A SOC 2 report is a third-party validation that attests to an organization’s ability to protect data and information. It’s widely accepted across industries and provides a singular asset that can be used in the due diligence process with multiple prospects and customers — replacing the need to undergo a custom cybersecurity audit with each new customer.    

To obtain a SOC 2 report, a company must submit to an audit whereby assessors evaluate the internal controls used to secure information, along with the systems, technology, and staff roles within the organization. Although some organizations tout they can complete this process in two weeks, experienced CPAs repeatedly declare that 14 days is simply not enough time to properly and thoroughly complete all aspects of the SOC 2 audit process.  

In this blog, we’ll review each step of the SOC 2 audit process and explain how long each aspect of the audit process takes. This piece is meant to serve as a general guideline, as audit timelines can vary significantly based on the size of a company and the complexity of its environment and services.  

Step 1: Find the right partner and team 

The first step toward completing a SOC 2 audit is to engage with an audit partner. It’s important to note that SOC 2 audits are regulated by the AICPA and reports can only be generated by an external auditor from a licensed CPA firm — like A-LIGN. Once you engage with a partner, there will be some preliminary discussions to define the scope of the project and sign a contract. 

If this is your first time pursuing a SOC 2 report, we highly recommend completing a SOC 2 readiness assessment to examine any gaps in controls or processes prior to an official audit. This can help you save time (and money) before undergoing the bulk of the SOC 2 audit process. 

Once you’re ready to officially proceed, contracts will be signed and the official engagement will begin. At that point you will be introduced to your SOC audit team. At A-LIGN, SOC 2 audit teams typically consist of a senior manager, manager, and auditor.  

Senior managers and managers act as primary points of contact during preliminary discussions. Auditors take over as the point person when it’s time for walkthroughs, testing, and evidence review. All three of these roles work together throughout the entire audit to ensure you are supported and informed every step of the way. By leveraging the A-SCEND audit management platform, clients are able to have direct access to the audit team to flag, ask questions, and submit evidence. The tool will help companies stay organized throughout the audit process and have a clear understanding of what is required.  

Step 2: Information requests 

Estimated timeline: 2-3 business days 

First your audit team will generate an Information Request List (IRL) for your organization. This list of essential information is based on: 

• The prior year’s report (if you have completed the SOC 2 process before) 
• The scope 
• The trust services criteria 
• Other factors determined during the scoping phase (ex. new technology, locations, third-party services being leveraged, cloud hosting services, etc.) 

When partnering with A-LIGN, your audit team will publish this list for you through the A-SCEND platform. The A-SCEND platform is an audit management software tool that streamlines the audit process. A-SCEND streamlines the process in one easy-to-use dashboard, facilitates real-time collaboration between auditors and clients​​, and utilizes existing audit evidence for multiple frameworks​.

After the IRL has been published, there will be a call with the SOC audit team to re-confirm the timing and scope of the project. 

Step 3: Evidence collection for a SOC 2 audit 

Estimated timeline: varies 

Evidence collection can be a time-intensive process. Many experts recommend using audit management software to help reduce time and make the process more efficient. At A-LIGN, we encourage clients to use our tool, A-SCEND. Through our partnership with leading GRCs and our integrated platform, evidence can be automatically collected. Once the evidence is collected it is transformed into readable reports that are automatically mapped to the corresponding evidence requests from the IRL. This process reduces the amount of effort, time and resources required for providing evidence.  

If the need for a SOC 2 report is urgent, the collection period can be shortened. If you anticipate this will be the case for your company, it’s important to be prepared. Consider gathering essential materials prior to your kick-off call with your audit partner so everything is organized in one place. We also recommend you make sure you have staff resources assigned to assist with the SOC 2 process ahead of time, so you can reduce the risk of other internal priorities cutting into your SOC 2 efforts.  

Step 4: Fieldwork  

Estimated timeline: 2-6 weeks 

Once evidence collection is complete, fieldwork (formal walkthroughs of your environment) will officially begin. The goal of this phase is to gain an in-depth understanding of your organization’s controls, processes, and procedures related to people and technology. The length of fieldwork will vary depending on the scope, locations, applications, and trust criteria. Generally, you can expect this phase of the SOC 2 audit process to last anywhere between two to six weeks. 

Step 5: The SOC 2 report 

Estimated timeline: 3 Weeks 

After completing the walkthroughs and testing, the SOC audit team will generate a SOC 2 report for your company. The SOC 2 report comes in two parts: 

1. Draft: You’ll receive a draft report within three weeks of completing the fieldwork, sometimes earlier depending on deadlines and the complexity of the scope. During this draft report phase, you’ll have the opportunity to review the assertion, opinion, system description, and testing of the controls. If necessary, you can provide feedback or ask questions of the audit team. Once the draft report is approved internally, you’ll sign a management representation letter and notify your SOC 2 team that they can proceed with the final report. 

2. Final report: One to two weeks after the draft has been approved, you’ll receive a final report with any updates or clarifications requested in the draft phase. 

Partner with A-LIGN to begin your SOC 2 audit

Founded in 2009, A-LIGN is the top issuer of SOC 2 audits in the world. We have completed over 5,000 SOC 2 assessments and can confidently say that a proper SOC 2 audit takes at least eight weeks to complete. In planning for your SOC 2, beware of the “14-day audit” promise — this is likely only referring to the audit readiness timeline. At A-LIGN we provide the tools and expertise to help you during every step of the SOC 2 audit journey.

