Beginner's guide to SOC 2, Part 1

8 minute read

The reason we have auditors today is simply because people do not trust one another. Let’s say financial statements reveal $1 million in net profit. If you are a shareholder, do you believe this? Is it less, or is it more? Do we trust the chief financial officer?

So, if an organization uses a Software as a Service (SaaS) provider or outsources elements of IT, the organization (being the client) would often raise the concern, “Is our information secure?” This is often followed by a more difficult question, “How do you know?”

SaaS and IaaS (Infrastructure as a Service) or cloud solutions have matured over the years. Economic conditions have resulted in many organizations seeking to increase efficiencies and decrease costs through outsourcing some of their services. So, the above two questions require answers, and if an organization is competing on a global scale or has plans to grow into a global competitor, these questions will need to be answered from a compliance point of view.

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