SOC 2 Gap Assessment: What Is It & How Is It Performed?

What is a SOC 2 Gap Assessment? 

A SOC 2 gap assessment, or gap analysis, identifies the differences between your current controls and the requirements set forth by the SOC 2 compliance framework. It involves screening your systems and organization’s controls against the SOC 2 standards to identify areas for improvement. 

The goal is to identify and rectify weaknesses in your organization’s security posture and implement best practices for security. A SOC 2 gap assessment ensures that your systems and controls meet SOC 2 compliance standards before the start of an audit.

Gap analysis is a vital step in the ranks that ultimately decides the success of the other steps. Conducting a thorough gap analysis is a strategic business move that helps ensure your organization is well-prepared for a successful SOC 2 audit.

Who Performs the SOC 2 Gap Assessment? 

Two different entities can work together in conducting a SOC 2 gap assessment: software companies, and a third-party auditor. The first uses specialized compliance software to scan your systems, and the other uses human power to undertake the analysis. 

Automated SOC 2 Compliance Scan

An automated scanning tool can quickly assess an organization’s systems, policies, and procedures against the SOC 2 control requirements. This software can identify gaps and areas of non-compliance by analyzing your system configurations, settings, and other technical aspects. 

Compliance automation scans are helpful in gaining an initial understanding of the organization’s compliance posture and identifying potential areas of concern. However, this type of software may not capture the full nuances of your organization’s operations and may require manual verification or interpretation. 

Third-Party Auditors

A manual SOC 2 Gap Assessment is typically conducted by independent third-party auditors or consultants with in-depth knowledge of the SOC 2 framework and its control requirements. These auditors are employees of CPA firms and may also be Certified Public Accountants with comprehensive knowledge of SOC services.

These professionals review your organization’s policies, procedures, and processes through interviews, documentation reviews, and on-site observations. David Dunkelberger, one of the foundations of I.S. Partners, highlights the significant contributions of a third-party auditor during a gap assessment,

While automated scans can provide a quick initial assessment, a manual SOC 2 compliance gap analysis by an experienced auditor from a firm like I.S. Partners is generally considered more comprehensive and reliable. It gives you a deeper understanding of your compliance status and provides actionable recommendations for addressing any identified gaps or areas of non-compliance.   

I.S. Partners is your one-stop-shop toward SOC 2 compliance. In addition to having over 20 years of experience in conducting SOC 2 audits, our experts are also well-equipped to onboard any existing software you have previously used prior to our collaboration.  

How to Conduct an Effective SOC 2 Gap Analysis 

Conducting an effective SOC 2 gap analysis involves several key steps. It is important for service organizations to perform these steps with the guidance of an expert to ensure thoroughness.

The following guide will help you through the process:

1. Initial Self Assessment

The first step involves understanding the entire scope of the SOC 2 audit, including which Trust Services Categories apply to your organization. You must identify within your organization the systems, processes, and controls that must be evaluated. 

Then, determine which of the five SOC 2 Trust Services Categories (security, availability, processing integrity, confidentiality, and privacy) are relevant to your organization.

The assessment will also vary in comprehensiveness depending on the type of SOC audit. A SOC 2 Type 1 audit is expected to be less intensive than a Type 2.

2. Documentation Review

Here, you review your organization’s existing policies, procedures, and controls documentation. This review process helps you identify what is already in place and what needs improvement.

3. Control Identification and Mapping

At this point, you map your existing controls to the SOC 2 requirements to see which criteria are already being met and which are not. This step involves thoroughly examining the five SOC 2 trust services categories and how your systems relate to the categories.

4. SOC 2 Gap Identification

Gap identification is the most important step in SOC 2 gap assessment—it is the reason you are analyzing gaps in the first place. The main goal of the analysis is to identify the gaps in your systems and internal controls and try to close them. Any discrepancies between the current state and the SOC 2 compliance requirements are identified and highlighted. This step helps you pinpoint specific areas where your organization’s practices fall short of compliance.

5. Risk Assessment

Here, you assess the risks associated with the identified gaps. Ask questions such as: What could be the security and financial implications of this gap? Consider the potential impact and likelihood of the risk materializing. This helps prioritize which gaps need immediate attention based on the potential impact on security and compliance.

