Skip to main content

On-demand webinar coming soon...

Blog

Understanding your auditor’s SOC 2 report opinion

Learn the four types of SOC 2 report opinions and what they mean to your business and customers. 

September 12, 2022

Blue and violet gradient

One of the main benefits of undergoing a SOC 2 audit is the ability to meet the requirements of a prospect or customer. Data compliance is a growing concern for many companies, particularly those in highly regulated industries, and a SOC 2 report provides an added layer of trust between you and your customers. 

In this article, we cover the key component of a SOC 2 report and how to understand your auditor’s opinion.

 

Getting the right SOC 2 report opinion

When a prospect or customer receives your SOC 2 report, the section they’re most likely to jump to is the auditor’s report.

Typically one of the earlier sections, the auditor’s report includes the opinion of your independent auditor as to whether your organization was SOC 2 compliant for the observed period. In other words, whether you passed or failed the assessment. 

Note that auditors can only form an opinion on what they were able to observe. For example, your organization might have a control that requires you to log, track, and communicate security incidents to affected parties. But if there weren’t any incidents during the observed period, then the control may not be included in the audit.

In this case, your auditor will simply note and explain why the control wasn’t tested. They may also note the absence of any incidents by confirming with your engineering team. Finally, an auditor will look at your organization’s incident response plan to verify whether the correct documentation is in place.

The following sections explain the different opinions your auditor might provide in a SOC 2 report and what they mean for your organization.

 

Unqualified SOC 2 report opinion

An unqualified opinion means your organization passed its audit. More specifically, it means the controls your auditor tested were designed and operating exactly as they should be.

However, it’s possible for an organization to have controls that fail and still get an unqualified opinion. This is referred to as an unqualified report with issues.

While an unqualified report with issues is still considered a passed assessment, those who read your report will pay close attention to the highlighted issues and check for assurances and steps taken to solve the issue.

It’s important to outline the mitigating controls and resolutions for these issues, as well as any potential impact on your customers or third parties.

 

Qualified SOC 2 report opinion

A qualified opinion means your organization failed its audit. During the audit period, either one or more controls included in the assessment were not adequately designed or implemented.

Despite receiving a qualified opinion, the controls specified as ineffective might not be a concern or impact all customers. The report can also help guide your organization in the necessary areas to focus on for the next audit. 

Ultimately, a SOC 2 report gives an overview of all other security measures and provides an extra layer of assurance.

 

Disclaimer SOC 2 report opinion

A disclaimer opinion indicates your organization didn’t provide the auditor with enough information, and they were unable to form an opinion on whether you were SOC 2 compliant.

 

Adverse SOC 2 report opinion

An adverse opinion signals that an organization failed one or more of the compliance standards. Considered the lowest opinion in a SOC 2 report, adverse opinions tell customers they shouldn’t place trust in an organization’s systems. 

Adverse opinions are quite rare, as most auditors will work with you to get the best possible outcome. It’s important to design and implement secure controls and provide your auditor with all the documentation they need to thoroughly audit your security measures.

 

Final thoughts

All organizations aim for an unqualified SOC 2 report opinion. However, if your report ends up with a qualified report or disclaimer, make sure you’re prepared to answer any questions your customers might have. 

Explain exactly how the control will impact them and provide reassurance that you’ll be resolving any outstanding issues and working on your succeeding SOC 2 audit.

Learn more about gaining compliance by downloading this eBook about the ISO 27001 journey. To learn more about OneTrust Compliance Automation, go here.     


You may also like

Webinar

Technology Risk & Compliance

5 automation trends to modernize InfoSec compliance

Join our webinar for insights on transforming InfoSec program management. Navigate the complexities of modern security with a flexible, scalable, and cost-effective approach.

February 07, 2024

Learn more

Webinar

GRC & Security Assurance

Breaking down Europe’s top InfoSec & Cybersecurity frameworks: Tips to evaluate your current state or next steps

In this webinar, we examine the ISO/IEC 27001 and how it compares to other cybersecurity frameworks and regulations such as the SOC 2 and the EU Cybersecurity Act.

September 12, 2023

Learn more

eBook

Internal Audit Management

The future of PCI DSS: Prepare your organization for v4.0

Learn the new PCI DSS v4.0 requirements and prepare your organization for compliance in six steps.

July 28, 2023

Learn more

Infographic

Technology Risk & Compliance

Working toward compliance with PCI DSS v4.0

Learn the key considerations of the PCI DSS v4.0 security standard and plan your next steps towards compliance with this free infographic.

June 16, 2023

Learn more

Data Sheet

Technology Risk & Compliance

Compliance Automation external audit management

Take a look at how OneTrust Compliance Automation can help streamline your preparation for audits, drive accountability, and track results.

May 16, 2023

Learn more

Checklist

Ethics Program Management

Policy on development and administration of policies template

Get a head start on your ethics program and create a policy on development and administration of policies with our customizable template.

May 10, 2023

Learn more

Infographic

Internal Audit Management

How much does SOC 2 cost?

Determine the SOC 2 certification costs for your business and learn how to save time and money at each step.

September 09, 2022

Learn more