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Reference

Compliance & Cybersecurity Glossary

This glossary defines 62+ of the most common compliance and cybersecurity terms in plain English — from SOC 2 and ISO 27001 to the DPDP Act, HIPAA, GDPR, and VAPT. Each definition is written the way a certified auditor would explain it to a client, with links to deeper guidance where Tranquility Cybersecurity (TCSA) has it.

Last reviewed: June 2026|62 terms across SOC, ISO, privacy, security testing, and audit

A

Agentic AIISO
AI systems that plan and take multi-step actions toward a goal — calling tools, browsing, or executing tasks — with limited human intervention per step. Under ISO 42001, agentic systems raise the bar on lifecycle controls (A.6), event logging, and demonstrable human oversight, because autonomy widens the impact surface. Learn more
AI Impact AssessmentAI system impact assessmentISO
The outward-looking assessment ISO 42001 Annex A.5 requires: how an AI system could affect individuals, groups, and society — fairness, rights, safety — with documented mitigations. ISO/IEC 42005:2025 provides the methodology. It complements (and differs from) the inward-looking AI risk assessment and a privacy DPIA. Learn more
AI SystemISO
A machine-based system that infers from inputs how to generate outputs — predictions, content, recommendations, or decisions — that can influence real environments. The definition (shared in substance by ISO/IEC 22989 and the EU AI Act) is deliberately broad: a product feature wrapping a third-party foundation model is an AI system, not just the model itself. Learn more
AIMSArtificial Intelligence Management SystemISO
The governance system defined by ISO 42001 for managing the risks and obligations that come with building or deploying AI. It sets out policies, roles, and controls so an organisation can show its AI is developed and operated responsibly. Learn more
Annex A ControlsISO
The catalogue of 93 information-security controls listed in Annex A of ISO/IEC 27001:2022, grouped into organisational, people, physical, and technological themes. An organisation selects the controls relevant to its risks and records that choice in the Statement of Applicability. Learn more
AT-C Section 320Reporting on an Examination of Controls at a Service Organization Relevant to User Entities' Internal Control Over Financial ReportingSOC
The section of the AICPA's clarified attestation standards (introduced by SSAE 18) under which every SOC 1 examination is performed. It prescribes what management's system description must contain, how control objectives are specified, and what the service auditor's opinion covers. Learn more
AttestationGeneral Audit
An engagement in which an independent CPA examines a subject matter — such as a set of controls — and issues an opinion on it. SOC 1, SOC 2, and SOC 3 are attestation reports: the auditor attests to management's description and the operating effectiveness of controls, rather than awarding a pass/fail certificate. Learn more

B

BAABusiness Associate AgreementPrivacy & Data Protection
A contract required under HIPAA between a covered entity and any vendor (a "business associate") that handles protected health information on its behalf. It binds the vendor to safeguard PHI and to report breaches, extending HIPAA obligations down the supply chain. Learn more
Bridge Letteralso called a gap letterSOC
A short letter from a service organisation's management covering the gap between the end of its latest SOC report period and a customer's financial year-end, stating whether the described controls have materially changed. It is a management representation, not a CPA opinion, and is meant as a stop-gap until the next report. Learn more

C

Carve-out MethodSOC
One of two ways to treat subservice organisations (such as a cloud or data-centre provider) in a SOC 1 or SOC 2 report: their controls are excluded from the description and testing, and the report instead identifies the complementary subservice organization controls (CSOCs) being relied on. The alternative is the inclusive method. Learn more
CERT-InIndian Computer Emergency Response TeamTesting & Security
India's national agency for responding to cybersecurity incidents, operating under the Ministry of Electronics and IT. Its 2022 directions set mandatory incident-reporting timelines and log-retention rules, and certain audits are expected to be performed by CERT-In empanelled assessors.
ControlGeneral Audit
A safeguard or measure — technical, administrative, or physical — put in place to reduce a specific risk, such as enforcing multi-factor authentication or reviewing access quarterly. Compliance frameworks are essentially structured sets of controls that an auditor tests for design and operating effectiveness.
CSOCsComplementary Subservice Organization ControlsSOC
Controls that a carved-out subservice organisation (for example, a hosting provider) is assumed to operate for the service organisation's control objectives to be met. Report readers verify they are covered — usually by obtaining the subservice organisation's own SOC report. Learn more
CUECsComplementary User Entity ControlsSOC
Controls that a SOC report assumes the customer (user entity) operates at its own end — for example, approving payroll input before submission or deactivating leavers' accounts promptly. If a user entity does not operate its CUECs, the report's assurance does not fully apply to it. Learn more

