The History of SOC 2
SOC 2 (System and Organization Controls 2) is an auditing standard established by the American Institute of Certified Public Accountants (AICPA) to evaluate the security, availability, processing integrity, confidentiality, and privacy of service organizations' systems and processes. SOC 2 reports help organizations build trust with their customers and demonstrate their commitment to protecting sensitive information.
SOC 2 was introduced in 2011 as an update to SOC 1, which was focused solely on financial reporting controls. SOC 2 was designed to address the growing need for assurance on non-financial controls, particularly in the technology and service industries where data security and privacy were becoming increasingly important.
SOC 2 was developed in response to the increasing use of cloud computing and outsourcing, which meant that organizations were relying on third-party service providers to handle critical data and systems. The AICPA recognized that customers needed a way to evaluate the security and privacy controls of these service providers, and SOC 2 was developed to fill that need.
SOC 2 reports are based on the Trust Services Criteria (TSC), which were developed by the AICPA and are updated periodically to reflect changes in technology and security best practices. The TSC outline five categories of controls that are evaluated in a SOC 2 report: security, availability, processing integrity, confidentiality, and privacy. Service organizations are required to meet specific control objectives within each of these categories to receive a SOC 2 report.
Since its introduction, SOC 2 has become an essential standard for service organizations in a wide range of industries, from healthcare and finance to software-as-a-service (SaaS) providers and data centers. SOC 2 reports have become an important tool for building trust with customers, demonstrating compliance with regulatory requirements, and improving the overall security and reliability of systems and processes.
SOC 2, or Service Organization Control 2, is a type of audit report that assesses the controls of a service organization related to security, availability, processing integrity, confidentiality, and privacy. SOC 2 reports are widely used by service organizations to demonstrate their commitment to data security and privacy, and to provide assurance to their customers and other stakeholders.
The history of SOC 2 can be traced back to the early 2000s, when the American Institute of Certified Public Accountants (AICPA) recognized the need for a set of standards to evaluate the effectiveness of controls at service organizations. In 2010, the AICPA released a set of guidelines, called the Service Organization Control (SOC) framework, that defined the criteria for SOC 1, SOC 2, and SOC 3 reports.
Since then, SOC 2 has become a widely adopted standard for evaluating the controls of service organizations. Many service organizations undergo SOC 2 audits annually to demonstrate their commitment to data security and privacy, and to provide assurance to their customers and other stakeholders. Additionally, SOC 2 reports have become a common requirement for service organizations in industries such as healthcare, finance, and technology.
