Does Your Business Need SOC 2 or SOC 3?

What Are SOC 2 and SOC 3?

SOC 2 and SOC 3 reports are audit reports that assess whether a service organization has adequate controls in place to protect the confidentiality, integrity, and availability of customer data. However, there are some key differences between the two report types.

Key Differences Between SOC 2 and SOC 3

The main difference between SOC 2 and SOC 3 reports is that SOC 3 reports are intended for the public, while SOC 2 reports are meant only for existing and prospective customers. A SOC 3 report includes a description of the service organization's system, the auditor's opinion on the effectiveness of the controls, and the service organization's assertion.

SOC 2 reports are more detailed than SOC 3 reports and cover the service organization's controls in greater depth. Due to their confidential nature, they only provide limited information about the service organization's system and controls to outside parties. This is why, unlike SOC 3 reports, they cannot be published.

Another key difference is that SOC 2 reports focus on five trust principles — security, availability, processing integrity, confidentiality, and privacy — while SOC 3 focuses only on security and availability. For this reason, SOC 2 reports are generally more comprehensive than SOC 3 reports.

A final difference is that a company can have its SOC 2 report assessed as either a Type 1 or Type 2 evaluation. A Type 1 evaluation assesses the design of controls at a specific point in time, while a Type 2 evaluation assesses both the design and the operating effectiveness of controls over a defined period. For a SOC 3 report, a company can only opt for a Type 1 evaluation.

Which Report Is Right for Your Business?

‍While both report types have their own advantages, it ultimately comes down to what your business needs. If you want to make your report publicly available to build trust with current and prospective customers, you should opt for a SOC 3 report. However, if you want a more comprehensive assessment of your company's controls — even if it's intended for internal use only — a SOC 2 report is probably the best choice.

Conclusion

So, when deciding between a SOC 2 or SOC 3 report for your business, consider what your requirements are and who you want to share the information with. If you need a more comprehensive assessment or want to keep the information confidential, you should choose a SOC 2 report. If you're looking for something you can make publicly available to build trust with current and prospective customers, you should choose a SOC 3 report.

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