D

Data FiduciaryPrivacy & Data Protection
Under India's DPDP Act, the person or organisation that determines the purpose and means of processing personal data — the rough equivalent of a "controller" under GDPR. The Data Fiduciary carries the primary accountability for lawful processing and for honouring Data Principal rights. Learn more
Data PrincipalPrivacy & Data Protection
Under India's DPDP Act, the individual to whom the personal data relates — the equivalent of a "data subject" under GDPR. Data Principals have rights to access, correction, erasure, and grievance redressal. Learn more
DPDP ActDigital Personal Data Protection Act, 2023Privacy & Data Protection
India's comprehensive data-protection law governing the processing of digital personal data, built around consent, purpose limitation, and accountability. It introduces the roles of Data Fiduciary and Data Principal and is enforced by the Data Protection Board of India. Learn more
DPIAData Protection Impact AssessmentPrivacy & Data Protection
A structured assessment of how a planned processing activity could affect individuals' privacy, used to identify and mitigate risks before processing begins. It is mandatory under GDPR for high-risk processing and is expected of Significant Data Fiduciaries under the DPDP Act.

E

EU AI ActRegulation (EU) 2024/1689ISO
The European Union's binding AI law, tiering systems by risk from prohibited practices to minimal risk. It phases in from 2025; after the May 2026 digital-omnibus agreement, high-risk obligations apply from December 2027 (Annex III) and August 2028 (Annex I), while transparency duties and GPAI enforcement arrive on 2 August 2026. ISO 42001 is the management system most organisations use to operationalise it. Learn more
EvidenceGeneral Audit
The records an auditor collects to confirm a control was actually operating — screenshots, configuration exports, tickets, policy documents, access logs, and the like. In a Type II engagement, evidence must show the control ran consistently across the entire observation window, not just on the day of testing.

G

Gap AssessmentGeneral Audit
A structured comparison of an organisation's current state against the requirements of a target framework, producing a list of "gaps" to remediate before a formal audit. It is the usual first step in any certification or attestation project.
GDPRGeneral Data Protection RegulationPrivacy & Data Protection
The European Union's data-protection regulation governing how personal data of individuals in the EU and EEA is collected, processed, and transferred. It applies extraterritorially, so organisations outside Europe that offer goods or services to EU residents are also bound by it. Learn more
GPAIGeneral-Purpose AI modelISO
Under the EU AI Act, an AI model trained on broad data and capable of performing many distinct tasks — foundation models like GPT, Claude, Gemini, or Llama. GPAI providers carry their own obligations (Articles 51–56, in force since August 2025), including technical documentation and training-data summaries; companies building on top of GPAI inherit different duties as providers or deployers of the resulting systems. Learn more

H

HIPAAHealth Insurance Portability and Accountability ActPrivacy & Data Protection
A United States federal law that sets national standards for protecting individuals' health information held by healthcare providers, health plans, and their vendors. Its Privacy Rule and Security Rule together govern how protected health information is used, disclosed, and safeguarded. Learn more

