Tag: SOC 2

The SOC 2 Trust Services Criteria (TSC) are five categories—security, availability, confidentiality, privacy, and processing integrity—that define the scope and requirements for your SOC 2 audit. While security is mandatory for all SOC 2 reports, organizations choose which additional criteria to include based on their services and customer requirements. 

Strategic TSC selection can reduce audit costs, cut attestation timelines, and create foundations for efficient multi-framework compliance that delivers a return on investment through enhanced customer trust and enterprise deal closure.

Understanding how these criteria work together, which combinations deliver maximum value, and how to avoid common selection mistakes transforms compliance from endless audit cycles into a strategic business advantage that scales with organizational growth.

Key takeaways

• Organizations that thoughtfully select Trust Services Criteria based on business objectives rather than competitor benchmarking achieve faster audit cycles and avoid costly scope creep.
• Companies implementing SOC 2 with future compliance frameworks in mind report requirement overlap with standards like ISO 27001, enabling completion of multiple certifications within 12 months rather than separate audit cycles that waste time and resources.
• Thoropass transforms compliance from a burden to an advantage: Purpose-built platform automation and expert guidance has helped organizations cut audit timelines in half and reduce costs through retained enterprise customers, eliminating the endless audit loops that plague traditional compliance approaches.

What are the SOC 2 trust services criteria (TSC)?

The SOC 2 framework evaluates your organization’s controls across five Trust Services Criteria, formerly known as Trust Services Principles:

1. Security
2. Availability
3. Confidentiality
4. Privacy
5. Processing integrity

These criteria serve as the foundation for demonstrating your commitment to data protection and operational reliability.

When engaging an auditor, organizations define their report scope in consultation with their auditor, selecting which TSCs to include based on services provided. These decisions significantly impact your audit timeline, cost, and the strategic value you can extract from the SOC 2 compliance process.

It’s important to note that your TSC selection affects both SOC 2 Type I and Type II reporting timelines. Type I reports provide a point-in-time assessment of your controls, while Type II reports require a minimum three-month observation period to demonstrate operational effectiveness over time. Organizations pursuing multiple TSC often find that Type II reports provide greater customer confidence and competitive advantage, though they require sustained control implementation across all selected criteria throughout the observation period.

“The biggest mistake I see is organizations adding Trust Services Criteria to appease customers without evaluating whether they have the operational maturity to implement those controls effectively. This creates ‘audit debt’—you’re committing to maintain controls that don’t align with your actual business processes, which inevitably leads to findings and costly remediation cycles.” [SME Name, Title]

What are the five SOC 2 trust services criteria?

Each Trust Services Criterion serves a distinct purpose in your security ecosystem, but their true value emerges through strategic integration. Understanding how these criteria complement each other, and which combinations deliver maximum audit efficiency, enables organizations to build comprehensive compliance programs that scale with business growth.

1. Security criteria: Required foundation

Security is the mandatory cornerstone of every SOC 2 audit, establishing the foundational controls that protect information and systems against unauthorized access throughout the entire data lifecycle—from creation and processing to transmission and storage.

This criterion encompasses nine core areas including access controls, system monitoring, change management, and vendor risk management. Because security controls often overlap with other criteria, a well-designed security program creates efficiencies for additional TSC implementation.

2. Availability criteria: Operational resilience

Availability criteria ensure your systems maintain consistent uptime and performance standards that customers depend on. This includes network performance monitoring, disaster recovery procedures, backup processes, and business continuity planning.

When to include: Essential for organizations offering continuous services, cloud platforms, or mission-critical applications where downtime directly impacts customer operations.

Multi-framework advantage: Availability controls often satisfy requirements across multiple standards, creating audit efficiencies for organizations pursuing ISO 27001 or other frameworks simultaneously.

3. Confidentiality criteria: Information protection

Confidentiality goes beyond basic security to address the protection of specifically designated confidential information. This criterion is particularly relevant when handling proprietary business information, intellectual property, or data covered by non-disclosure agreements.

4. Privacy criteria: Personal data governance

Privacy criteria address the collection, use, retention, and disposal of personally identifiable information (PII). With evolving data protection regulations globally, privacy controls demonstrate proactive data governance practices.

When to include: Privacy is critical for organizations collecting consumer data, operating in regulated industries, or expanding into markets with strict data protection requirements like GDPR jurisdictions.

5. Processing integrity criteria: System reliability

Processing integrity ensures your systems process data accurately, completely, and in a timely manner. This criterion validates that system inputs and outputs are free from unauthorized manipulation and that processing occurs as intended.

GUIDE

How SOC 2 can accelerate your business

Strategic insight into how SOC 2 can be a business accelerator for your organization

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Which SOC 2 trust services criteria does your organization need?

Moving from understanding the five criteria to actually choosing which ones to implement requires a strategic approach that balances immediate customer demands with long-term business objectives. The wrong selection can lead to wasted resources and repeated audit cycles, while the right combination creates a compliance foundation that scales efficiently.

Cost-benefit analysis framework

Determining your TSC scope requires balancing customer requirements with strategic business value. Consider these key factors:

• Customer requirements analysis: While customer demands often drive initial TSC selection, successful compliance programs align criteria selection with broader business objectives and risk management strategies. Organizations report that having multiple criteria often opens doors to larger enterprise deals that require comprehensive security validation.
• Implementation overlap: Many controls serve multiple criteria simultaneously. For example, access management systems typically satisfy requirements across security, confidentiality, and privacy criteria, creating implementation efficiencies.
• Audit efficiency: Organizations working with integrated compliance platforms report 50% reduction in audit cycles when managing multiple criteria simultaneously, compared to separate audit processes for each criterion.

How Thoropass streamlines TSC selection and implementation

Thoropass’ purpose-built platform eliminates the guesswork in TSC selection through automated control mapping and readiness analysis to help identify gaps prior to auditor review. The platform maps your existing controls against all five criteria, identifying which combinations provide the most efficient path to attestation.

Key advantages include:

• Automated evidence collection: Integrations with 100+ security tools automatically collect evidence across multiple TSC simultaneously
• Control overlap analysis: The platform identifies where single controls satisfy multiple criteria requirements
• Expert guidance: Dedicated customer success managers provide strategic advice on TSC selection based on your specific business model and customer requirements

Organizations like Bytescale using Thoropass report 70% time savings on audit evidence collection and clearer visibility into which criteria combinations deliver maximum business value.

What are the common mistakes when selecting SOC 2 trust services criteria?

Some predictable errors in Trust Services Criteria selection create unnecessary complexity, inflate costs, and delay attestation. Understanding these pitfalls before you begin can save months of wasted effort and prevent the audit loops that plague so many compliance programs.

1. Avoiding TSC scope creep

• The problem: Adding criteria without clear business justification increases costs and complexity without proportional value. Many organizations include criteria simply because competitors have them, rather than evaluating actual business need.
• The solution: Align TSC selection with specific customer segments and business objectives. Start with security plus one additional criterion that directly addresses your primary value proposition or customer concern.

2. Multi-framework planning considerations

• The problem: Organizations that plan only for SOC 2 often face inefficient re-auditing when additional frameworks become necessary. This reactive approach leads to duplicated effort and missed opportunities for control integration.
• The solution: Consider future compliance needs during initial TSC selection. Many organizations find that thoughtful TSC selection creates a foundation for efficient multi-framework compliance later.

3. Business-driven criteria selection

• The problem: Many organizations select Trust Services Criteria simply because industry peers include them, without evaluating whether those criteria address actual business risks or customer requirements. This leads to unnecessary audit complexity and controls that don’t align with operational realities.
• The solution: Evaluate each criterion against your specific risk profile, customer contracts, and business model. The most effective SOC 2 scopes reflect genuine business needs rather than industry benchmarking.

How do you implement SOC 2 compliance with selected criteria?

Once you’ve determined your TSC scope, the implementation phase determines whether your compliance program becomes a strategic advantage or an ongoing burden.

Control integration strategies

Effective SOC 2 programs design controls that serve multiple criteria simultaneously. This approach reduces implementation burden while creating more robust security ecosystems.

Organizations like Access Group using Thoropass’ integrated approach report cutting their audit timelines in half—from typical 12-month cycles down to 6-7 months—while maintaining comprehensive control coverage across all selected criteria.

Continuous compliance monitoring

Rather than treating SOC 2 as an annual exercise, leading organizations implement continuous monitoring that maintains audit readiness year-round. This approach enables:

• Reduced audit cycles and predictable timelines
• Lower costs through efficient evidence management
• Enhanced security posture through real-time monitoring
• Simplified preparation for additional frameworks

How does Thoropass accelerate SOC 2 implementation?

Thoropass delivers end-to-end SOC 2 compliance through a combination of purpose-built technology and experienced compliance experts:

• Streamlined process: No more endless audit loops or unpredictable timelines. The platform provides clear visibility into audit progress and automated evidence collection.
• Expert team: Direct access to compliance experts and auditors through the platform, eliminating communication delays and version control issues that plague traditional audit processes.
• Proven results: Organizations like Bytescale achieve 400% ROI through retained enterprise customers, and Access Group achieved a 25% cost reduction compared to managing compliance with multiple vendors.

How do you scale compliance programs beyond SOC 2?

Achieving SOC 2 attestation is rarely the end goal; it’s typically the foundation for a broader compliance strategy. Organizations that view SOC 2 as an isolated requirement miss opportunities to build scalable compliance infrastructure that efficiently supports multiple frameworks and evolving business needs.

Scaling multi-framework compliance

Modern compliance strategies recognize that multiple certifications are often required to address diverse customer requirements and regulatory obligations. Organizations that plan for multi-framework compliance from the start achieve significant efficiencies.

For example, companies like CoEnterprise implementing SOC 2 and ISO 27001 simultaneously report 80% requirement overlap between frameworks, enabling completion of both in under 12 months.

Thoropass‘ platform supports efficient multi-framework compliance by:

• Evidence reuse: Upload evidence once and apply it across multiple frameworks simultaneously
• Integrated audits: Achieve multiple certifications with streamlined audit processes
• Compliance roadmap: Strategic guidance on which frameworks to pursue based on your industry and growth trajectory

Organizations using Thoropass for multi-framework compliance report transforming compliance from a cost center into a strategic advantage that accelerates enterprise sales cycles and reduces customer acquisition costs.

The most successful SOC 2 implementations view Trust Services Criteria selection as a strategic business decision that creates lasting value beyond the audit report. By understanding how different criteria combinations support business objectives while maximizing audit efficiency, organizations can transform compliance from a burden into a competitive advantage.

Ready to develop a strategic approach to SOC 2 compliance that scales with your business? Learn how organizations are achieving SOC 2 attestation in months, not years, while building foundations for multi-framework compliance.

CUSTOMER CASE STUDY

SOC 2 compliance delivers 400% ROI and unlocks enterprise customers

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SOC 2 (Service Organization Control 2) is a security framework developed by the American Institute of Certified Public Accountants (AICPA) that helps organizations demonstrate their commitment to protecting customer data through rigorous security controls and practices. Unlike traditional compliance standards that follow a checklist approach, SOC 2 focuses on how well your organization’s controls operate over time to safeguard sensitive information.

This framework has become increasingly critical as businesses rely more heavily on cloud services, third-party vendors, and digital infrastructure. SOC 2 compliance serves as a trust signal to customers, partners, and stakeholders that your organization takes data security seriously and has implemented appropriate safeguards. The standard primarily applies to service organizations that handle, store, or process customer data, including software as a service (SaaS) companies, cloud service providers, data centers, and managed service providers.

