System and Organization Controls 2 (SOC 2) is a security framework created by the American Institute of Certified Public Accountants (AICPA) in 2010. It defines the controls organizations should implement to safeguard customer data and systems, based on five trust and security principles known as the Trust Services Criteria (TSC).
SOC 2 is primarily used by SaaS companies, cloud service providers, and other organizations that store or process sensitive data, particularly those serving customers in North America. The term “SOC 2” identifies both the framework itself and the attestation report organizations receive after an independent audit against the applicable TSC.
{{cta_withimage1="/cta-blocks"}} | SOC 2 compliance checklist
What does being “SOC 2 compliant” mean?
Although companies frequently describe themselves as "SOC 2 compliant," this is just industry shorthand for having completed a SOC 2 audit and received a SOC 2 attestation report from a licensed, independent CPA firm. SOC 2 is not a certification but an attestation, which documents the opinion issued by a licensed CPA after evaluating your controls against the framework's criteria. Because the opinion must come from an independent auditor, organizations cannot self-certify their SOC 2 compliance.
What is SOC 2 compliance?
SOC 2 compliance requires implementing and maintaining the controls necessary to complete a successful assessment and obtain a SOC 2 attestation report. As part of the audit, a third-party auditor assesses your information security posture against the five Trust Services Criteria:
- Security (CC): Your systems and data are protected against unauthorized access and disclosure
- Availability (A): Your information and systems are available for their intended use
- Confidentiality (C): Confidential information is kept confidential
- Processing integrity (PI): Data processing is complete, valid, accurate, and timely
- Privacy (P): Consumer data is protected, and consumers are informed about the collection, use, retention, and disposal of their data
Each TSC category includes a list of practices and standards. These determine which controls your auditor evaluates during the attestation process. Security, also known as the Common Criteria, are mandatory for all SOC 2 reports. The remaining four are included based on your organization’s services, systems, and customer expectations.
For example, add Confidentiality to the scope of your report if you process confidential customer information or have contractual confidentiality obligations.
Bonus: Learn more about the step-by-step SOC 2 compliance process in our checklist guide.
Importance of SOC 2 compliance
Today, SOC 2 has become one of the important components of vendor security reviews. While compliance is not legally enforced, many enterprise customers, business partners, and investors see it as a baseline requirement before doing business with you.
A SOC 2 report gives customers independent assurance that your organization has the appropriate measures in place to protect their data. This makes compliance particularly important for SaaS companies, cloud service providers, managed service providers (MSPs), and data centers—all organizations that store, process, or transmit customer data.
Many businesses and investors in North America only work with organizations that demonstrate their information security with a SOC 2 report.
Top business advantages of SOC 2 compliance include:
- Building a strong data security posture
- Publicly demonstrating your data security posture, enabling trustworthiness
- Ensuring via an audit that you’ve lowered your chances of a possible data breach
- Unlocking deals with high-value clients and partners that require a SOC 2 attestation
What is a SOC 2 audit?
A SOC 2 audit is a third-party evaluation of an organization's information security practices. It assesses how effectively you protect your organization’s and customers’ data, focusing on the security criterion and any additional Trust Services Criteria included in the engagement scope.
To get a SOC 2 report, you must hire an external auditor to review your policies and confirm they meet the SOC 2 criteria. Completing a SOC 2 audit validates the effectiveness of your security policies.
There are two types of SOC 2 audits: SOC 2 Type 1 and SOC 2 Type 2. During a SOC 2 Type 1 audit, your auditor reviews and documents the security controls you have in place at a single point in time. A SOC 2 Type 2 audit runs over a period of time, during which your auditor reviews and documents your controls and tests how effective they are.
Who can perform a SOC 2 audit?
A SOC 2 audit is performed by a licensed and independent certified public accountant (CPA) at a firm that is in good standing with the AICPA. The auditor must be a third party independent from your organization.
What is a SOC 2 report?