I

Inclusive MethodSOC
The alternative to the carve-out method: the subservice organisation's relevant controls are included in the service organisation's system description and tested by the service auditor. It gives report readers fuller coverage but is rarer in practice because it requires the subservice organisation's cooperation. Learn more
ISMSInformation Security Management SystemISO
The framework of policies, processes, roles, and controls an organisation uses to manage information-security risk in a systematic, repeatable way. ISO/IEC 27001 is the standard against which an ISMS is certified. Learn more
ISO/IEC 27001ISO
The leading international standard for an information security management system (ISMS), specifying requirements for establishing, operating, and continually improving information security. Certification is issued by an accredited certification body after a successful Stage 1 and Stage 2 audit. Learn more
ISO/IEC 27701ISO
An extension to ISO/IEC 27001 that adds privacy-specific requirements and controls, turning an ISMS into a Privacy Information Management System (PIMS). It helps organisations demonstrate alignment with privacy laws such as GDPR and the DPDP Act. Learn more
ISO/IEC 42001ISO
The first international management-system standard for artificial intelligence, published in 2023, defining requirements for an AI Management System (AIMS). It helps organisations govern AI responsibly and map to obligations such as the EU AI Act. Learn more
ISO/IEC 42005ISO
The AI system impact assessment standard, published in May 2025. It provides the step-by-step methodology for assessing an AI system's consequences for individuals, groups, and society — the process ISO 42001 Annex A.5 requires an organisation to have. Learn more
ISO/IEC 42006ISO
The standard (published July 2025) setting requirements for bodies that audit and certify AI management systems — auditor competence in AI, audit-time calculation, and AIMS-specific methods. It is why "accredited" matters for ISO 42001 certificates: a certificate from a body accredited under ISO/IEC 42006 is the defensible kind, verifiable on IAF CertSearch. Learn more

N

NonconformityGeneral Audit
A failure to meet a requirement of a standard, identified during an ISO audit. Major nonconformities must be resolved before certification can be granted, while minor ones require a corrective-action plan and are verified at the next audit.

O

Observation WindowGeneral Audit
The period — typically three to twelve months — over which an auditor evaluates whether controls operated effectively in a SOC 2 Type II engagement. Evidence must demonstrate the controls ran consistently throughout this window, also called the audit or review period.

P

PCI DSSPayment Card Industry Data Security StandardTesting & Security
A security standard maintained by the PCI Security Standards Council that applies to any organisation storing, processing, or transmitting payment-card data. It defines technical and operational requirements, with the validation method depending on transaction volume. Learn more
Penetration TestingTesting & Security
A controlled, authorised simulation of a real-world attack in which a tester actively attempts to exploit weaknesses to gauge their real impact. Unlike an automated scan, it adds manual exploitation and business-logic testing to show what an attacker could actually achieve. Learn more
PHIProtected Health InformationPrivacy & Data Protection
Any individually identifiable health information — diagnoses, treatments, payment records, and identifiers — that is protected under HIPAA. Safeguarding PHI in every form, electronic or otherwise, is the central obligation HIPAA places on covered entities and their business associates. Learn more
PIMSPrivacy Information Management SystemISO
The privacy-management framework established by ISO/IEC 27701, layered on top of an ISO 27001 ISMS. It adds the controls and accountability needed to manage personally identifiable information as a controller or processor. Learn more
Privacy Rule (HIPAA)Privacy & Data Protection
The HIPAA standard that governs how protected health information may be used and disclosed, and that gives individuals rights over their own health data. It sets the "what and when" of PHI sharing, complementing the Security Rule's focus on safeguards. Learn more
Provider vs Deployer (AI)ISO
The two principal AI roles in the EU AI Act and ISO-family terminology: a provider develops an AI system (or has it developed) and places it on the market under its own name — including companies that integrate a third-party foundation model into their product — while a deployer uses an AI system under its own authority. Your role determines your obligations, which is why "we just wrap an API" rarely means "out of scope." Learn more

Q

Qualified OpinionSOC
An "except for" auditor's opinion on a SOC 1 or SOC 2 report: one or more criteria were not achieved, or material exceptions were found, but the problem is confined to specific areas rather than pervasive. The rest of the report still stands. Readers should identify exactly which criteria are qualified and whether they affect the service they consume. Learn more

