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Essential SOC 2 Type II Readiness Checklist

Nov 4, 2024

AICPA SOC logo with the text 'SOC for Service Organization'

Ensuring the security and privacy of sensitive information is critical for maintaining trust and meeting regulatory requirements. If your company is pursuing SOC 2 Type 2 certification, you’re already on the right track toward demonstrating strong data protection and security controls. This SOC 2 Type 2 Readiness Checklist is designed to guide your firm through the policies, procedures, and practices necessary to prepare for a successful audit.

SOC 2 (Service Organization Control 2) compliance is critical for service providers that store, process, or handle customer data. The Type 2 report, in particular, focuses on the operational effectiveness of your controls over time, making it more rigorous than Type 1, which only assesses design.

Achieving SOC 2 Type 2 certification helps build trust with your clients by proving your company is effectively managing and securing their data. This is especially crucial for industries such as finance, health care, and manufacturing that deal with sensitive data and require strong information security practices.

Audit Preparation Checklist

To help streamline your preparation for SOC 2 Type 2, we've organized the checklist into categories. These sections reflect the common criteria auditors will evaluate during the certification process.

Internal Audit Practice

Start your preparation by performing a thorough internal audit. This step will help you evaluate the current state of your controls and identify potential areas that need attention before the formal SOC 2 Type 2 audit.

  • Identify primary areas (security, confidentiality, processing integrity) to be audited.
  • Assess policies, procedures, and organizational controls.
  • Confirm risks are documented, prioritized, and mitigated.
  • Identify gaps by documenting control deficiencies and areas for improvement.
  • Create a gap remediation action plan.

Risk Assessment

Start by evaluating how well your company identifies and mitigates risks through regular, documented assessments.

  • Do you have a documented Risk Assessment Policy?
  • How often do you conduct risk assessments?
  • Are identified risks prioritized and mitigated effectively?

Legal and Compliance

Ensure your business complies with relevant laws and has up-to-date legal policies, including cybersecurity insurance.

  • Do you have a cybersecurity insurance policy
  • How often do you review your terms of service?
  • Do you regularly review and update policies to comply with relevant laws and regulations?

Access Control Policy

Implement strict access controls, regularly reviewing and adjusting user access rights to prevent unauthorized access.

  • Are access entitlements evaluated regularly?
  • Are access rights adjusted upon termination or job role change?
  • Is there a documented Access Control Policy in place?
  • Is unique ID authentication required for applications, operating systems, and network devices?
  • Do you use multi-factor authentication (MFA) requirements.
  • Do you periodically review user access rights?

Acceptable Use Policy

Protect your network by enforcing an Acceptable Use Policy and regularly conducting security tests.

  • Do all employees and contractors sign an Acceptable Use Policy (AUP)?
  • Are application input/output and network boundaries protected by firewalls?
  • Are there regular vulnerability tests conducted, and how often are they performed?
  • If using cloud services, where are your data centers located, and are they compliant with security best practices?

Privacy Policy

Safeguard personal data through a documented privacy policy that aligns with key regulations like GDPR or CCPA.

  • Is there a documented Privacy Policy that aligns with relevant regulations (e.g., GDPR, CCPA)?
  • Are privacy impact assessments conducted for new projects and services?
  • How is personal data anonymized or pseudonymized?

Asset Management Policy

Maintain an updated inventory of critical assets and establish secure processes for handling assets upon termination.

  • Do you maintain an inventory of all critical assets and their ownership?
  • Is there a process for ensuring that returned assets are handled securely upon termination?
  • How often is your Asset Management Policy reviewed?

Backup and Recovery

Ensure data backups are securely stored, encrypted, and regularly tested to guarantee recovery in case of an incident.

  • Are backups of scoped data stored in an environment with equivalent security controls to your production systems?
  • How frequently are system backups performed, and are they encrypted?
  • Is there a formal Business Continuity and Disaster Recovery (BCDR) policy in place?
  • Do you ensure offsite storage of backups?
  • Do you regularly test your backup restoration processes?

Change Management

Implement a formal Change Management Policy to control code and configuration changes, ensuring thorough testing before deployment.

  • Is there a documented Change Management Policy for code and configuration changes?
  • Are changes tested in a preproduction environment before deployment?
  • Are clients notified of significant changes to your products or services?

