SOC1 is a report that provides information on the design of control procedures. This report also contains information on the assessment of internal control. It covers six months or more. It is necessary in case of changes in the internal control system.
SOC2 is a different kind of report. See the evaluation of non-financial control procedures here. The assessment follows the criteria of the Trust Service.
While SOC1 confirms the very existence of control, SOC2 says that this control is working. The latter is an indicator of the security level of your data, as well as of its management.
Why do Data Room Providers Need to be SOC Certified?
There are some reasons why a virtual data room provider should take care of these reports. It takes time and effort. What is the point? Your company receives proof that your policies and operations meet stringent requirements and will meet your customers’ expectations. Stability and diligence are crucial to them. There are many providers on the market today that offer their services. With SOC1 and SOC2 reports, you can stand out from the crowd and instill confidence in potential users.
Before concluding a deal and using the services of the provider a user has chosen, they must make sure that the VDR has stable credit and financial activities. SOC1 and SOC2 reports are especially important when entering into a long-term relationship with a VDR provider.
Companies are interested in providing services to the largest number of clients, but it is necessary to comply with standards and requirements. VDR users are especially vigilant in their choice because the safety and well-being of their company depend on it. Those who are responsible providers cannot abuse their position of trust.