Key Takeaways
1. A defined SOC 2 audit scope is critical and sets the foundation for all other audit activities.
2. When choosing the major Trust Service Principle to focus on, consider the goals of your organization and the type of customer data you process.
3. Our experienced CPAs at I.S Partners can help you precisely choose the appropriate SOC 2 audit scope and build an audit process around it.
What Does a SOC 2 Scope Mean?
The SOC 2 scope refers to the specific focus of a structured SOC 2 audit. The scope includes the focal Trust Services Criteria, the limitations of the audit, and coverage. Everything you do down the road to compliance depends on the scope of the SOC 2 audit you define. A well-defined SOC 2 scope sets the foundation for all other steps.
The primary goal of defining the scope of your SOC 2 audit is to identify the key data to focus on, identify the associated risks, and establish appropriate SOC 2 controls and system processing to protect them. This process helps outline all aspects that should be evaluated for compliance with data protection standards.
Defining the SOC 2 scope is a task for service organization management, but it is encouraged to be guided by a professional SOC 2 auditor. https://www.ispartnersllc.com/blog/why-organizational-readiness-assessments-are-important/ External auditors can help you perform a readiness assessment, which will determine gaps in your pursuit of SOC 2 compliance and more effectively prevent data breaches.
Key Components of a SOC 2 Scope
A SOC 2 scope should ideally include information about an organization’s services, systems, people and processes, and policies. These components all affect your security posture and the service organization’s environment.
During SOC 2 audit preparation, you want to identify everything that impacts your operations, including potential weaknesses.
The scope typically includes several key components:
Services
The specific services or systems offered by the service organization will be covered in the SOC 2 report. This includes a clear definition of what the service provider is responsible for and what is included in the audit. (Service Commitments and System Requirements)
Systems
The infrastructure, software, people, processes, internal controls and data that make up the system supporting the services. This involves a comprehensive look at all technological and human elements that are part of delivering the service. It also includes physical information systems relevant to the chosen trust principle.
Policies and Processes
The policies, procedures, internal controls, and practices used to provide the services. This ensures that the service organization has documented and follows a consistent approach to managing and securing its systems.
People
The personnel involved in governing and operating the system. This includes not just the IT staff but also management and other employees who play a role in maintaining the security and functionality of the system.
Trust Services Criteria (TSC)
The specific criteria that will be evaluated. Security is the only mandatory criterion, ensuring that the system is protected against unauthorized access.
The five Trust Service Criteria defined by the AICPA are the following
- Security,
- Availability,
- Processing Integrity,
- Confidentiality, and
- Privacy.
Include only the information related to the specific SOC 2 requirements that need to be assessed against the applicable trust principles.
Not every SOC 2 audit has the same scope. What is included within the scope of each SOC 2 audit varies based on the type of organization and the kind of services it offers.
At the end of the day, what you include within the scope of the SOC 2 audit is heavily influenced by the services you provide to your end users and the ideal security environment for your operations.
How to Determine the Scope of Your SOC 2 Audit
Mapping out a SOC 2 audit scope correctly is one of the biggest problems service organizations need help with during SOC audit preparation.
You want to ensure you cover the right controls that give your customers a comprehensive overview of your systems and processes and how you keep your system safe.
Dave Zuk offers valuable insight into determining the right SOC 2 audit scope for your business,
The best method is to identify your industry/organizational needs and associated risks. A second (not best) method is based on client requirements. Sometimes, clients who don’t understand the scope identification process just say we need a SOC 2 Type II report with all principles included.
This might not make sense based on your organizational goals or industry. I.S. Partners can help by walking you through how to scope potential needs and adding additional principles to the scope of the audit.
Here is how to define the scope of your SOC 2 audit:
1. Select the Relevant Trust Service Criteria that Apply to Your Business
Unlike other frameworks, SOC 2 offers the flexibility to choose which of the five trust principles is relevant to your organization based on your services.
Recognizing which Trust Services Principles (Security, Availability, Processing Integrity, Confidentiality, and Privacy) to audit is the key to determining the scope of a SOC 2 audit. This process will help you create a working audit design and operating effectiveness.
Simply put, a SOC 2 audit evaluates how well your organization’s cybersecurity controls meet the AICPA’s Trust Service Principles.
The Security criterion is mandatory for all SOC 2 audits.
2. Identify Which Services Require SOC 2 Compliance
All services that involve the collection, storage, processing, and transmission of sensitive data must be included within the audit scope. For instance, if a business manages IT services or provides data hosting services, those services must be included in the scope, with detailed illustrations of how they comply with the applicable Trust Service Criteria (TSCs).
Your audit scope must also include the details of the subservice organizations associated with your organization. Third-party vendors are included within the scope because they might have access to an organization’s sensitive information, systems, or assets.
3. List the Critical Components of Your Operation
This process entails understanding and documenting how data flows through your organization, which systems and applications are involved, and how these processes interact.
It includes mapping out workflows and procedures for delivering services, detailing how data is collected, processed, stored, and transmitted, and outlining incident handling processes.
As mentioned in the previous section, document the IT infrastructure, software, and hardware supporting your business processes, including servers, routers, software applications, and third-party solutions. Additionally, include essential documented policies, such as security policies that outline measures like access control and encryption standards.
Identify the roles and responsibilities of personnel involved in these processes and systems, ensuring staff are trained on security policies and procedures. This includes IT managers, security officers, and data processors, all overseeing access controls, monitoring and responding to security incidents, and executing security training programs.
4. Decide the Type of SOC 2 Audit (SOC Type 1 or Type 2)
When determining your SOC 2 audit scope, you need to choose between a SOC 2 Type 1 scope or a SOC 2 Type 2 audit scope. While both SOC 2 Type 1 and Type 2 audits assess similar security controls, they differ in scope.
5. Document and Consult an Auditor
Clearly document the agreed audit scope, including the specific TSC, services, systems, infrastructure, people, time period, and carve-outs.
Review this with your auditor during the planning phase. The scope can be refined based on findings and changes in your environment as the audit progresses.
You can also streamline this process by consulting an auditor before conducting the scope identification. External auditors, like I.S. Partners, have several experience working with diverse industries. They can help you identify which scope to focus on efficiently.
The key is striking the right balance. Include enough to provide meaningful assurance to customers without unnecessarily broadening the scope and creating extra work. Focus on what is most relevant and critical to security.
Efficiently Identify SOC 2 Scope with I.S. Partners
The SOC 2 scope is fundamental to achieving effective compliance. A well-defined scope ensures that your audit focuses on the most critical aspects of your operations, protecting sensitive data and minimizing potential security risks.
Improperly identifying your audit scope can lead to gaps in compliance, exposing your business to vulnerabilities and unnecessary audit complexity. That’s why getting this step right from the start is crucial.
What Should You Do Next?
Get a SOC 2 Readiness Assessment. We conduct a comprehensive readiness assessment to pinpoint gaps and help you fine-tune the scope of your audit, ensuring every critical area is covered.
SOC 2 Risk Assessment Services. Our experts help you identify and evaluate risks specific to your systems, services, and third-party vendors, ensuring that your SOC 2 audit scope addresses the most critical areas for data security and compliance.
Receive Ongoing Compliance Support. Even after the audit, we provide continuous guidance to help you manage changes in your organization that may impact your SOC 2 scope, ensuring ongoing compliance.
At I.S. Partners, we understand that defining the SOC 2 scope is the foundation of a successful audit. With our team’s expertise, you’ll navigate this complex process confidently and efficiently.
Contact us today to schedule your SOC 2 readiness assessment and ensure your organization’s security controls meet the highest standards.
