SOC 2 Type 1 vs, Type 2: What To Know

Businesses need to know that they can trust their data with another business. There’s a lot of liability in the process of data sharing, and taking a bad risk can cost a business a lot of money and reputational damage. SOC 2 certifications are an easy way to prove that a business can trust you (or vice versa) with valuable information.

There are two types of SOC 2 certifications. Before you make a strategic partnership for your business, here’s what you need to know about the difference between SOC 2 Type 1 and SOC 2 Type 2 certifications.

What Is the Importance of Cybersecurity for Businesses?

Instances of cybersecurity failure and data breaches are consistently on the rise. Businesses store a lot of information, and most of that information is extremely valuable to bad actors like identity thieves.

Over time, hackers have only gotten wiser. They have better technology and more tools at their disposal. Spoofing schemes have become increasingly more convincing, and as the world becomes increasingly more digital, there is an ever-growing list of potential vulnerabilities.

The effects of a data disaster can have such devastating consequences that a business may have to permanently close its doors. Cybersecurity is crucial for keeping your business up and running.

Why Is Trustworthiness Important for Any Business?

Trustworthiness is the most important aspect of any transaction or working relationship, whether it be business-to-business or business-to-consumer. People want to know that they can trust the person or service they’re paying to keep them safe from cybersecurity vulnerabilities and protect their sensitive information from third parties.

Any step a business takes to promote trustworthiness is worthwhile, especially if their relationships are primarily based on trust. You don’t want to share your business data with a company that you have reservations about, and you also don’t want to accept information from customers or clients if doing so could put them at risk.

Security audits, like SOC 2 audits, are designed to keep everyone comfortable. Knowing that an outside professional has evaluated the trustworthiness of a business without bias and declared that they’re operating at a high standard can influence your decision to work with that business.

What Is a SOC 2 Certification?

SOC 2 stands for System and Organization Controls 2. SOC refers to a special trustworthiness audit of an organization. SOC 2 is a thorough risk assessment report that determines the security standards of stored customer data and privacy. SOC 2 reports attest that an audit has been performed by a CPA (Certified Public Accountant) under AICPA (Association of International Certified Professional Accountants) standards.

SOC 2 certifications give peace of mind in business-to-business transactions. If one business trusts another business to access or handle its secure data, it may be responsible for performing its own audit to ensure that the services they’re utilizing meet strict security standards. No one wants to jeopardize their customers or clients, and the process of continual audits can become expensive and exhausting.

If you have a SOC 2 certification, businesses that use your service will feel more at ease with sharing their data. They know that your processes pass scrutiny, and they won’t have to spend more of their own time or money independently vetting you.

What Is the SOC 2 Audit Process Like?

The SOC 2 audit process is always thorough, even if you choose a shorter audit. You’ll choose the type of audit you’d like, decide on the scope of your audit, complete a readiness assessment, and choose an official SOC 2 CPA auditor. Your auditor will conduct the official audit, and you’ll receive your results at the end of your audit process.

What Is SOC 2 Type 1 vs. Type 2?

There are two types of SOC 2 certifications: SOC 2 Type 1 and SOC 2 Type 2. SOC 2 Type 1 certifications offer a one-time security snapshot, whereas SOC 2 Type 2 certifications demonstrate a long-term evaluation of a company’s trustworthiness standards.

SOC 2 Type 1

A SOC 2 Type 1 audit examines a company’s cybersecurity measures as they are established. Over a period of several weeks, the audit will evaluate safety standards, tools, protocols, and processes. The audit report will determine whether the tools and processes utilized are efficient and secure.

SOC 2 Type 1 audits are particularly useful for newer organizations that are still establishing their protocol. This is a fantastic starter audit that allows a business to determine its readiness to move forward with its operations.

A clear SOC 2 Type 1 audit acts as a green light, but it should never be the “be-all and end-all” of trustworthiness. As new threats emerge, businesses need to be able to evolve their security protocols to stay ahead of risk management.

SOC 2 Type 2

A SOC 2 Type 2 audit is the second part of a SOC 2 Type 1 audit. While a SOC 2 Type 1 audit can take less than a month to complete, a SOC 2 Type 2 audit can take up to a year to finish.

The goal of a SOC 2 Type 2 audit is to measure cybersecurity protocols and their performance over time, including how frequently a company updates its security protocols and how it handles emerging security threats.

A SOC 2 Type 2 audit gives people greater peace of mind because it demonstrates a long-term commitment to cybersecurity standards. This type of audit guarantees that a company adheres to the best practices and is consistently evolving to maintain a high cybersecurity standard.

SOC 2 Type 1 vs. SOC 2 Type 2: Which Is Better?

Any security audit is a step in the right direction, but a SOC 2 Type 2 certification is typically superior to a SOC 2 Type 1 audit report. If you want to build a lasting relationship based on trust, your B2B customers want to know that your security measures can withstand the test of time. They don’t want to worry that you’ve let standards slip or that you aren’t up to date on best practices.

In many cases, a SOC 2 Type 1 audit report won’t be enough to satisfy the requirements of your clients or customers. A SOC 2 Type 2 certification is the perfect demonstration of your commitment to remaining trustworthy, which significantly reduces the long-term risks of placing trust in your business.

Mosey Has an SOC 2 Type 2 Certification

Businesses across the country trust Mosey to help them manage state business compliance. It’s important to us to be thorough in building trust, which is why our SOC 2 Type 2 certification was a necessity. We take the security of your data seriously, and we’re constantly fortifying our cybersecurity safeguards.

Choose a provider you can trust. Schedule a demo with Mosey to learn how our compliance platform can help keep your business compliant without compromising your sensitive data.

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