Incident Response

Maintain an up-to-date

  • Does your organization maintain an up-to-date Incident Response Policy?
  • Are incident response plans tested at least once a year?
  • Is there a clear process for informing customers about security incidents that may affect their data?
  • Do you have an incident communication plan?
  • Do you have defined roles and responsibilities during an incident?
  • Do you have post-incident review and improvement processes?

    • Data Deletion and Retention

    Define clear policies for data retention and secure deletion to manage client data and backups throughout the contract lifecycle.

    • Does your organization have a Data Retention and Deletion Policy?
    • How are client data and backups securely deleted after contract termination?
    • Do your subcontractors follow the same data retention and deletion practices?

    Information Security Policy

    Regularly review and update your Information Security Policy to keep pace with evolving security challenges.

    • How often is the Information Security Policy reviewed and updated?
    • Are employees provided with regular security awareness training?
    • Do you have hardening standards for network devices like firewalls, routers, and wireless access points?

    Third-Party Management

    Manage vendor security by ensuring all third-party agreements include provisions for protecting sensitive data.

    • Do you have a Vendor Management Policy in place?
    • Do third-party agreements include provisions for the security and protection of sensitive data?
    • Are regular audits or security reviews conducted on your third-party vendors?
    • How do third parties comply with your security policies and standards?
    • Is there a process for managing vendor contracts and ensuring they include necessary security clauses?

    Physical Security

    Secure your physical premises, particularly data centers, through robust access control and monitoring systems.

    • Are physical access controls in place for data centers and offices?
    • Do you have surveillance and monitoring systems to detect unauthorized access?
    • Do you have a process for managing physical security incidents?

    Encryption and Key Management

    Enforce encryption standards for all data and follow best practices for managing encryption keys securely.

    • Are encryption standards documented and enforced for data at rest and in transit?
    • Is there a Key Management Policy in place?
    • How are encryption keys stored and rotated?

    Monitoring and Logging

    Regularly review security logs and employ a SIEM system to detect and investigate suspicious activities.

    • Are security logs maintained and reviewed regularly?
    • Is there a Security Information and Event Management (SIEM) system in place?
    • How are anomalies and suspicious activities investigated?

    Employee Security Awareness and Training

    Equip employees with essential cybersecurity knowledge through regular, interactive security awareness training.

    • Do you offer cybersecurity awareness training to employees and leadership?
    • Do you mandate all employees take cybersecurity training at least annually?
    • Do you maintain records of training attendance and completions for all staff?
    • Do you organize and deploy periodic phishing simulations and other interactive activities to reinforce training?

    Application Security

    Maintain a comprehensive Application Security Policy, regularly testing for vulnerabilities to ensure software security.

    • Do you have an Application Security Policy in place?
    • How are unauthorized software installations restricted and monitored?
    • When was the last penetration test conducted, and how often are these tests performed?
    • Are there automated tools in place to detect security vulnerabilities in source code?

    Continuous Monitoring and Improvement

    Implement continuous monitoring practices to detect anomalies and ensure timely application of security patches.

    • Have you defined key performance indicators and metrics to measure your security performance?
    • Did you establish a baseline for normal network and system behavior?
    • Do you conduct periodic reviews of monitoring data to identify trends and anomolies?
    • Do you have an inventory of all hardware and software assets?
    • Do you ensure timely application of security patches and updates to all systems?
    • Do you schedule internal and external audits to evaluate the efficacy of security controls?

    SOC 2 Type 2 as Strategic Asset

    Preparing for a SOC 2 Type 2 audit isn’t just about meeting a checklist of requirements. It’s about embedding security and privacy into the very fabric of your company. A robust and proactive approach to data security helps build lasting trust with your clients and can provide a strategic edge in competitive industries.

    By following this readiness checklist, your company can more confidently approach the audit process, ensuring critical controls are in place and effectively operating over time.

    Next Steps

    Ready to take your SOC 2 Type 2 audit preparation to the next level?

    Call STACK Cyber at (734) 744-5300 or Contact Us to learn how we help your business get SOC 2 Type 2 compliant. We offer a variety of compliance packages.

    Learn More About Compliance

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    Do you know if your company is secure against cyber threats? Do you have the right security policies, tools, and practices in place to protect your data, reputation, and productivity? If you're not sure, it's time for a cybersecurity risk assessment (CSRA). STACK Cyber's CSRA will meticulously identify and evaluate vulnerabilities and risks within your IT environment. We'll assess your network, systems, applications, and devices, and provide you a detailed report and action plan to improve your security posture. Don't wait until it's too late.

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