Understanding SOC 2+: Streamlining Compliance Across Frameworks

System and Organization Control (SOC 2) reports are designed to assure stakeholders that organizations can meet their service commitments and system requirements as evaluated against the AICPA’s Trust Service Criteria (TSC). However, organizations often face competing compliance requirements. When service commitments include criteria beyond the TSC—such as those mandated by the Health Insurance Portability and Accountability Act or the Payment Card Industry Data Security Standard—organizations can address these needs by incorporating additional criteria into their SOC 2 report. This tailored approach is referred to as a SOC 2+.

What is SOC 2+?

SOC 2+ is a customized SOC 2 report that integrates additional compliance frameworks or regulatory requirements beyond the standard SOC 2 TSC. While a traditional SOC 2 report assesses an organization’s controls for data security, availability, processing integrity, confidentiality, and privacy, SOC 2+ expands this scope to include other industry-specific standards or requirements. This customization makes SOC 2+ a comprehensive tool for organizations to more easily demonstrate compliance across multiple frameworks.

Why Obtain a SOC 2+ Report?

Many services organizations need to comply with multiple regulatory standards or industry frameworks simultaneously. For example, a company may need to meet SOC 2 requirements while also adhering to:

• ISO 27001 (Information Security Management System)
• HIPAA (Health Insurance Portability and Accountability Act for healthcare data)
• NIST (National Institute of Standards and Technology guidelines)
• PCI DSS (Payment Card Industry Data Security Standard)

SOC 2+ enables organizations to streamline the auditing process by integrating these frameworks into a single report. This reduces the need for multiple, separate audits, saving time, effort and costs.

How SOC 2+ Works

To create a SOC 2+ report, an organization begins with their core controls and maps them to the SOC 2 TSC and any additional frameworks. This allows an organization to identify gaps or weaknesses in achieving the collective criteria. The SOC 2 audit then performs a review of the relevant controls and communicates the results thereof in one report. For instance, if an organization needs to comply with both SOC 2 and ISO 27001, the audit examines how the controls align with the requirements of both standards.

The report includes sections detailing how the organization meets each standard’s specific requirements, offering a comprehensive view of compliance. Essentially, a SOC 2+ report acts as a “multi-compliance” document, customized to meet regulatory guidance relevant to the business.

Benefits of SOC 2+

Performing a SOC 2+ report provides several benefits to organizations operating in regulated sectors. Some of these include:

• Consolidated Reporting: Combining multiple compliance requirements into a single report simplifies the audit process and reduces redundancies.
• Cost and Time Efficiency: By consolidating audits, organizations save time and resources that would otherwise be spent on multiple independent assessments.
• Enhanced Assurance for Clients: A SOC 2+ report demonstrates to customers that the organization is not only SOC 2 compliant but meets other relevant standards, enhancing trust and credibility.
• Industry Adaptability: SOC 2+ is flexible, making it ideal for various sectors such as healthcare, finance and technology, where compliance with multiple regulations is often required.

Overcoming Challenges with SOC 2+

During the implementation of the SOC 2+ reporting structure, be aware of challenges that can prevent organizations from implementing it effectively. Below are common hurdles and strategies to address them:

Complexity in Mapping Controls

• Challenge: Mapping different frameworks onto SOC 2 criteria can be complex and require expertise to ensure accurate alignment.
• Solution: Begin with a readiness assessment or engage advisory services to identify relevant controls, confirming they’re designed and implemented to meet all required standards.

Audit Scope and Costs

• Challenge: Expanding the audit scope to include additional standards may increase the duration and cost of the process.
• Solution: Evaluate customer and stakeholder needs to determine the additional criteria’s importance. Assess the potential costs of not including them, such as lost opportunities or reputational damage. While increased scope may raise costs, the long-term benefits often outweigh the initial investment.

Ongoing Maintenance

• Challenge: Changing regulatory requirements demand continuous updates to controls, which can be resource intensive.
• Solution: Encourage a culture of continual improvement. Conduct regular risk assessments and monitor controls to identify changes in risks or regulations. Implement processes to ensure controls are updated proactively to maintain compliance.

Takeaways

SOC 2+ offers a flexible and efficient way for organizations to address multiple compliance requirements through a single audit. By customizing a SOC 2 report to include additional standards, organizations can demonstrate a higher level of assurance to clients, regulators and partners. This approach is particularly valuable in industries with stringent compliance requirements, where aligning multiple standards is critical for both business operational success and growth. SOC 2+ can simplify compliance and enhance the organization’s credibility, trustworthiness, and competitive positioning in the market.

If your organization could benefit from simplifying your audit process with a SOC 2+ report, contact the Sikich team today.