A SOC 2 report contains an independent CPA's opinion on whether your controls meet the applicable criteria and is the outcome of a SOC 2 audit. The report details how effectively your organization protects data against the established TSC scope, such as the Security, Availability, and Confidentiality criteria. SOC 2 reports provide an objective assessment of your security posture, and can contain one of the following opinions:
- Unqualified: Your controls meet all SOC 2 criteria
- Qualified: Your controls don’t sufficiently meet one or more SOC 2 criteria
- Adverse: Your controls do not satisfy the applicable criteria
- Disclaimer of opinion: The auditor doesn’t have enough evidence to form an opinion
{{cta_withimage1="/cta-blocks"}} | SOC 2 compliance checklist
SOC 2 Type 1 vs SOC 2 Type 2 reports
There are two types of SOC 2 reports: SOC 2 Type 1 and SOC 2 Type 2.
A SOC 2 Type 1 report details your security controls at a single point in time. It verifies that the necessary controls have been implemented, but does not validate how effective those controls are. SOC 2 Type 1 is often faster and more cost-effective than a SOC 2 Type 2, but SOC 2 Type 1 tends to carry less weight with larger firms.
A SOC 2 Type 2 report evaluates both the design and operating effectiveness of your security controls over an observation period. The audit period can range from 3–12 months, depending on the engagement scope and the agreed observation window. The report provides additional reassurance by demonstrating that your controls perform reliably over time.
SOC 1 vs SOC 2 vs SOC 3
There are three types of SOC audits: SOC 1, SOC 2, and SOC 3. A SOC 1 audit evaluates financial reporting procedures, while a SOC 2 focuses on information security, and a SOC 3 reviews security controls for public sharing.
SOC 2 is intended for stakeholders like customers and partners, whereas SOC 3, with less confidential information, is designed for public display, like on your website.
Below is a table comparing the different types of SOC reports:
Organizations often also compare SOC 2 and ISO 27001 when deciding how to demonstrate their security posture. Although the two frameworks overlap in many areas, they differ in their requirements, assessment methods, and primary use cases.
“When deciding which framework to pursue, the most important question organizations should ask is: What do my customers need? In most cases, the answer comes down to geography.
SOC 2 is the standard in the US market, while ISO 27001 has broader global adoption, particularly across EMEA. The key difference is SOC 2 results in a third-party attestation demonstrating that governance and security controls operated effectively over time. On the other hand, ISO 27001 results in a certification confirming that an organization has implemented a functioning information security management system (ISMS).”
SOC 2 timeline and cost considerations
The average SOC 2 process takes 6–12 months from the moment you start preparing the controls to when you have a completed SOC 2 report in hand. This covers checking which controls are missing, remediating gaps, testing controls, collecting evidence, and then finding an auditor and undergoing the audit. An external SOC 2 assessment typically takes 4–6+ weeks.
Cost is another key consideration. On average, a SOC 2 audit can cost $10,000–$80,000+. Engineering time and remediation efforts are usually the costliest part of SOC 2 preparation, as they both require a significant investment of time and resources. The total outlay can be higher depending on your organization’s size, audit scope, and the type of report you’re pursuing. For example:
- External readiness assessments typically start at $10,000 and increase with complexity
- Type 2 audits require more preparation and a longer observation period, so they need a bigger investment than Type 1 audits
Sustaining compliance after the first audit is another major investment. Although a SOC 2 attestation technically doesn’t expire, most organizations undergo the audit annually to demonstrate that their controls continue to operate effectively as their systems and risk environment evolve. You’ll have to invest ongoingly in control management and evidence collection to maintain SOC 2 attestation.
You can save time and resources with compliance automation. Top compliance management solutions such as Vanta use workflow automation, continuous monitoring, and AI-powered guidance to streamline SOC 2 attestation and maintenance.
Become SOC 2 compliant with Vanta
Vanta is the leading agentic trust platform that supports organizations through every stage of the SOC 2 journey—from scoping and control implementation to audit preparation and ongoing compliance. You can automate your program with built-in agentic workflows, ongoing oversight, and the Vanta AI Agent, which work together to simplify controls and gap remediation.
