How do I prepare for a SOC 2 audit?

More and more clients are requiring SOC 2 certification. Here’s what you need to know to prepare.

What Is SOC 2?

SOC 2 (System and Organization Controls 2) is an auditing framework developed by the AICPA that evaluates how well a service organization manages customer data.

Translation: It’s a way to prove to customers that you take data security seriously.

SOC 2 vs. Other Certifications

Certification	What It Covers	Who Needs It
SOC 2	Service organization controls	SaaS, cloud, IT services
SOC 1	Financial reporting controls	Financial processors
ISO 27001	Information security management	Any organization
HIPAA	Health information protection	Healthcare
PCI-DSS	Payment card data	Card processors

SOC 2 is most common for: SaaS companies, managed service providers, data centers, and any company handling customer data.

The Five Trust Service Criteria

SOC 2 evaluates five categories (you choose which apply):

1. Security (Required for All SOC 2)

Protection against unauthorized access.

Controls include:

• Firewalls and network security
• Access controls
• Endpoint protection
• Encryption
• Monitoring and logging
• Incident response

2. Availability (Optional)

Systems are available for operation as committed.

Controls include:

• Uptime monitoring
• Disaster recovery
• Business continuity
• Capacity planning
• Redundancy
• SLA management

3. Processing Integrity (Optional)

System processing is complete, accurate, and timely.

Controls include:

• Data validation
• Quality assurance
• Error handling
• Processing monitoring
• Reconciliation

4. Confidentiality (Optional)

Information designated as confidential is protected.

Controls include:

• Data classification
• Encryption
• Access restrictions
• Secure disposal
• Confidentiality agreements

5. Privacy (Optional)

Personal information is collected, used, retained, and disclosed properly.

Controls include:

• Privacy notice
• Consent management
• Data subject rights
• Data retention
• Third-party disclosure

Most common combination: Security + Availability + Confidentiality

Type 1 vs. Type 2

SOC 2 Type 1

What it covers: Controls are designed and implemented at a point in time

Audit period: A single date (snapshot)

Use case: First-time certification, demonstrating readiness

SOC 2 Type 2

What it covers: Controls are operating effectively over a period

Audit period: Typically 6-12 months

Use case: Ongoing certification, what customers really want

Path to certification:

1. Get SOC 2 Type 1 (prove you have controls)
2. Operate controls for 6-12 months
3. Get SOC 2 Type 2 (prove controls work over time)

Some organizations skip Type 1 and go directly to Type 2 with a shorter audit period initially.

Timeline for SOC 2 Preparation

Realistic Timeline: 6-12 Months

Phase	Duration	Activities
Assessment	2-4 weeks	Gap analysis, scope definition
Remediation	2-6 months	Fix gaps, implement controls
Documentation	4-8 weeks	Policies, procedures, evidence
Pre-audit	2-4 weeks	Internal testing, readiness review
Type 1 Audit	2-4 weeks	Auditor assessment
Observation Period	3-6 months	Operate controls
Type 2 Audit	4-6 weeks	Auditor assessment

Shortcut warning: Rushing SOC 2 leads to failed audits and wasted money. Budget adequate time.

Common SOC 2 Gaps

When we help clients prepare for SOC 2, we commonly find:

1. Missing or Incomplete Policies

Gap: No documented security policies, or policies that don’t match reality.

Fix:

• Information Security Policy
• Acceptable Use Policy
• Access Control Policy
• Incident Response Plan
• Business Continuity Plan
• Change Management Policy
• Vendor Management Policy

2. Inadequate Access Controls

Gap: Shared accounts, excessive permissions, no access reviews.

Fix:

• Individual accounts everywhere
• Role-based access control
• Quarterly access reviews (documented)
• Timely termination process
• MFA on all critical systems

3. No Formal Change Management

Gap: Changes made without documentation or approval.

Fix:

• Change request process
• Approval workflow
• Testing requirements
• Rollback procedures
• Documentation of all changes

4. Missing Monitoring and Logging

Gap: No centralized logging, no security monitoring.

Fix:

• Centralized log collection (SIEM)
• Security event monitoring
• Alert thresholds and response
• Log retention (12+ months)

5. Incomplete Vendor Management

Gap: Using vendors without security assessments or contracts.

Fix:

• Vendor inventory
• Security assessments for critical vendors
• Contractual requirements
• Annual reviews

6. No Business Continuity/DR Testing

Gap: DR plan exists but never tested.

