SOC 2 Type I & Type II

SOC 2: Trust Services Audit Certification

SOC 2 (Service Organization Control 2) is an auditing framework developed by the American Institute of CPAs (AICPA) that evaluates how service organizations protect customer data. It assesses five Trust Service Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy. SOC 2 certification is required by most enterprise customers before purchasing SaaS products.

The must-have certification for SaaS companies. SOC 2 proves to customers that you protect their data with enterprise-grade security controls.

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What is SOC 2: Trust Services Audit?

SOC 2 (Service Organization Control 2) is an auditing framework developed by the AICPA that evaluates service organizations based on five Trust Service Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy. It verifies that organizations have proper controls to protect customer data.

SOC 2 is an auditing standard developed by the AICPA that evaluates service organizations on five Trust Service Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy. Type I reports assess control design at a point in time, while Type II reports evaluate control effectiveness over a period (typically 3-12 months).

Unlike prescriptive frameworks, SOC 2 is principles-based—you design controls that fit your organization while meeting the underlying criteria. This flexibility is both a strength and a challenge. The Security criterion (formerly "Common Criteria") is required for all SOC 2 reports, while the other four criteria are selected based on your services and customer requirements. Most enterprise customers require a SOC 2 Type II report because it demonstrates sustained operational effectiveness, not just point-in-time design.

Close enterprise deals faster with proof of security
Reduce security questionnaire burden by 80%
Meet contractual requirements from large customers
Improve internal security practices

Typical Timeline

4-8 weeks

Pass Rate

100%

Controls

12+

Clients Certified

50+

Deep Dive

SOC 2: Trust Services Audit Control Requirements

Click each control to see implementation guidance and required evidence

SOC 2: Trust Services Audit for Your Industry

How SOC 2: Trust Services Audit applies to different business sectors

SaaS

SOC 2 is the de facto standard for SaaS companies selling to enterprises. Without it, you'll lose deals to competitors who have it.

Key Requirements

✓Multi-tenant data isolation controls
✓API security and rate limiting
✓Customer data encryption and segregation
✓Uptime SLAs (99.9%+ typical)
✓Self-service SSO/SAML integration

Example Use Case

A B2B SaaS startup was stuck in security review for 4 months with a Fortune 500 prospect. After achieving SOC 2 Type II, they closed the deal in 2 weeks and reduced security questionnaire responses by 80%.

FinTech

Financial services customers require SOC 2 as a baseline, often alongside additional frameworks like SOC 1 for transaction processing.

Key Requirements

✓Transaction integrity controls
✓Financial data encryption
✓Fraud detection and alerting
✓Regulatory reporting capabilities
✓Audit trail for financial transactions

Example Use Case

A payment platform achieved SOC 2 + SOC 1 in 10 weeks, unlocking partnerships with 3 major banks who had previously declined due to compliance concerns.

HealthTech

Healthcare customers require both SOC 2 and HIPAA. Combining them efficiently is critical for digital health companies.

Key Requirements

✓PHI handling and Business Associate Agreements
✓HIPAA-specific access controls
✓Healthcare data retention requirements
✓Patient data de-identification
✓Integration with EHR systems

Example Use Case

A telehealth platform used our combined SOC 2 + HIPAA approach to achieve both certifications simultaneously, saving 40% compared to sequential compliance efforts.

E-commerce

E-commerce platforms handling payment data need SOC 2 for general security plus PCI DSS for payment card data.

Key Requirements

✓Payment data isolation (PCI scope reduction)
✓Customer PII protection
✓Order processing integrity
✓Fraud prevention controls
✓Third-party payment processor management

Example Use Case

An e-commerce SaaS reduced their PCI scope by 70% through proper architecture and achieved SOC 2 to satisfy enterprise retail customers.

Professional Services

Consulting, legal, and financial advisory firms handling sensitive client data increasingly need SOC 2 to win enterprise clients.

Key Requirements

✓Client data confidentiality controls
✓Document management security
✓Email and communication encryption
✓Conflict-of-interest management
✓Client file access restrictions

Example Use Case

A consulting firm achieved SOC 2 Type II to satisfy due diligence requirements from Fortune 1000 clients, leading to a 30% increase in enterprise engagements.