What it is

SOC 2 originated from the AICPA as part of their Service Organization Control reporting framework, building upon the foundation of earlier SOC 1 reports that focused primarily on financial controls. The AICPA developed SOC 2 specifically to address the growing need for standardized security and availability reporting in an increasingly digital business environment.

The primary purpose of SOC 2 is to provide a standardized way for service organizations to report on their controls related to security, availability, processing integrity, confidentiality, and privacy of customer data. Rather than being a pass/fail certification, SOC 2 is an attestation that provides detailed information about how your organization’s controls operate, allowing stakeholders to make informed decisions about risk.

Core requirements or principles

SOC 2 is built around five Trust Service Criteria, though not all organizations need to address every criterion:

Security (Common Criteria) – Required for all SOC 2 audits, this covers the foundation of information security including access controls, system boundaries, and risk management processes.

Availability – Ensures systems and services are available for operation and use as committed or agreed upon, addressing uptime, monitoring, and incident response.

Processing integrity – Focuses on whether systems process data completely, accurately, and in a timely manner, covering data validation, error handling, and processing controls.

Confidentiality – Addresses the protection of confidential information through encryption, access controls, and information handling procedures.

Privacy – Covers the collection, use, retention, disclosure, and disposal of personal information in conformity with your organization’s privacy notice.

Each criterion contains multiple control objectives that you must address through documented policies, procedures, and operational controls.

Types or categories

The most significant distinction within SOC 2 lies between Type I and Type II reports:

SOC 2 Type I evaluates the design and implementation of controls at a specific point in time. This report provides a snapshot assessment, confirming that controls exist and are properly designed but doesn’t test their operational effectiveness over time.

SOC 2 Type II examines the operational effectiveness of controls over a specified period, typically 3-12 months. This more comprehensive report tests whether controls are operating effectively throughout the examination period and is generally preferred by customers and stakeholders.

You can also choose different combinations of Trust Service Criteria based on your business model and customer requirements, creating customized scopes for your SOC 2 audits.

Compliance process

Achieving SOC 2 compliance involves several key phases that typically span 6-12 months:

Planning and scoping begins with defining which systems, processes, and Trust Service Criteria will be included in the audit. You must also select a qualified CPA firm to conduct the examination.

Gap assessment and readiness involves evaluating current controls against SOC 2 requirements, identifying gaps, and developing implementation plans. This phase often includes engaging consultants or using compliance platforms to streamline the process.

Control implementation requires you to design, document, and implement necessary policies, procedures, and technical controls. This may involve deploying new security tools, updating processes, and training staff.

Evidence collection occurs throughout the examination period for Type II audits, where you must demonstrate consistent operation of controls through logs, documentation, and testing results.

Formal audit involves the independent auditor reviewing documentation, testing controls, interviewing staff, and validating evidence to form their opinion on the effectiveness of controls.

Key roles typically include a compliance manager or project lead, representatives from IT, security, legal, and HR teams, and executive sponsorship to ensure adequate resources and organizational commitment.

Common challenges

Organizations frequently encounter several obstacles during SOC 2 implementation:

Resource constraints often emerge as companies underestimate the time and personnel required for compliance preparation. The process demands significant involvement from multiple departments, potentially impacting day-to-day operations.

Documentation gaps present major challenges, as many organizations lack formal policies and procedures required by SOC 2. Creating comprehensive documentation from scratch can be time-consuming and complex.

Technical control implementation may require significant infrastructure changes, new tool implementations, or custom development work to meet audit requirements, particularly around access controls and monitoring.

Evidence collection and management proves difficult for many organizations, as they must consistently gather, organize, and maintain evidence of control operation throughout the audit period.

These challenges typically occur because organizations begin the process without fully understanding the scope and complexity involved, or attempt to pursue SOC 2 without adequate planning and resource allocation.

Benefits of compliance

SOC 2 compliance delivers substantial advantages across multiple dimensions:

Business benefits include improved sales opportunities, as many enterprise customers require SOC 2 reports before engaging with vendors. You often see shortened sales cycles and the ability to access larger market opportunities that were previously unavailable.

Operational improvements result from implementing standardized security controls and processes. Many organizations discover operational inefficiencies during the compliance process and emerge with more robust, scalable operations.

Customer trust increases significantly, as SOC 2 reports provide tangible evidence of your organization’s commitment to data protection. This transparency helps build stronger customer relationships and reduces security-related objections during sales processes.

Risk reduction occurs through improved security posture, better incident response capabilities, and more structured approach to managing vendor and employee access to sensitive data.

Who needs it and when

SOC 2 compliance is particularly relevant for technology companies that handle customer data, including SaaS providers, cloud infrastructure companies, payment processors, and managed service providers. While not legally mandated, SOC 2 has become a de facto requirement in many industries where data security is paramount.

Organizations typically pursue SOC 2 when they begin selling to enterprise customers, expand into regulated industries like healthcare or financial services, or face direct customer requirements for compliance documentation. Companies experiencing rapid growth often find SOC 2 necessary to maintain customer trust and support scalable sales processes.

The timing for initiating SOC 2 compliance should account for the 6-12 month implementation timeline, with many organizations beginning the process when they anticipate customer requirements within the following year.

Preparation tips

Successful SOC 2 preparation requires strategic planning and systematic execution:

Start early by allowing adequate time for implementation and audit preparation. Beginning the process before customer requirements become urgent provides flexibility and reduces stress on internal teams.

Engage stakeholders across your organization early in the process. SOC 2 affects multiple departments, and securing buy-in and resource commitments upfront prevents delays later in the process.

Consider compliance automation platforms that can streamline policy creation, evidence collection, and ongoing monitoring. These tools can significantly reduce the manual effort required and help maintain compliance year-round.

Invest in professional support through experienced consultants or CPA firms that specialize in SOC 2. Their expertise can accelerate the process and help you avoid common pitfalls that delay compliance.

Cyberattacks in healthcare aren’t just rising—they’re exploding. While 97% of healthcare professionals feel confident in their organization’s ability to defend against cyber threats, the reality paints a different picture. In the first half of 2024 alone, nearly one in four cyber incidents targeted the healthcare sector. So where’s the disconnect?

Let’s examine healthcare cybersecurity more closely and consider how solutions like Thoropass, built on AWS, are helping organizations stay secure, compliant, and ready for the future.

High stakes of healthcare security

The healthcare industry now generates 36% of the world’s data, much of which is unstructured—think clinical notes, scanned documents, and diagnostic images. With data fragmentation and poor quality as barriers to effective decision-making, the risks extend beyond IT to patient care and trust.

• Cyberattacks cost an average of $1.47 million
• Healthcare data breaches have increased YoY for the past 10 years
• A single breach (e.g., Change Healthcare) affected 100 million people
• Stolen healthcare data is 10x more valuable than credit card info

The takeaway? Healthcare data is high-value and high-risk—which makes protecting it more than just a cybersecurity issue.

True protection starts with proving you’ve done the right things: securing systems, documenting controls, and passing audits that matter. In this landscape, compliance isn’t just a checkbox—it’s a shield.

Every regulation you follow, every audit you pass, and every control you implement is a layer of defense. But when frameworks pile up and processes stay manual, compliance becomes a bottleneck instead of a safeguard. That’s where automation becomes more than efficient—it becomes essential.

Automation: Your new compliance ally

Manual compliance is no longer sustainable. The healthcare organization faces dozens of overlapping requirements, including SOC 2, HIPAA, HITRUST, PCI DSS, GDPR, ISO 27001, and more. Managing them all takes time, expertise, and constant oversight.

Thoropass helps organizations flip the script by automating compliance tasks and integrating them directly into their AWS-based operations:

• Reduce evidence requests by 60%
• Automate 90% of compliance work
• Complete audits 60% faster
• Save up to two-thirds on traditional compliance costs

Whether tackling an initial audit or maintaining continuous compliance, automation makes the process smoother, faster, and more secure.

Built for the realities of healthcare

Thoropass uniquely supports healthcare providers and vendors with a solution that’s:

• End-to-end: From evidence gathering to readiness to the audit itself–all from one partner
• Cloud-native: Seamlessly integrates with AWS services
• Expert-driven: 500+ audits annually by in-house auditors
• Future-ready: Supports the rise of AI, ML, and Python in healthcare data operations

In fact, 78% of healthcare organizations now use AI/ML to automate data analysis, and the use of Python (a popular data processing language) has surged by over 570%. The need to secure, tag, and govern data at scale has never been more urgent or achievable.

Making compliance a competitive edge

Healthcare organizations face non-stop pressure, from data sprawl and  shifting regulations requirements to mounting cyber threats. It’s easy to feel like compliance is just one more obstacle. But with the right tools and partners, it becomes your strategic advantage. 

Thoropass, built on AWS, brings automation and audit together in a single, streamlined solution,  helping healthcare teams move faster, reduce risk, and stay ahead of regulatory demands. Compliance doesn’t have to slow you down. With Thoropass, it moves you forward. Discover how Thoropass and AWS can unlock your next advantage—get started today.

For enterprises managing complex technology stacks and sensitive data, SOC 2 audits have become a critical yet increasingly burdensome aspect of maintaining customer trust and market access. The traditional approach to SOC 2 compliance—treating it as an annual checkbox exercise—is creating significant operational strain on organizations, with compliance teams spending countless hours manually collecting evidence, coordinating across departments, and managing multiple audit cycles.

The reality is that enterprise organizations are outgrowing conventional SOC 2 audit processes. As technology environments become more complex and customer security expectations rise, the limitations of point-in-time assessments and siloed compliance workflows become increasingly apparent. Compliance leaders find themselves caught in a cycle of reactive documentation, redundant evidence collection, and unpredictable audit timelines—all while trying to maintain continuous security assurance for customers and stakeholders.

However, forward-thinking organizations recognize that SOC 2 compliance doesn’t have to be this way. By transforming SOC 2 from a periodic hurdle into an opportunity for continuous compliance, enterprises can streamline their audit processes and create lasting operational advantages. This shift involves reimagining how controls are monitored, evidence is collected, and compliance is maintained across multiple frameworks—ultimately turning what was once a resource drain into a strategic asset for building customer trust and accessing new markets.

Key takeaways

• Traditional point-in-time SOC 2 audits are no longer sufficient for modern enterprises. By shifting to continuous compliance monitoring, organizations can transform their SOC 2 program from a periodic burden into a strategic advantage that builds customer trust and accelerates market access.
• Today’s complex regulatory landscape demands a more intelligent approach to compliance. Through automated evidence collection and framework integration, enterprises can dramatically reduce the complexity and cost of SOC 2 audits while maintaining rigorous security standards.
• The future of SOC 2 audits lies in the convergence of modern technology and expert guidance. By leveraging compliance platforms built with direct auditor input, organizations can ensure their continuous compliance efforts translate directly into streamlined audits—eliminating surprises and creating predictable, efficient assessment cycles.

The enterprise impact of SOC 2

SOC 2 has evolved beyond a simple security attestation into a fundamental market requirement for enterprise organizations. According to IBM & Ponemon Institute research, nearly 30% of businesses will experience a data breach in the next two years. As organizations scale their digital operations and handle increasingly complex customer data, SOC 2 serves as both a framework for robust data security controls and a universal language for demonstrating trustworthiness to stakeholders.

The business impact of SOC 2 extends far beyond compliance checkboxes. A strong SOC 2 program streamlines enterprise sales cycles by immediately validating security controls and eliminating lengthy security reviews that can delay deal closure. 

