What is a SOC 3 audit and how does it differ from SOC 2?

A SOC 3 audit, or Service Organization Control 3, is an attestation report that provides assurance about an organization’s controls related to security, availability, processing integrity, confidentiality, and privacy. Conducted by independent auditors, SOC 3 audits evaluate the effectiveness of a service organization’s systems and processes.

Unlike SOC 2 reports, SOC 3 reports are designed for public distribution. This means they can be freely shared with customers, partners, and other stakeholders without restrictions. The primary purpose of a SOC 3 report is to offer a high-level overview of an organization’s compliance with trust service criteria.

Key differences between SOC 2 and SOC 3 audits include:

1. Scope and detail: SOC 2 reports are comprehensive and detailed, providing in-depth information about the design and operating effectiveness of controls. SOC 3 reports offer a condensed summary of the organization’s compliance with trust service criteria.
2. Intended audience: SOC 2 reports are primarily used by management, regulators, and business partners who require detailed insights. SOC 3 reports are suitable for public consumption and are often used for marketing purposes.
3. Distribution model: SOC 2 reports are confidential and subject to non-disclosure agreements, while SOC 3 reports can be freely distributed without restrictions.
4. Content: SOC 3 reports exclude sensitive information and technical details, making them more accessible to a wider audience.

The SOC 3 audit process begins with selecting an independent auditor, typically a CPA firm with expertise in information security. The auditor assesses the organization’s systems and controls against the applicable trust service criteria defined by the AICPA (American Institute of Certified Public Accountants).

Upon successful completion of the audit, the organization receives a SOC 3 seal, which can be displayed on their website and marketing materials for a specified period, typically one year.

Benefits of SOC 3 audits include:

• Providing a publicly shareable attestation of an organization’s commitment to security and privacy
• Enhancing credibility and building trust with customers
• Potentially giving a competitive edge in the market
• Offering a simplified report accessible to a wider audience
• Serving as a powerful marketing tool through the SOC 3 seal

However, it’s important to note that SOC 3 reports have limitations. They lack the detailed information found in SOC 2 reports, which may be necessary for thorough due diligence. Organizations should consider their specific needs and audience when deciding between SOC 2 and SOC 3 audits, or whether to pursue both.

In conclusion, SOC 3 audits provide a valuable tool for service organizations to demonstrate their commitment to security, privacy, and compliance. While less detailed than SOC 2 reports, they offer a publicly shareable attestation that can build trust and credibility with a broader audience.

This article was prepared in cooperation with partner ITGRC Advisory Ltd.

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