Ready to pursue a SOC 2 audit for your business? Speak to an expert at A-LIGN to get started. 

With Three-Year Revenue Growth of 145 Percent, A-LIGN Receives Ranking No. 3569 Among America’s Fastest-Growing Private Companies 

A-LIGN, the leading cybersecurity compliance and audit firm, announced today that the company is No. 3569 on the annual Inc. 5000 list, the most prestigious ranking of the fastest-growing private companies in America. This is the sixth consecutive year the company has been recognized on the list, which represents the most successful private companies with a proven track record of growth. The list represents a one-of-a-kind look at the most successful companies within the economy’s most dynamic segment—its independent businesses. Facebook, Chobani, Under Armour, Microsoft, Patagonia, and many other well-known names gained their first national exposure as honorees on the Inc. 5000. 

“We are honored that A-LIGN has received its ranking on the 2022 Inc. annual list 5000 as No. 3569,” said Scott Price, CEO at A-LIGN. “We are incredibly proud that our outstanding team is once again recognized among America’s fastest growing private companies. It is truly an honor to be named by the prestigious Inc. magazine alongside these incredible businesses. I am deeply moved by the commitment and dedication of the entire team at A-LIGN, and look forward to the coming months as we continue to provide premier technology paired with expert professional services to our global clients.” 

The companies on the 2022 Inc. 5000 have not only been successful, but have also demonstrated resilience amid supply chain woes, labor shortages, and the ongoing impact of Covid-19. Among the top 500, the average median three-year revenue growth rate soared to 2,144 percent. Together, those companies added more than 68,394 jobs over the past three years. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/inc5000.  

“The accomplishment of building one of the fastest-growing companies in the U.S., in light of recent economic roadblocks, cannot be overstated,” says Scott Omelianuk, editor-in-chief of Inc. “Inc. is thrilled to honor the companies that have established themselves through innovation, hard work, and rising to the challenges of today.”

About A-LIGN

A-LIGN is the only all-in-one cybersecurity compliance company with end-to-end-compliance automation software and auditor expertise, trusted by more than 3,300 global organizations to help mitigate cybersecurity risks. A-LIGN uniquely delivers a single-provider approach as a licensed SOC 1 and SOC 2 Auditor, accredited ISO 27001, ISO 27701 and ISO 22301 Certification Body, HITRUST CSF Assessor firm, accredited FedRAMP 3PAO, candidate CMMC C3PAO, PCI Qualified Security Assessor Company, and PCI SSC registered Secure Software Assessor Company. Working with small businesses to global enterprises, A-LIGN’s experts and its compliance automation platform, A-SCEND, are transforming the compliance experience.

More about Inc. and the Inc. 5000 

Methodology 

Companies on the 2022 Inc. 5000 are ranked according to percentage revenue growth from 2018 to 2021. To qualify, companies must have been founded and generating revenue by March 31, 2018. They must be U.S.-based, privately held, for-profit, and independent—not subsidiaries or divisions of other companies—as of December 31, 2021. (Since then, some on the list may have gone public or been acquired.) The minimum revenue required for 2018 is $100,000; the minimum for 2021 is $2 million. As always, Inc. reserves the right to decline applicants for subjective reasons. Growth rates used to determine company rankings were calculated to four decimal places. The top 500 companies on the Inc. 5000 are featured in Inc. magazine’s September issue. The entire Inc. 5000 can be found at https://www.inc.com/inc5000. 

About Inc. 

The world’s most trusted business-media brand, Inc. offers entrepreneurs the knowledge, tools, connections, and community to build great companies. Its award-winning multiplatform content reaches more than 50 million people each month across a variety of channels including websites, newsletters, social media, podcasts, and print. Its prestigious Inc. 5000 list, produced every year since 1982, analyzes company data to recognize the fastest-growing privately held businesses in the United States. The global recognition that comes with inclusion in the 5000 gives the founders of the best businesses an opportunity to engage with an exclusive community of their peers, and the credibility that helps them drive sales and recruit talent. The associated Inc. 5000 Conference & Gala is part of a highly acclaimed portfolio of bespoke events produced by Inc. For more information, visit www.inc.com.

For more information on the Inc. 5000 Conference & Gala, visit https://conference.inc.com/.  

Media Contact:

Danielle Ostrovsky
Hi-Touch PR
410-302-9459
[email protected]

With the cost of cybercrime predicted to hit $10.5 trillion by 2025, many organizations consider enhancing their cybersecurity programs a top priority. One of the most surefire ways to find gaps in protection comes from completing multiple security audits. But with so many potential audits to pursue, it can be difficult to manage multiple workstreams and keep track of varying control elements.  

Audit consolidation — or, conducting audits in tandem as a singular annual event — is one way that organizations can maximize efficiency. 

Our 2022 Compliance Benchmark Report takes a deeper look into organizations’ views on audit consolidation. We surveyed more than 700 cybersecurity, IT, quality assurance, internal audit, finance, and other professionals about their audit programs to gain a better understanding of their organization’s position on minimizing risk and maximizing efficiency. 

One of the biggest findings we uncovered during our research is that even though 85% of organizations conduct more than one audit every year, only 15% of the same organizations have consolidated their audits down to a single, annual event.  

