Learn what SOC 2 compliance means, why it matters, and how a Type 1 audit benefits you as a Xodo Sign user.
At Xodo Sign, security and trust are at the core of everything we do. That’s why we’re excited to announce that Xodo Sign is now SOC 2 Type 1 compliant!
SOC 2 compliance isn’t just a badge—it’s a rigorous audit that ensures our systems and processes meet industry-leading security requirements.
As a business that continues to prioritize data security, we’ve taken a major step forward to ensure that your e-signature processes remain secure, reliable, and meet electronic signature compliance according to industry standards.
Managing legal paperwork? Securing digital approvals? You can trust that your data is safeguarded with best-in-class security with SOC 2 Type 1 compliant eSignatures.
In this post, we’ll dive into what SOC 2 compliance is, why it matters, and how it directly benefits you as a Xodo Sign user.
What does SOC 2 Type 1 mean for Xodo Sign users?
Xodo Sign compliance with SOC 2 Type 1 requirements strengthens Xodo Sign’s security and compliance framework to speed up enterprise adoption, streamline vendor security, and enhance customer trust throughout each stage in the process:
Digitally Signing Documents - Services that require a SOC 2 report for Xodo Sign can rest easy knowing that we’ll keep your sensitive data safe. Our SOC 2 Type 1 compliance demonstrates our commitment to your security for industry-compliant and legally binding signatures.
Sending Sensitive Documents to be Signed - SOC 2 Type 1 requirements and Xodo Sign help your company establish airtight internal security controls for all your documents.
Keeping an Accurate Audit Trail - SOC 2 Type 1 compliance boosts the signing process, helping your company track and time stamp documents securely with each transaction fully compliant with legal standards.
Thorough Signer Authentication - Xodo Sign securely stores a number of key data points (full names, email addresses, IP addresses, time stamp data). Combined with esignature compliance, Xodo Sign can offer your company the highest level of authenticity.
Secure Storage in the Cloud - Both unfinished and signed documents are stored on Xodo Sign's encrypted cloud infrastructure. SOC 2 Type 1 ensures that your documents can be retrieved efficiently and intact at any time.
What is SOC 2?
SOC 2 stands for Systems and Organization Controls 2, a security framework and guideline created by the American Institute of Certified Public Accountants (AICPA) in 2010.
It was designed to help auditors assess the effectiveness of an organization’s security practices.
The sole purpose of SOC 2 is to ensure that service providers are managing and handling their customers' data securely in the cloud by following policies and implementing best practices according to SOC 2 guidelines.
You can think of SOC 2 as a security checklist for companies to determine if a service provider can fully protect their clients’ and their own information.
Benefits of Xodo Sign and SOC 2 Type 1 Compliance
Xodo Sign’s SOC 2 Type 1 audit offers a wide range of immediate benefits for your organization. Here are a few:
Minimize Business Risk: As a trusted, secure e-signature platform, ensures you’re provided with encrypted document storage and secure workflows, reducing compliance risks.
Faster Business Adoption: Business-ready SOC 2 Type 1 compliance removes security concerns that slow down procurement, allowing your business to onboard with Xodo Sign more quickly and efficiently.
Long-Term Validation: Combined with 256-bit encryption and our Long-Term Validation capability, our SOC 2 Type 1 compliance ensures the long-term integrity and validity of digitally signed documents
Proven Data Security & Compliance: Being SOC2 Type 1 compliant means that Xodo Sign meets rigorous security standards to protect sensitive documents and transactions.
Robust Auditing and Reporting: Get built-in audit log reporting that covers the end-to-end process for signing documents. Xodo Sign’s granular logging capability spans the entire document lifecycle.
Seamless, Scalable Security: Xodo Sign is now built to support growing compliance needs while maintaining fast, efficient document workflows. Get strong security controls, reduce cyber threats, data leaks, and unauthorized access.
What is SOC 2 Compliance?
Being SOC 2 compliant means that a service provider has met and is compliant with SOC 2 requirements.
This is usually verified by a certified third-party auditor who performs an audit on the service provider to assess if their policies and practices are in line with SOC 2 criteria.
SOC 2 Compliance Requirements: Trust Services Criteria
Gaining SOC 2 compliance requires that service providers comply with its Trust Services Criteria (TSC).
There are five general criteria points, each with its own specific requirements:
- Security: The ability to safeguard system resources and information from unauthorized access.
- Availability: Ensuring systems and data remain accessible to customers as promised.
- Processing Integrity: Ensuring system processes operate efficiently as intended.
- Confidentiality: The ability to protect sensitive information as agreed.
- Privacy: Managing and securing personal data in accordance with privacy policies.
Note that every service provider is unique, offering services tailored to different needs in various ways.
As a result, SOC 2 requirements—and the corresponding audit process—will differ from one provider to another.
What is a SOC 2 Audit?
An SOC 2 audit is the detailed review process that performs the checks needed to determine how well the service provider meets the compliance level of their TSC.
The audit will only cover the TSC that the company chooses to include. The service provider undergoing an audit designs and implements its own controls to comply with the TSC that are applicable.
Then, during the SOC 2 audit, key compliance documents are provided to the third-party auditor explaining how the systems, infrastructure, and controls they have in place meet their specific criteria.
What is a SOC 2 Report?
Once an audit is complete, the auditor then generates what’s known as a SOC 2 report. It documents how well the company’s systems and processes comply with SOC 2 compliance requirements.
Audit results are classified under four categories:
- Unqualified: The company passed its audit.
- Qualified: The company passed, but some areas require attention.
- Adverse: The company failed its audit.
- Disclaimer of Opinion: The auditor doesn’t have enough information to make a fair conclusion.
This SOC 2 report is usually requested by a company’s security department to assess if a service provider has adequate systems and security frameworks in place to protect their business information and sensitive data.
SOC 2 Type 1 vs Type 2: What's the Difference?
There two types of SOC 2 reports that exist:
- SOC 2 Type 1: This type of SOC report evaluates a company’s controls at a single point in time, determining if the security controls implemented are designed properly.
- SOC 2 Type 2: This type of SOC report assesses how those controls function over a period of generally 3-12 months, evaluating how the security controls a company has in place function as intended.
Depending on the service provider, they can have either a Type 1 or Type 2 SOC 2 report.
Who Needs a SOC 2 Report?
SOC 2 compliance applies to any service provider storing, processing and transmitting data. As a service provider offering all three transaction measures, Xodo Sign can now offer your company a SOC 2 Type 1 report.
Reinforcing our ongoing commitment to security and compliance, we’re also actively preparing to earn our SOC 2 Type 2 audit report, which we aim to achieve later in 2025.
Digitally Sign and Manage Digital Documents Securely
By obtaining a SOC 2 Type 1 audit report, Xodo Sign ensures that its platform meets rigorous data security and privacy standards, streamlining the onboarding process for customers.
The result? A trusted, scalable solution that protects sensitive documents while maintaining fast, efficient signing workflows.
To learn about Xodo Sign SOC2 Type 1 compliance and our audit report, please contact us for more information.