Furthermore, it simplifies vendor risk assessments and enables faster market access—particularly crucial for enterprises navigating complex supply chains, business partners, or operating in regulated industries. Organizations without a current SOC 2 report often find themselves excluded from vendor selection processes or facing extensive security questionnaires that drain resources and delay revenue recognition.

Six common SOC 2 audit challenges for enterprise organizations

Enterprise organizations face several distinct challenges when managing SOC 2 audits, particularly as compliance requirements grow more complex and interconnected. Here’s an examination of the key obstacles that often impede efficient SOC 2 compliance programs.

1. Framework overlap and audit fatigue

Enterprises rarely pursue SOC 2 in isolation. The challenge isn’t simply managing multiple frameworks simultaneously—it’s the repetitive nature of evidence collection and documentation across these frameworks. 

Organizations may find themselves in a perpetual audit cycle, gathering identical evidence multiple times as they move from SOC 2 to ISO 27001 to HIPAA, etc. This redundancy creates significant operational inefficiency and team burnout, particularly when using traditional, siloed compliance management approaches.

2. Resource drain

Manual evidence collection remains one of the most resource-intensive aspects of SOC 2 audits. Without automation, organizations typically dedicate multiple full-time employees solely to evidence collection and management.

Enterprise compliance teams often spend countless hours tracking down screenshots, configurations, and policy documents across various systems and departments. This manual approach not only consumes valuable time but also increases the risk of human error and inconsistencies in documentation. 

3. Operational disruption

The impact of SOC 2 audits extends far beyond the compliance team. Multiple audit cycles throughout the year create significant disruption across engineering, IT, and security teams, who must repeatedly pause their core responsibilities to assist with evidence collection and control validation. 

This stop-start pattern of audit preparation and response can severely impact project timelines and innovation initiatives, creating a hidden cost to business agility.

4. Cost unpredictability

While organizations typically budget for direct audit costs, the actual expense of SOC 2 compliance often exceeds initial estimates. Hidden costs emerge from unexpected scope expansions, additional evidence requests, and the need for remediation work. 

Enterprise organizations frequently find themselves allocating additional resources mid-audit to address gaps or expanding audit scope to meet evolving customer requirements, making it difficult to predict and manage compliance budgets effectively.

5. Stakeholder management

Coordinating SOC 2 audit activities across large, complex organizations presents a significant challenge. 

Compliance teams must orchestrate evidence collection and reviews across multiple departments, align with auditor timelines, and maintain clear communication with leadership about audit progress and findings. This complex web of stakeholders often leads to bottlenecks, miscommunication, and delayed audit completion.

6. Compliance sustainability

Point-in-time assessments no longer meet the demands of modern enterprise security requirements. Organizations struggle to maintain continuous compliance between audit cycles, often discovering control gaps or documentation issues only during the next audit period. 

This reactive approach creates unnecessary risk exposure and increases the likelihood of audit findings, making it challenging to maintain a consistent security posture throughout the year.

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Why traditional SOC 2 audit approaches fall short

Traditional approaches to SOC 2 audits, largely built around manual processes and disconnected systems, are increasingly misaligned with the needs of modern enterprise organizations. Understanding these limitations is crucial for organizations looking to modernize their compliance programs.

The spreadsheet trap

The reliance on spreadsheets for tracking SOC 2 compliance creates significant operational inefficiencies and control gaps. 

Enterprise organizations managing hundreds of controls across multiple frameworks quickly become overwhelmed by version control issues, broken formulas, and incomplete audit trails. 

This manual approach increases the risk of oversight and makes it impossible to maintain real-time visibility into compliance status—a critical requirement for organizations operating in dynamic technology environments.

Framework silos

Traditional compliance management approaches treat each framework as separate entities, creating unnecessary duplication of effort and resource waste. 

When SOC 2, ISO 27001, and other frameworks are managed in isolation, organizations fail to leverage the natural overlap between control requirements. This siloed approach increases the workload on compliance teams. Moreover, it creates inconsistencies in how controls are implemented and documented across different frameworks.

Audit redundancy

The inability to efficiently reuse evidence across multiple frameworks forces organizations into a cycle of repetitive documentation. Compliance teams find themselves collecting the same system configurations, policy documents, and control evidence multiple times throughout the year for different audits. This redundancy wastes valuable time and increases the likelihood of inconsistencies in how controls are documented and demonstrated across different assessments.

Limited visibility

Poor transparency between organizations and auditors creates unnecessary friction and delays in the audit process. Without real-time collaboration tools and clear visibility into audit progress, organizations often discover documentation gaps or control deficiencies late in the audit cycle. This reactive approach leads to rushed remediation efforts, extended audit timelines, and increased costs—all of which could be avoided with better communication and transparency throughout the audit process.

Modernizing your SOC 2 audit process for continuous compliance

Transforming SOC 2 audits into a continuous compliance program requires a strategic shift in both technology and methodology. Modern enterprises are discovering that the right combination of automation, integration, and collaboration can fundamentally change how they approach compliance.

Continuous control monitoring

Moving beyond periodic assessments: Modern compliance platforms enable real-time visibility into control effectiveness. Organizations can monitor their security posture continuously through automated control validation, receiving immediate alerts when configurations drift from approved baselines. 

This proactive approach, supported by platforms like Thoropass, allows compliance teams to identify and address issues before they become audit findings, significantly reducing the risk of non-compliance between assessment periods.

Automated evidence collection

Manual evidence-gathering becomes unsustainable as organizations scale their compliance programs. Automated evidence collection transforms this process by continuously capturing and organizing compliance artifacts from across the technology stack. 

By establishing automated connections to critical systems and infrastructure, enterprises can maintain an always-current repository of evidence, eliminating the mad dash for documentation during audit periods and ensuring consistency in how controls are demonstrated.

Cross-framework mapping

Modern compliance platforms leverage the natural overlap between security frameworks to maximize efficiency. Through intelligent control mapping, organizations can automatically map a single piece of evidence across multiple frameworks—from SOC 2 to ISO 27001 to HIPAA. 

This approach eliminates the redundant evidence collection that plagues traditional compliance programs, allowing enterprises to streamline their audit processes while maintaining rigorous standards across all frameworks.

Unified compliance platform

A centralized compliance platform serves as the single source of truth for all audit-related activities. 

Organizations gain unprecedented visibility into their compliance program by consolidating control documentation, evidence collection, and stakeholder communication in one platform. This unified approach eliminates the version control issues and communication gaps that often arise from managing compliance through disconnected spreadsheets and email chains.

Auditor collaboration

Modern compliance platforms transform the traditionally adversarial audit process into a collaborative partnership. Real-time sharing capabilities and structured workflows enable transparent communication between organizations and auditors throughout the assessment cycle. This level of collaboration helps identify and address potential issues early, reducing audit timelines and eliminating the surprise findings that often lead to scope creep and increased costs.

The Thoropass advantage for SOC 2 audits

Transform your SOC 2 audit experience with a platform designed specifically for enterprise compliance needs. Here’s how Thoropass delivers measurable advantages for organizations seeking to modernize their compliance programs:

• Purpose-built platform: Unlike generic compliance tools, Thoropass was designed with direct input from auditors to address the unique challenges of enterprise SOC 2 audits. Our platform incorporates auditor best practices and requirements directly into its workflows, ensuring that every action you take aligns with audit expectations. This purpose-built approach eliminates the guesswork and surprises that often plague traditional audit processes.
• Multi-framework efficiency: Break free from the constraints of framework silos. Thoropass’s intelligent control mapping automatically connects your SOC 2 controls with other frameworks like ISO 27001, ISO 42001, HITRUST, HIPAA, and more. Evidence collected for one framework automatically satisfies requirements across others, dramatically reducing the time and effort needed to maintain multi-framework compliance. Our single repository approach ensures consistency while eliminating redundant documentation efforts.
• Expert support: Thoropass’s in-house auditors bring deep expertise, extensive experience, and a modern approach to IT audits. Our rigorous standards ensure every report is accurate, reliable, and respected in the marketplace, giving you confidence in your compliance journey. Additionally, Our team provides strategic guidance on control implementation, evidence collection, and audit preparation, ensuring you have the support needed to navigate complex compliance requirements successfully and efficiently.
• Predictable timeline: Replace unpredictable audit cycles with a structured, reliable process. Thoropass’s automated workflows and proactive monitoring capabilities help identify and address potential issues before they impact your audit timeline. Our platform’s built-in project management tools and milestone tracking ensure your audit stays on schedule, enabling better resource planning and reduced operational disruption.
• Cost control: Eliminate the hidden costs and scope creep that plague traditional audit approaches. By automating evidence collection, streamlining stakeholder communication, and maintaining continuous compliance monitoring, Thoropass helps organizations reduce the total cost of their SOC 2 program. Our platform’s efficiency gains typically result in significant reductions in both direct audit costs and internal resource requirements.

Ready to transform your approach to SOC 2 compliance? Schedule a demo today to see how Thoropass can help your organization build a more efficient, predictable, and sustainable compliance program. Our experts will show you how to turn compliance from a periodic challenge into a continuous competitive advantage.

CASE STUDY

Elpha Secure achieves SOC 2 renewal with a 90% time savings

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Frequently asked questions

Payment security compliance has evolved far beyond an annual checkbox exercise. Organizations face mounting pressure to protect cardholder data across increasingly complex technology stacks, while simultaneously managing multiple compliance frameworks and responding to evolving threats. This expanding scope, combined with traditional manual audit processes, has led to a phenomenon many enterprises know too well: audit fatigue.

The transition to PCI DSS v4.0, published in March 2022, marks a pivotal shift in payment security compliance. With PCI DSS v3.2.1 now retired (as of March 31, 2024), v4.0 is the current standard. Organizations are working toward the next critical deadline of March 31, 2025, when all requirements initially labeled as ‘best practices’ in v4.0 will become mandatory.

Beyond strengthening security requirements around authentication, encryption, and access controls, v4.0 introduces new opportunities for organizations to modernize their compliance programs as historically ‘best practices’ will now become requirements. Rather than viewing these changes as another layer of complexity, forward-thinking enterprises are leveraging this transition to transform their audit processes—especially given the new customized approach options that enable organizations to demonstrate security objectives through alternative controls.

The key lies in shifting from periodic compliance exercises to continuous security validation. By adopting modern approaches to PCI DSS audits—through automation, framework harmonization, and real-time monitoring—organizations can break free from the resource-intensive cycle of point-in-time assessments. This transformation streamlines the audit process and delivers tangible business value through improved security posture, reduced costs, and more predictable compliance outcomes.

Key takeaways

• Transform your PCI DSS audit process by shifting from periodic assessments to continuous validation—aligning with meeting the new mandatory requirements of v4.0 while reducing resource drain and audit fatigue through automated evidence collection and real-time control monitoring.
• Leverage technology to harmonize compliance workflows across frameworks, eliminating redundant documentation through intelligent control mapping between PCI DSS v4.0, SOC 2, and ISO 27001—enabling efficient, parallel certifications that reduce costs and timeline uncertainty.
• Create a predictable, transparent audit experience by combining purpose-built compliance technology with expert guidance, transforming traditionally unpredictable assessments into streamlined operations that strengthen your security posture.

The stakes of PCI DSS audits

PCI DSS compliance represents far more than a regulatory requirement—it’s a critical business imperative that directly impacts revenue streams, customer trust, and market access. As organizations prepare for PCI DSS v4.0’s enhanced requirements, understanding these stakes becomes even more vital for strategic planning and resource allocation.