Frequent audits can be costly and time-consuming, and some industries would highly benefit from audit consolidation. Our survey found that 37% of IT organizations conduct 4-5 audits per year.  We also found that 30% of finance organizations and 35% of government organizations conduct 6 or more audits annually.  

By consolidating the auditing process, organizations can work more efficiently, freeing up resources to focus on other aspects of the business. But despite these benefits, not all organizations prioritize streamlining their audit programs. 

Consolidation efforts vary by industry  

Our survey results found an interesting pattern: certain industries tend to consolidate audits more than others. The healthcare industry is particularly savvy when it comes to audit consolidation, with almost a quarter of healthcare organizations (24%) consolidating audits into a single annual event. This is an increase of 6% from last year, pushing the industry from one of the lowest adopters of audit consolidation to the sector with the highest adoption. With healthcare providers seeing a 117% increase in website/IP security alerts due to malware in the past year, it’s not surprising to see a greater emphasis on security audit efficiency. 

The professional services industry now has the lowest percentage of audit consolidation, hovering at 8%.  

Audit consolidation minimizes stress   

The audit process can be exhausting. Many staff members are often forced to step away from their normal daily responsibilities in order to ensure accurate results during an audit, which requires significant time and energy from every party involved. This reduction of working time can hinder the productivity of the organization.  

When asked about the greatest challenge of their audit process, organizations’ top responses were: 

• Limited staff resources (27%) 
• Tedious and manual evidence collection (21%)  
• The complexity of multiple audits (16%)  

Even with their challenges known, organizations may still struggle to find solutions. A useful tool for assisting consolidation efforts is compliance management software. This software is capable of:  

1. Deduplicating evidence collection efforts, allowing organizations to upload a piece of information once and use that information across multiple audits. 
2. Cross-walking, which is the ability to see how close an organization is to completing additional audits based on the work completed for a current audit. 
3. Centralizing Evidence Collections, which saves time by uploading evidence before fieldwork with one-click batch processing.

Automation tools and audit consolidation can help minimize internal disruptions, along with eliminating redundancies and identifying gaps in coverage.  

Consolidating audits with a Master Audit Plan  

The best way to consolidate your audits is by using a master audit plan (MAP). ​​These detailed plans provide an organization with a more effective approach to the auditing process, offering a clear view of scoping, timing, and internal rhythms.  

A-LIGN has a systematic and strategic 4-step approach to building MAPs for organizations and helping them complete audit requirements. A-LIGN will: 

1. Review current practices and define the audit scope  
2. Create customized timeline recommendations and identify areas of improvement 
3. Determine and confirm a holistic audit approach  
4. Deliver an efficient, collaborative, and scalable audit program 

Paired alongside A-LIGN’s A-SCEND audit management platform, a MAP can simultaneously consolidate your organization’s audits while also minimizing expenses and improving productivity. 

Start building your own MAP 

Although organizations usually complete at least one audit per year, there is no limit for the number of audits that can be completed. However, if your organization conducts more than one audit per year, creating and implementing your own MAP is a strategic investment that will save you time and money.  

A-LIGN works with organizations throughout the entire audit process. Our team of experts ensures your MAP grows with your business and operates as a living document that is continuously updated to reflect the evolution of your audit process. 

Equip your organization with a MAP to efficiently consolidate audits. Contact one of our experts to get started. 

There have been several noteworthy updates surrounding the CMMC (Cybersecurity Maturity Model Certification) program since version two — CMMC 2.0 — was released toward the end of 2021.  

Below we’ll cover the key changes you need to know if your business processes CUI (controlled unclassified information) or FCI (federal contracting information) including the: 

• New title of the CMMC accreditation body (CMMC AB)   
• Projected timeline for program launch  
• Voluntary CMMC assessments status  
• Introduction of a new federal cybersecurity framework  

The CMMC AB Becomes the Cyber AB  

In early June, the CMMC AB officially changed its name to the Cyber AB. According to Cyber AB Director and CEO Matthew Travis, the new moniker was introduced to simplify the AB’s previously lengthy name as well as set the organization up for future growth into other industries.   

“I’ve had discussions with representatives of other departments of other sectors of critical infrastructure, and even other countries who are interested in the value that the CMMC model brings,” said Travis.  

Since elevated cyber threats have become the new normal, Travis says he believes passing a rigorous CMMC assessment is an effective way to “buy down risk.” The collective cybersecurity experience held by the professionals that make up the CMMC ecosystem could certainly prove beneficial in assessing risk across industries.  

No matter the future of the CMMC program, it’s important to note the Cyber AB’s primary mission remains the same as it was under its previous name: to authorize and accredit CMMC C3PAOs (Third-Party Assessment Organizations) that conduct CMMC assessments of companies within the DIB (Defense Industrial Base).  

The DFARS Interim Rule and CMMC 2.0 Timeline Update   

After the DoD (Department of Defense) released CMMC 1.0 at the beginning of 2020, the federal branch proceeded to publish the DFARS Interim Rule in September of the same year. The rule is essentially a stopgap measure intended to pave the way for CMMC and inform DoD contractors they must report compliance with NIST 800-171.  

