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Cloud Security, Data Breaches and the Need for SOC 2 Engagements

The volume of data housed in and applications running from the Cloud have increased dramatically, and all indications are that this trend will continue. This growth in data housed in the Cloud, combined with recent highly publicized security breaches at major retailers, government agencies and other vendors, has brought a heightened awareness of the importance of controls over this data. In particular, user entities are placing a high priority on ensuring that controls related to security, availability, processing integrity, confidentiality and privacy are in place and effective.

The need for service organizations to reassure their users about controls over the integrity of their systems and the safety of data processed by those systems has led many CPA firms to develop niche practices in this area. These firms perform engagements related to the design and operating effectiveness of controls at the service organizations.

This Special Report provides an overview of such engagements, commonly known as SOC 2 engagements (SOC – Service Organization Controls).

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