CompTIA Cloud+ Practice Test

What is the purpose of SOC 2 reports?

1. Public disclosure of financial controls

2. Providing technical information about security

3. Reporting on compliance with HIPAA

4. Evaluating internal controls regarding security and privacy

The correct answer is: Evaluating internal controls regarding security and privacy

SOC 2 reports are specifically designed to evaluate and report on the effectiveness of an organization's internal controls related to security, availability, processing integrity, confidentiality, and privacy of customer data. The purpose of these reports is to demonstrate to clients and stakeholders that the organization has implemented proper measures to safeguard data and uphold user privacy. SOC 2 compliance is particularly relevant for service organizations that handle sensitive customer information, as it builds trust and provides assurance that they are managing data responsibly. While each of the other options touches on aspects of organizational compliance or disclosure, none encompass the full scope of what SOC 2 reports aim to achieve as effectively as evaluating internal controls regarding security and privacy. For example, public disclosures of financial controls pertain more to financial auditing and are covered under different standards (like SOC 1), not SOC 2. Providing technical information about security might be part of the report but does not represent its primary purpose. Similarly, while compliance with HIPAA is critical for health-related organizations, it falls outside the general intent of SOC 2, which is broader and applies to various types of data beyond just health information.