A Service Organization Controls (SOC) 2 report is an independent attestation that evaluates the effectiveness of a company's controls as they relate to Security, Availability, Processing Integrity, Confidentiality, and Privacy. SOC 2 has become the baseline of doing business in the United States, especially for organisations that process, store, or transmit data for their clients or partners.
A SOC 2 audit is the industry standard for service organisations — especially SaaS companies, data centres, and managed service providers (MSPs) — that need to prove they are protecting customer and partner data. A SOC 2 audit examines your organisation's security posture based on the requirements within the SOC 2 framework, known as the Trust Services Criteria (TSC). Providing an independent, reliable source of assurance, a SOC 2 report is often considered a cost of doing business for service organisations operating in the US market.
A SOC 2 report is the best way to demonstrate to your customers and partners that your organisation will protect their data. SOC 2 helps instil trust among clients who rely on these service providers for critical business operations while also promoting an ongoing culture of compliance within the organisation itself. This framework is a baseline expectation for a strong security programme and competitiveness in the market.
Oftentimes, a SOC 2 report is an acceptable alternative to the time-consuming, 500-question security survey.
SOC 2 positions your business for growth. By meeting this industry standard, organisations can confidently expand into new markets, secure larger deals, and build a foundation for long-term success.
Startups or small businesses will need a SOC 2 report to go upmarket and close large deals. Benefits you will notice after earning a SOC 2 report:
While SOC 2 applies to almost any organisation, it's particularly important to data centres, software-as-a-service (SaaS) companies, and managed service providers (MSPs). Service organisations that process, store, or transmit data for their clients or partners will benefit from a SOC 2 report.
Only licensed CPA firms that are accredited by the American Institute of Certified Public Accountants (AICPA) can complete a SOC 2 audit. We recommend choosing a partner that has its own audit management platform that can drive efficiencies during your audit cycle, helping your team work smarter, not harder.
The AICPA organisation is the governing body of the SOC framework that established the TSC. When you complete the SOC 2 attestation and receive your final report, your organisation can download and display the logo issued by the AICPA.
SOC 2 assesses your security posture using the Trust Services Criteria (TSC). Each criterion focuses on a different area of data protection, allowing organisations to tailor the audit scope to their business model, customer needs, and compliance goals:
9 control families ranging from organisation and management to risk assessment, logical security and change management. Required in every SOC 2 report.
Controls related to availability and redundancy of services to meet client SLAs. A great add-on for most organisations.
Controls related to accurate processing of customer data without corruption or unauthorised alteration. Specific to certain service types.
Controls related to protection of data deemed confidential between an organisation and its client. A great add-on for most organisations.
Controls related to the protection of Personally Identifiable Information (PII). Applicable to organisations that store, process, or transmit PII.
To start preparing for your SOC 2 examination, begin with these 12 policies — they are the most important to establish and will make the biggest impact on your security posture:
SOC 2 controls are a collection of policies, procedures, and directives dictating the operation of an organisation's systems, ensuring the security, availability, processing integrity, confidentiality, and privacy of both company and customer data. These guidelines aid organisations in managing and safeguarding sensitive information, fostering the implementation of robust security measures and mitigating the likelihood of data breaches and ensuring adherence to regulatory mandates.
Preparing for your SOC 2 audit will help you avoid any lengthy delays or unexpected costs. Prior to beginning your SOC 2 audit, we suggest you follow these guidelines:
During the initial stage of the audit process, your organisation should:
SOC 2 timelines vary based on company size, number of locations, complexity of the environment, and the number of TSCs selected.
A SOC 2 must be completed by a licensed CPA firm. Choosing an experienced firm with audit management capabilities makes the process significantly smoother.
Your audit team will generate an Information Request List (IRL) based on scope, chosen TSC, cloud hosting services, locations, and company size.
Est. 2–3 business daysFor a first audit, a SOC 2 readiness assessment is strongly recommended to find gaps and remediate issues prior to the formal audit.
Timeline varies based on scopeTime to collect evidence varies based on the scope of the audit and the tools used. Compliance automation tools can greatly expedite this process.
Timeline variesWalkthroughs of your environment to gain understanding of your organisation's controls, processes and procedures.
Est. 2–6 weeksA draft report within three weeks of completing fieldwork, followed by a final report two weeks after the draft has been approved.
Est. 3 weeks to draftThere are two main differences between the audit types. The first is the duration of time in which controls are evaluated:
Type 2 provides a greater level of trust as the report provides greater detail and visibility into the effectiveness of security controls an organisation has in place.
A SOC 1 audit addresses internal controls over financial reporting. A SOC 2 audit focuses more broadly on information and IT security. SOC 2 audits are structured across five categories called the Trust Services Criteria and are relevant to an organisation's operations and compliance.
To be issued a SOC 3 report, you must have first earned a SOC 2 report. A SOC 3 report is a public-facing version of the SOC 2 report intended for distribution and/or publication without the need for a non-disclosure agreement (NDA). A SOC 3 report has been scrubbed of any sensitive data and provides less technical information, making it appropriate to share on your website or use as a sales tool to win new business.
Read our full ISO 27001 Guide for a deeper comparison.
The International Framework for Assurance Engagements (ISAE) 3000 is a framework introduced by the International Auditing and Assurance Standards Board (IAASB), widely recognised in Europe. An ISAE 3000 is an integration to a SOC 2 report, typically requested by international clients. Protectify AI is equipped to issue SOC 2 reports with ISAE 3000 integration, allowing organisations to meet both standards and expand their international reach.
No, you cannot "fail" a SOC 2 audit. It is your auditor's job during the examination to provide opinions on your organisation within the final report. If the controls were not designed properly and/or did not operate effectively, this may lead to a "qualified" opinion — indicating that one of the SOC 2 criteria had testing exceptions significant enough to preclude one or more criteria from being achieved.
No, SOC 2 compliance is not a legal requirement. It is a voluntary attestation report. That said, many enterprise customers require SOC 2 contractually as part of their vendor risk management and due diligence process.
When you earn your final SOC 2 report, it's generally valid for 12 months. A SOC 2 audit should therefore be conducted annually as an internal benchmark to assess your security posture year-over-year.
The cost of a SOC 2 audit typically ranges from £20,000 to £120,000 or more, depending on company size, system complexity, audit scope, and whether the organisation is pursuing a SOC 2 Type I or Type II report. First-time audits often require additional preparation and remediation, which can impact overall cost.
The timeline for a SOC 2 audit varies based on company size, number of locations, complexity of the environment, and the number of TSCs selected. A Type 1 audit usually takes two to four weeks to complete. A Type 2 audit requires your auditor to observe controls operating effectively over a specific period, which normally spans six to 12 months.
Yes. Startups of all sizes can achieve SOC 2. Many early-stage companies pursue SOC 2 to meet customer expectations, shorten sales cycles, and demonstrate trust as they scale.
We'll spend the first 30 minutes on your actual situation and tell you exactly what you need.
Book a working session →