Current threat landscape and financial implications

Payment fraud continues to evolve in sophistication and scale, with cybercriminals increasingly targeting enterprise payment infrastructures. The financial impact of non-compliance extends well beyond the immediate costs of potential breaches—which averaged $4.88 million in 2024 (IBM / Ponemon Institute). 

Under PCI DSS v4.0, organizations face stricter requirements around authentication, encryption, and access controls, with non-compliance potentially resulting in penalties of up to $100,000 per month. However, the most significant financial risk lies in the operational disruption and customer churn that follows a payment security incident. With v4.0’s emphasis on continuous security validation, enterprises must shift from viewing compliance as an annual expense to treating it as an ongoing operational investment.

Business criticality of payment security

Transaction volume considerations have become increasingly complex as enterprises expand their payment channels and digital transformation initiatives. PCI DSS v4.0 introduces new requirements for securing e-commerce payments and API integrations, making compliance more challenging for organizations processing high transaction volumes across multiple platforms. 

The standard’s vendor management requirements have also expanded, requiring more rigorous oversight of Third-Party Service Providers (TPSPs) and their potential impact on cardholder data security. Moreover, market access implications have intensified—many enterprise customers and partners now require proof of PCI DSS compliance before engaging in business relationships, making it a de facto prerequisite for market participation rather than just a regulatory obligation.

Modern PCI DSS audit challenges

As enterprises prepare for PCI DSS v4.0 implementation, longstanding audit challenges are becoming even more pronounced. The traditional approach to compliance—characterized by manual processes and point-in-time assessments—is increasingly unsustainable for organizations managing complex security requirements across multiple frameworks.

Key challenges facing enterprises include:

• Framework overlap: Managing PCI DSS alongside SOC 2, ISO 27001, and other frameworks leads to duplicated efforts and fragmented evidence collection, particularly as v4.0 introduces new controls that further intersect with existing frameworks.
• Resource intensity: Manual evidence collection and documentation consume significant team resources, with compliance managers spending a substantial percentage of their time on administrative tasks rather than strategic security initiatives.
• Process inefficiency: Repetitive audit cycles and redundant work continuously drain resources, exacerbated by siloed approaches to framework-specific compliance requirements.
• Cost unpredictability: Hidden expenses and scope creep emerge throughout the audit lifecycle, from unexpected remediation requirements to extended audit timeframes and additional assessor fees.
• Stakeholder coordination: Managing communication between auditors, technical teams, and leadership becomes increasingly complex under v4.0’s expanded requirements for documentation and evidence of continuous compliance.
• Continuous validation: Moving beyond point-in-time assessments to meet v4.0’s emphasis on ongoing security validation requires a fundamental shift in how organizations approach compliance monitoring and documentation.

Why traditional audit approaches fall short

Traditional approaches to PCI DSS compliance—built around annual assessments and manual processes—are increasingly misaligned with both modern enterprise needs and v4.0’s enhanced requirements for continuous security validation. 

These legacy methods create systemic inefficiencies that compound compliance challenges.

Key limitations of traditional approaches include:

• Manual documentation burden: The reliance on spreadsheets and email chains for evidence collection creates visibility gaps and version control issues, leading to missed tasks and endless back-and-forth with auditors and stakeholders.
• Framework silos: Traditional methods treat each compliance framework as a separate initiative, resulting in duplicate evidence collection and missed opportunities to leverage controls across standards like PCI DSS, SOC 2, and ISO 27001.
• Limited visibility: Poor communication channels between organizations and Qualified Security Assessors (QSAs) create unnecessary audit loops and extend assessment timelines, particularly problematic as v4.0 requires more detailed evidence of continuous compliance.
• Resource drain: Compliance teams spend excessive time on administrative tasks rather than strategic security initiatives, with technical resources pulled into repetitive documentation requests rather than focused on security improvements.
• Reactive posture: Point-in-time assessments create a reactive approach to security requirements, making it difficult to maintain continuous compliance or adapt to emerging threats between audit cycles.

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Five steps to a smoother PCI DSS audit process

As enterprises prepare for PCI DSS v4.0, leading organizations are moving from traditional audit approaches to more strategic, technology-enabled compliance programs. Modernizing your audit process with these five key elements allows you to transform compliance from an annual burden into a streamlined, predictable operation that delivers continuous security validation.

1. Continuous control monitoring

Modern compliance demands real-time visibility into your security controls. Traditional point-in-time assessments no longer suffice, especially under PCI DSS v4.0’s enhanced requirements for ongoing validation. Continuous control monitoring enables your organization to proactively identify and address potential compliance gaps, rather than scrambling to remediate issues during audit cycles.

Organizations that excel at continuous monitoring typically employ automated tools that track control effectiveness across frameworks, providing real-time dashboards and alerts when controls drift from their desired state. This approach not only satisfies PCI DSS requirements but also strengthens your overall security posture by enabling rapid response to emerging risks.

2. Automated evidence collection

Manual evidence collection represents one of the biggest drains on compliance team resources. By automating this process, enterprises can significantly reduce the time spent gathering and organizing documentation while improving accuracy and completeness.

Modern compliance platforms can automatically collect evidence from various systems and cloud services, maintaining a continuously updated repository of compliance artifacts. This automation eliminates the traditional scramble to gather evidence during audit cycles and ensures that your documentation remains current and readily available for assessor review.

3. Cross-framework mapping

As enterprises manage multiple compliance frameworks, the ability to leverage controls across standards becomes crucial. Intelligent control mapping allows organizations to satisfy requirements for PCI DSS, SOC 2, ISO 27001, and other frameworks simultaneously, eliminating redundant work.

By mapping controls once and applying them across frameworks, organizations can reduce audit fatigue and create a more efficient compliance program. This approach is particularly valuable as organizations prepare for PCI DSS v4.0, as many of its new requirements align with controls already in place for other frameworks.

For example:

• PCI DSS v4.0’s enhanced requirements for access control and authentication align closely with SOC 2 CC6.1 (Logical Access Security) and ISO 27001 A.9 (Access Control). 
• Similarly, v4.0’s new requirements for security awareness training map directly to SOC 2 CC2.2 (Security Commitments) and ISO 27001 A.7.2.2 (Information Security Awareness). Organizations can leverage existing controls and evidence for these overlapping requirements, significantly reducing documentation burden and assessment time.

4. Unified compliance platform

A unified platform approach eliminates the fragmentation that often plagues compliance programs. Rather than managing multiple tools, spreadsheets, and communication channels, organizations can centralize their compliance operations in a single, purpose-built environment.

This centralization creates a single source of truth for compliance data, streamlines stakeholder communication, and provides clear visibility into audit progress and potential bottlenecks. The right platform will support both current compliance needs and future framework additions, scaling alongside your organization’s evolving requirements.

5. QSA collaboration

Effective collaboration with Qualified Security Assessors (QSAs) can significantly impact audit efficiency. Modern approaches facilitate transparent, ongoing communication between your team and assessors, replacing the traditional pattern of lengthy audit cycles and repeated evidence requests.

By establishing clear communication channels and maintaining continuous dialogue with QSAs, organizations can resolve questions quickly, address potential issues proactively, and maintain momentum throughout the audit process. This collaborative approach, supported by technology, helps eliminate audit loops and ensures more predictable timelines and outcomes.

The Thoropass advantage for PCI DSS audits

As enterprises prepare for PCI DSS v4.0, choosing a compliance partner becomes increasingly critical. Thoropass delivers a modern approach to payment security compliance that combines purpose-built technology with deep compliance expertise, enabling organizations to transform their audit experience from an unpredictable burden into a streamlined, strategic process.

• Purpose-built platform: Unlike legacy compliance tools cobbled together from generic project management software, Thoropass’s platform is engineered specifically for complex enterprise compliance needs. Our unified environment eliminates the fragmentation of traditional approaches, providing clear visibility into audit progress and automated evidence collection that reduces manual documentation burden.
• Multi-framework efficiency: Thoropass’s intelligent control mapping enables organizations to leverage a single evidence repository across PCI DSS, SOC 2, ISO 27001, and other frameworks. This approach eliminates redundant documentation and allows enterprises to achieve multiple certifications through streamlined, parallel assessments—as demonstrated by clients like Forage, who successfully completed both PCI DSS and SOC 2 certifications while saving over $100,000 in development costs.
• Expert support: Beyond technology, Thoropass offers guidance throughout the audit lifecycle from compliance experts who understand the technical requirements and strategic implications of payment security compliance. Our team works alongside yours to optimize audit scope, streamline evidence collection, and ensure predictable outcomes.
• Predictable timeline: Thoropass delivers a structured approach that significantly reduces audit cycles by eliminating common audit bottlenecks through automated evidence collection, intelligent control mapping, and streamlined QSA collaboration. Organizations can move from uncertain timelines to predictable, efficient assessments that maintain continuous compliance.
• Cost control: Traditional audit approaches often incur hidden costs through extended timelines, repeated evidence requests, and redundant work across frameworks. Thoropass’s unified approach eliminates these inefficiencies, providing transparent pricing and demonstrable cost savings through automation and framework harmonization.

Transform your PCI DSS audit experience today. Schedule a demo to see how Thoropass can streamline your compliance program, reduce audit complexity, and deliver predictable, efficient outcomes as you prepare for PCI DSS v4.0.

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CASE STUDY

Forage streamlined SOC 2 and PCI audits simultaneously to achieve $100k in savings

Utilizing Thoropass’ multi-framework, single-audit approach, Forage was able to beat their compliance deadlines and save 3-6 months of development time.

Read More

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Frequently Asked Questions

What is a PCI DSS audit?

A PCI DSS audit is a comprehensive assessment conducted to verify an organization’s compliance with the Payment Card Industry Data Security Standard (PCI DSS), which is established by the PCI Security Standards Council. This evaluation examines how well an organization protects cardholder data and maintains secure systems throughout its payment processing environment. The audit process involves reviewing security controls, policies, and procedures to ensure they meet the standard’s requirements for safeguarding sensitive data.

During the audit, a Qualified Security Assessor (QSA) thoroughly examines an organization’s cardholder data environment, including network resources, system components, and security systems. The assessment covers all 12 PCI DSS requirements, from maintaining secure networks to implementing strong access control measures. Organizations must demonstrate that they have implemented required controls, regularly test security systems, and maintain compliance through continuous monitoring.

Who needs to undergo a PCI DSS audit?

Any organization that stores, processes, or transmits payment card data must comply with PCI DSS requirements, though the specific audit requirements vary based on transaction volume and merchant level.

Level 1 merchants—those processing over 6 million card transactions annually across all channels or those that have experienced a data breach—must undergo an annual PCI compliance audit conducted by a Qualified Security Assessor (QSA). Additionally, any organization serving as a Third-Party Service Provider (TPSP) to these Level 1 merchants typically requires a formal audit to demonstrate data security competence.

For other merchant levels, the requirements differ. Level 2 merchants (1-6 million transactions annually) may complete a Self-Assessment Questionnaire (SAQ) and undergo quarterly network scans by Approved Scanning Vendors.

However, many organizations choose to undergo formal audits voluntarily, recognizing that robust security validation through a formal PCI DSS audit helps protect cardholder data and strengthens their overall security posture. This is particularly true for enterprises managing complex payment ecosystems or those seeking to establish strong security credentials with partners and customers.

What's the difference between PCI SAQ and QSA?

A Qualified Security Assessor (QSA) is a professional certified by the PCI Security Standards Council (PCI SSC) to conduct comprehensive PCI DSS audits. QSAs perform thorough assessments of an organization’s cardholder data environment, evaluate security controls, and validate compliance through detailed testing procedures. They are authorized to provide formal attestations of compliance and typically work with larger enterprises or organizations requiring rigorous third-party validation.

