How to Prepare for a SOC 2 Audit: 5 Tips from an Auditor

Originally published by BARR Advisory.

Just like you’d map out an itinerary for an upcoming vacation or create a menu prior to a dinner party, preparing for your SOC 2 audit ahead of time can make the experience significantly smoother and more efficient.

So how can you best prepare for the SOC 2 process? We sat down with Cameron Kline, director of attest services at BARR, to discuss his opinion on best practices when preparing for your SOC 2 audit. Read his insight on how to best prepare to avoid common mistakes and ensure your organization is on the path to reach your security and compliance goals.

Assign Roles to the Right People

Before starting your SOC 2 audit, it’s important to assign specific roles to the right people. You’ll be responsible for maintaining communication during your audit and designating the appropriate person to share relative information.

“Not having the correct people in place can lead to delays and exceptions,” said Kline. “It’s helpful for the people who know your controls best to serve at the forefront of your audit journey. Since they are the ones working with your controls on a day-to-day basis, it will help to assign them as lead or project manager for when the time comes to answer pertinent questions about your organization.”

Here are a few tips for assigning roles prior to your audit:

• Create a plan and confirm expectations with your teammates beforehand to ensure you’re organized and ready to dive into your audit.
• Select the right people for the right job so communication will flow smoothly and the correct information is transferred.
• Designate a project manager who can serve as the sounding board and organizer for your team, saving time and avoiding miscommunication.

Undergo A Readiness Assessment

The readiness period of your SOC 2 audit prepares your organization’s policies and procedures so your assessment runs smoothly. Readiness assessments test the controls that will be examined during your audit, and if applicable, your engagement lead will provide recommendations for any necessary remediation.

Benefits of conducting your readiness assessment include:

• Initial testing of controls
• Recommendations for remediation
• Chance to remediate issues prior to audit
• Reduces risk of unexpected control gaps

Whether you’ve completed multiple SOC reports in the past or it’s your first time, a readiness assessment can ensure the rest of the process is as efficient as possible. Your auditor will work with you to determine what controls and systems should be tested and guides you through each step of the way.

“It’s important not to rush the process,” said Kline. “Trying to navigate your audit too quickly when you don’t yet have the appropriate resources will only lead to mistakes.”

Kline added, “Organizations are sometimes hesitant to reveal systems that may not operate effectively. However... we can’t advise on what we don’t know, which is why a readiness assessment is so important. We’re here to help you through your challenges and create the most successful outcome for you as possible.”

Tailor Your Scope

There’s no one-size fits-all approach to identifying your scope, so it’s important to think about your organization’s individual needs. For your SOC 2 report, you’ll want to think about the five trust services criteria—security (required), availability, confidentiality, processing integrity, and privacy—and which categories can best help you to accomplish your goals. You’ll also want to consider which systems to include.

“You don’t need to include every system in your scope,” said Kline. “If you’re adding too much, it could cost time, while too few criteria may result in more questions from customers or not remediating the right controls.”

You also want to avoid scope creep, which involves changing your scope after the project begins. “Scope creep occurs when you try to move too many systems around after we’ve already started your audit. This will increase time and the likelihood of risk, so it’s important to identify and tailor your scope ahead of time. When scope creep happens, there will inevitably be exceptions to your systems and controls,” said Kline.

A few questions your auditor will ask your organization when defining your scope include:

• How is your customer data stored?
• Does this system process, store, or transmit customer data?
• Which systems are critical in commitments to your customers?
• If one system goes down, will it impact customers?

Create a Security Roadmap

While SOC 2 reports are an excellent way to build trust within your organization, it’s important to think of the big picture to your security roadmap. Consider a continuous management plan that includes recurring SOC reports as well as other frameworks as you grow with your customers. Depending on the needs of your stakeholders, you may consider certifications like ISO 27001 or HITRUST.