SOC 2 (System and Organization Controls, Type 2) is a third-party attestation that verifies your organization's security, availability, processing integrity, confidentiality, and privacy controls. Unlike compliance programs like ISO 27001 or PCI DSS, SOC 2 is not a compliance requirement but rather a trust mechanism—a way for service providers to demonstrate their security posture to customers.
Why SOC 2?
If you're a B2B SaaS company, hosted service provider, or process customer data, SOC 2 is increasingly expected by enterprise clients. It's also a requirement for certain industries (e.g., security vendors, cloud providers) and can enhance your go-to-market story.
SOC 2 Type 1 vs Type 2
Type 1: A point-in-time audit showing your controls are designed properly
Type 2: An audit over a minimum 6-month period showing your controls work effectively over time
Most enterprises require Type 2.
The Five Trust Services Criteria (TSC)
SOC 2 audits evaluate controls across five categories:
CC (Common Criteria): Security controls
A (Availability): Systems are available for operation and use as committed
P (Processing Integrity): Data is processed, recorded, and maintained in a complete manner
C (Confidentiality): Information designated as confidential is protected
PI (Privacy): Personal information is collected, used, retained, and released per privacy laws
Phase 1: Scope and Preparation
Timeline: 2-4 weeks
Activities:
- Identify which TSC criteria you'll be audited on (usually CC, A, C for most)
- Document your systems and processes
- Assess current state against SOC 2 requirements
- Begin implementing missing controls
Phase 2: Documentation and Implementation
Timeline: 4-12 weeks
Key Activities:
Control Documentation: For each requirement, document your control (policy, procedure, automated check)
Evidence Collection Starts: Begin collecting evidence that controls are operating (logs, test results, etc.)
Remediation: Address any control gaps discovered
Phase 3: Pre-Audit Assessment
Timeline: 2-4 weeks before audit
A preliminary assessment (often called a "readiness review") simulates the real audit and identifies any remaining issues.
Phase 4: The SOC 2 Audit
Duration: 1-2 weeks on-site (for Type 2, initial audit)
What Happens:
- Auditors interview key staff (ops, security, compliance)
- Review system architecture and infrastructure
- Test controls for design and operational effectiveness
- Request evidence (logs, reports, change records)
Timeline and Budget Estimate
Overall Duration: 4-6 months from project start to report issuance
Cost: $15,000–$50,000+ depending on organization size and complexity
Auditor Selection: Choose a CPA firm that specializes in SOC 2
Top Tips for Success
Start Early: Don't wait until you're ready to audit; begin documentation and control implementation 6+ months in advance
Automate Evidence Collection: Manual evidence collection is tedious; use tools to generate logs and reports automatically
Designate a SOC 2 Lead: Assign someone to own the program and coordinate across teams
Regular Internal Audits: Conduct mini-audits quarterly to stay on track
Stay Current: Once you have SOC 2 Type 1, plan for Type 2 within 12 months—auditors expect continuity