Transparent Pricing

SOC 2: Trust Services Audit Certification Costs

What to budget for your SOC 2: Trust Services Audit certification journey

📊 Typical Investment Ranges — These are industry-standard ranges based on company size (50-500 employees). Your actual investment depends on scope, existing controls, and compliance maturity.

Cost Component	Starting From	Up To	Notes
Readiness Assessment	$0	$5,000	Free with our engagements; standalone assessments available
Gap Remediation Consulting	$10,000	$50,000	Depends on existing security maturity and scope
Compliance Platform (Vanta/Drata)	$10,000/yr	$30,000/yr	Based on employee count; we help negotiate discounts
Type I Audit (CPA Firm)	$10,000	$25,000	Optional but recommended for first-time SOC 2
Type II Audit (CPA Firm)	$15,000	$40,000	Required by most enterprise customers
Ongoing Maintenance (Annual)	$5,000	$20,000	Or handled via our managed compliance service

💡 Get your personalized quote: Costs vary significantly based on organization size, infrastructure complexity, and existing security controls. Our SOC 2: Trust Services Audit readiness assessment provides a tailored cost estimate within 48 hours.

Get a Personalized Quote

Framework Comparison

SOC 2: Trust Services Audit vs Other Frameworks

How SOC 2: Trust Services Audit compares to related compliance standards

Aspect	SOC 2: Trust Services Audit	ISO 27001	SOC 1
Geographic Focus	Primarily US, growing global acceptance	International standard, especially EU/APAC	US-focused for financial controls
Audit Type	Attestation report by licensed CPA	Certification by accredited body	Attestation report by licensed CPA
Control Focus	Security, Availability, Confidentiality, Privacy, Processing Integrity	Information Security Management System (ISMS)	Internal Controls over Financial Reporting (ICFR)
Report Validity	12 months (Type II)	3 years with annual surveillance	12 months
Best For	SaaS, cloud services, B2B technology	International enterprises, regulated industries	Outsourced transaction processing, payroll, custody
Typical Timeline	6-12 weeks (Type I) + 3-6 months observation (Type II)	8-12 weeks to initial certification	Similar to SOC 2 timeline
Control Overlap	60%+ with ISO 27001	60%+ with SOC 2	30-40% with SOC 2

Avoid These Pitfalls

Common SOC 2: Trust Services Audit Mistakes

Learn from others' mistakes so you don't repeat them

Starting the audit observation period too early

Consequence

If controls aren't mature, you'll have exceptions in your Type II report that enterprise customers will question.

Prevention

Complete a readiness assessment and remediate all gaps before beginning the observation period. Use mock audits to validate.

Selecting inappropriate Trust Service Criteria

Consequence

Including unnecessary criteria increases scope and cost. Missing required criteria means customers won't accept your report.

Prevention

Analyze your customer contracts and RFP requirements. Security is required; Availability is common for SaaS. Add others only when specifically needed.

Treating SOC 2 as a one-time project

Consequence

Controls degrade over time, employees leave, systems change. Your next audit will reveal gaps and exceptions.

Prevention

Implement continuous compliance monitoring. Use automation (Vanta/Drata) to detect control drift. Budget for ongoing maintenance.

Manual evidence collection

Consequence

Collecting evidence manually for 50+ controls across 3-12 months is exhausting and error-prone. You'll miss deadlines and have gaps.

Prevention

Deploy a compliance automation platform that integrates with your tech stack and continuously collects evidence.

Ignoring vendor risk management

Consequence

Auditors will ask for SOC 2 reports from your critical vendors. If you can't produce them, it's a finding.

Prevention

Inventory your vendors now. Request SOC 2 reports or security questionnaires from any vendor handling your data.

Choosing the wrong audit firm

Consequence

Some CPA firms are inexperienced with technology companies. This leads to miscommunication, scope creep, and higher costs.

Prevention

Work with an audit firm experienced in SaaS and cloud. We have preferred partners and can facilitate introductions.