The DoD then used the public feedback they received on the Interim Rule to restructure the program into CMMC 2.0 in November 2021. When asked about the timeline for CMMC 2.0 rollout, the DoD has frequently said the rulemaking process could take anywhere from 9-24 months, leaving many contractors wondering when requirements will be added to contracts. 

However, CMMC Director and DoD Deputy Chief Information Officer for Cybersecurity Stacy Bostjanick recently provided some clarity around the interim final rule and the CMMC 2.0 timeline. She noted the following:  

• The current plan is for the DFARS Interim Final Rule update to be released in March 2023 and go into effect after a 60-day comment period.  
• This means CMMC 2.0 requirements could begin appearing in DoD solicitations as early as May 2023.  
• However, if the Office of Management and Budget (OMB) does not approve the interim rule, these dates will be pushed out by one year and requirements will be present in contracts starting May 2024.  

Once CMMC 2.0 is officially implemented, not all contractors will be required to immediately obtain certification to handle CUI. The DoD is going to perform a phased rollout. When CMMC first begins appearing in solicitations, all contractors will have to conduct a self-assessment and provide a positive affirmation of compliance.  

During the next phase, solicitations will require either a self-assessment or third-party certification depending on the type of information involved and the associated certification level. While the timing of these phases is to be determined, contractors should not delay in preparing their information systems for CMMC assessment.  

CMMC 2.0 Voluntary Assessments  

To help incentivize proactiveness in preparing for CMMC 2.0, there will also be a voluntary interim program in which contractors can earn a certification that will be honored when CMMC rulemaking goes into effect. 

The voluntary assessment program, which may start as soon as August of this year, will allow companies to contract with an authorized C3PAO with oversight from the DIB Cybersecurity Assessment Center (DIBCAC). Companies that pass a Level 2 assessment — the level most contractors must meet for certification — will receive credit for a high-assurance DIBCAC assessment.  

Once CMMC 2.0 becomes an official requirement in 2023 or 2024, the DoD intends to allow these certifications to remain in good stead for an additional three years beyond that date.  

A New Cyber Secure DIB framework 

Another relevant update that won’t necessarily impact the CMMC certification program but is worth keeping an eye on: Pentagon Cyber Chief David McKeown says there are active discussions around creating a “cyber secure” framework for the DIB.  

“As we go forward, we are partnering with the DIB sector coordinating [council] and CISA and trying to work on how we develop a cyber secure DIB framework. We think it will be based on [the] NIST cybersecurity framework,” said McKeown.  

Inspired largely by the state of global warfare, the proposed framework would help protect not only sensitive data but also the entire supply chain to minimize widespread damage from a cybersecurity incident.  

Start Getting Ready for CMMC Today   

Have additional questions about CMMC 2.0 and how to best prepare for implementation? A-LIGN can help. As one of the first candidate C3PAOs and a top assessor of federal compliance, our firm can perform a CMMC Readiness Assessment by evaluating your organization’s security policies, procedures, and processes against the controls published in NIST 800-171.    

Contact a CMMC expert at A-LIGN today. 

You may have heard that achieving Authority to Operate (ATO) under the Federal Risk and Authorization Management Program (FedRAMP) is a complicated and time-consuming undertaking. This is likely based on the experience many cloud service providers (CSPs) have when they dive into FedRAMP headfirst without taking the time to plan and prepare for what is undeniably a rigorous endeavor.   

There are some common mistakes and misconceptions that are worth addressing to help your CSP business plan for a less stressful, more efficient path, to FedRAMP ATO status. The information in this graphic is based on the assumption that your organization is pursuing agency authorization rather than Joint Authorization Board (JAB) authorization, as this is the route the majority of CSPs take. With that in mind, here are some of the common pitfalls and some suggestions to facilitate the process.  

Next Steps 

Like virtually all areas of compliance, FedRAMP ATO comes down to having the right people, processes, and technology in place to facilitate transparency, accountability, and efficiency across the entire journey.   

  Is your organization pursuing FedRAMP Ready and/or a FedRAMP Authorized status? As a top accredited 3PAO for FedRAMP, A-LIGN has the knowledge and skills necessary to perform these security assessments.   

Have more questions about the best way to FedRAMP?  Contact an A-LIGN Expert Today  

Healthcare cyberattacks where threat actors have stolen large volumes of electronic protected health information (ePHI) and personally identifiable information (PII). It’s a familiar problem: in 2024, Change Healthcare faced losses up to $2.9 billion for its cyber attack alone. The threat level for these attacks will continue to rise.

To protect themselves, healthcare organizations need to implement a robust cybersecurity program. From completing assessments, to partnering with cybersecurity vendors, or updating internal processes, there are specific actions healthcare organizations should pursue to minimize their risk of a cyberattack. 

In this blog, we’ll detail which steps healthcare organizations can take to help bolster their internal defenses. 

Focus on strengthening internal resources 

Even more important than finding strong partners is creating a strong security structure within your own organization. To do so, begin by appointing a security officer and a privacy officer. The individuals in these roles should develop and document security and privacy policies, standards, and procedures to ensure all personnel are aware of their responsibilities. As can be said for all important guidelines, every employee should have easy access to this information.  

An internal security committee composed of stakeholders from all departments across the organization should also be established. By making sure every branch has a representative present, organizations can more easily identify cross-departmental vulnerabilities.  

