SOC 2 readiness activities may include policies, risk assessments, controls, evidence collection, employee training and monitoring activities. Companies may therefore want to engage with SOC 2 compliance vendors or consultants. While the two terms are sometimes used interchangeably, the services they offer can be quite different.
Understanding the distinction can help an organization determine what type of support it needs.
What are Compliance Vendors?
A compliance vendor is a third-party company that provides technology, platforms or managed services that enable organize and manage your SOC 2 compliance activities. They are usually too focused on delivering a scalable platform for the business to complete regular compliance activities.
What are SOC 2 Consultants?
They typically provide services and implementation support, not a software platform. Consultants can help an organization to evaluate its current controls, determine gaps and assist the management to create a roadmap to remediate them.
Key Difference: Technology vs Expertise
One of the clearest differences is the nature of the service.
SOC 2 compliance vendors usually offers technology-enabled compliance management. The organization leverages the vendor’s platform to manage tasks, evidence, and controls.
Consultants offer predominantly human knowledge and advice. The consultant collaborates with leaders and staff to apply organization within, and as a solution for, the organization’s environment and suggest feasible improvements.
Difference in Approach
Compliance platforms are typically built around structured workflows. They can offer pre-defined frameworks, templates, questionnaires and automated reminders. SOC 2 compliance vendors can work well for organizations that have internal staff who can implement controls but lack a streamlined approach to compliance activities.
Consultants can tailor their advice to fit each organization. By speaking with staff, reviewing current procedures and considering the company’s technology, business model and risks, they can offer recommendations suited to its needs.
Difference in Customization
SOC 2 compliance vendors could provide a set of policies and controls that can be customized based on the needs of an organization. This may speed up the implementation, but companies still have to assess if the templates are really applicable to their business model.
A consultant can assist in tailoring controls and documentation specifically to the organization’s risks and processes.
Evidence Collection and Monitoring
SOC 2 compliance vendors can add significant value through automation. They may integrate with systems including cloud infrastructure. These integrations, depending on the platform, may allow you to gather evidence and monitor controls on a continuous basis.
Consultants may assist in identifying what evidence is required, how the evidence should be preserved, and if the evidence shows that a control is functioning effectively.
Cost Considerations
SOC 2 compliance vendors may charge a subscription fee that varies depending on the size of the company, the number of users, the features available, or the compliance frameworks selected. Automation can significantly reduce the amount of manual work that internal employees need to do.
Consultants typically bill their professional fees according to the size and duration of the project. A complex implementation will likely need more consulting hours than a simple program.
When a Compliance Vendor May Be Useful
SOC 2 compliance vendors are suitable when an organization /individual:
- Has an internal security or compliance staff
- Seeks to Automate Evidence Collection
- Requires a centralized compliance dashboard
- Experiences recurring compliance needs
- Seeks to monitor multiple frameworks
- Requires automated notifications and monitoring
For expanding SaaS companies, automation can make a big difference because compliance work must go on after the first SOC 2 audit.
When a Consultant May Be Useful
A consultant can be especially beneficial if an organization is:
Getting ready for SOC 2 for the first time
- Has limited internal compliance knowledge
- Is looking for a gap analysis
- Has a complex technology infrastructure
- Needs assistance with the design of suitable controls
- Seeking tailored guidance for implementation
- Desires preparation assistance for the audit
Management can be more effective with a consultant explaining to them why a certain control is necessary and how it can be integrated into the business processes they currently have.
An Important Distinction: Neither Is the Auditor
The SOC 2 audit is conducted by an independent licensed CPA firm. A compliance vendor/consultant works with the organization to establish readiness and maintain its control environment but they do not issue the independent SOC 2 report unless they independently meet the relevant professional and independence criteria to perform such an engagement.
The review should remain impartial so it can offer an unbiased view of the organization’s controls.
Can Businesses Use Both?
Yes, Business don’t have to make an either or decision between SOC 2 compliance vendors and consultants.
A business, as an example, could engage a consultant to perform a readiness assess and give special guidance, while utilizing compliance software to automate control monitoring and evidence collection.
This marriage can deliver automation and human know-how.
Conclusion
Typically, the main distinction between SOC 2 compliance vendors and consultants is the type of assistance they offer. Vendors tend to concentrate on compliance technology, automation, evidence management, and continuous monitoring, whereas consultants offer tailored professional advice, assessments, and assistance with implementation. The appropriate solution depends on factors such as the organization’s size, existing expertise, technology environment, financial resources and compliance goals.
