SOC 2 (Service Organization Control 2) is a compliance framework developed by the AICPA that evaluates a service organization's controls related to security, availability, processing integrity, confidentiality, and privacy of customer data.
Any organization that stores, processes, or transmits customer data, especially SaaS providers, cloud service companies, and IT-managed service providers, should consider SOC 2 compliance.
SOC 2 is based on five Trust Services Criteria (TSC):
- Security (Mandatory)
- Availability
- Processing Integrity
- Confidentiality
- Privacy
No, SOC 2 is not legally required, but it is often required by enterprise clients, partners, or regulators as part of vendor due diligence.
- SOC 2 Type I: Evaluates the design of controls at a specific point in time.
- SOC 2 Type II: Assesses the effectiveness of controls over a defined period (typically 3-12 months).
A SOC 2 Type I audit typically takes 2-3 months, while a SOC 2 Type II audit can take 6-12 months.
The cost varies based on organization size and complexity
SOC 2 audits must be performed by a licensed CPA (Certified Public Accountant) firm specializing in SOC reports.
Evidence includes security policies, access logs, incident response plans, risk assessments, system configurations, employee training records, and third-party vendor security agreements.
SOC 2 reports are typically valid for one year, and organizations are expected to undergo annual audits.
- Multi-factor authentication (MFA)
- Endpoint protection and monitoring
- Role-based access control (RBAC)
- Encryption of data at rest and in transit
- Incident response and logging
While not explicitly required, penetration testing is strongly recommended as part of risk assessment and vulnerability management.
If gaps are found, the company can implement corrective actions and undergo a readiness assessment before re-auditing.
- SOC 2 is specific to U.S. service providers and is customer-focused.
- ISO 27001 is an international standard for Information Security Management Systems (ISMS).
Many organizations pursue both for broader compliance coverage.
- Implementing proper security policies and controls
- Maintaining continuous compliance and monitoring
- Gathering audit evidence efficiently
- Managing third-party vendor risks
A SOC 2 report assures customers that your organization follows best practices to protect their sensitive data.
Yes, small businesses can achieve SOC 2 compliance by implementing security best practices and leveraging compliance automation tools.
- SaaS and cloud computing
- Financial services
- Healthcare
- IT and managed services
- E-commerce and digital platforms
While SOC 2 is not a legal requirement like GDPR or CCPA, it complements these frameworks by demonstrating strong security and privacy controls.
A SOC 2 report builds credibility, reduces vendor due diligence friction, and helps close enterprise deals faster.
- Centralized log management (SIEM)
- Security incident detection and alerts
- Audit trails for system access and modifications
Cloud security is evaluated under the Security, Availability, and Confidentiality criteria, ensuring that cloud providers have proper security controls in place.
Yes, under the Availability criterion, organizations must have disaster recovery, data backup, and business continuity plans.
Organizations must assess vendor security risks, maintain vendor contracts with security clauses, and conduct regular vendor reviews.
- Compliance automation: Drata, Vanta, Tugboat Logic
- Security monitoring: Wazuh, Splunk, Datadog
- Access management: Okta, AWS IAM, Azure AD
