Definition
An independent audit standard evaluating a service provider's controls around data security, availability, processing integrity, confidentiality, and privacy.
Business Importance
Enterprise SaaS and fintech clients frequently require a vendor's SOC 2 report as a precondition of the security review before signing an MSA.
Industry Examples
A prospective client requesting a SOC 2 Type II report during vendor due diligence before approving a BPO contract.