The goal of the committee is to perform a risk assessment and develop controls to mitigate risk to an acceptable level. Some of those controls include: 

• Installing endpoint protection on all company devices and servers. 
• Implementing media and mobile device policies and encrypting data at rest.  
• Enforcing a strong WPA AES-256 encryption policy for all wireless networks. 
• Adopting Open Web Application Security Project (OWASP) level security when developing applications and deploying changes. The Committee must patch all systems periodically to ensure they are operating under the best practices.  
• Installing security information and event management (SIEM) tools to detect and monitor all activities within the network. 
• Ensuring the organization has put an Incident Response Plan in place, along with testing the plan on an annual basis.  

On a broader level, there are certain actions that all employees at healthcare organizations should take to aid in security efforts. These include completing a comprehensive security awareness and HIPAA training on an annual basis, ensuring all of the software they use is up to date, and reading and acknowledging their organization’s Acceptable Use Policy. 

Partner with vendors that can mitigate risk during healthcare cyberattacks 

In addition to pursuing audits and assessments, healthcare organizations should seek out partnerships with vendors who specialize in cybersecurity services. 

While most organizations likely already have a dedicated IT team, they should still maintain a relationship with a breach forensic firm. Not only will a firm help an organization identify and report breaches in a timely manner, but they will also make sure the organization stays in accordance with all of the compliance standards they follow, such as the HIPAA breach notification law.  

Additionally, organizations should make sure they have a cyber insurance plan in place. As there is no framework or guideline that can 100% eliminate the possibility of a cyberattack, having an insurance policy will minimize the amount an organization would have to pay if a breach should occur.  

Focus on compliance and security assessments  

There are several security compliance assessments unique to healthcare organizations that can help ensure information remains private and protected. For organizations that store, process, or transmit, ePHI, HIPAA compliance is a must. HIPAA is a U.S. law that was enacted to protect sensitive patient data. For organizations that are uncertain if they are currently HIPAA compliant, a third-party organization like A-LIGN can review current safeguards in place and identify areas where organizations can enhance their information security program.

The most reliable ways on demonstrating HIPAA compliance is by using the HITRUST CSF to perform a certification or by using the AICPA Trust Services Criteria to perform a SOC 2+HIPAA Attestation.  

Healthcare organizations should also complete an organization-level Enterprise Risk Assessment. This assessment identifies all the critical assets of the organization, determines the threats to those assets, and ranks the risks based on the probability and impact of an asset being compromised. It’s a key step in identifying threats and implementing controls to mitigate risk.  

Another great, proactive way to protect data and mitigate risk is to conduct a penetration test. These tests simulate a network attack and illustrate how your organization would respond. It’s a great way to identify gaps in your security infrastructure and fix them before a bad actor takes advantage. 

How organizations can act now  

Bad actors will continue to consider healthcare cyberattacks a worthy endeavor — especially small and mid-sized providers and their associates. To minimize the risk of healthcare cyberattacks, organizations should look to pursue relevant audits and adhere to compliance standards, partner with organizations who can assist during incidents, and bolster internal resources via key hires or the development of a dedicated security committee.  

Ready to dive in? Reach out to A-LIGN to review your HIPAA compliance or complete a HITRUST audit. 

Online activity has soared in the wake of the pandemic, and much of it, like ecommerce shopping and telemedicine, is expected to remain elevated even as we exit the health emergency. This new reality has made cybersecurity and compliance top of mind issues for business leaders, with organizations around the world making them priorities to keep customer and partner data safe. Although cybersecurity and compliance are global matters, the landscape of each looks different depending on the market and can influence how organizations do business in these areas. 

In this blog, we compare the EMEA (Europe/Middle East/Africa) market to the U.S. in the context of compliance, data privacy, and threats to cybersecurity. 

Compliance in EMEA vs the U.S. 

When it comes to compliance in EMEA vs the U.S., there is a marked difference as to what, or who, leads in creating standards: regulatory agency vs industry. In EMEA, regulatory bodies tend to guide compliance. Whether it’s the European Union (E.U.) that draws up and approves rules like GDPR (General Data Protection Regulation), or the Information Commissioner’s Office (ICO) in the UK, some type of government-driven regulatory body usually leads the way. 

In the U.S., compliance standards are often left to industry councils or associations. These include: 

• PCI DSS – The Payment Card Industry Security Standards Council (PCI SSC) was formed by American Express, Discover Financial Services, JCB International, MasterCard and Visa Inc. with the goal of managing the ongoing evolution of the PCI DSS (Payment Card Industry Data Security Standard). 
• SOC – SOC (System and Organization Controls) is an information security framework defined by the AICPA (American Institute of Certified Public Accountants). In 2021, SOC 2 was the most popular audit for cybersecurity, IT, quality assurance, internal audit, finance, and more. 
• HITRUST – In collaboration with healthcare, technology and information security organizations, HITRUST established the HITRUST CSF: a framework to comply with standards such as ISO/IEC 27000-series and HIPAA. 

Data Privacy in EMEA vs the U.S. 

The presence (or lack thereof) of regulatory bodies has had implications on data privacy across Europe and the U.S. In 2016, the European Parliament and Council of the European Union passed the GDPR which sought to protect the data privacy of European citizens. As a result of the strict regulations, companies all over the world had to alter how they do business to avoid facing stiff penalties. 

