SOC 3: Everything You Need to Know

The demand for strong data security and information security practices is higher than ever as organizations face increasing scrutiny from customers, partners, and regulators. A SOC 3 report offers a clear and accessible way to demonstrate your compliance with industry standards, build trust, and showcase your security posture.

Unlike the detailed and restricted SOC 2 report, a SOC 3 report is designed for general use. It provides a high-level summary of your security controls and adherence to the Trust Services Criteria (TSC). SOC 3 is a powerful tool for organizations looking to publicly highlight their commitment to data protection without revealing sensitive details.

In this guide, we’ll explore everything you need to know about SOC 3 reports, from what they include to how the audit process works. Whether you’re considering your first SOC 3 or looking to streamline your next one, this article will equip you with the insights and resources to succeed.

What is a SOC 3 Report?

A SOC 3 report is a high-level compliance document designed to showcase your organization’s commitment to data security. It’s based on the Trust Services Criteria (TSC) established by the American Institute of Certified Public Accountants (AICPA).

Created for general use, a SOC 3 report summarizes the findings of your previously completed SOC 2 audit. This version provides reassurance about your security controls to external stakeholders, such as potential customers, investors, and partners.

Think of a SOC 3 report as a trust-building tool. Unlike the more detailed and confidential information in a SOC 2 report, SOC 3 distills key takeaways into a simple, digestible format, making it ideal for marketing and public distribution.

Here’s why you might benefit from getting a SOC 3 report:

• It builds trust: Demonstrate security compliance to prospects, especially in industries like healthcare, cloud computing, and financial reporting.

• It supports marketing efforts: Use it to highlight your security posture on your website, trust center, or during customer pitches.

• It simplifies communication: Offer transparency about your commitment to data protection without revealing sensitive operational details.

What’s Included in a SOC 3 Report?

SOC 3 reports evaluate controls based on one or more of the following Trust Services Criteria (TSC):

• Security: Demonstrates how your organization prevents unauthorized access to systems and data.

• Availability: Assesses your system’s uptime and reliability to meet operational and contractual commitments.

• Processing integrity: Verifies that system processes deliver accurate, timely, and authorized outcomes.

• Confidentiality: Protects sensitive information, such as trade secrets or customer data, from unauthorized disclosure.

• Privacy: Ensures proper handling of personal information in compliance with regulations like HIPAA or GDPR, as well as your cybersecurity risk management.

Every SOC 3 report must address the security component because it is a required criterion under the Trust Services Criteria (TSC). The inclusion of additional criteria depends on your business needs and stakeholder expectations.

SOC 3 reports follow a standard structure that covers these key elements:

• Auditor’s opinion: A concise statement from a certified public accounting (CPA) firm affirming your organization’s adherence to the selected TSC. This includes your ability to maintain and monitor these controls.

• Management’s assertion: A declaration from your organization’s management confirming that controls are in place and operating effectively.

• Overview of controls: A summary of your service organization’s controls, highlighting measures for data security, risk management, internal controls, and cybersecurity.

• General use designation: Explicitly labeled as suitable for public sharing, making it accessible to a broad audience.

SOC 2 vs. SOC 3: What’s the Difference?

Both SOC 2 and SOC 3 are rooted in the TSC established by the AICPA. And in order to get a SOC 3 report, you first need to undergo a SOC 2 audit, so both versions include similar information. However, these reports differ in format, detail, and audience.

The key differences between SOC 2 and SOC 3 are:

• Reporting format: SOC 2 provides a detailed report intended for restricted use by specific stakeholders like existing customers, auditors, or regulators. In contrast, SOC 3 is a general-use report—a high-level summary that omits sensitive information and is designed for public sharing.

• Intended audience: SOC 2 targets user entities or stakeholders with a vested interest in understanding your internal controls. Meanwhile, SOC 3 is tailored for external audiences like prospective customers, investors, or partners who need assurance about your security posture but don’t require in-depth operational details.

• Content detail: SOC 2 dives into confidential information about your service organization’s controls, test results, and the auditor’s opinion over a specific period of time. SOC 3 provides a summary of compliance, focusing on the operating effectiveness of controls without exposing sensitive specifics.

For a deeper exploration of these differences, check out our comprehensive guide on SOC 2 vs. SOC 3.

The SOC 3 Audit Process

It’s important to note that you don’t  undergo a separate audit for SOC 3. Instead, the SOC 3 report is derived from the SOC 2 audit, summarizing its findings for the general audience.

The steps below—from pre-audit preparation to post-audit follow-through—are what you can expect and should follow to ensure a successful SOC 2 audit, which will then allow for the creation of a SOC 3 report.

Pre-Audit Preparation

The first order of business is defining your scope. This means determining which parts of your infrastructure, data, procedures, software, and personnel are included in the audit. You’ll also want to decide which Trust Services Criteria (TSC) apply to your organization’s needs and objectives. 

