Lesson: Detecting Deficiencies in Confidentiality and Privacy Controls in a SOC 2 Engagement

In this lesson, Nick Palazzolo, CPA, breaks down the procedure for identifying deficiencies and deviations in confidentiality and privacy control within a SOC 2 engagement framework. He starts by emphasizing the importance of understanding the service organization’s systems and commitments, particularly in confidentiality and privacy. Nick goes into detail about assessing control designs to ensure they align with the objectives they are meant to achieve, using real-world applications like payroll services as an example. Furthermore, he illustrates how to conduct risk assessments to discover potential confidentiality and privacy risks, testing the effectiveness of controls laid down. Nick rounds off the discussion by explaining the importance of incident analysis and the steps needed for gap and deviation analysis, reinforcing the importance of continuous improvement and follow-up in maintaining the integrity of confidentiality and privacy controls.