What SOC 2 does
SOC 2 reports detail a service organisation’s management of customer data and systems. They assess controls against the five Trust Service Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy. A Type 1 report provides a snapshot of controls at a specific point in time. A Type 2 report, which is more common, assesses controls over a defined period, typically six to twelve months, providing ongoing assurance. The report’s structure outlines the organisation’s system and control design, operational effectiveness, and any exceptions encountered.
SOC 2 in Australian tenants today
For AU mid-market organisations procuring SaaS, a SOC 2 Type 2 report is increasingly becoming the default assurance requirement, particularly when dealing with international providers. While the Australian Accounting Framework (AAF) provides a local alternative, SOC 2’s international recognition often makes it the preferred option. Microsoft Compliance Manager templates can assist in gathering evidence to support SOC 2 readiness, although they do not constitute a full audit. Alignment with the Essential Eight is a separate but complementary consideration for AU organisations.