But the U.S. has not instituted a comprehensive, federal data privacy protection framework for all of its citizens (although one could be on the horizon). However, some individual states such as California, Colorado, Connecticut, and Virginia have passed their own set of regulations, with other states considering legislation at the requests of citizens. The piecemeal approach is likely to continue as individual states attempt to pass data privacy protections in the absence of comprehensive, federal legislation.    

Cyber Threats in EMEA vs U.S. 

Unfortunately, one of the areas where both the EMEA and the U.S. seem to be in lock step is threats to cybersecurity. Both regions are seeing record cybersecurity attacks as more activity moves online and to a cloud environment.  

According to Check Point research, North America experienced the fewest attacks compared to other regions around the globe, with 503 weekly per organization. But that figure is up a whopping 61% from the year prior. At the other end of the spectrum, Africa experienced the highest volume of attacks in 2021 (nearly 1,600 a week), up 13% from 2020. Europe experienced 670 attacks weekly, a 68% increase. An official E.U. report lists the top threats to cybersecurity as: 

• Ransomware 
• Malware 
• Cryptojacking 
• E-mail related threats 
• Threats against data 
• Threats against availability and integrity 
• Disinformation and misinformation 
• Non-malicious threats (breaches triggered human error) 
• Supply-chain attacks 

European organizations are playing catch up to their American counterparts when it comes to fortifying their defenses against cyber attacks, which could explain why European organizations experience 33% more cyber incidents. A 2020 study examining cybersecurity spending shows that E.U. organizations allocate on average 41% less spend to cybersecurity than their U.S counterparts. However, an IDC report published in 2021 predicted that European IT security spending will jump 8.3% in 2021, signaling an acknowledgment of the problem of rising cyber security threats and a commitment to solving it. 

As for the Middle East, cybersecurity firm Kaspersky research highlights that malware attacks are becoming a widespread epidemic, accounting for 161 million attacks and growing by 17% when compared to the last year figure – 138 million. Oman, Kuwait, Bahrain and Egypt have seen increases of 67%, 64%, 45% and 32%, respectively. Qatar and the United Arab Emirates (UAE) come in at the lower range with increases of 16% and 7%.  

According to PwC, 58% of organizations in the Middle East are increasing cybersecurity spend in 2022, up from 43% in 2021 as they attempt to protect their systems and sensitive information from growing malicious threats. 

Trust A-LIGN for EMEA Cybersecurity & Compliance 

A-LIGN is a global leader in cybersecurity & compliance. We’re experienced in helping EMEA clients achieve all the regulatory compliance necessary to do business, and also strengthen their cybersecurity posture. From SOC 2 audits to ISO 27001 compliance to GDPR gap assessments, we’re a partner you can trust.   

Contact A-LIGN to learn more about how we can help your EMEA business achieve compliance.   

Ransomware attacks are becoming more prevalent, more complex, and even more costly to businesses. According to The State of Ransomware 2022 report from Sophos, two-thirds of organizations across the world have been hit with ransomware in the past year, and 72% have experienced an increase in the volume, complexity, and/or impact of cyberattacks such as ransomware.

This is why it is imperative to have a comprehensive ransomware preparedness plan in place. But unfortunately, many businesses aren’t there yet. A-LIGN’s 2022 Benchmark Report showed that of those surveyed, only 39% of organizations have a plan in place, whereas 40% are “planning to develop” something in the future, and a full 10% said they don’t view ransomware as a main cybersecurity concern.  

This is a large discrepancy and leaves many businesses extremely vulnerable. To help you kickstart your  ransomware preparedness plan, we’re breaking down the top questions A-LIGN has received about ransomware preparedness.  

Is My Organization Susceptible to Ransomware?  

Any organization in any industry can fall victim to a ransomware attack, but the industries that are targeted the most include manufacturing, finance, healthcare, and education.  

Ransomware attacks have caused significant impacts on organizations in multiple sectors. In December 2021, a ransomware attack caused Lincoln College to permanently shut down. The late-February Bridgestone attack earlier this year halted tire production at a Toyota factory for over a week, and it took the company more than four months to fully recover. In Costa Rica, an ongoing ransomware war has caused the government to declare a national emergency, with no end to the crisis in sight.  

The severity of these attacks has raised alarms for many, driving the need for stronger ransomware preparedness plans.  

“Ransomware has become as big or bigger than advanced persistent threats,” said retired Lieutenant General Cardon. “It was once believed that if you’re a small company, you have nothing to worry about. But, from the offensive side of cybersecurity, this simply isn’t true. A small company that doesn’t think it’s a target and does not have appropriate defensive measures, will more likely be a target because they are an easy victim. Believing you’re safe just because you’re a small company makes your organization a weak link and easy target.” 

Why Should We Prioritize Ransomware Preparedness? 

The examples above show how the aftermath of a ransomware attack can prove catastrophic for an organization, in terms of financial impact, reputational damage, and even legal repercussions.  

As ransomware gangs become more sophisticated in their pressure tactics, organizations need to be prepared for a variety of attacks such as encryption, data hostage situations, or Distributed Denial of Service DDoS. Cyberattacks are costly for businesses, but also for the victims of attacks who have their personal information stolen. Organizations who lack a recovery plan run the risk of permanent reputational damage, along with fines if it was compliance failures that allowed the attack to take place.  