Multi-Framework Efficiency

SOC 2: Trust Services Audit Control Overlap

Leverage shared controls when pursuing multiple certifications

SOC 2: Trust Services Audit ↔ ISO 27001

65%

Shared control areas:

Access ControlRisk AssessmentIncident ResponseChange ManagementVendor ManagementEncryptionLogging

SOC 2: Trust Services Audit ↔ HIPAA

50%

Shared control areas:

Access ControlAudit LoggingEncryptionIncident ResponseTraining

SOC 2: Trust Services Audit ↔ GDPR

40%

Shared control areas:

Privacy ControlsData ProcessingAccess RightsBreach Notification

SOC 2: Trust Services Audit ↔ PCI DSS

45%

Shared control areas:

Network SecurityAccess ControlEncryptionLoggingVulnerability Management

Your Path to Certification

Our proven process gets you certified faster

Readiness Assessment

1-2 weeks

Evaluate current controls against SOC 2 requirements and create a remediation roadmap.

Control Implementation

3-4 weeks

Implement missing controls, configure monitoring, and establish evidence collection.

Type I Audit

2-3 weeks

Complete Type I audit to validate control design. Optional but recommended.

Observation Period

3-6 months

Controls operate and collect evidence. We monitor and address any issues.

Type II Audit

2-4 weeks

Complete Type II audit with your chosen CPA firm. We handle evidence and auditor communications.

Expert Insights

What compliance experts say about SOC 2: Trust Services Audit

"The biggest mistake I see companies make is treating SOC 2 as a checkbox exercise. The companies that get lasting value are those who use SOC 2 as a catalyst to build genuinely better security practices—ones that make their engineering teams' lives easier, not harder."
H
Heena Sharma
Founder, isauditr | 10+ years in Compliance & DevSecOps

Frequently Asked Questions

What's the difference between Type I and Type II?

Type I is a point-in-time assessment of control design—it proves your controls exist and are properly designed. Type II evaluates control effectiveness over a period (typically 3-12 months)—it proves your controls actually work in practice. Most enterprise customers require Type II because it demonstrates sustained security, not just a snapshot.

Which Trust Service Criteria do we need?

Security is required for all SOC 2 reports—there's no SOC 2 without it. We recommend adding Availability for SaaS companies (customers care about uptime). Confidentiality is important if you handle sensitive customer data. Privacy applies if you collect personal information. Processing Integrity is relevant for transaction processing. We'll analyze your customer requirements to recommend the right scope.

How much does SOC 2 cost?

Total investment typically ranges from $50,000-$150,000 for your first SOC 2 Type II, including consulting, compliance platform, and audit fees. Exact costs depend on your size, complexity, and current security posture. Small startups on the lower end; larger companies with complex systems on the higher end. Our approach often saves 20-30% compared to traditional consultants.

Can we use compliance automation tools?

Absolutely—and you should! Platforms like Vanta and Drata connect to your tech stack (AWS, GCP, Azure, GitHub, Okta, etc.) and continuously collect evidence. This reduces manual work by 80%+ and catches control failures early. We're implementation experts for both platforms and help you maximize their value.

How long does SOC 2 certification take?

With our accelerated approach: 6-12 weeks to achieve Type I (proving control design), then 3-6 months of operation for Type II (proving effectiveness). Total time to Type II is typically 5-8 months. Traditional approaches can take 9-12+ months. The timeline depends heavily on your starting security maturity.

Do we need SOC 2 if we already have ISO 27001?

Possibly. ISO 27001 is excellent and there's significant overlap (~65% of controls). However, many US-based enterprise customers specifically require SOC 2 because it's the accepted standard in the American market. If you're selling to US enterprises, you likely need both. The good news: achieving one makes the other much faster.

What happens if we find issues during the audit?

Issues discovered during the audit are documented as 'exceptions' in your report. A few minor exceptions are normal and acceptable to most customers. Major exceptions or patterns of control failure can make customers nervous. Our thorough preparation and mock audits minimize surprises—we've maintained a 100% first-time pass rate because we don't let you go to audit until you're ready.

Is SOC 2 only relevant for US companies?

SOC 2 originated in the US and is most common here, but it's increasingly recognized globally. If you're selling to US companies or US subsidiaries of global companies, you need SOC 2. For pure European markets, ISO 27001 may be sufficient. Many global companies pursue both to maximize market access.