R

RBI Cybersecurity FrameworkTesting & Security
A set of cybersecurity directions issued by the Reserve Bank of India for banks, NBFCs, and other regulated entities, covering governance, controls, incident reporting, and resilience. The depth of expected controls scales with the size and risk profile of the institution. Learn more
Readiness AssessmentGeneral Audit
A pre-audit review that tests whether an organisation's controls and evidence would withstand a formal audit, so issues can be fixed in advance. It is broader than a gap assessment, often including a dry run of control testing.
Risk AssessmentGeneral Audit
The process of identifying threats to an organisation's information assets, then analysing and prioritising them by likelihood and impact. It is a mandatory foundation of ISO 27001 and feeds directly into the risk-treatment plan and the Statement of Applicability.
Risk TreatmentGeneral Audit
The decision and action taken on each identified risk — mitigate it with controls, transfer it (for example via insurance), avoid the activity, or formally accept it. The chosen approach for every risk is documented in a risk-treatment plan.
RoPARecord of Processing ActivitiesPrivacy & Data Protection
A documented inventory of all the ways an organisation processes personal data — the purposes, categories of data and individuals, recipients, and transfers. Maintaining a RoPA is an explicit accountability requirement under Article 30 of the GDPR.

S

Security Rule (HIPAA)Privacy & Data Protection
The HIPAA standard that requires administrative, physical, and technical safeguards to protect electronic protected health information (ePHI). Where the Privacy Rule governs use and disclosure, the Security Rule governs how ePHI is technically and operationally secured. Learn more
Significant Data FiduciarySDFPrivacy & Data Protection
A class of Data Fiduciary that the Indian government may designate based on factors such as the volume and sensitivity of data processed and the risk to individuals. An SDF carries heavier obligations, including appointing a Data Protection Officer, conducting Data Protection Impact Assessments, and undergoing periodic audits. Learn more
SOC 1SOC
An attestation report on a service organisation's controls that are relevant to its clients' financial reporting — for example, a payroll or transaction-processing provider. It is governed by SSAE 18 and is read mainly by auditors of the client's financial statements. Learn more
SOC 2SOC
An attestation report on a service organisation's controls relevant to security, availability, processing integrity, confidentiality, and privacy — the Trust Services Criteria. It is the de facto trust standard for SaaS and cloud providers and is typically requested by enterprise customers during procurement. Learn more
SOC 3SOC
A short, general-use version of a SOC 2 report that can be shared publicly, for example on a marketing website. It conveys the auditor's opinion and a system overview without the detailed control descriptions and test results found in a SOC 2. Learn more
SSAE 18Statement on Standards for Attestation Engagements No. 18SOC
The AICPA standard (effective May 2017) that recodified the US attestation standards into the AT-C sections, including AT-C 320 which governs SOC 1. Later SSAEs (19, 21, 22, 23) have amended the framework — most recently SSAE 23, effective December 2025 — but SOC 1 examinations are still performed under AT-C section 320. Learn more
Statement of ApplicabilitySoAISO
A mandatory ISO 27001 document that lists every Annex A control, states whether it applies, and justifies each inclusion or exclusion. It is the auditable bridge between an organisation's risk assessment and the controls it has actually implemented. Learn more
Subservice OrganizationSOC
A vendor a service organization relies on to deliver its own service — one whose controls are necessary, together with the service organization's, to meet commitments to customers (a cloud host beneath a SaaS platform, for example). SOC reports handle them via the carve-out method (exclude and disclose) or, rarely, the inclusive method (include and test). Learn more
Surveillance AuditGeneral Audit
A lighter-touch audit conducted by the certification body in the years between the initial ISO certification and its three-year recertification, usually annually. It confirms the management system is still operating effectively and being improved.
System DescriptionSOC
Section 3 of a SOC 2 report — management's detailed description of the system under examination: services, principal service commitments and system requirements, components (infrastructure, software, people, procedures, data), incidents, CUECs, and subservice organizations. Prepared against the AICPA Description Criteria (DC section 200) for SOC 2; SOC 1 descriptions follow AT-C 320. Learn more

