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Questions

Do I need SOC 2?

Short answer

No law requires SOC 2. You need it when your customers ask for it, which usually happens once you sell software to larger companies that will trust you with their data. If deals are stalling on security reviews, start preparing; if nobody has asked yet, build the controls now and get the report when a buyer needs it.

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What SOC 2 actually is

A SOC 2 report is an independent CPA firm's opinion on your controls, built on the AICPA's trust services criteria: security, plus optional availability, processing integrity, confidentiality and privacy. It is an attestation report you share under NDA, not a certificate.

A Type I report looks at whether controls are designed well at one point in time. A Type II report also tests whether they worked over a review period, so most enterprise buyers ask for Type II.

Signs you need it now

  1. 1Enterprise prospects send long security questionnaires or ask for a SOC 2 report by name.
  2. 2Your product stores or processes customer data that the buyer is responsible for.
  3. 3You sell into regulated buyers such as banks, insurers or healthcare, who must check their vendors.
  4. 4A competitor wins deals because they can hand over a report and you cannot.

What changes in the software

Most controls are process, but several land in the product and its infrastructure: single sign-on and role-based access, audit logs, encryption, backups and restore tests, change management through pull requests and CI, vulnerability scanning and incident response. These are much cheaper to build in from the start than to retrofit before an audit.

Tools

Check it for your case.

Sources

Read the official text.

Frequently asked

Common follow-up questions.

Is SOC 2 the same as ISO 27001?

No. SOC 2 is an attestation report under AICPA standards, common in the US. ISO/IEC 27001 is a certifiable international standard for an information security management system. Many controls overlap.

Can a startup skip SOC 2 and answer questionnaires instead?

Often, early on. A well-kept security policy, a clear answer pack and good controls can carry smaller deals. Larger buyers usually insist on a report.

Does using a SOC 2 compliant cloud make my product compliant?

No. Your cloud provider's report covers their controls. Your own controls over your product and team need their own report.

Keep reading

Related questions and guides.

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