How to Trust Your Cloud Service Provider

SOC (System and Organization Controls) reports are a series of internal control reports that evaluate the effectiveness of a company's internal controls over financial reporting, information technology, and data privacy. The reports are typically prepared by independent auditors and provide assurance to customers, vendors, and other stakeholders that a company has appropriate controls in place to safeguard their data and financial transactions.

There are two types of SOC reports - Type 1 and Type 2.

• SOC 1 Type 1: This report evaluates the design and effectiveness of a company's internal controls over financial reporting as of a specific point in time.
• SOC 1 Type 2: This report evaluates the design and effectiveness of a company's internal controls over financial reporting over a period of time, usually 6-12 months.
  
  

SOC 2 reports, on the other hand, evaluate a company's controls related to security, availability, processing integrity, confidentiality, and privacy of customer data. SOC 2 reports also come in Type 1 and Type 2 formats.

• SOC 2 Type 1: This report evaluates the design and effectiveness of a company's controls related to security, availability, processing integrity, confidentiality, and privacy of customer data as of a specific point in time.
• SOC 2 Type 2: This report evaluates the design and effectiveness of a company's controls related to security, availability, processing integrity, confidentiality, and privacy of customer data over a period of time, usually 6-12 months.
  
  

The difference between SOC 1 and SOC 2 reports is that SOC 1 reports focus on financial reporting controls, while SOC 2 reports focus on controls related to the security, availability, processing integrity, confidentiality, and privacy of customer data.

The American Institute of Certified Public Accountants (AICPA) regulates the SOC attestation process and sets the standards for the preparation of SOC reports. The AICPA's SOC reporting standards are designed to provide assurance to stakeholders about the effectiveness of a company's controls over financial reporting, information technology, and data privacy.

Customers may ask for SOC 1 reports for a few reasons:

1. Compliance Requirements: Some customers may require their vendors and service providers to be compliant with certain regulations, such as the Sarbanes-Oxley Act (SOX), which mandates that companies have adequate internal controls over financial reporting. In such cases, customers may require SOC 1 reports as evidence that their vendors and service providers have the necessary controls in place.
2. Risk Mitigation: Customers may want to ensure that their financial data is secure and accurate. By requesting SOC 1 reports, they can assess the effectiveness of a vendor or service provider's internal controls over financial reporting and determine whether their data is at risk.
3. Due Diligence: Customers may request SOC 1 reports as part of their due diligence process when evaluating vendors and service providers. The report can provide valuable insights into a company's internal controls and help customers make informed decisions about whether to engage their services.
   
   

Overall, SOC 1 reports can provide customers with a level of assurance that their vendors and service providers have appropriate controls in place to ensure the accuracy and reliability of financial data.

SOC 3 is another type of System and Organization Controls (SOC) report that evaluates a company's controls related to security, availability, processing integrity, confidentiality, and privacy of customer data. However, SOC 3 reports are designed for public distribution and can be shared with anyone, whereas SOC 1 and SOC 2 reports are restricted to a specific audience.

SOC 3 reports provide a high-level overview of a company's controls and can be useful for marketing purposes, as they demonstrate a company's commitment to security and data protection. They are often displayed on a company's website or provided to potential customers as evidence of their security and data protection practices.
Unlike SOC 1 and SOC 2 reports, SOC 3 reports do not provide the same level of detail about a company's controls, and they are not suitable for compliance requirements or due diligence. Instead, they provide a general understanding of a company's controls related to security, availability, processing integrity, confidentiality, and privacy of customer data.
The primary difference between SOC 1 Type 1 and Type 2 reports, as well as SOC 2 Type 1 and Type 2 reports, is the time period over which the controls are evaluated.
A SOC 1 Type 1 report evaluates the design and implementation of a company's controls related to financial reporting at a specific point in time. The report provides assurance that the controls are designed appropriately and are in place as of the date of the report. However, it does not provide any information about the operating effectiveness of those controls over time.