Vanta’s SOC 2 software comes with key features supporting preparation and audit, such as:
- Customizable SOC 2 scoping
- Automated evidence collection
- 1,400+ automated, hourly tests powered by 400+ integrations
- Smart policy builder to create and maintain SOC 2 documentation
- Continuous monitoring dashboards to support real-time visibility
- Ownership and accountability tracking for control responsibilities
- Risk assessment workflows
- Access to the Vanta Trust Center to build trust with customers and auditors via a shareable portal
You can use Vanta’s partner network of 100+ trusted auditors and consultants to support your compliance and audit journey. The platform also helps you reuse your SOC 2 evidence for overlaps in ISO 27001, HIPAA, and more.
Schedule a demo to learn how you can get your SOC 2 faster with Vanta.
{{cta_simple1="/cta-blocks"}} | SOC 2 product page
FAQs
Is SOC 2 mandatory?
No, SOC 2 attestation is not legally required for any organization. However, it has become a de facto requirement for organizations that handle customer data. Clients in regulated industries like finance and healthcare may refuse to work with vendors without SOC 2 reports.
Is SOC 2 a certification or an attestation?
There's no such thing as a SOC 2 certification. It's more accurate to call the outcome a SOC 2 attestation. SOC 2 audits are conducted by licensed CPAs based on standards set by the AICPA, and there's no certifying body or official certification. Auditors provide an objective report on your security posture with no pass or fail outcome.
Who needs to comply with SOC 2?
SOC 2 compliance is not legally required for any organization. It's voluntary, and there are no fines or penalties for not having the attestation. SOC 2 is commonly used in sectors like SaaS, cloud, finance, healthcare, business intelligence and analytics, and technology.
Can you fail a SOC 2 audit?
You technically can’t “fail” a SOC 2 audit, as there’s no pass or fail system. Instead, the auditor provides an objective report on your security posture. Depending on the design and effectiveness of your controls, the possible outcomes for a SOC 2 audit are: unqualified, qualified, adverse, or a disclaimer of opinion.
Introduction to SOC 2
What is SOC 2? A modern guide to compliance
Introduction to SOC 2
What is SOC 2? A modern guide to compliance
Download the checklist
Looking to automate SOC 2 audit prep?
System and Organization Controls 2 (SOC 2) is a security framework created by the American Institute of Certified Public Accountants (AICPA) in 2010. It defines the controls organizations should implement to safeguard customer data and systems, based on five trust and security principles known as the Trust Services Criteria (TSC).
SOC 2 is primarily used by SaaS companies, cloud service providers, and other organizations that store or process sensitive data, particularly those serving customers in North America. The term “SOC 2” identifies both the framework itself and the attestation report organizations receive after an independent audit against the applicable TSC.
{{cta_withimage1="/cta-blocks"}} | SOC 2 compliance checklist
What does being “SOC 2 compliant” mean?
Although companies frequently describe themselves as "SOC 2 compliant," this is just industry shorthand for having completed a SOC 2 audit and received a SOC 2 attestation report from a licensed, independent CPA firm. SOC 2 is not a certification but an attestation, which documents the opinion issued by a licensed CPA after evaluating your controls against the framework's criteria. Because the opinion must come from an independent auditor, organizations cannot self-certify their SOC 2 compliance.
What is SOC 2 compliance?
SOC 2 compliance requires implementing and maintaining the controls necessary to complete a successful assessment and obtain a SOC 2 attestation report. As part of the audit, a third-party auditor assesses your information security posture against the five Trust Services Criteria:
- Security (CC): Your systems and data are protected against unauthorized access and disclosure
- Availability (A): Your information and systems are available for their intended use
- Confidentiality (C): Confidential information is kept confidential
- Processing integrity (PI): Data processing is complete, valid, accurate, and timely
- Privacy (P): Consumer data is protected, and consumers are informed about the collection, use, retention, and disposal of their data
Each TSC category includes a list of practices and standards. These determine which controls your auditor evaluates during the attestation process. Security, also known as the Common Criteria, are mandatory for all SOC 2 reports. The remaining four are included based on your organization’s services, systems, and customer expectations.
For example, add Confidentiality to the scope of your report if you process confidential customer information or have contractual confidentiality obligations.
Bonus: Learn more about the step-by-step SOC 2 compliance process in our checklist guide.
