SOC 2

SOC 2 is an auditing framework developed by AICPA that evaluates how service organizations manage customer data based on five Trust Service Criteria.

SOC 2 (System and Organization Controls 2) is an auditing standard developed by AICPA specifically for service organizations. It evaluates an organization's information security practices.

The framework assesses controls based on five Trust Service Criteria: - Security: Protection against unauthorized access - Availability: System accessibility as agreed upon - Processing Integrity: System processing is complete and accurate - Confidentiality: Confidential information is protected - Privacy: Personal information is handled appropriately

SOC 2 reports come in two types: - Type 1: Point-in-time assessment of control design - Type 2: Period of time (3-12 months) assessment of operating effectiveness

Enterprise customers typically require SOC 2 Type 2 reports from their vendors.

Why It Matters

SOC 2 compliance is effectively a market requirement for any B2B SaaS company selling to mid-market or enterprise customers. Without a SOC 2 report, deals stall in security reviews, sales cycles lengthen by 3-6 months, and you lose to competitors who can demonstrate compliance. A SOC 2 Type 2 report signals mature security practices and dramatically accelerates vendor approval processes.

Key Points

Developed by AICPA for service organizations

Based on 5 Trust Service Criteria

Type 1 = point-in-time, Type 2 = period review

Required by most enterprise customers

Annual audit cycle for ongoing compliance

Applicable Compliance Frameworks

SOC 2

Related Terms

ISO 27001

ISO 27001 is an international standard for information security management systems (ISMS), providing a systematic approach to managing sensitive company information.

Trust Service Criteria

Trust Service Criteria (TSC) are the five categories used in SOC 2 audits: Security, Availability, Processing Integrity, Confidentiality, and Privacy.

Controls Testing

Controls testing is the process of evaluating whether security and compliance controls are properly designed and operating effectively to achieve their intended objectives.

SOC 2 Compliance Complete Guide