria

The SOC 2 report is based on five Trust Services Categories, highlighting different aspects of a service organization’s data protection. 

To undergo a SOC 2 examination, you must meet the Security category, which consists of the “Common Criteria.” Depending on your service commitments and customer requirements, you can also choose to meet four additional criteria to strengthen your security posture.

The five SOC 2 Trust Services Criteria are:

1. Security (Mandatory)
2. Availability
3. Confidentiality
4. Privacy
5. Processing Integrity

When deciding which of the five Trust Services Criteria to include in your SOC 2 scope, you must consider what’s relevant for your audience. Security is almost always a concern for everyone; therefore, it is a mandatory criterion. 

However, depending on what your application does, what your product offers, and how you serve your customers, you’ll need to determine which other criteria are also important to include.

Independent Firm Issuing the Attestation Report

CPA firms recognized by AICPA are qualified to issue SOC 2 reports. Hence, ensuring the auditor’s reputation is crucial. The SOC 2 governance involves three key players:

1. AICPA. The American Institute of Certified Public Accountants governs SOC 2 and other audit and attestation standards.
2. CPA Firms. These firms, such as I.S. Partners, are authorized to perform SOC 2 audits.
3. Peer Review System. CPA firms review each other’s audit and attestation practices to ensure that high standards of quality control are maintained.

The AICPA sets the standards for SOC 2. Authorized CPA firms then perform the audits according to these standards.

The firm issuing the SOC 2 report should have certifications demonstrating cybersecurity and information security expertise. Certifications like Certified Information Systems Security Professional (CISSP), Certified Information Systems Auditor (CISA), and Certified in Risk and Information Systems Control (CRISC) affirm the issuer’s specialized knowledge in these areas.

Report Dates

For a SOC 2 Type 2 audit, the audit period can range from three months to a year, depending on your choice. Once this period ends, the auditor will need an additional six to eight weeks to finalize your SOC 2 report.

For instance, a SOC 2 certification timeline report might cover from July 1, 2023 to June 30, 2024. If there’s a gap between the end of the report and the time you need it reviewed, you can request a bridge letter to cover the interim period.

Description of System and Services

In the SOC report, the third-party provider describes the system and services within the audit scope. This includes background information and a breakdown of the infrastructure, software, people, procedures, and data. The description typically consists of the following sections:

• Does the report cover the products and services you’ve contracted for?
• What security assurances does the third-party provider offer its users?
• Which Trust Services Criteria (security, confidentiality, availability, processing integrity, and privacy) are addressed? Note: Not all Trust Services Criteria may be in scope for SOC 2 reporting.
• Describes the components (infrastructure, software, people, data, procedures) related to the services provided to customers or users.
• What organization’s controls are managed by subservice organizations that are critical to the vendor’s service offering?
• What controls does the third-party service provider expect you, the user, to have in place for their controls to operate effectively?

Auditor’s Report

Section 1 of the SOC 2 report, the auditor’s report, determines if your organization “passed” the assessment and identifies the type of opinion.

• Qualified Opinion: “Qualified” means the auditor found one or more controls that didn’t work effectively during the reporting period, thereby preventing the fulfillment of one or more trust services criteria. This situation is common, and I.S. Partners will guide you through addressing the findings.
• Unqualified Opinion: An unqualified opinion means you “passed” with no significant deficiencies found, indicating up-to-par security measures compliant with SOC 2 standards.
• Adverse: When the auditor finds major issues, the opinion is “adverse.”
• Disclaimer: If the auditor can’t form an opinion due to insufficient evidence, it’s a “disclaimer of opinion.” 

Ideally, service organizations want to achieve an unqualified opinion or at least a qualified opinion. Garnering an adverse opinion will alert your customers that your control system cannot be trusted and must undergo substantial revisions. 

Employ the help of expert CPAs from I.S. Partners. Our experts can help guide you and even perform a readiness assessment to ensure you are prepared for a SOC 2 audit. 

How to Get SOC 2 Attestation?

To obtain SOC 2 certification, an organization must undergo a third-party audit of its systems and controls. Follow this simple four-step SOC 2 certification process to achieve compliance:

Define Your Scope

Defining the scope of a SOC 2 audit is important for ensuring data security and preparing for the audit. This step sets the parameters for evaluating internal controls against the five TSCs. 

Your SOC 2 report should cover the systems and services your customers use and rely on. Therefore, the scope is shaped by client expectations and the services your organization provides.

Identify and Fill Gaps in Your Security Program

At this stage, it’s crucial to do a gap analysis. This will help you see which procedures, policies, and controls you already have and how they measure up to SOC 2 requirements. 

When you identify these gaps, you can address the deficiencies and ensure your security program is up to standard. This will prepare you for the audit and strengthen your overall security, building greater trust with your clients.

Implement the Missing Controls

After identifying the gaps in your system, it’s time to implement the missing controls. Each of the five Trust Services Categories in SOC 2 includes individual criteria, totaling 61. 

For each criterion under your chosen TSCs, you’ll need to establish internal controls through policies that define expectations and procedures that implement these policies. 

This process might include strengthening access controls, implementing data encryption or an incident response plan, and establishing a disaster recovery plan. For more information, read our SOC 2 compliance checklist.

Choose a Reputable CPA Firm – Choose I.S. Partners

I.S. Partners offers IT compliance and risk advisory solutions, including SOC 2 examinations, using a streamlined SOC 2 audit process. 

Our SOC 2 auditors work closely with both users and service organizations to help achieve top-level compliance so that you secure business relationships for all parties. 

The process results in a detailed report where the auditor provides their expert opinion on your organization’s security compliance with SOC 2 standards.

Start SOC 2 Attestations with I.S Partners

Preparing for a SOC 2 audit can be overwhelming for your primary team, especially for growing companies that are tackling it for the first time. The traditional approach can be time-consuming and drain resources, diverting attention from their core responsibilities.

This is where I.S. Partners can help. Many companies rely on our consultants to prepare for and complete their SOC 2 audit.

I.S. Partners, LLC specializes in SOC 2 attestation with a streamlined audit solution model. We communicate clearly, provide necessary education, and bring together critical expertise to help you achieve a clean audit opinion. Our firm also offers readiness assessments to help first-time and repeating service organizations adequately prepare for a SOC 2 audit.

Our U.S.-based team ensures a deep understanding of local business nuances and regulations. 

Interested? Contact us to learn more!

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