Importance of SOC 2 compliance
Today, SOC 2 has become one of the important components of vendor security reviews. While compliance is not legally enforced, many enterprise customers, business partners, and investors see it as a baseline requirement before doing business with you.
A SOC 2 report gives customers independent assurance that your organization has the appropriate measures in place to protect their data. This makes compliance particularly important for SaaS companies, cloud service providers, managed service providers (MSPs), and data centers—all organizations that store, process, or transmit customer data.
Many businesses and investors in North America only work with organizations that demonstrate their information security with a SOC 2 report.
Top business advantages of SOC 2 compliance include:
- Building a strong data security posture
- Publicly demonstrating your data security posture, enabling trustworthiness
- Ensuring via an audit that you’ve lowered your chances of a possible data breach
- Unlocking deals with high-value clients and partners that require a SOC 2 attestation
What is a SOC 2 audit?
A SOC 2 audit is a third-party evaluation of an organization's information security practices. It assesses how effectively you protect your organization’s and customers’ data, focusing on the security criterion and any additional Trust Services Criteria included in the engagement scope.
To get a SOC 2 report, you must hire an external auditor to review your policies and confirm they meet the SOC 2 criteria. Completing a SOC 2 audit validates the effectiveness of your security policies.
There are two types of SOC 2 audits: SOC 2 Type 1 and SOC 2 Type 2. During a SOC 2 Type 1 audit, your auditor reviews and documents the security controls you have in place at a single point in time. A SOC 2 Type 2 audit runs over a period of time, during which your auditor reviews and documents your controls and tests how effective they are.
Who can perform a SOC 2 audit?
A SOC 2 audit is performed by a licensed and independent certified public accountant (CPA) at a firm that is in good standing with the AICPA. The auditor must be a third party independent from your organization.
What is a SOC 2 report?
A SOC 2 report contains an independent CPA's opinion on whether your controls meet the applicable criteria and is the outcome of a SOC 2 audit. The report details how effectively your organization protects data against the established TSC scope, such as the Security, Availability, and Confidentiality criteria. SOC 2 reports provide an objective assessment of your security posture, and can contain one of the following opinions:
- Unqualified: Your controls meet all SOC 2 criteria
- Qualified: Your controls don’t sufficiently meet one or more SOC 2 criteria
- Adverse: Your controls do not satisfy the applicable criteria
- Disclaimer of opinion: The auditor doesn’t have enough evidence to form an opinion
{{cta_withimage1="/cta-blocks"}} | SOC 2 compliance checklist
SOC 2 Type 1 vs SOC 2 Type 2 reports
There are two types of SOC 2 reports: SOC 2 Type 1 and SOC 2 Type 2.
A SOC 2 Type 1 report details your security controls at a single point in time. It verifies that the necessary controls have been implemented, but does not validate how effective those controls are. SOC 2 Type 1 is often faster and more cost-effective than a SOC 2 Type 2, but SOC 2 Type 1 tends to carry less weight with larger firms.
A SOC 2 Type 2 report evaluates both the design and operating effectiveness of your security controls over an observation period. The audit period can range from 3–12 months, depending on the engagement scope and the agreed observation window. The report provides additional reassurance by demonstrating that your controls perform reliably over time.
SOC 1 vs SOC 2 vs SOC 3
There are three types of SOC audits: SOC 1, SOC 2, and SOC 3. A SOC 1 audit evaluates financial reporting procedures, while a SOC 2 focuses on information security, and a SOC 3 reviews security controls for public sharing.
SOC 2 is intended for stakeholders like customers and partners, whereas SOC 3, with less confidential information, is designed for public display, like on your website.
Below is a table comparing the different types of SOC reports:
Organizations often also compare SOC 2 and ISO 27001 when deciding how to demonstrate their security posture. Although the two frameworks overlap in many areas, they differ in their requirements, assessment methods, and primary use cases.
“When deciding which framework to pursue, the most important question organizations should ask is: What do my customers need? In most cases, the answer comes down to geography.