The Self-Assessment Questionnaire (SAQ), on the other hand, is a validation tool for organizations to conduct their own PCI DSS assessments. There are different SAQ types based on how an organization handles credit card data and sensitive authentication data. While SAQs can be appropriate for smaller organizations or those with simpler payment environments, they generally don’t provide the same level of validation as a QSA assessment. Many enterprises choose QSA assessments even when eligible for SAQ because they offer more robust validation, better align with multi-framework compliance strategies, and provide stronger assurance to stakeholders.

How much does a PCI DSS audit cost?

The cost of a PCI DSS audit varies significantly based on several strategic factors within your organization’s compliance ecosystem. Key considerations include:

• • The scope and complexity of your cardholder data environment

• • The number of system components requiring assessment

• • Whether you maintain secure systems across multiple locations or cloud environments.

Organizations must also consider the broader context of their compliance program, including how PCI DSS requirements align with other frameworks like SOC 2 or ISO 27001.

A comprehensive cost analysis should account for both direct and indirect factors: the complexity of your risk assessment processes, the maturity of your security controls, the need for gap analysis prior to formal auditing, and your organization’s approach to maintaining PCI DSS compliance through continuous monitoring.

Rather than viewing PCI compliance as a standalone cost center, forward-thinking organizations evaluate audit investments within their broader security and compliance strategy. Contact our team to discuss your specific compliance needs and how a modern approach to framework harmonization can help optimize your audit investment.

How long does a PCI DSS audit take?

The duration of a PCI DSS audit varies significantly based on organizational complexity and compliance program maturity. For enterprises managing extensive cardholder data environments, the traditional audit cycle often spans 3-6 months when using conventional methods. However, this timeline can extend considerably if organizations lack automated evidence-collection systems or maintain multiple network resources across different locations.

Key factors influencing audit duration include:

• • The maturity of your security systems

• • The effectiveness of your security awareness training programs

• • How well you regularly test security systems throughout the year

Organizations that implement strong access control measures and maintain continuous compliance monitoring typically experience more predictable and efficient audit cycles. Modern approaches that leverage automated evidence collection and cross-framework control mapping can significantly streamline the process, particularly for enterprises managing multiple compliance requirements simultaneously.

Consider consulting with a compliance partner who can evaluate your specific environment and help optimize your audit timeline through technology-enabled processes and expert guidance.

What are the 12 PCI DSS requirements?

While PCI DSS v4.0 introduces enhanced controls and more flexible implementation options, the 12 core requirements remain consistent as the fundamental framework for payment security. These requirements, established by the PCI Security Standards Council, continue to serve as the blueprint for protecting cardholder data and maintaining secure systems. However, specific implementation details and validation procedures have evolved to address emerging threats and technologies.

Install and maintain network security controls:

1. 1. Install and maintain network security controls (formerly “firewalls”)
   2. Apply secure configurations to system components and stop using vendor-supplied defaults

Protect account data:

3. 3. Protect stored cardholder data
   4. Protect cardholder data with strong cryptography during transmission

Maintain a vulnerability management program:

5. 5. Protect systems and networks from malware
   6. Develop and maintain secure systems and software

Implement strong access control measures:

7. 7. Restrict access to system components and sensitive data
   8. Identify users and authenticate access to system components
   9. Restrict physical access to cardholder data

Regularly monitor and test networks:

10. 10. Log and monitor all access to network resources and cardholder data
    11. Regularly test security systems and processes

Maintain an information security policy:

         12. Support information security with organizational policies and program

How often is a PCI DSS audit required?

The frequency of PCI DSS audits depends primarily on your organization’s merchant level and transaction volume, though many enterprises opt for more frequent assessments to maintain continuous compliance.

Level 1 merchants—those processing over 6 million transactions annually or who have experienced a data breach—must undergo annual assessments by a Qualified Security Assessor (QSA) and conduct quarterly network scans using Approved Scanning Vendors. These requirements reflect the PCI Security Standards Council’s emphasis on continuous validation, particularly as organizations transition to PCI DSS v4.0.

However, viewing PCI compliance as an annual or quarterly event no longer aligns with modern security demands. Forward-thinking organizations are shifting toward continuous monitoring approaches that integrate with their broader security strategy. This involves regularly testing security systems, conducting ongoing risk assessments, and maintaining secure systems through automated control monitoring.

This approach satisfies compliance requirements, strengthens your overall security posture, and reduces the resource intensity of formal audit cycles. Many enterprises find that implementing continuous monitoring technologies and automated evidence-collection systems helps transform compliance from periodic assessments into a more predictable, ongoing program.

Managed Service Providers (MSPs) are key players in helping businesses keep their sensitive data safe and stay on top of compliance regulations. However, many MSPs don’t fully understand the compliance risks that can seriously impact their clients and their own businesses. Overlooking these risks can create weaknesses that threaten data security and expose them to legal and financial trouble. By taking the initiative to spot and tackle compliance issues, MSPs can build their reputation as reliable partners, boosting their services and paving the way for success for their clients and themselves.

How compliance supports a strong cybersecurity foundation 

While InfoSec compliance alone doesn’t guarantee security, it provides a structured framework for implementing and maintaining cybersecurity best practices, which are then verified by a third-party auditor regularly. The goal is not just checking boxes, but creating layers of protection that actively prevent data breaches, system compromises, and reputational damage.

As an MSP, it’s essential to implement robust cybersecurity frameworks that both satisfy compliance requirements and provide genuine security value. This starts with clearly defining and documenting what falls under your control versus your customer’s responsibility. Without this clarity, dangerous gaps can form between what your MSP actually manages and what customers believe you manage—exposing both parties to not just compliance violations, but real security vulnerabilities that attackers can exploit.

The compliance gap: a significant risk for MSPs

One common (and costly) scenario occurs when customers fill out cyber insurance forms, assuming their MSP has specific protections. If the MSP isn’t aware of what the customer has documented under their control, misalignment can lead to liability issues, denied claims, and reputational damage.

Even if your MSP follows best security practices, failing to communicate responsibilities to clients proactively can create significant compliance pitfalls. That’s why being proactive rather than reactive in cybersecurity is key to protecting your business and customers.

Why MSPs should offer compliance-as-a-service (CaaS)

Many MSPs already support clients with compliance frameworks like SOC 2, ISO 27001, HIPAA, and PCI DSS, but far fewer have these certifications. Without these credentials, MSPs risk losing business to competitors who can position themselves as compliance experts.

Adding compliance-as-a-service (CaaS) to your offerings, you help clients navigate complex regulatory requirements, strengthen their credibility, reduce liability, and create a new revenue stream.

Get ahead of the compliance curve with Thoropass

Building a compliance practice comes with real challenges – from training staff across multiple frameworks to managing complex client requirements. Thoropass helps MSPs transform these barriers into opportunities, building a strong cybersecurity compliance posture for both themselves and their clients. Our service partner program provides:

• Training and expert guidance to strengthen your team’s knowledge
• Automated compliance tools to streamline audits and assessments
• Co-marketing opportunities to help your MSP stand out
• A flexible sales model that lets you drive revenue while adding value

Ready to take control of cybersecurity compliance? Let’s connect and explore how we can help. Schedule a strategy review today.

In a world where we’re free to work from anywhere on any device , ensuring compliance and security has become more critical and challenging than ever. With employees accessing sensitive data from a variety of locations and devices, the risk of breaches and non-compliance continues to grow. In the third quarter of 2024, data breaches exposed over 422 million records globally, marking a substantial rise from previous periods. The average cost of a data breach reached $4.88 million in 2024, the highest on record. Non-compliance can lead to revenue losses averaging $4 million, more than double the cost of maintaining compliance.

Organizations must find solutions that not only protect their systems but also adapt to the flexibility and preferences of modern work environments without disrupting productivity.

Enter XFA, the device security solution that seamlessly identifies every device in your organization, informs users of risks, and ensures compliance with security policies during login—all without micromanaging the devices themselves. 

Better together: XFA + Thoropass

By teaming up with Thoropass, XFA is helping to automate and simplify the compliance process, providing organizations with the tools they need to secure their operations in a dynamic and ever-changing regulatory landscape.

Can you give us a brief overview of XFA and what sets it apart in the compliance space?

XFA is a device security solution that discovers every device used within your organization and pushes it into compliance by acting as an ‘extra factor’ for users who want to log in to your digital workspace. 

Other solutions presume that you know about each user’s devices and can force a management solution on them for the sake of ‘compliance’, while XFA is focussed on taking a direct approach by allowing users to start working on any device, as long as they can prove that this device is secure.

What compliance challenges do you commonly encounter, and how does the XFA and Thoropass integration help solve them? 

Many organizations view compliance as merely a checklist or a documentation exercise, which can lead to gaps in security and oversight. This mindset often results in incomplete processes, missed details, and inefficiencies that can jeopardize compliance efforts.

The integration addresses this issue by automatically gathering and combining all device information with the necessary evidence, ensuring that the process is complete but also accurate. By moving beyond the checkbox mentality, this approach streamlines compliance, saves time, and ensures that security controls are continuously monitored and maintained. It transforms compliance from a reactive task into a proactive, efficient, and reliable process.

What inspired the collaboration between XFA and Thoropass?

More than ever, compliance has become a real enabler for moving towards better cybersecurity practices. Certifications like ISO 270001 and SOC 2 are becoming a staple for many organizations that prioritize quality and customer trust. Being part of Thoropass’ Integration Partner Program is a no-brainer that enables organizations to have efficient processes and get certified as quickly as possible.

How does the integration work, and what are the key features?

XFA takes care of discovering each device through the authentication and organization’s login, informing users of their risks, and enforcing a device security policy as part of authentication into company resources. This enables a hands-off approach towards complete device security.

With a couple of clicks from the Thoropass dashboard, XFA will forward this asset information to complete the inventory overview in the Thoropass platform, which is ready for an auditor to review, knowing that XFA provides a complete list.

Which frameworks or regulations does the integration help customers address?

The integration supports customers in meeting the requirements of several key frameworks and regulations that mandate strong security measures. 

ISO 27001 and SOC 2 Type II are two of the most widely recognized frameworks, both of which include specific requirements for securing devices as part of a comprehensive information security management system. These frameworks focus on ensuring that devices used within an organization are adequately protected to maintain data confidentiality, integrity and availability. 

In addition to these, the integration also addresses compliance with frameworks and regulations such as:

• GDPR : Requires organizations to implement measures that ensure the security of personal data, including securing the devices used to access or store that data.
• NIS 2: Enforces stricter cybersecurity measures, including device security, for organizations operating in critical sectors across the EU.
• DORA: Focuses on the resilience of IT systems, including device management, in financial institutions to prevent and respond to cyber threats.
• HIPAA: Mandates device security to protect electronic health information in the healthcare sector.
• HITRUST: Establishes specific controls for device security as part of its risk management framework for safeguarding sensitive information.

The integration enhances compliance by automatically monitoring device security, such as encryption status, and generating tasks to address issues proactively. By providing real-time visibility into device compliance and ensuring violations are solved quickly, the integration simplifies meeting these requirements and strengthens overall security. 

How does the integration simplify compliance workflows for joint customers?

Often, auditors question the completeness of a device security strategy. When relying on managed devices, the questions become: 

• How do you make sure people only work on managed devices? 
• And what about exceptions? 

Many companies do have some form of bring-your-own-device strategy, but auditors are not always satisfied with the addition of a written device policy anymore. Having a solution like XFA enables any strategy, but guarantees each and every device is verified and listed as part of your compliance track.