Once that’s set, you'll want to undergo a gap assessment (or readiness assessment), facilitated by a third-party auditor who performs a “trial run” rather than an official audit. This process is your chance to evaluate existing controls and ensure they’re aligned with your chosen scope and TSC. You’ll review critical areas like access management, encryption standards, monitoring systems, and incident response procedures, along with supporting evidence such as system configurations and audit logs.   

If the assessment uncovers any gaps, you’ll have the opportunity to address them before the official audit—refining processes, strengthening controls, and ensuring that every aspect of your organization meets the necessary standards for a successful report.

External Audit

The external audit is the final step in obtaining your  SOC 2 report. During this phase, an independent auditing firm reviews your organization’s controls to confirm they meet the requirements of the TSC. 

Your auditor relies on documented policies, procedures, and evidence—such as system configurations, access logs, and incident response records—to verify that your controls are not only well-designed but also functioning as intended to meet SOC 2 attestation. 

Be prepared to clarify processes or provide additional documentation. Let’s say the auditor questions your incident response plan. You should be able to provide detailed records of recent incidents, how they were resolved, and updates made to improve the process.

Post-Audit Actions

The post-audit phase is your opportunity to act on feedback from the SOC 2 audit and set a strong foundation for ongoing compliance. By addressing findings and continuously improving your controls, you can maintain compliance and simplify future audits.

Here’s how to address your audit’s findings and make improvements to your security posture:

• Review the auditor’s feedback: Identify specific recommendations or control deficiencies in the audit report.

• Prioritize remediation efforts: Focus on high-risk gaps first, such as weaknesses in access control.

• Update your policies and controls: Implement changes to align with the TSC and enhance operational effectiveness.

Compliance isn’t a one-time achievement. You need to regularly monitor and improve your internal controls to stay proactive against new threats or regulatory changes. This means you need to:

• Continuously monitor your controls: Use automated tools to track the effectiveness of security controls and identify potential issues before the next audit.

• Conduct periodic internal audits:  Regularly test your controls to verify they remain effective and continue to align with the applicable Trust Services Criteria (TSC)

• Train your team: Keep staff updated on compliance requirements and best practices for maintaining data protection and security.

Check out our guide to the risk management framework to learn more about identifying, assessing, and analyzing risk.

How Drata Can Streamline the SOC 3 Report Process

Drata automates evidence collection, continuously monitors your controls, and aligns your systems with the TSC. Whether you’re preparing for your first SOC 3 report or scaling your compliance efforts, Drata ensures you’re always one step ahead.

SOC 3 Report Frequently Asked Questions (FAQs)

Still have questions about SOC 3? We answer the most common queries below.

What’s the Main Difference Between SOC 2 and SOC 3?

SOC 2 is a restricted-use report with detailed information on a service organization’s controls, designed for stakeholders like existing customers or auditors. In contrast, SOC 3 is a general-use report with summarized findings that can be shared publicly, often used for marketing purposes or building trust with potential customers.

Both reports are based on the Trust Services Criteria (TSC) defined by the American Institute of Certified Public Accountants (AICPA).

Who Typically Needs a SOC 3 Report?

SOC 3 reports are ideal for SaaS companies, cloud service providers, and healthcare organizations looking to publicly showcase their security practices.

Industries like healthcare, financial reporting, and cloud computing often use SOC 3 to demonstrate information security and compliance with frameworks like GDPR or HIPAA. It’s a valuable tool for businesses aiming to enhance their security posture and attract new customers.

How Much Does a SOC 3 Audit Cost?

The cost of a SOC 3 audit depends on the scope and complexity of your service organization’s controls. Since it’s derived from a SOC 2 audit, costs generally range between $20,000 and $50,000, including the audit process and report preparation.

Automating evidence collection and compliance with platforms like Drata can significantly reduce costs and streamline the audit.

Can a Company Go Straight for SOC 3 Without SOC 2 Compliance?

No, a SOC 3 report cannot exist without first completing a SOC 2 audit. SOC 3 summarizes the findings from a SOC 2 attestation and includes the auditor’s opinion on the operating effectiveness of the organization’s controls. This makes SOC 2 compliance a mandatory prerequisite for SOC 3.

Who Creates SOC 3 Reports?

SOC 3 reports are created by CPA firms or service auditors who perform SOC 2 audits, as the SOC 3 report is derived from the same audit process These certified professionals follow guidelines set by the AICPA to evaluate a service organization’s security compliance and prepare the summarized findings for general use.

Where Can I Find a SOC 3 Report Example?

Public SOC 3 reports are widely available online. Companies like Microsoft, Google, and other leading cloud service providers often publish their reports in their customer trust centers. Search for “SOC 3 report [company name]” to find clear examples of compliance reports that showcase successful data security and risk management practices.