Even though threats may be harder to detect, public empathy appears to be declining. Some believe organizations should be doing more to keep their sensitive data protected. A growing movement against paying ransoms has emerged, with some governments considering proposed legislation banning payments.  

With so much at stake, organizations must make disaster recovery a core focus of their ransomware incident response. 

What Does a Ransomware Preparedness Assessment Entail? 

When it comes to creating a detailed preparedness plan, it helps to start with a complete ransomware preparedness assessment. A-LIGN’s industry-leading ransomware preparedness assessment service consists of three core components: identify, test, and prepare.   

Identify Key Assets and Areas for Improvement  

The first step in the preparedness assessment involves a key asset and risk profile identification. This is followed by a security capabilities maturity review based on the National Institute of Standards and Technology’s Cybersecurity Framework (NIST CSF). A-LIGN will also complete an enterprise-wide architecture review.  

Maturity Assessment: To gain an understanding of the current environment and threat landscape, A-LIGN will conduct discovery workshops to help identify potential areas of improvement in an organization’s cybersecurity posture. A-LIGN will leverage the NIST Cybersecurity Framework (NIST CSF) to evaluate the organization’s capabilities against the five unique domains of the NIST CSF, including: Identify, Protect, Detect, Respond, and Recover. 

• Architecture Review: A-LIGN will review the organization’s enterprise-wide architecture to identify potential design issues as well as areas of improvement. A-LIGN will conduct workshops with relevant stakeholders to review the current architecture, network segmentation, as well as any existing strategic plans for improvement of the architecture.  

Test How Your Organization Reacts to Real-World Attack Scenarios 

The test stage assesses an organization’s readiness to effectively respond to cybersecurity threats. It involves two types of adversarial simulations:  

• Penetration Testing: As part of the Technical Assessment, A-LIGN will test both the external and internal defense systems of an organization through the execution of penetration tests (scope and tests to be determined by management). These tests will simulate a real-world attack to test the organization’s capabilities to detect and respond to a malicious actor. 

• Social Engineering: A-LIGN will conduct Social Engineering Tests (methodology to be determined by management, however, this can include phishing, spear phishing, pretexting, vishing, etc.). A-LIGN will attempt to compromise the credentials of both privileged and non-privileged users to gain access to systems and data. 

Prepare a Detailed Response So You Can Resume Operations ASAP 

In some instances, the resulting organization-wide downtime can be as costly as the ransomware attack itself. The prepare stage is designed to close any gaps in an organization’s ransomware response and preparedness capabilities. It involves two components:  

1. BCDR Plan Review: To ensure organizations have the plans in place to recover from a cybersecurity event, A-LIGN will conduct a review of the organization’s existing Business Continuity and Disaster Recovery Plan against industry best practices to identify potential gaps and potential areas of improvement in the existing plan.  

2. Table-top Testing Exercise: A-LIGN will develop and facilitate a unique table-top test plan based on discussions with management on practical scenarios, unique industry risks, unique geographic locations, and our experience in Business Continuity Plan (BCP) test plan development. The goal of this exercise is to simulate a real-world scenario to assess the organization’s capabilities to respond in the event of a disaster.  

What Are the Benefits of a Ransomware Preparedness Assessment? 

Once your organization has completed a ransomware preparedness assessment, you gain the ability to: 

• Identify gaps in your organization’s cybersecurity plan, based on the NIST CSF, and help your team to prepare for possible future cybersecurity events. 
• Recognize and remediate the cybersecurity vulnerabilities discovered through penetration testing and social engineering. 
• Validate the security investments that are working well, and identify those that are not working as intended.   
• Have a better understanding of the quality of existing policies and procedures and determine how they can be improved to help with ransomware preparedness.  
• Feel less stress, especially amongst internal stakeholders, knowing that the organization has a rock-solid plan in place to respond to an inevitable attack.  

A strong ransomware preparedness plan doesn’t only benefit the internal members of an organization. Partners, prospects, and customers will also feel peace of mind knowing that your organization is prepared and can properly defend against and respond to cybersecurity events. 

How Do I Get Executive Buy-In for a Ransomware Preparedness Assessment? 

Deciding your organization is ready for a ransomware preparedness assessment is only part of the process: you will most likely need executive buy-in as well. 

Fortunately, the numbers supporting this move rule in your favor. Without a strong cybersecurity system in place, an organization is at risk for loss of revenue, reputation, and customers, ultimately leading to a considerable drop in profitability.  

According to Keeper’s 2021 Ransomware Impact Report:  

• Nearly half (49%) of organizations pay the requested ransom during attacks 
• 64% of organizations lost important login credentials or documents during attacks 
• 64% of organizations believe their company’s reputation has declined post-attack  
• 28% of system/network outages last at least one week — a significant amount of downtime that is very costly for businesses  

Highlighting the risk an organization faces may increase the likelihood of your organization’s executive team supporting the completion of a ransomware assessment. 

Getting Started  

With the rapid increase in ransomware attacks, all organizations should have a thorough ransomware preparedness plan in place. Before creating this plan, an organization should complete a Ransomware Preparedness Assessment to gain a better understanding of current vulnerabilities and areas that require improvement.  

Contact A-LIGN to learn more about our one-of-a-kind Ransomware Preparedness Assessment. 

