What Are the 5 Trust Services Criteria (TSC) for SOC 2?

Adhering to industry standards is crucial for organizations that manage sensitive data and rely on robust information systems. The SOC 2 Trust Services Criteria (TSC) provides a comprehensive framework to ensure systems are secure, available, and reliable. This blog will explore the five SOC 2 TSC and discuss why an organization might focus on specific audit criteria.

SOC 2 Trust Services Criteria

The Trust Services Criteria (TSC) within SOC 2 are standards the American Institute of Certified Public Accountants (AICPA) developed to evaluate and report on the controls and processes related to information systems. These criteria focus on five fundamental principles: security, availability, processing integrity, confidentiality, and privacy. For those wondering, "What are the 5 principles of SOC 2?", these essential principles were initially branded as the Trust Services Principles (TSP). The AICPA rebranded these SOC 2 trust principles as the Trust Services Criteria in 2017, reflecting an evolution and refinement of the framework to better address contemporary information security and data management challenges.

Organizations that align their operations with the SOC 2 TSC demonstrate a commitment to high data protection and operational integrity standards. Each criterion addresses specific risks and requirements, helping organizations build robust internal controls. The SOC 2 TSC framework guides organizations in implementing and maintaining effective controls to safeguard data and ensure reliable service delivery. By undergoing a SOC 2 audit based on the TSC, organizations can assure clients and stakeholders that they are managing and protecting data according to industry standards, thereby building trust and enhancing their reputation in the market. When engaging an auditor, you choose which of the five criteria you want to be evaluated, if not opting for all of them.

1. Security

The security criterion within SOC 2, or the "Common Criteria," is fundamental and required for all SOC 2 evaluations. It ensures that an organization’s systems are protected against unauthorized access, including physical intrusions and cyber threats. This criterion involves implementing various controls and practices, such as firewalls, intrusion detection systems, encryption, and strict access control policies. Additionally, regular security audits and vulnerability assessments are essential components. By adhering to the security criteria, organizations demonstrate their commitment to protecting sensitive data from breaches and other threats, thereby maintaining the trust of clients and stakeholders and ensuring compliance with industry standards and regulatory requirements.

2. Availability

The availability criterion within SOC 2 ensures that an organization’s systems are accessible for operation and use as committed or agreed upon. This criterion addresses whether systems include controls to support timely and uninterrupted access to services, reflecting the organization’s capacity to meet service level agreements (SLAs). Measures under the availability principle often involve performance monitoring, disaster recovery planning, and incident management to prevent or quickly address downtime. By adhering to the availability criteria, organizations can demonstrate their commitment to maintaining reliable and consistent service delivery, building trust with clients and stakeholders, and enhancing their reputation for dependability and operational resilience.

3. Processing Integrity

The processing integrity criterion within SOC 2 focuses on ensuring that a system’s processing is complete, valid, accurate, timely, and authorized. This criterion evaluates whether the controls in place can maintain the integrity of data as it is processed. Measures include error detection and correction mechanisms, data validation procedures, and consistent monitoring of data processing activities to ensure that any deviations or anomalies are promptly addressed. Adhering to the processing integrity criteria demonstrates an organization’s commitment to delivering accurate and reliable information, essential for maintaining client trust and meeting contractual obligations. By ensuring the integrity of data processing, organizations can reduce the risk of errors, fraud, and inefficiencies, thereby enhancing overall operational effectiveness and reliability.

4. Confidentiality

The confidentiality criterion within SOC 2 is designed to ensure that sensitive information is appropriately protected from unauthorized access and disclosure. This criterion focuses on the measures and controls implemented to safeguard data classified as confidential, which could include client information, intellectual property, and other sensitive business data. Controls under this principle often include encryption, access restrictions, secure data transmission methods, and rigorous data handling policies. Regular employee training on data protection practices and data access monitoring are also critical components. By adhering to the confidentiality criteria, organizations demonstrate their commitment to protecting sensitive information, building trust with clients and stakeholders, and ensuring compliance with privacy regulations and industry standards.

5. Privacy

The privacy criterion within SOC 2 focuses on how an organization collects, uses, retains, discloses, and disposes of personal information in compliance with its privacy notice and relevant privacy laws and regulations. This criterion ensures that personal data is handled carefully and transparently, protecting individuals' privacy rights. Controls under the privacy principle include obtaining consent for data collection, implementing robust data protection measures, providing individuals with access to their data, and allowing them to correct or delete their information as necessary. Regular audits and assessments are conducted to ensure adherence to privacy policies and identify and mitigate potential risks. By adhering to the privacy criteria, organizations demonstrate their commitment to ethical data practices, fostering trust and confidence among clients and stakeholders and ensuring compliance with legal and regulatory requirements.

Why Not Include All Trust Services Criteria in an Audit?

An organization might choose not to include all Trust Services Criteria (TSC) in the scope of a SOC 2 audit for several strategic and practical reasons. One primary consideration is relevance: not all criteria may apply to the organization’s specific services or business model. For instance, a company that does not handle personal information extensively might find the privacy criteria less applicable and opt to exclude it from the audit. This targeted approach allows the organization to focus resources and efforts on the most pertinent areas, ensuring a more efficient and relevant audit process.

Cost and complexity are also significant factors. Including all TSC can substantially increase the audit's scope, duration, and cost. Organizations with limited resources might find it more feasible to concentrate on fewer criteria that directly impact their operations and customer requirements. Additionally, narrowing the audit scope can simplify the preparation and ongoing maintenance of controls, making it easier for the organization to achieve and sustain compliance. By strategically selecting the most applicable TSC, organizations can optimize their compliance efforts, reduce unnecessary burdens, and still provide stakeholders with meaningful assurance regarding their control environment.

Closing Thoughts

In summary, the SOC 2 Trust Services Criteria (TSC) offers a structured framework for organizations to ensure their information systems are secure, available, and reliable. Organizations can align their operations with high data protection standards and operational integrity by focusing on the fundamental principles of security, availability, processing integrity, confidentiality, and privacy. This alignment builds trust with clients and stakeholders and enhances the organization’s reputation in the market. Choosing which criteria to include in a SOC 2 audit allows organizations to tailor their compliance efforts to their specific needs and circumstances, making the audit process more relevant and efficient.

SOC and other attestation reports from Compass are more than just compliance documents; they are tools to build stakeholder confidence. They demonstrate that appropriate controls are in place for your business processes and information technology (IT) to safeguard financial and sensitive client data. Compass IT Compliance works hand in hand with the Compass Assurance Team, a fully licensed and accredited CPA firm, to guide clients through all phases of a SOC 2 audit. From the initial selection of Trust Services Criteria (TSC) to the final reporting stages, our collaborative approach ensures a thorough, efficient, and tailored SOC reporting experience. This partnership is designed not only to meet but exceed the specific compliance needs of your organization, ensuring both accuracy and reliability in your SOC reports. Contact us today to learn more or to start your SOC 2 audit journey.