Can you share a specific use case or example of how the integration has made an impact?

A great example of how the integration makes an impact is the device encryption monitor. This feature provides users with a real-time list of their devices and checks whether they are encrypted. It continuously monitors the relevant controls, providing updates daily on their status using XFA data. If a device is found to be unencrypted, a task is generated for the control owner to resolve the violation.

Typically, devices are excluded from audit scope, especially as companies scale, because managing employee endpoints can be complex. However, this monitor helps streamline audit evidence collection by easily showing whether devices are secured, saving about 30 minutes when devices are in scope for an audit. The real value, though, comes from the ongoing control monitoring and the proactive reminders to fix any security gaps that could impact compliance.

While the time savings of 30 minutes per audit might seem modest, the true benefit lies in the overall impact on audit efficiency. Studies show that audits with higher usage of monitor-sourced evidence (over 10%) have a 56% faster time to draft compared to audits with minimal monitor usage (less than 2.5%). In short, this integration gives an efficient monitoring tool that, when used effectively, can half the audit time.

How can customers implement the Thoropass XFA integration?

It’s easy to get started, and it can be done in just a few simple steps:

While other solutions require external consultants, both Thoropass and XFA are complete platforms that can be set up and used by anybody who wants to start improving their security and compliance.

Getting started with XFA takes just a few minutes and you can try it for free for one month—Explore the integration or request a demo today to see the difference for yourself.

SOC 2 is an audit report that provides assurance on the efficacy of information security protocols within service organizations. Its fundamental purpose is to forge trust among service providers and their clientele by confirming that customer data receives top-level protection and care. 

This standard is significant for entities such as SaaS vendors and data centers, which handle sensitive client information. SOC 2 compliance signifies an organization’s dedication to safeguarding sensitive data. 

By securing this report, organizations reassure customers and business partners about their serious stance on protecting customer data—a crucial aspect in establishing lasting confidence. Moreover, achieving SOC 2 compliance can also influence consumer choices among competing service offerings.

Key takeaways

• SOC 2 compliance is essential for service organizations to build trust with customers by validating their information security practices and protecting sensitive data.
• The SOC 2 framework comprises five trust services categories: Security, Availability, Processing Integrity, Confidentiality, and Privacy. These categories guide organizations in assessing their information security program and data handling practices.
• Achieving SOC 2 compliance involves a multifaceted approach including regular audits, continuous monitoring, employee training, with Type 1 and Type 2 reports providing different levels of assurance.

The five trust services categories (TSC)

SOC 2 is not a certification in the traditional sense but rather a type of audit report; that’s why it’s more accurately referred to as a SOC 2 attestation. The foundation of SOC 2 compliance lies in adhering to five Trust Services Categories Criteria (TSC) (formerly also referred to as Trust Service Principles).

1. Security
2. Availability
3. Processing integrity
4. Confidentiality
5. Privacy

These categories are essential in building trust with clients, partners, and regulators, especially when undergoing SOC (System and Organization Controls) audits. Each category contains its own trust services criteria. Let’s look at each of the categories in more detail:

1. Security

Security refers to the protection of information and systems against unauthorized access, disclosure, alteration, and destruction. This category focuses on safeguarding data to ensure it remains confidential, intact, and available to authorized users.

Key aspects include:

• Access Controls: This involves setting up measures to restrict access to sensitive data and systems based on the principle of least privilege. It includes:
  • Role-Based Access Control (RBAC)
  • Multi-Factor Authentication (MFA
  • Physical access controls (like keycards, biometric scanners, etc.)
• Encryption Techniques: Encryption is crucial for protecting data both at rest and in transit by converting it into a secure format that unauthorized users cannot read. Techniques include:
  • Data-at-rest encryption
  • Data-in-transit encryption like TLS (Transport Layer Security)
  • End-to-end encryption
• Firewall Deployment: Firewalls act as a barrier between trusted and untrusted networks, monitoring and controlling incoming and outgoing network traffic. Deployment strategies include:
  • Network firewalls
  • Web Application Firewalls (WAF)
  • Next-Generation Firewalls (NGFW)
• Intrusion Detection Mechanisms: These systems monitor network traffic and system activities for signs of malicious activity or policy violations. Key mechanisms include:
  • Network Intrusion Detection Systems (NIDS)
  • Host-Based Intrusion Detection Systems (HIDS)
  • Intrusion Prevention Systems (IPS)
• Continuous Security Monitoring Procedures: Ongoing vigilance is crucial for identifying and responding to security incidents in real-time. This includes:
  • Security Information and Event Management (SIEM)
  • Vulnerability scanning
  • Behavioral analytics
  • Incident response planning
• User Authentication Protocols: Strong authentication protocols are essential for verifying the identities of users accessing systems and data. These protocols include:
  • Single Sign-On (SSO)
  • Biometric Authentication
  • Certificate-Based Authentication

Important note: Security is the only TSC required in any SOC audit because it not only sets overarching security standards for your company but also overlaps with the others—many of the security criteria are shared among the trust services criteria in other categories.

2. Availability

Availability ensures that systems and data are accessible and operational for use as committed or agreed upon. Availability is a key criterion for startups that need to guarantee their users can access data and services during critical moments. Steps to maintaining system uptime and ensuring reliable performance may include:

• System monitoring: Continuous monitoring of systems to detect potential issues that could affect availability.
• Redundancy and failover: Implementing backup systems, data replication, and disaster recovery plans to minimize downtime.
• Capacity planning: Ensuring that resources are sufficient to handle current and future demands without performance degradation.
• Maintenance: Regularly performing system updates, patches, and maintenance to prevent unplanned outages.

Service Level Agreements (SLAs) with your customers are a great way to show you are committed to meeting uptime requirements.

3. Processing integrity

Processing integrity ensures that systems process data completely, accurately, timely, and with proper authorization. It focuses on data processing’s correctness, reliability, and consistency and safeguards against unauthorized changes to data during its input, storage, and output.

Steps include:

• Data validation: Implementing checks and validations to ensure data is accurate and complete during input, processing, and output stages.
• Error handling: Establishing procedures to detect, log, and correct errors in data processing.
• Data integrity controls: Using controls like checksums, hash functions, and transaction logs to verify data integrity.
• System testing and quality assurance: Regularly testing systems and processes to ensure they produce accurate and reliable results.

4. Confidentiality

Confidentiality refers to the protection of sensitive information (whether that’s personal data or proprietary business details like strategic plans, financial records, or legal contracts) from unauthorized access and disclosure. It involves implementing measures to ensure that data is only accessible to authorized individuals or systems.

Beyond the security measures already mentioned, the confidentiality category provides a framework for identifying sensitive information, ensuring its protection during use, and securely disposing of it when it’s no longer needed. It includes:

• Data encryption: Using encryption for data at rest and in transit to protect it from unauthorized access.
• Data masking and anonymization: Applying techniques to obscure sensitive data elements in non-production environments or when sharing data with third parties.
• Access control and monitoring: Restricting access to confidential information based on the principle of least privilege and monitoring access logs for unauthorized attempts.
• Data classification: Categorizing data based on sensitivity and applying appropriate controls based on classification levels.
• Data Retention and Disposal: Ensuring that sensitive data is securely retained for an appropriate amount of time and securely disposed of when it is no longer needed. 

5. Privacy

Privacy involves the organization’s practices regarding the collection, use, retention, disclosure, and disposal of personal information, like individual’s: 

• Names
• Addresses
• Emails
• Social Security numbers or other identifiers
• Purchase records
• Criminal backgrounds, etc.

It ensures that personal data is handled in compliance with applicable privacy laws and regulations. This usually involves:

• Data collection and consent: Establishing clear policies for collecting personal information and obtaining consent from individuals.
• Data minimization: Collecting only the necessary personal information and retaining it only for as long as needed.
• User rights: Implementing processes to address individuals’ rights to access, correct, delete, and control their personal information.
• Compliance with regulations: Ensuring that data handling practices comply with relevant privacy regulations such as GDPR, CCPA, or HIPAA.

Understanding and implementing controls in these five categories is essential for organizations to establish and maintain trust with their stakeholders, ensuring that their systems and data are secure, reliable, and compliant with regulatory requirements.

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Different types of SOC 2 reports: Type 1 and Type 2

When navigating SOC 2 compliance, understanding the differences between SOC 2 Type 1 and Type 2 reports is essential. Each serves a distinct purpose in evaluating an organization’s security controls, offering varying levels of assurance. The choice between the two can significantly impact how your company demonstrates its commitment to safeguarding sensitive data for clients and stakeholders.

SOC 2 Type 1: A compliance snapshot in time

SOC 2 Type 1 serves as a snapshot of your company’s compliance with security protocols at a specific moment. The primary benefit of Type 1 is its immediacy, offering quick insight into a company’s security program and how they have designed controls to address applicable trust services categories. This can be especially advantageous for startups and established businesses looking to gain a competitive edge or secure fast business deals. Think of it as evaluating the design of the controls you intend to implement, similar to reviewing a blueprint.

Type 1 assessments are faster and more affordable to complete, making them ideal for many service organizations, especially when quick verification is needed for urgent business opportunities.

SOC 2 Type 2: Tests operating effectiveness over time

SOC 2 Type 2 provides a more comprehensive evaluation, focusing on how well an organization’s security controls operate over an extended period.

An annual SOC 2 Type 2 report is often considered the gold standard, offering strong assurance of an entity’s compliance and the effectiveness of its internal controls over time.

Choosing between SOC 2 Type 1 and Type 2

Deciding whether to pursue SOC 2 Type 1 or Type 2 depends on several factors, including:

• Your organization’s specific needs
• The sensitivity of the data you handle
• The requirements of your clients or partners

Generally, it’s advisable for businesses to start with a Type 1 and later progress to a Type 2 unless a client immediately requires a Type 2 report. The decision often hinges on how urgently compliance is needed and whether a Type 2 report will eventually be necessary.

Seven steps to SOC 2 compliance

It’s important to understand that the audit process for SOC 2 Type 1 differs from that of SOC 2 Type 2, influencing how your organization approaches compliance. A SOC 2 Type 2 audit evaluates controls over a specified period of time (typically around six months but chosen by management) allowing for an in-depth review of their effectiveness over time.

1. Choose TSCs

Regardless of whether you pursue SOC 2 Type 1 or Type 2, the first step is to select which of the five Trust Services Categories (TSCs) will be included in the SOC 2 report. This decision should align with your organization’s services and operational needs. The nature of the data you handle will guide which categories and criteria are most relevant.

2. Perform a risk assessment

This step evaluates each selected Trust Services Criterion to identify potential risks the organization faces due to growth, geography, or deviations from information security best practices. The risk assessment helps determine the controls to be included in the final report.

3. Gap analysis and remediation plan

Your compliance team will assess current practices and procedures, conducting a readiness assessment to compare your security posture with SOC 2 standards. This gap analysis identifies areas needing improvement, guiding the creation of a strategic remediation plan to address these gaps effectively.

4. Implement stage-appropriate controls

The controls you implement should reflect your organization’s scale and maturity. For example, enterprises will likely require more comprehensive controls than startups. By focusing on areas like logging, monitoring, HR tasks, and vendor management, the compliance team can recommend the right tools and processes to streamline compliance efforts and save resources.

5. Audit preparation

Preparation involves gathering evidence of the implemented controls and readying your internal team to collaborate with auditors. Your auditor must be from an AICPA-accredited firm, ensuring they have the skills and adhere to professional guidelines. Ideally, your auditor will have experience with SOC audits in your industry.