T

Trust Services CriteriaTSCSOC
The five categories defined by the AICPA against which SOC 2 controls are evaluated: security, availability, processing integrity, confidentiality, and privacy. Security (the "common criteria") is always in scope; the other four are included only if relevant to the service. Learn more
Type ISOC
A SOC report that evaluates whether controls are suitably designed and in place at a single point in time. It is faster to obtain than a Type II but offers weaker assurance, because it does not test whether the controls actually operated over a period. Learn more
Type IISOC
A SOC report that evaluates whether controls were both suitably designed and operating effectively across an observation window, typically three to twelve months. It is the report enterprise customers most often require, because it evidences sustained control performance. Learn more

V

VAPTVulnerability Assessment and Penetration TestingTesting & Security
A combined security exercise that pairs broad automated vulnerability scanning with targeted manual penetration testing. The assessment finds and catalogues weaknesses, while the penetration test verifies which ones are genuinely exploitable. Learn more
vCISOVirtual Chief Information Security OfficerGeneral Audit
An experienced security leader engaged on a part-time or fractional basis to set strategy, own the security programme, and provide executive accountability — without the cost of a full-time hire. It is a common model for startups and mid-market firms building compliance for the first time. Learn more
vDPOVirtual Data Protection OfficerPrivacy & Data Protection
A fractional Data Protection Officer who provides the independent privacy oversight required or expected under laws such as GDPR and the DPDP Act. The vDPO advises on compliance, monitors processing, and acts as the contact point for regulators and data subjects. Learn more

Related references

Glossary FAQs

Quick answers to the questions readers ask most when comparing these frameworks.

What's the difference between SOC 2 and ISO 27001?

Both demonstrate strong information security, but they differ in form and audience. ISO 27001 is an international certification of a management system (an ISMS), awarded by an accredited certification body and recognised worldwide. SOC 2 is an attestation report written by a CPA against the Trust Services Criteria, and it is the format most commonly requested by enterprise customers in North America. Many organisations pursue both, because an ISO 27001 ISMS supplies much of the control foundation a SOC 2 examines.

What is an attestation versus a certification?

A certification (such as ISO 27001) is a pass/fail determination by an accredited body that your system conforms to a published standard, resulting in a certificate. An attestation (such as SOC 2) is an independent CPA's opinion on a defined subject matter — typically your controls and how they operated — resulting in a detailed report rather than a certificate. In short, certification says "you meet the standard," while attestation says "here is my examined opinion on your controls."

What's the difference between SOC 2 Type I and Type II?

A Type I report assesses whether controls are suitably designed and in place at a single point in time, while a Type II report assesses whether those controls also operated effectively across an observation window — usually three to twelve months. Type I is quicker to obtain and is often a stepping stone, but Type II provides stronger assurance and is what most enterprise customers ultimately require.

What is the difference between a vulnerability assessment and penetration testing?

A vulnerability assessment uses automated scanning to identify and catalogue known weaknesses broadly across your systems. Penetration testing goes further: a tester manually attempts to exploit selected weaknesses to prove real-world impact and uncover issues — such as business-logic flaws — that scanners miss. VAPT combines both for breadth and depth.

Written By Expert Auditors

Surendra Pal Singh
Surendra Pal Singh
Chief Information Security Officer & Data Protection Officer
CISODPOCISAMCSEITILISO 27001 Lead AuditorISO 27701 Lead AuditorISO 42001 Lead Auditor
Saundhi Chauhan
Saundhi Chauhan
Lead Auditor
ISO 27001 Lead AuditorISO 27701 Lead Auditor
Last reviewed: June 2026Content verified by certified lead auditors