6. Remediation and Action Plan Development

This stage of the analysis is vital for successful completion. For each identified gap, outline specific steps or controls that must be implemented or improved. Assign a team or individual responsible for each remediation action. 

Ensure that client personnel have the necessary resources and authority to implement the changes. Establish realistic due dates for completing each remediation step, keeping in mind the overall timeline for achieving SOC 2 compliance. 

7. Implementation

Implement new controls or enhance existing ones according to the defined actions. This step may involve updating policies, training staff, enhancing security measures, and improving processes to align with SOC 2 criteria. An auditor from a CPA firm can help with remediation planning and implementation. 

8. Continuous Monitoring and Review

After implementing the changes, you must continuously monitor the effectiveness of the new controls and make adjustments as needed. Regular reviews and audits help to ensure ongoing compliance with SOC 2 standards.  

9. Pre-Audit Preparation 

Before undergoing the official SOC 2 audit, you may need to conduct internal audits or SOC 2 readiness assessments to double-check that all gaps have been addressed to be prepared for the formal SOC examination. 

After a thorough gap analysis, prepare for your SOC 2 audit with a SOC 2 compliance checklist for audit readiness.

It is best to bring in an auditor to assess your systems and handle the gap analysis process for you. I.S. Partners has been conducting gap analysis and readiness assessments for all kinds of businesses for more than 20 years. 

We can help you handle the entire risk assessment process, including remediation plan development, implementation, risk management, and everything in between. Our approach ensures that your systems and internal controls align with SOC 2 standards. 

Contact our experts today. 

Why is it Important to Conduct a SOC 2 Gap Assessment? 

Conducting a SOC 2 gap assessment is essential for pinpointing vulnerabilities in customer security practices and achieving industry compliance. By identifying and addressing these gaps, organizations can improve their control environment and confidently meet client expectations.

Here is why you need to conduct a SOC 2 gap assessment:

1. Reveal gaps in your systems. A SOC 2 gap assessment reveals your organization’s strengths and weaknesses concerning compliance requirements. It highlights the differences that need to be addressed to achieve full compliance.
2. Maximize limited business resources. Your organization’s resources are limited, and time is also of the essence. You cannot afford to waste business resources on a failed SOC 2 audit. SOC 2 gap analysis helps you maximize these limited resources for the benefit of your business. 
3. Build confidence for the official audit. Conducting a thorough gap assessment builds confidence and prepares you for the official audit. By identifying and addressing gaps proactively, you can feel well-prepared for any potential challenges or questions that may arise during the audit. 
4. Protection against cyber threats and attacks. A SOC 2 gap analysis helps shield you from cyber-attacks and data breaches by identifying and addressing vulnerabilities in your systems and processes. Closing these gaps before undergoing the official SOC 2 audit strengthens your defenses against potential exploits and data breaches. 

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Trust Expert Gap Assessments Conducted by I.S. Partners

In business, every hour, every dollar, and every choice counts. You cannot afford to lose precious time and money over a failed SOC 2 audit. A key step to ensure success is to undergo a gap assessment before starting the SOC examination. 

At I.S. Partners, our consultants help companies achieve SOC 2 compliance through assessments and audits. As risk and cybersecurity experts, we know how crucial it is for companies to protect customer’s sensitive data and demonstrate their commitment to security.

We offer a range of services to support your SOC 2 compliance journey, including gap assessments to evaluate your current controls and identify areas of non-compliance. We then help you develop and implement the required security policies, procedures, and controls.

Our consultants, with almost two decades of industry experience, provide ongoing support and guidance. We can answer your questions, address concerns, and offer guidance as your organization continues its compliance journey.

I.S. Partners’ compliance services for software and SaaS companies include key frameworks like SOC 2, ISO 27001, and PCI DSS.

About The Author

John DeCesare

John has over 22 years of experience working in the manufacturing, distribution, not-for-profit, governmental, insurance, public utilities and service industries. John has expertise in various aspects of the accounting, auditing and consulting disciplines. He has directed a full range of value-added services and has consulted to Senior Executives in middle market and Fortune 500 companies. His experience includes Sarbanes-Oxley compliance, SOC 1 audits, outsourcing and contract services, financial management, accounting and strategic planning, due diligence, business restructuring / re-engineering, process improvement and risk assessment.