E-signature platform providers operate in a high-risk area. This is due to the fact that they often handle legally binding documents, PII, financial data, and metadata on authentication. E-signature platforms are often considered critical vendors for companies that use them. This means it is essential to choose a software provider that maintains high standards for security and legal compliance.
A SOC 2 report is one method to validate the security and compliance of an e-signature platform provider. It is a rigorous auditing procedure developed by the American Institute of CPAs (AICPA) that ensures service providers manage data securely to protect the interests of their clients and the privacy of their clients’ customers.
In this blog, we will explore what customers should verify beyond just “does the provider have a SOC 2 report?” and outline some key items customers should pay attention to when evaluating an e-signature software provider.
What is an e-signature
An electronic signature, more often called an “e-signature,” is an increasingly common method of signing one’s name on a document. An e-signature includes typing one’s name into signature box or using a cursor to digitally draw one’s signature onto a document and then clicking “I Accept.” An e-signature can carry legal validity, and as such, it is important to use an e-signature service provider whose technical measures are in line with your compliance requirements to ensure e-signature validity.
What SOC 2 is and is not
SOC 2 is an independent assurance report, not merely a certification or badge, issued by a licensed CPA firm using AICPA Trust Services Criteria. SOC 2 evaluates controls, not products or features.
Trust Services Criteria Overview
- Security
- Availability
- Processing
- Integrity
- Confidentiality
- Privacy
For e-signature software providers, Trust Services Criteria are important to pay attention to. Security can mean access control and encryption for protecting contracts and attachments. The availability principle guides providers’ uptime commitments and disaster recovery. Meeting processing and integrity criteria demonstrates accurate execution of signing workflows. Privacy and Confidentiality (especially when PII is involved) address the management of personal information and ensures that it is collected, used, retained, and disclosed in accordance with privacy policies and regulations.
SOC 2 Type I vs. Type II: what customers should expect
Customers increasingly expect Type II over Type I reports. There is a clear reason why.
Type I: Point‑in‑time review of control design.
Type II: Controls tested over time (typically 3–12 months).
Type I may be acceptable for early‑stage vendors or for providers in the middle of a transition period. However, Type II has an obvious edge due to its ability to provide assurance of operating effectiveness over a longer period.
What customers should verify in an e‑signature software provider’s SOC 2 report
1. Scope: what systems are actually covered
The scope description should be reviewed by customers to verify that the specific e-signature platform provider is in scope, not just the overarching corporation. Overly narrow system descriptions can be a red flag as it may indicate the report is not fully encompassing the systems you will be utilizing. On the other hand, an overly broad or vague scope can be a red flag, as the specifics of the platform you are using may not have been reviewed.
2. Audit period and report currency: is the report still valid
Customers should review the date of the audit report provided to them. SOC 2 reports are valid for 1 year from issuance, so note if the audit was completed within the last 12 months. An outdated report should weaken the assurance you have in a provider. At minimum, customers should inquire as to when or if the provider expects to have a new report published soon. If one is planned, customers should wait and review the new report for the most up-to-date view of the provider’s information security controls.
Customers should also pay attention to the audit period length: was it short or a meaningful review window? There is a difference between an audit report demonstrating an organization was able to keep its security controls effectively operating for 12 months versus a three-month window.
3. Complementary controls: does the provider maintain relevant controls
Customers should look for the controls that align with their needs concerning e-signatures. Some relevant controls to review could be those related to incident responses and breach notifications to ensure proper alignment with your regulatory needs.
Depending on your location, you may want to review controls that support compliance with e-signature laws within your jurisdiction. These could include controls relating to data integrity, encryption, and audit trails.
How SOC 2 fits into vendor due diligence for e‑signatures
SOC 2 reports can be seen as a starting point, not the full security review. Customers can review a report in depth to validate if their requirements are met through the specific controls a company has in their report. This review can accompany security questionnaires, legal reviews, and technical reviews that you may want to conduct.
Conclusion: Importance of an e‑signature provider’s SOC 2 report
A SOC 2 report should provide a clear scope, include relevant Trust Services Criteria, and have a recent audit period. Customers should be sure to ask informed questions based on their industry, company needs, and compliance requirements. A SOC 2 report is part of building a relationship of trust between e-signature platform providers and their customers. It demonstrates commitment to security and transparency.
You can review information on BoldSign’s SOC 2 Type II report here. Additionally, new and existing customers can use this form to submit a request to review BoldSign’s most recent SOC 2 Type II report.
Want to get your documents signed legally? Try a free BoldSign trial and explore our complete e-signature platform.
Need help? Schedule a demo or contact our support team via our support portal. You can also visit the BoldSign help center for quick step-by-step guides.
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Note: This blog was originally published at boldsign.com
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