SOC 2 is a report on an organization’s controls relevant to security, availability, processing integrity, confidentiality, and privacy and the effectiveness of those controls. The SOC 2 audit is the auditor’s opinion on how your organization’s security controls meet the SOC 2 requirements.

To meet the SOC 2 requirements, an organization will have to implement a huge list of security controls (“rules for your organization”) and then collect evidence that they have been implemented.

Controls are operational like having employees go through security awareness training and maintaining an org chart, or technical, like running vulnerability scans on your servers, encrypting your s3 buckets, backing up your database, etc.

Why is SOC 2 Important?

SOC 2 compliance demonstrates to customers and stakeholders that your organization is committed to protecting their data. It provides assurance that you have implemented effective controls to minimize risks such as data breaches, unauthorized access, and service disruptions. Achieving SOC 2 compliance builds trust, helps meet customer expectations, and can differentiate your business in a competitive marketplace.

The SOC 2 Compliance Process

• Scoping: Identify the systems, processes, and Trust Services Criteria to be evaluated.
• Gap Analysis: Assess existing controls and identify gaps that need remediation.
• Implementation: Address gaps by implementing policies, procedures, and technical safeguards.
• Readiness Assessment: Conduct a pre-audit review to confirm preparedness.
• Audit: A third-party auditor evaluates your controls and issues the SOC 2 report.

   

SOC 2, Type 1 vs Type 2

There are two types of SOC 2 attestation reports: SOC 2 Type 1, SOC 2 Type 2

Each serves a specific purpose and you’ll need to decide which report you want before starting the audit process.

• What is SOC 2 Type 1? SOC 2 Type 1 evaluates security controls at a single point in time to determine whether the internal controls safeguarding customer data are designed suitably. A Type 1 report does not contain an opinion on the operating effectiveness of controls or a detailed description of the tests of controls performed by the service auditor. Type 1 reports can be generated in a matter of weeks.
• What is SOC 2 Type 2? A SOC 2 Type 2 report examines not only whether the internal controls safeguarding customer data are designed suitably, but also how well a service organization's compliance controls perform over a period of time (typically 3-12 months). Do they function as intended? How effective are they? Type 2 audits can take 12 months to complete and are more expensive than Type 1 audits.

SOC 2 Hub Overview

Visit our SOC 2 Hub for the fundamentals of SOC 2 compliance, curated best practices, and resources for security beginners, all in one place.

• Overview
• Report Structures
• Audit Process, Timeline, Cost,
• How to prepare
• Automation
• Resources and more

Frequently Asked Question (FAQ)

Does it matter which order I do my SOC 2, Type 1 or Type 2 in?

• No, the order does not matter, it is preference.
• It is not a requirement to pursue SOC 2 Type 1 before getting a SOC 2 Type 2 report because they are stand-alone reports.
• A company may choose to go straight for SOC 2 Type 2 audit without completing a SOC 2 Type 

Which SOC 2 (Type 1 or Type 2) should I Choose?

• There are multiple factors to consider with this question so lets look at a few.
• Type 1 and Type 2 reports both require an audit by a qualified service auditor or CPA firm. Often, the decision one which to chose is about the timeline the report is needed.
• If a customer or requester does not specify, it’s likely a requester wants you to have a SOC 2 Type 2. Sometimes companies get a SOC 2 Type 1 and commit to getting a Type 2 within a year, so they can begin working with the requester.
• If you need to demonstrate compliance because an important enterprise prospect requires it to close the deal, but your company just recently implemented the formal systems necessary for the SOC 2, or you’ve recently made major changes to your data security systems. In this case, a Type 1 report that evaluates your information security controls as they stand today can be a short-term solution.
• When deciding on a SOC 2 Type 1 vs Type 2, make sure you understand the expectations of the potential customer who is requesting it. Since a Type 1 does not require you to demonstrate your compliance over time, it provides a lower level of comfort to the potential customer and may not meet their vendor due diligence needs.