Compliance requires yearly audits and a renewal report. The procedures are the same for the SOC 2 Type I or Type II reports.

This is where the bridge letter comes into the picture: The auditor of a service organization sends their customer’s auditor a SOC 2 bridge letter to let them know if there have been any changes to the control environment between the conclusion of the previous SOC 2 reporting period and the beginning of the current one. An independent auditor issues a SOC 2 report to certify a service organization’s controls over its systems and data, providing reassurance to stakeholders and clients.  A bridge letter is essential when there is a gap between reporting periods. It signifies the modifications that occur in organizational controls. The letter may include information on system upgrades, security incidents, or changes to policies or processes.

WHAT IS A BRIDGE LETTER?

The bridge letter fills gaps between the last SOC 2 report and the current reporting process. To better understand, suppose your company completed the SOC 2 report covering October 1, 2022, to September 30, 2023. However, your organization’s fiscal year ends on November 30, 2023. Therefore, you can submit a bridge letter for SOC 2  to your customer explaining that your organization has no significant changes made in controls between September 30th and November 30th. If any changes happen in the controls, you need to explain them and assure the customers that they won’t affect your organization’s SOC 2 compliance. The letter typically covers a gap period of around three months, not more than that. Furthermore, it is not the replacement of the current SOC 2 report. However, it can be a useful tool to assure the clients of compliance with the audits. 

A bridge letter is a communication process that informs a third party about a particular circumstance or period. A report is often used when a third party needs to understand what occurred during a period. The previous report has no ideas regarding the gap period. Therefore, a bridge letter explains the circumstances during an audit or other type of review. In this context, a bridge letter for SOC 2 may be used to cover the gap between the end of the previous SOC 2 reporting period and the start of the current SOC 2 reporting period. It influences the efficiency of the controls or the accuracy of the data being processed or stored. The letter is frequently utilized when the organization changes its policies, which might affect its reliability. It informs the third party about the changes not included in the earlier report.

WHAT ARE THE OTHER ELEMENTS IN THE SOC 2 BRIDGE LETTER?

The SOC 2 bridge letter documents the transition from the existing SOC 2 report period to another. The structure of the letter depends on the company’s demands. Nevertheless,  it has specific formats that need to be followed. Furthermore, the letter must include an overview of the controls during the transition. Additionally, the letter explains the changes in the controls and describes the testing process to ensure that the organization is still meeting SOC 2 compliance. 

1. Explanation of the Transition Period: The SOC 2 bridge letter outlines the transition during the reporting period.
2. Overview of the Controls: The SOC 2 bridge letter template outlines controls for security and compliance during the transition.
3. Changes in Controls: The bridge letter explains changes in controls and their impact on compliance.
4. Description of Testing: The bridge letter details the testing scope, methodology, and exceptions identified.
5. Conclusion: The letter affirms commitment to SOC 2 controls and may mention upcoming changes.

Who issues the bridge letter?

The management of service organizations issues the bridge letter to their customers on request. However, the auditor who conducted the SOC 2 audit did not publish the letters. Therefore, despite the SOC 2 report, they are not in a position to provide any opinion on your internal controls and operating effectiveness. The auditor needs to be made aware of the service organization’s changes to its internal controls. For example, if a service organization adds a new SaaS application or changes its software outside the audit window, the auditor cannot certify its compliance standards. Thus, the service organization’s management can issue the SOC 2 bridge letter template as they know about the material changes.

Benefits of obtaining a SOC-2 bridge:

The SOC 2 bridge letter is not replacing SOC 2 audit reports but can be a keen interim stop-gap measure. The letter is essential for developing vendor relationships and reassuring customers regarding your organization’s information security posture. Furthermore, it preserves time and cost and makes you a trusted vendor in an evolving business ecosystem. Lastly, the bridge letter ensures an intelligent way to maintain customer trust and improve business growth.   

The letter fills the gaps between the end of the previous SOC 2 report and the current SOC 2 report. In addition, it informs the customers about the necessary changes during this period. Furthermore, the letter shows your organization’s transparency and commitment to SOC 2 compliance. The letter helps the service organization recognize the gaps in the controls and suggest remedial actions for improvements.

ARE BRIDGE LETTERS REQUIRED?

It is optional for organizations. However, a bridge letter provides confidence to your clients and prospective partners. These letters confirm that your company continuously upholds the policies, procedures, and security control measures it has put in place, as well as any relevant Trust Services Criteria. This becomes especially important when formal reports might not be easily accessible in the interim between SOC 2 audits. A bridge letter helps to establish and retain trust by demonstrating your continued commitment to upholding robust security procedures even without a formal audit report.

DURATION OF A SOC REPORT BRIDGE LETTER

SOC bridge letter bridges the gaps between SOC 2 reports or between the end of a SOC 2 report period.  Consequently, a bridge letter’s typical coverage period is three months. If the need for a bridge letter SOC 2 remains after these three months, it is wise to consider another SOC 2 audit or reevaluate the examination period in collaboration with the service auditor. Therefore, annual SOC audits must be performed within the stipulated time periods. This guarantees timely completion and long-term trust in your internal controls’ efficacy.

THE IMPORTANCE OF A SOC 2 BRIDGE LETTER FOR VENDOR RELATIONSHIPS

It gives prospective and current clients confidence in your information security posture throughout transitional times. In addition, they are a productive way to cut expenses and time, allowing you to maintain your status as a trusted vendor among your client base. A bridge letter is a calculated move to keep customers’ trust and confidence, which ensures future business.

SOC 2 BRIDGE LETTER EXAMPLE

For your reference, here is a SOC 2 bridge letter example.

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