SOC 2 CC1.3: Organizational Structures and Authorities
CC1.3 requires your organization to establish clear reporting lines, defined roles, and documented authorities under board oversight. Without proper organizational structure, accountability breaks down and compliance becomes impossible to demonstrate. This control forms the foundation for all other SOC 2 commitments.
What this means
Management must establish and maintain formal organizational structures that clearly define reporting relationships, authority levels, and responsibilities across the business. This includes board oversight of management actions, documented decision-making authority, and explicit ownership of compliance and risk management functions. The structure must support the achievement of your stated objectives and enable effective governance.
How to comply
- 1.Document your organizational chart showing reporting lines, roles, and functional responsibilities
- 2.Define authority matrices that specify decision-making power at each management level
- 3.Establish board governance structure with clear oversight of management performance and compliance
- 4.Assign explicit ownership of compliance, risk management, and information security functions
- 5.Create job descriptions that outline specific responsibilities and authorities for key roles
- 6.Implement formal approval processes that reflect documented authority levels
- 7.Review and update organizational structures annually or when significant changes occur
- 8.Communicate authority levels and reporting relationships to all personnel
Evidence auditors look for
- Current organizational chart with titles and reporting relationships
- Board minutes reflecting oversight of management's compliance and control activities
- Authority matrices or delegated approval authority documentation
- Job descriptions defining roles, responsibilities, and decision-making authority
- Internal policy documents establishing governance structure and oversight mechanisms
- Records of organizational change approvals and communication to stakeholders
Frequently asked questions
When will FAQs be available?
The FAQ for this control is currently being prepared.
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