There are a variety of threats to information security for an organization, in the form of breaches, ransomware attacks, and other cybersecurity incidents. To safeguard data and information, organizations must implement proper security controls. For organizations whose services are likely to be relevant to their clients’ internal control over financial reporting, a SOC 1 audit can help accomplish this goal.  

In this article, we describe the details of a SOC 1 audit and reveal the value it brings to organizations that undergo the process.  

What Exactly Is a SOC 1 Audit? 

A Service Organization Controls (SOC) 1 attestation examines and reports on a service organization’s controls over the services it provides to clients when those controls are likely to be relevant to the client’s internal control over financial reporting. A SOC 1 can also evaluate that an organization has the proper internal controls in place to secure important data and information, such as the necessary information technology controls supporting the system.  

Who Should Undergo a SOC 1 Audit? 

Organizations handling sensitive financial data, particularly those whose actions affect the financial reporting of their clients, should undergo SOC 1 examinations to demonstrate that their information is properly secured and processed accurately. These include payroll processors, payment processors, collections organizations, benefits administrators, Software as a Service (SaaS), managed-service providers (MSPs), and other similar organizations.  

SaaS or cloud-service providers (CSPs) that are currently SOC 2 compliant may still be required by their customers to obtain a SOC 1 if their service directly impacts the financial statements of their customers. 

What Is a SOC 1 Report? 

Following the completion of a SOC 1 audit performed by a licensed CPA, the firm will issue a SOC 1 report that includes a detailed description of the system, the controls examined, and the auditor’s opinion. The SOC 1 report is an “attestation” whereby management at the organization being audited attests to the controls that have been implemented. The auditors will provide an opinion on the suitability of management’s assertion and the controls tested, and management may use the document to build confidence with clients and drive changes that are needed to bolster or maintain the robustness of the system of controls.  

A SOC 1 report can be performed as Type 1 or Type 2.  A SOC 1 Type 1 attests to the design and implementation of controls at a single point in time. Your auditor will review evidence from your system as it exists at a “moment in time”. A SOC 1 Type 2 attests to the design, implementation and the operating effectiveness of controls over a period of time, usually between 3-12 months. A Type 2 provides assurance of not just how your systems are designed, but the effectiveness of their operation on a day-to-day basis.  

To help you best prepare for your SOC 1 audit, we recommend undergoing a SOC 1 Readiness Assessment to identify high-risk control gaps, giving your organization the opportunity to remediate any issues prior to the SOC 1 audit.  

What Value Does a SOC 1 Audit Bring? 

A SOC 1 audit can bring tremendous value to your business by enhancing internal procedures and positioning you favorably to partners and customers, Here’s how … 

Builds Client Trust 

A SOC 1 builds trust and may even be a requirement for doing business. If you are a B2B brand that seeks to sign or retain top-tier clients, a SOC 1 report will signal to those clients that their sensitive financial information is in good hands. It’s common for customers to request to see a SOC 1 report before they even engage with your business. If you are unable to provide a report, potential clients may walk away from a deal or opt to partner with a competitor.  

For international brands looking to expand across their borders, a SOC 1 can easily be combined with an International Standards for Attestation Engagements (ISAE) 3402 as it grants greater peace of mind to foreign business leaders.  

Builds a Better Brand Image 

For newer businesses just starting out, building your brand image is important and could mean the difference between success and failure. This is true because the business landscape is fiercely competitive, full of established businesses that have been successfully operating for generations, and upstarts also looking to gain market share.

Larger, established organizations are likely to already have earned a SOC 1 attestation. When you don’t have much history to fall back on, you need to find ways to introduce your brand in the best possible light. A SOC 1 report does just this by demonstrating that your company takes information security seriously. Simply put, brands that earn their SOC 1 have a material competitive advantage over those that have not.  

Builds Efficiencies 

While a SOC 1 demonstrates compliance with an organization’s controls over the services it provides to clients when those controls are likely to be relevant to the client’s internal control over financial reporting, it can also assist organizations in identifying and monitoring the security controls they’ve implemented to safeguard sensitive data and information.

It is an internationally recognized standard that is familiar to organizations all over the world. By completing a SOC 1 annually, a company can confirm and signal the robustness of their system of controls. Organizations usually have their own audit process when signing clients or partners but will often allow a SOC 1 report in lieu. It’s a far more efficient process that saves time and money. 

How Do I Complete a SOC 1 Audit? 

Partnering with a licensed CPA is the first step in your SOC 1 journey. All audits are completed in accordance with the Statement on Standards for Attestation Engagements (SSAE) 18. As a requirement, your company will work with the CPA to define what the control objectives are in relation to the in-scope systems. In determining the proper control objectives, the auditor will do the following: 

• Identify aspects of the organization’s controls that may affect the processing of the user organization’s transactions 
• Determine the flow of significant transactions through the organization 
• Assess whether the control objectives are relevant to the user organization’s financial statement assertions 
• Evaluate whether the controls are suitably designed to prevent or detect processing errors that could result in material misstatements in user organization financial statements, and determine whether these controls have been implemented 

Start Your SOC 1 Journey 

A-LIGN is a security and compliance partner as well as a certified CPA firm that has completed over two thousand SOC 1 assessments. Get started on yours by contacting one of our experts and we’ll guide you through your journey to SOC 1 compliance.