6. The actual audit

The audit itself is a detailed review of the design and operational effectiveness of your organization’s controls, conducted by an accredited CPA (certified public accountant). The duration can vary from two weeks to a few months, depending on the complexity and the number of follow-ups required. Although you can’t technically “fail” a SOC 2 audit, clients have the opportunity to respond to deficiencies found in the report.

7. Maintain and monitor

SOC 2 audits are generally performed annually to meet client expectations. To ease the process, it’s advisable to set up integrations for automatic evidence collection and ongoing practice monitoring. This continuous approach helps maintain compliance with minimal disruption and ensures information security remains robust.

A better way: Using Thoropass for SOC 2 compliance

Thoropass transforms the traditional SOC 2 audit process by providing a seamless and managed experience, maximizing your organization’s time and resources. It simplifies the complexities often associated with audits, streamlining the SOC 2 compliance journey with advanced software solutions and expert support to enhance operational efficiency.

Key benefits include:

• Speeding up the audit timeline
• Providing comprehensive support throughout the process
• Ensuring robust data security measures to address future challenges

Thoropass is an ideal solution for organizations looking to achieve SOC 2 compliance efficiently, avoiding unnecessary complications along the way.

Speeding up the audit timeline

Using Thoropass allows organizations to reduce the audit timeline by an average of 67%, accelerating the path to SOC 2 compliance and saving valuable time. This significant time reduction allows resources to be redirected towards broader compliance strategies, improving overall operational efficiency.

Thoropass helps companies become audit-ready faster and ensures ongoing adherence to SOC 2 requirements. The solution offers a more streamlined compliance experience for businesses dedicated to meeting these crucial industry standards.

Comprehensive support throughout the process

Thoropass combines AI-driven technology with in-house expertise to provide comprehensive support through every step of SOC 2 compliance. This blend of advanced tools and specialized guidance ensures thorough assistance throughout the process.

By offering tailored support, Thoropass helps organizations navigate the complexities of SOC 2 compliance, making the process more efficient and cost-effective.

Future-proofing data security

Completing a SOC 2 audit with Thoropass sets the groundwork for pursuing additional certifications, such as ISO 27001—the international standard for information security management, shows that an organization has implemented an ISMS (information security management system). 

This integrated multi-framework approach to compliance prepares organizations to maintain strong data security, keeping them ahead of evolving security threats and regulatory changes.

Thoropass aids organizations in fortifying their data security posture, providing a solid foundation for achieving and maintaining various security credentials.

Summary: Building a foundation of trust

In summary, SOC 2 compliance is a critical framework that helps organizations protect customer data and build trust with their clients. By understanding the key components, navigating the audit process, and implementing continuous monitoring and employee training, organizations can achieve and maintain SOC 2 compliance. 

Leveraging Thoropass compliance software can further streamline this process, making it more efficient and effective. Achieving SOC 2 compliance is not just about meeting regulatory requirements; it is about demonstrating a commitment to data security and establishing a foundation of trust with customers.

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Every day counts when it comes to maintaining security and compliance. Indeed, the achievements of an entire fiscal year can be eclipsed by a single incident related to security or adherence to regulatory standards. That’s why the significance of a SOC 2 bridge letter is such an important document. 

The SOC 2 bridge letter (also known as a gap letter) is a temporary assurance document that serves to confirm the continued effectiveness of an organization’s controls in the span between the reporting period end date of the organization’s current SOC report and its next SOC 2 report.

Key takeaways

• A SOC 2 bridge letter (aka a gap letter) serves as a temporary assurance document, maintaining stakeholder confidence in an organization’s control environment during the interim period between SOC 2 reports.
• The bridge letter provides a snapshot of the vendor’s compliance status for the period not covered by the last SOC 2 report, affirming that internal controls remain operational and effective.
• While bridge letters are essential for continuity of trust, they have limitations, including their short duration (typically up to three months) and inability to provide real-time assurance post-issuance.

What exactly is a bridge letter/gap letter?

A bridge letter is not required, but it is considered a best practice of SOC 2 compliance if there is ever a lapse in the period. If you stay on schedule, you don’t need one at all. Their main purpose is to provide continuity in trust between the conclusion of one SOC report period and the issuance of subsequent SOC reports. 

Essentially, these letters address any time gaps not covered by the most recent SOC 2 report, offering an update on the vendor’s compliance for that specific timeframe. This often occurs because SOC reports often cover only a portion of an organization’s fiscal year.

For instance:

Imagine your organization completed a SOC 2 report covering October 31, 2022, to November 1, 2023. However, your organization’s fiscal year-end is December 31, 2023. You can provide customers with a bridge letter stating that your controls did not significantly change between November 1 and December 31, 2023. 

These documents do more than just fill a gap. They affirm that an organization maintains a strong control environment even beyond the duration of its last SOC 2 report. Bridge letters extend confidence to stakeholders that despite the lack of new SOC audit outcomes available, an organization’s processes and controls remain robustly intact. 

Indeed, most bridge letters go beyond claiming sustained compliance—they give stakeholders some form of interim assurance regarding internal controls previously evaluated during audits, attesting to their continued effectiveness.

While useful, it’s important to note that bridge letters are temporary documents. They’re generally limited to cover a period of up to three months. It’s essential to recognize that a bridge letter isn’t a substitute for a current SOC 2 report, it serves as a useful tool to offer assurance to clients during the interval between audits.

Six key components of a SOC 2 bridge letter

A SOC 2 bridge letter is composed of several essential elements that collectively give a full picture of an organization’s control environment between the issuance of SOC reports. Let’s look at some of the key components:

1. The review period of the latest SOC 2 report: Beginning and end dates.
2. The time frame for interim assurance: Clear start and end dates during which these assurances apply.
3. Any material changes to your internal control environment (if applicable): This section provides insight into any significant modifications to systems or procedures occurring since the last audit was conducted. This element demonstrates openness by affirming that stakeholders will be informed about any noteworthy adjustments.
4. A statement of no [further] material changes: An assertion from the organization confirming their understanding that no material changes have taken place besides those already communicated—changes that could potentially impact what auditors concluded in their previous SOC report.
5. Note: Your bridge letter should acknowledge that a SOC 2 bridge letter is not a replacement for a SOC 2 report. It offers limited assurance and should not be considered a substitute for the comprehensive testing and scrutiny found in full SOC reports.
6. Disclaimer: It is a best practice to include a disclaimer stating that this letter was created solely for the customer and should not be generalized or relied upon beyond its intended scope.

Example bridge letter

[Service Organization Letterhead]

Date: [Insert Date]

To Whom It May Concern:

Subject: SOC 2 Bridge Letter for [Service Organization Name]

Dear [Client Name or “Valued Clients”],

We are writing to provide an update regarding the status of our System and Organization Controls (SOC) 2 compliance for the period following the end date of our most recent SOC 2 Type II report.

Our last SOC 2 Type II report, covering the period from [Start Date] to [End Date], was issued by [Name of Independent CPA Firm]. This report detailed the design and operating effectiveness of our controls relevant to the security, availability, and confidentiality principles as defined by the American Institute of Certified Public Accountants (AICPA).

As of the date of this letter, our next SOC 2 Type II examination is scheduled to cover the period from [Start Date of Next Report Period] to [End Date of Next Report Period]. The independent assessment will again be conducted by [Name of Independent CPA Firm].

We understand the importance of maintaining the trust and confidence of our clients, and we are committed to ensuring the ongoing effectiveness of our control environment. To that end, we confirm the following:

1. Control Continuity: The controls described in our most recent SOC 2 report have continued to operate as designed since the end of the reporting period on [End Date of Last Report].
2. No Material Changes: There have been no material changes to our control environment or to the processes that underpin our system and organization controls since [End Date of Last Report].
3. Monitoring Activities: We have continued to perform monitoring activities and internal assessments to ensure that our controls are operating effectively.
4. Incident Reporting: There have been no known incidents or control failures that would materially impact the effectiveness of our control environment since [End Date of Last Report].

This bridge letter is intended to provide assurance of our ongoing commitment to the principles of security, availability, and confidentiality as outlined in the SOC 2 framework. We anticipate that our next SOC 2 report will be issued by [Expected Date of Next Report Issuance].

Please note that this letter is not intended to be a substitute for the SOC 2 report. The SOC 2 report provides a comprehensive, independent assessment of our control environment, and we encourage you to review the full report when it becomes available.

This letter is intended solely for the information and use of our customers and is not intended to be, and should not be, used by anyone other than our customers.

Should you have any questions or require further information, please do not hesitate to contact us at [Contact Information].

Sincerely,

[Name]
[Title]
[Service Organization Name]
[Contact Information]

Who issues a SOC 2 bridge letter?

Most commonly, bridge letters are issued by the CPA firm that issued the SOC 2. Either way, your organization is responsible for providing the bridge letter. 

The auditor who conducted your SOC examination will not create or provide a bridge letter on your behalf because they are unable to attest to the operating effectiveness of your controls beyond the SOC 2 reporting period. They are also not informed of any changes that may have been made to your internal controls.

In most cases, high-ranking officials such as the CEO, CIO, or CFO are those who endorse this important document with their signature—thereby ensuring its importance is acknowledged appropriately. 

This duty should not be underestimated because it reflects on the integrity and public standing of your organization. Unlike an auditor from a CPA firm or even that performing duties specifically tied to auditing compliance standards like SOC 2 audits—the onus rests with these members of your organization. They must proactively issue this letter attesting ongoing adherence to compliance standards.

How long is a bridge letter valid for?

Because the letter acts as a provisional measure to maintain trust between SOC reports, it is intended only for brief periods—ordinarily no longer than three months. 

This interval suffices to bridge the gap until an organization undergoes its next audit. The brief period of the bridge letter’s validity underscores its function as a temporary solution within the realm of compliance. The specific dates of coverage will be included in the letter itself.

In situations where verification is required after the typical three-month threshold has passed, organizations are encouraged to pursue either another SOC examination or re-audit. This step ensures their adherence to regulations remains current and accurately represents their present operational environment. 

Limitations of bridge letters

Bridge letters should not be mistaken for replacing detailed SOC 2 audit reports but instead serve as an interim measure, bridging only a part of the compliance narrative. 

These documents offer less assurance compared to full-fledged SOC examinations and primarily exist as gap letters meant to extend trust during brief intervals between comprehensive SOC report completions.

The application of bridge letters is specific. Each is uniquely crafted for the particular organization it pertains to and its respective clients. Most bridge letters include a disclaimer stating that they relate solely to the identified organization, thereby discouraging inappropriate generalization or reliance on them beyond their intended scope. 

It’s important to note that bridge letters do not include real-time updates after they are issued. Any changes to the control environment that happen after the letter is sent out won’t be captured until the next audit. This is a major limitation because it means the letter can’t guarantee that compliance and stability are maintained after its issuance date.

More FAQs

System & Organization Controls 2 (originally called Service Organization Controls 2), commonly referred to as SOC 2, is a set of guidelines aimed at safeguarding customer data by enforcing rigorous security measures. This reporting standard is an initiative of the American Institute of Certified Public Accountants (AICPA) and assesses how effectively a service organization’s security processes are functioning while reinforcing confidence between clients and their service providers.

To achieve and uphold SOC 2 compliance, organizations must adhere to relevant trust services criteria regarding the protection of sensitive information. SOC 2 compliance is valid for approximately one year from the time the certification is complete and necessitates ongoing audits for continual adherence. This ongoing scrutiny ensures that organizations remain vigilant against new security challenges and continue to implement strong control mechanisms.

