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SOC 2 preparation tools: The hidden risks

February 22, 2022 / 3 min read

Are you considering a third-party SOC 2 preparation tool in your organization? Here are some pros and cons — and hidden risks — to factor into your decision.

As companies continue to outsource activities to third-party services, managing risks has continually evolved — most significantly in the area of data protection. With increasing scrutiny over cybersecurity, many organizations are focusing on system and organization control (SOC) 2 reports that address controls relevant to data security, availability, processing integrity, confidentiality, and privacy. Along with the increased demand for these services, software vendors have started offering solutions — referred to as governance, risk management, and compliance (GRC) tools — to help organizations become “SOC 2-ready.”

The benefits of implementing a SOC 2 GRC tool

Some of the benefits of implementing a SOC 2 GRC tool as part of your compliance efforts include:

Evaluating SOC 2 GRC tool vendors

When evaluating SOC 2 GRC tool vendors, there are various important factors to consider. As with any software purchase, your organization should thoroughly evaluate potential solutions in terms of cost to implement and maintain, vendor reputation, whether the software will be hosted or purchased off the shelf, and whether there’s someone internal that will be able to administer and maintain the tool, among other things.

But one critical and frequently overlooked consideration is the impact the tool will have on your auditor’s ability to effectively and efficiently conduct SOC 2 examinations.

One critical and frequently overlooked consideration is the impact the tool will have on your auditor’s ability to effectively and efficiently conduct SOC 2 examinations.

Audit considerations for SOC 2 GRC tools

From an audit perspective, there are several critical questions that your organizations should ask.

In conclusion

While the benefits of implementing a SOC 2 GRC tool are clear, there are considerations and underlying factors that must be considered before choosing a solution and granting a vendor access to important information. It’s critical that management, the service auditors, and the users are in the loop during the evaluation process and understand the risks involved in using these tools to supplement SOC 2 efforts. Need more information? Give us a call.

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