A SOC 1 Type 2 report, on the other hand, evaluates the design and operating effectiveness of a company's controls related to financial reporting over a period of time, usually six months to one year. The report provides assurance that the controls were designed appropriately and were operating effectively throughout the period of review.

Similarly, a SOC 2 Type 1 report evaluates the design and implementation of a company's controls related to security, availability, processing integrity, confidentiality, and privacy of customer data at a specific point in time. A SOC 2 Type 2 report evaluates the design and operating effectiveness of these controls over a period of time.

In summary, SOC 1 Type 1 and SOC 2 Type 1 reports provide assurance that controls are in place and designed appropriately as of a specific point in time, while SOC 1 Type 2 and SOC 2 Type 2 reports provide assurance that controls were operating effectively over a period of time.

The SOC (System and Organization Controls) reports are based on the COSO framework and provide assurance to customers and stakeholders about the effectiveness of a company's internal controls related to financial reporting, security, availability, processing integrity, confidentiality, and privacy of customer data.

SOC 1 reports are specifically designed to evaluate a company's internal controls related to financial reporting, which aligns with the COSO framework's Internal Control-Integrated Framework. The framework provides guidance on how to design, implement, and maintain effective internal controls over financial reporting.

SOC 2 reports evaluate a company's controls related to security, availability, processing integrity, confidentiality, and privacy of customer data, which align with the COSO framework's Enterprise Risk Management Framework. The framework provides guidance on how to manage risks across an organization and ensure that controls are in place to mitigate those risks.

The Trust Services Principles (TSP) are a set of criteria developed by the American Institute of Certified Public Accountants (AICPA) to assess the effectiveness of a company's controls related to security, availability, processing integrity, confidentiality, and privacy of customer data. These principles serve as the basis for SOC 2 reports.

The TSP consists of five principles:

1. Security: This principle evaluates whether a company's systems and data are protected against unauthorized access, disclosure, and use.
2. Availability: This principle evaluates whether a company's systems and data are available for operation and use as agreed upon with customers.
3. Processing Integrity: This principle evaluates whether a company's systems and data are complete, accurate, timely, and authorized.
4. Confidentiality: This principle evaluates whether a company's systems and data are protected against unauthorized disclosure.
5. Privacy: This principle evaluates whether a company's collection, use, retention, disclosure, and disposal of personal information are in accordance with the company's privacy notice and with the generally accepted privacy principles.
   
   

Companies that undergo a SOC 2 audit are assessed against these principles to determine the effectiveness of their controls related to security, availability, processing integrity, confidentiality, and privacy. The TSP provides a standardized framework for evaluating a company's controls related to these areas and helps to ensure consistency and comparability across SOC 2 reports.

Preparing for a SOC (System and Organization Controls) attestation can be a complex and time-consuming process. Here are some general steps to help you prepare for a SOC attestation:

1. Determine the scope: Determine the scope of the attestation by identifying the systems and processes that need to be assessed. This will depend on the services provided by your organization and the relevant Trust Services Criteria.
2. Select the appropriate SOC report: Determine which SOC report is appropriate for your organization. SOC 1 reports are focused on controls related to financial reporting, while SOC 2 reports assess controls related to security, availability, processing integrity, confidentiality, and privacy.
3. Identify the Trust Services Criteria: Identify the relevant Trust Services Criteria (TSP) that will be assessed in the SOC report. The TSP includes the security, availability, processing integrity, confidentiality, and privacy principles.
4. Conduct a readiness assessment: Conduct an internal readiness assessment to identify any gaps in controls related to the TSP. This will help you identify areas that need improvement before the formal SOC assessment.
5. Develop and implement a remediation plan: Develop a remediation plan to address any identified gaps or deficiencies. This plan should include specific actions and timelines for implementing the necessary controls.
6. Engage an independent auditor: Engage an independent auditor to perform the SOC assessment. The auditor will assess the effectiveness of the controls and issue a report that provides assurance to stakeholders.
7. Provide documentation: Provide the auditor with documentation related to the systems, processes, and controls that are being assessed. This may include policies, procedures, and evidence of control activities.
8. Monitor and maintain controls: Continue to monitor and maintain the controls that are in place to ensure ongoing compliance with the relevant TSP.
   