Fix:

• Annual DR tests (at minimum)
• Documented results
• Identified improvements
• Updated plans

7. Insufficient Training

Gap: Security training is informal or undocumented.

Fix:

• Annual security awareness training
• Role-specific training
• Documented completion
• Phishing simulations

8. Missing Risk Assessment

Gap: No formal risk assessment process.

Fix:

• Annual risk assessment
• Risk register
• Treatment plans
• Executive review

The Audit Process

What Auditors Look For

Evidence, evidence, evidence.

SOC 2 auditors want to see:

• Written policies and procedures
• Implementation evidence (screenshots, configs)
• Operating evidence (logs, tickets, reports)
• Management review (meeting minutes, reports)

Key principle: If it’s not documented, it didn’t happen.

What to Expect During the Audit

1. Initial meeting - Scope confirmation, schedule
2. Information requests - Large list of evidence needed
3. Walkthroughs - Auditor observes processes
4. Testing - Auditor samples and tests controls
5. Issue identification - Gaps found during testing
6. Management response - Your response to findings
7. Report drafting - Auditor prepares report
8. Final review - Review and sign-off

Potential Outcomes

Unqualified opinion: Controls are effective. This is the goal.

Qualified opinion: Most controls effective, but exceptions noted.

Adverse opinion: Controls not effective. You’ll need to remediate and re-audit.

Costs of SOC 2

Audit Costs

Type	Typical Cost
Type 1	$15,000 - $40,000
Type 2	$25,000 - $75,000
Annual renewal	$20,000 - $50,000

Factors affecting cost:

• Scope (number of trust criteria)
• Company size
• Complexity
• Auditor reputation

Preparation Costs

Item	Typical Cost
Gap assessment	$5,000 - $20,000
Compliance software	$10,000 - $50,000/year
Remediation work	Varies widely
Policy development	$5,000 - $15,000
Tool implementation	Varies
Internal staff time	Significant

Total first-year investment: $50,000 - $200,000 depending on starting point

ROI Considerations

SOC 2 often:

• Enables sales to enterprise customers
• Speeds up security questionnaires
• Reduces customer audit requests
• Demonstrates security maturity
• May reduce cyber insurance premiums

DIY vs. Getting Help

What You Can Do Internally

• Policy writing (with templates)
• Implementing controls
• Gathering evidence
• Managing the process
• Training staff

Where You’ll Likely Need Help

• Gap assessment (objective view)
• Control design (best practices)
• Compliance platform selection
• Audit preparation
• Remediation of technical gaps
• The audit itself (auditors are external)

Compliance Platforms

Tools that help manage SOC 2:

• Vanta
• Drata
• Secureframe
• Laika
• Sprinto

These automate evidence collection and provide policy templates but don’t replace the work of implementing controls.

Tips for Success

Start Early

SOC 2 takes longer than expected. Start 9-12 months before you need the report.

Get Executive Buy-In

SOC 2 requires resources and organizational change. Leadership must support it.

Appoint an Owner

Someone needs to drive the project. Make it their priority.

Don’t Scope Too Broadly

Only include what’s necessary. More scope = more work = more cost.

Use the Right Tools

Spreadsheets don’t scale. Invest in a compliance platform.

Integrate Into Operations

SOC 2 controls should become normal operations, not annual compliance exercises.

Build Relationships with Your Auditor

A good auditor is a partner, not an adversary. Choose wisely.

The IT Component

Your IT infrastructure is core to SOC 2. Key areas:

• Access management - User provisioning, MFA, reviews
• Network security - Firewalls, segmentation, monitoring
• Endpoint security - EDR, patching, encryption
• Cloud security - IAM, configuration, monitoring
• Backup/DR - Tested recovery capabilities
• Logging/SIEM - Centralized security monitoring
• Vulnerability management - Scanning, patching
• Change management - Controlled changes to systems

If your IT provider doesn’t understand SOC 2, you have a gap.

The Bottom Line

SOC 2 certification requires:

• Real security controls (not just documentation)
• Ongoing operation (not one-time effort)
• Evidence collection (prove what you do)
• External audit (independent validation)

The process is significant but achievable. The result is a competitive advantage and genuine security improvement.

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Preparing for SOC 2 and need help with the IT components? Contact us to discuss how we can support your compliance journey.