Key takeaways

• SOC 2 is a reporting standard that communicates how organizations protect customer data through strict security controls, enhancing trust between service providers and clients.
• Compliance with the five Trust Services Categories—security, availability, processing integrity, confidentiality, and privacy—is essential for achieving SOC 2 compliance and safeguarding sensitive data.
• Organizations can utilize tools like Thoropass to streamline the SOC 2 compliance process, enhance operational efficiency, and effectively leverage SOC 2 for business growth and competitive advantage.

Understanding SOC 2 certification

To start, let’s get one thing straight, SOC 2 is not a certification in the traditional sense but rather a type of audit report. That’s why it’s more accurately referred to as a SOC 2 attestation. SOC 2 compliance is a reliable indicator of a service organization’s dedication to maintaining robust data security within its systems. It helps to establish confidence with clients, business partners, and investors by confirming that the organization follows industry-recognized best practices and is fully equipped to handle customer/client information securely, ensuring the safeguarding of customer interests and confidentiality.

The five trust services criteria (or categories) 

The foundation of SOC 2 compliance lies in adhering to five Trust Services Criteria (TSC), formerly referred to as Trust Service Principles.

1. Security
2. Availability
3. Processing integrity
4. Confidentiality
5. Privacy

These categories are key to upholding secure system operations that involve handling customer data effectively—ensuring its security, availability when needed, confidentiality against unauthorized disclosure, the completeness, accuracy, and timeliness of system processing, and the privacy of personal information held by organizations or systems.

1. Security

The security principle or category is essential for protecting systems from unauthorized access and preventing potential breaches and misuse. To maintain robust protection, service organizations implement a variety of security controls, including:

• Access controls
• Encryption techniques
• Firewall deployment
• Intrusion detection mechanisms
• Continuous security monitoring procedures
• User authentication protocols

Important note: Security is the only TSC required in any SOC audit because it not only sets overarching security standards for your company but also overlaps with the others. 

2. Availability

Availability ensures that your systems are running and accessible to customers when they need them most. For example, Service Level Agreements (SLAs) with your customers are a great way to show you are able and committed to meet uptime requirements. It’s a key criterion for startups that need to guarantee their users can access data and services during critical moments.

3. Processing integrity

Processing integrity ensures the accuracy and completeness of data processing, managing the prompt detection and resolution of any processing errors. It safeguards against unauthorized changes to data during its input, storage, and output.

4. Confidentiality

Confidentiality pertains to the management and safeguarding of sensitive information, whether it’s personal data or proprietary business details like strategic plans, financial records, or legal contracts, that an organization must keep secure.

Beyond the security measures already mentioned, the confidentiality principle (or category) provides a framework for identifying sensitive information, ensuring its protection during use, and securely disposing of it when it’s no longer needed.

5. Privacy

Privacy involves the responsible management of personal data, such as individuals’ names, addresses, emails, Social Security numbers or other identifiers, purchase records, and even criminal backgrounds.

While privacy focuses on the protection of customers’ personal data, confidentiality extends to safeguarding any sensitive information that an organization has committed to keeping confidential.

Different types of SOC 2 reports: Type 1 and Type 2

Two distinct classifications exist for SOC 2 reports: SOC 2 Type 1 and SOC 2 Type 2. Each report plays a unique role with different assurances regarding an organization’s control environment. Grasping the differences between these reports is key for entities pursuing SOC 2 compliance and striving to live up to their customers’ standards.

SOC 2 Type 1: A compliance snapshot in time

SOC 2 Type 1 is best understood as a snapshot that captures your company’s adherence to security protocols at one point in time. One key advantage here is immediacy: Type 1 offers immediate visibility into how well your firm safeguards sensitive data, providing startups and established businesses alike with critical leverage for gaining market advantage or sealing prompt business agreements. It also allows you to evaluate the design of the controls you plan to implement—consider it like a blueprint.

Offering expedited assessment turnaround and affordability, the quicker-to-achieve and less expensive SOC 2 Type 1 works well for most service organizations—particularly when swift verification is imperative for pressing business engagements.

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SOC 2 Type 2: Testing operating effectiveness over time

In contrast to SOC 2 Type 1, SOC 2 Type 2 offers a detailed evaluation of how well an organization’s security controls function over time. 

 A SOC 2 Type 2 report is often recognized as the gold standard. It provides robust assurance about an entity’s compliance measures regarding the effectiveness of its internal controls over time.

Determining which SOC 2 type to pursue, whether Type 1 or Type 2, should be influenced by multiple considerations, such as: 

• Your organization’s needs
• The sensitiveness of the data you’re handling
• What exactly your clients or partners demand 

In general, we recommend that most businesses start with a Type 1 and then build to a Type 2 unless a specific client requires a Type 2 immediately. However, the type of report can depend on how urgently businesses need compliance and whether they will eventually need a Type 2 report.

Seven steps to achieving SOC 2 compliance

It’s important to note that the Type 1 and Type 2 audit processes are different, so your organization’s approach to SOC 2 compliance will depend on which type they’ve chosen to pursue. A SOC 2 Type 2 audit focuses on a period of time with the observation period chosen by management. 

1. Choose TSCs

Regardless of the SOC type being pursued, organizations must first determine which of the five Trust Services Criteria they will include in their SOC 2 report. They should define the extent of the audit according to their particular services and operational requirements. The type of information and data stored or transmitted by a business should determine the applicable categories and underlying trust services criteria.

2. Perform a gap analysis and develop a remediation plan

A compliance team examines the practices and procedures your organization has in place and performs a risk assessment to identify gaps. Based on the results of this gap analysis, a strategic remediation plan is set to tackle SOC 2 in the most efficient way possible.

3. Implement stage-appropriate controls

Depending on the scale and maturity level of your business, you may need different controls. For example, enterprises will likely need different controls in their  SOC 2 report compared to startups. From logging and monitoring to HR tasks and vendor management, a compliance team can identify ways to save time and money by implementing the correct tools and processes.

4. Perform a risk assessment

After the TSCs have been selected, management should perform a risk assessment against each of the applicable Trust Services Criteria. This crucial part of the audit helps management identify the controls to be included in the report. 

5. Prepare for your audit

This preparation step requires gathering evidence of implemented controls. It also means preparing an internal team to answer questions and work with auditors throughout the audit process.

Now is also the time to select your auditor. Auditors performing SOC 2 audits must be from firms or agencies that hold accreditation from the American Institute of Certified Public Accountants (AICPA), ensuring they have the requisite skills and adhere to established professional guidelines. We also advise that your selected auditor brings experience in conducting SOC audits, preferably within the context of your particular industry sector. Lucky for you, solutions like Thoropass now exist to make this step even easier. Thoropass’s OrO Way includes your auditor in the conversation from day 1, so you won’t run into any surprises or gaps along the way and the audit is a seamless process.

6. Audit time!

A SOC 2 audit involves a thorough examination of the design and operating effectiveness of an organization’s controls by an accredited CPA. SOC 2 audits last between two weeks and a couple of months, depending on the number of questions or follow-ups from the auditors. Though businesses cannot technically fail a SOC 2 report, deficiencies will get reported ‘as is’ as it relates to the ‘as of’ date of the report (SOC 1) or the period under examination (SOC 2), and while you can’t go back and correct discrepancies you will have the opportunity to respond. 

During the actual auditing procedure, reviewers assess how well a company complies based on its enacted security controls. Once completed, continuous attention must be directed towards resolving any issues revealed through the audit examination so as to preserve ongoing compliance with SOC 2 criteria.

7. Maintain and monitor compliance over a 12-month period

SOC 2 audits are typically performed on an annual basis in accordance with client expectations. We recommend that our clients set up integrations to automatically collect evidence and monitor practices over time. This helps avoid heavy time commitments from team members and continues to secure information.

Benefits of using Thoropass for SOC 2 compliance

Thoropass revolutionizes the conventional SOC 2 audit process by delivering a smooth and controlled experience, optimizing your organization’s time and resources. It eases the complexities often encountered during audits by streamlining the SOC 2 compliance procedure, thereby increasing operational effectiveness with the aid of cutting-edge software solutions and professional guidance.

Thoropass’s benefits includes: 

• Expediting the audit timeline
• Offering thorough support throughout
• Ensuring that data security measures are robust against future challenges

This positions Thoropass as an optimal choice for entities aiming to secure their path to SOC 2 compliance efficiently while avoiding undue complications.

Accelerated audit process

By incorporating Thoropass into processes, organizations can expedite the audit process by an average of 67%, effectively accelerating the path to SOC 2 compliance and conserving critical time. This notable reduction in time frees up resources to focus on broader compliance strategies and improves operational efficiency.

With Thoropass, companies can streamline their approach to becoming audit-ready more quickly, guaranteeing continuous adhesion to SOC 2 requirements. Our solution facilitates a smoother ongoing compliance experience for businesses committed to meeting these important industry benchmarks.

Comprehensive support

Thoropass offers a unique blend of AI-driven technology and in-house experts. The combination of sophisticated resources and specialized guidance guarantees comprehensive help throughout every phase of achieving SOC 2 compliance.

By providing customized assistance, Thoropass enables organizations to overcome the intricacies associated with SOC 2 compliance. This approach renders the process not only more streamlined but also cost-effective for businesses.

Future-proofing data security

Undergoing a SOC 2 audit with Thoropass sets the stage for obtaining additional certifications down the line, including ISO 27001and HITRUST. This integrated multi-framework approach to compliance primes organizations to maintain robust data security, keeping them at the forefront of defense against evolving security risks and regulatory changes.

Thoropass assists entities in strengthening their stance on data security, offering a reliable base that supports the attainment and preservation of diverse security credentials.

Leveraging SOC 2 compliance for business success

Achieving SOC 2 can substantially boost trust among customers and create avenues for new business ventures. Demonstrating measures of data protection fosters confidence with stakeholders, which is crucial in securing more substantial contracts that enhance revenue potential. Consistently adhering to security standards by undergoing SOC 2 audits presents opportunities for expansion and offers a competitive advantage.

Sales enablement

For sales teams, the SOC 2 report serves as an essential tool when engaging with prospective clients—streamlining business interactions and showcasing the organization’s dedication to stringent security protocols. Utilizing the distinction provided by SOC 2 compliance propels business development and sets organizations apart from their competitors.

Customer confidence and loyalty

Showcasing robust security measures and operational consistency with the help of SOC 2 compliance markedly bolsters consumer confidence. This increased level of trust plays an essential role in establishing lasting commercial partnerships and obtaining a competitive edge in the marketplace.

Competitive advantage

Achieving SOC 2 signals a dedication to security and operational superiority, giving companies a competitive edge. Companies can use their SOC 2 compliance as a marketing tool to stand out from competitors and draw in new clientele.

Marketing 

Marketing initiatives that incorporate a SOC 2 report can significantly underscore an organization’s dedication to data security, thereby appealing to prospective clients.

Embedding the official SOC 2 badge on your website, press releases and other marketing collateral, your organization reinforces its commitment to both security and regulatory adherence in the public eye. Promoting their SOC 2 compliance through social media channels also expands visibility and fosters interaction with existing as well as potential customers.

Conclusion: The start of an ongoing commitment

SOC 2 is not a simple box to check; it symbolizes an ongoing commitment dedicated to securing your customer’s sensitive data while fostering trust with all involved parties. Attaining and sustaining SOC 2 adherence demands consistent dedication and agility in adapting to evolving regulations and benchmarks. Prepare yourself for continued vigilance!

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Compliance isn’t just required—it’s good business

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