   

Preparing for a SOC attestation can be a challenging process, but it can also provide valuable insights into your organization's controls and risk management practices. By following these steps, you can help ensure a successful SOC assessment and provide assurance to your customers and stakeholders about the effectiveness of your controls.
In the context of SOC (System and Organization Controls), TSC refers to Trust Services Criteria and CC refers to Common Criteria.

Trust Services Criteria (TSC) are the principles that are used to evaluate the effectiveness of controls in a SOC report. The TSC include the following principles:

1. Security: The system is protected against unauthorized access, both physical and logical.
2. Availability: The system is available for operation and use as agreed.
3. Processing integrity: System processing is complete, accurate, timely, and authorized.
4. Confidentiality: Information designated as confidential is protected as committed or agreed.
5. Privacy: Personal information is collected, used, retained, disclosed, and destroyed in accordance with the organization's privacy notice.
   
   

Common Criteria (CC) is a set of standards used for evaluating the security of IT products and systems. The CC is an internationally recognized standard for IT security evaluation and is used by governments, organizations, and vendors around the world. The CC is based on the concept of security evaluation assurance levels (EALs), which range from EAL1 (lowest) to EAL7 (highest).

In the context of SOC, CC may be referenced as a framework for evaluating the effectiveness of controls related to security. Some organizations may use the CC as a basis for evaluating the security controls included in their SOC reports. However, it's important to note that the CC is not a requirement for SOC reports, and the use of the CC is not mandatory in SOC assessments.

The specific controls that an organization should implement for SOC (System and Organization Controls) will depend on the nature of the organization's business and the services it provides. However, in general, the following are some of the key controls that an organization should consider implementing to meet the Trust Services Criteria (TSC) for SOC:

1. Security: The organization should implement controls to protect its systems and data from unauthorized access, both physical and logical. This may include access controls, encryption, firewalls, intrusion detection and prevention systems, and incident response plans.
2. Availability: The organization should implement controls to ensure that its systems are available for operation and use as agreed. This may include redundant systems, backup and recovery plans, and monitoring for performance and availability.
3. Processing integrity: The organization should implement controls to ensure that its system processing is complete, accurate, timely, and authorized. This may include data validation, error correction procedures, and change management controls.
4. Confidentiality: The organization should implement controls to protect information designated as confidential, as committed or agreed. This may include data classification, access controls, encryption, and monitoring of data access and use.
5. Privacy: The organization should implement controls to ensure that personal information is collected, used, retained, disclosed, and destroyed in accordance with the organization's privacy notice. This may include policies and procedures for handling personal information, training for employees, and monitoring of compliance.

These controls should be designed, implemented, and tested to ensure that they are effective in achieving the intended objectives. The specific controls that an organization implements will depend on its risk profile, the nature of its business, and the services it provides. A qualified auditor can help to identify the specific controls that are necessary for an organization to meet the SOC requirements.

where can i find the SOC reports for my CSP ?

• Azure: https://azure.microsoft.com/en-us/trust-center/
• AWS: https://aws.amazon.com/compliance/trusted-advisor/ and https://aws.amazon.com/compliance/programs/
• Google Cloud: https://cloud.google.com/security/compliance
• SAP: https://www.sap.com/products/security-compliance/trust-center-cloud.html
• Salesforce: https://trust.salesforce.com/en/trust-and-compliance-documentation/
• Atlassian: https://www.atlassian.com/trust
• Workday: https://www.workday.com/en-us/trust/overview.html
• Oracle Cloud: https://www.oracle.com/security/compliance/cloud-service.html
  
  

These trust centers typically provide detailed information on the security and compliance measures taken by the cloud service providers, including any certifications or attestations they have obtained. You should be able to find SOC reports, ISO certifications, and other relevant information for each of these providers on their respective trust center websites.