SOC 2 is the standard in the US market, while ISO 27001 has broader global adoption, particularly across EMEA. The key difference is SOC 2 results in a third-party attestation demonstrating that governance and security controls operated effectively over time. On the other hand, ISO 27001 results in a certification confirming that an organization has implemented a functioning information security management system (ISMS).”
SOC 2 timeline and cost considerations
The average SOC 2 process takes 6–12 months from the moment you start preparing the controls to when you have a completed SOC 2 report in hand. This covers checking which controls are missing, remediating gaps, testing controls, collecting evidence, and then finding an auditor and undergoing the audit. An external SOC 2 assessment typically takes 4–6+ weeks.
Cost is another key consideration. On average, a SOC 2 audit can cost $10,000–$80,000+. Engineering time and remediation efforts are usually the costliest part of SOC 2 preparation, as they both require a significant investment of time and resources. The total outlay can be higher depending on your organization’s size, audit scope, and the type of report you’re pursuing. For example:
- External readiness assessments typically start at $10,000 and increase with complexity
- Type 2 audits require more preparation and a longer observation period, so they need a bigger investment than Type 1 audits
Sustaining compliance after the first audit is another major investment. Although a SOC 2 attestation technically doesn’t expire, most organizations undergo the audit annually to demonstrate that their controls continue to operate effectively as their systems and risk environment evolve. You’ll have to invest ongoingly in control management and evidence collection to maintain SOC 2 attestation.
You can save time and resources with compliance automation. Top compliance management solutions such as Vanta use workflow automation, continuous monitoring, and AI-powered guidance to streamline SOC 2 attestation and maintenance.
Become SOC 2 compliant with Vanta
Vanta is the leading agentic trust platform that supports organizations through every stage of the SOC 2 journey—from scoping and control implementation to audit preparation and ongoing compliance. You can automate your program with built-in agentic workflows, ongoing oversight, and the Vanta AI Agent, which work together to simplify controls and gap remediation.
Vanta’s SOC 2 software comes with key features supporting preparation and audit, such as:
- Customizable SOC 2 scoping
- Automated evidence collection
- 1,400+ automated, hourly tests powered by 400+ integrations
- Smart policy builder to create and maintain SOC 2 documentation
- Continuous monitoring dashboards to support real-time visibility
- Ownership and accountability tracking for control responsibilities
- Risk assessment workflows
- Access to the Vanta Trust Center to build trust with customers and auditors via a shareable portal
You can use Vanta’s partner network of 100+ trusted auditors and consultants to support your compliance and audit journey. The platform also helps you reuse your SOC 2 evidence for overlaps in ISO 27001, HIPAA, and more.
Schedule a demo to learn how you can get your SOC 2 faster with Vanta.
{{cta_simple1="/cta-blocks"}} | SOC 2 product page
FAQs
Is SOC 2 mandatory?
No, SOC 2 attestation is not legally required for any organization. However, it has become a de facto requirement for organizations that handle customer data. Clients in regulated industries like finance and healthcare may refuse to work with vendors without SOC 2 reports.
Is SOC 2 a certification or an attestation?
There's no such thing as a SOC 2 certification. It's more accurate to call the outcome a SOC 2 attestation. SOC 2 audits are conducted by licensed CPAs based on standards set by the AICPA, and there's no certifying body or official certification. Auditors provide an objective report on your security posture with no pass or fail outcome.
Who needs to comply with SOC 2?
SOC 2 compliance is not legally required for any organization. It's voluntary, and there are no fines or penalties for not having the attestation. SOC 2 is commonly used in sectors like SaaS, cloud, finance, healthcare, business intelligence and analytics, and technology.
Can you fail a SOC 2 audit?
You technically can’t “fail” a SOC 2 audit, as there’s no pass or fail system. Instead, the auditor provides an objective report on your security posture. Depending on the design and effectiveness of your controls, the possible outcomes for a SOC 2 audit are: unqualified, qualified, adverse, or a disclaimer of opinion.
Explore more SOC 2 articles
Introduction to SOC 2
Preparing for a SOC 2 audit
SOC 2 reporting and documentation
Streamlining SOC 2 compliance
SOC differences and similarities
Additional SOC 2 resources
Get started with SOC 2
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The SOC 2 Compliance Checklist
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