A Real-World SOC 2 Report Example
SOC 2 (System and Organization Controls) is a report that evaluates the effectiveness of an organization's controls over its information systems related to security, availability, processing integrity, confidentiality, and privacy. Below is an example of a SOC 2 report for a fictional company, XYZ Inc.
1.XYZ Inc. SOC 2 Report
Scope of Review:
The SOC 2 report covers the period of January 1, 2022, to December 31, 2022, and was performed by XYZ Inc.'s internal audit team. The report evaluated the effectiveness of the company's controls over its cloud-based customer relationship management (CRM) system, which houses sensitive customer data, including contact information, purchase history, and billing information.
2.Independent Service Auditor's Opinion:
In our opinion, the controls implemented by XYZ Inc. over its cloud-based CRM system were designed and operating effectively to achieve the security, availability, processing integrity, confidentiality, and privacy objectives for the period under review, in accordance with the applicable Trust Services Criteria.
Description of XYZ Inc.'s System
XYZ Inc. provides a cloud-based CRM system that enables businesses to manage customer interactions, automate sales processes, and track customer data. The system is hosted on servers provided by a third-party cloud service provider, and customer data is stored in a highly secure data center.
3.Control Objectives and Related Controls
XYZ Inc. established control objectives for each of the five Trust Services Criteria, as follows:
- Security: The system is protected against unauthorized access, both physical and logical, and data is protected against unauthorized disclosure, modification, and destruction.
Related Controls:
- Access controls to the system and data are based on a "least privilege" model, ensuring that only authorized individuals have access to the system and data.
- Strong encryption protocols are used to protect data in transit and at rest.
- Firewall and intrusion detection systems are in place to prevent unauthorized access to the system.
- Availability: The system is available for operation and use as committed or agreed.
Related Controls:
- Redundant servers and backup systems are in place to ensure continuity of service in the event of a system failure.
- System maintenance and upgrades are scheduled during non-business hours to minimize disruption to users.
- Processing Integrity: System processing is complete, accurate, timely, and authorized.
Related Controls:
- The system is designed to ensure the accuracy and completeness of data entered by users.
- Data validation and error checking routines are implemented to minimize the risk of data processing errors.
- Confidentiality: Information designated as confidential is protected as committed or agreed.
Related Controls:
- Encryption is used to protect confidential data in transit and at rest.
- Access to confidential data is restricted based on the "least privilege" model.
- Privacy: Personal information is collected, used, retained, and disclosed in accordance with the organization's privacy notice and the criteria set forth in generally accepted privacy principles issued by the AICPA and CICA.
Related Controls:
- The system collects only the minimum amount of personal information necessary to perform its intended functions.
- Personal information is only shared with third parties in accordance with the organization's privacy policy.
Summary:
XYZ Inc.'s cloud-based CRM system was found to have effective controls in place to achieve the Trust Services Criteria related to security, availability, processing integrity, confidentiality, and privacy. The system is designed to protect customer data and ensure its accuracy, completeness, and availability, and to minimize the risk of unauthorized access, disclosure, or modification.
