SOC2 vs SOC3

Apr 20, 2023by Maya G

Introduction on SOC2 vs SOC3 

When it comes to evaluating the security of a company's systems and processes, SOC 2 and SOC 3 reports are two common tools used to provide assurance to stakeholders. While both reports are issued by independent auditors and demonstrate a company's commitment to security, there are important differences between them that organizations need to understand to make an informed decision.

Factors To Consider When Choosing Between SOC 2 And SOC 3 Reports

Definition Of SOC 2 

SOC 2 (Service Organization Control 2) is a type of report that evaluates the effectiveness of an organization's internal controls over security, availability, processing integrity, confidentiality, and privacy (commonly referred to as the "Trust Services Criteria"). SOC 2 reports are issued by independent auditors and provide assurance to stakeholders that a service organization has implemented controls to address the Trust Services Criteria and that those controls are operating effectively over a period of time.

Purpose Of SOC 2 

The primary purpose of a SOC 2 report is to provide assurance to stakeholders that an organization has established and implemented effective controls over the Trust Services Criteria, which include security, availability, processing integrity, confidentiality, and privacy. The report is intended to provide users with information about the design and operating effectiveness of these controls and to help them assess the risk of using the services provided by the organization being audited.

Definition Of SOC 3 

SOC 3 (Service Organization Control 3) is a type of report that evaluates the effectiveness of an organization's controls related to the Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. SOC 3 reports are intended for a broader audience than SOC 2 reports and are designed to be publicly accessible. SOC 3 reports are often used by service organizations to demonstrate their commitment to security and compliance to a wider range of stakeholders, such as customers, partners, and regulators.

Purpose Of SOC 3

The primary purpose of a SOC 3 report is to provide a summary of an organization's controls related to the Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. The report is designed to be publicly accessible and can be used by organizations to demonstrate their commitment to security and compliance to a wider range of stakeholders, such as customers, partners, and regulators.

 

SOC 2 Implementation Toolkit

 

Key Differences Between SOC 2 And SOC 3 Reports 

There are several key differences between SOC 2 and SOC 3 reports. These include:

  • Audience: SOC 2 reports are intended for a limited audience, such as management, regulators, and other stakeholders with a need to know about an organization's controls related to the Trust Services Criteria. In contrast, SOC 3 reports are designed to be publicly accessible and can be used by a wider range of stakeholders, such as customers, partners, and investors.
  • Level of detail: SOC 2 reports provide detailed information about an organization's controls related to the Trust Services Criteria, including the design and operating effectiveness of these controls. SOC 3 reports, on the other hand, provide only a summary of the auditor's findings related to the Trust Services Criteria.
  • Distribution: SOC 2 reports are distributed only to the intended audience and are typically not publicly available. SOC 3 reports, on the other hand, are designed to be distributed more widely and are often used as a marketing tool by service organizations to demonstrate their commitment to security and compliance.
  • Cost: SOC 2 reports are generally more expensive to obtain than SOC 3 reports because they require more detailed testing and documentation.
  • Intended use: SOC 2 reports are typically used by organizations to provide assurance to stakeholders about their controls related to the Trust Services Criteria. SOC 3 reports, on the other hand, are often used by service organizations as a marketing tool to demonstrate their commitment to security and compliance.

    Overall, the key differences between SOC 2 and SOC 3 reports relate to their intended audience, level of detail, distribution, cost, and intended use. Organizations should carefully consider these factors when deciding which type of report is most appropriate for their needs.

    Factors To Consider When Choosing Between SOC 2 And SOC 3 Reports 

    When deciding between SOC 2 and SOC 3 reports, organizations should consider several factors. These include:

    • Regulatory requirements: Organizations should consider any regulatory requirements or industry standards that they need to comply with, as some may require a SOC 2 report instead of a SOC 3 report.
    • Cost: Organizations should consider the cost of obtaining a SOC 2 report versus a SOC 3 report, as SOC 2 reports are generally more expensive due to their higher level of detail.
    • Marketing benefits: Organizations should consider the marketing benefits of obtaining a SOC 3 report, as it can be used as a marketing tool to demonstrate their commitment to security and compliance to a wider range of stakeholders.
    • Level of risk: Organizations should consider the level of risk associated with their services and whether a SOC 2 report is necessary to provide adequate assurance to stakeholders.

      Overall, organizations should carefully consider these factors when deciding which type of report is most appropriate for their needs. In some cases, it may be necessary to obtain both a SOC 2 and SOC 3 report to satisfy the needs of different stakeholders.

      Conclusion 

      SOC 2 and SOC 3 reports are both important tools for organizations to provide assurance to stakeholders about their controls related to the Trust Services Criteria. Ultimately, organizations should carefully consider these factors to determine which type of report is most appropriate for their needs.

       

      SOC 2 Implementation Toolkit