SOC 2: The Complete Guide
SOC 2 is the most widely requested compliance framework for technology companies in North America. Developed by the AICPA, it evaluates an organization's controls relevant to security, availability, processing integrity, confidentiality, and privacy — known as the Trust Service Criteria (TSC).
Type I vs Type II
SOC 2 Type I evaluates the design of your controls at a specific point in time. Think of it as a snapshot — the auditor verifies that appropriate controls exist but does not test whether they operated effectively over time. Type I reports can be completed in as little as 2-4 months.
SOC 2 Type II evaluates both the design and operating effectiveness of controls over a review period, typically 6-12 months. This is the report enterprise buyers actually want. It proves your controls are not just designed well but consistently executed.
Most companies start with Type I to unlock immediate sales opportunities, then transition to Type II within 6-12 months.
The Five Trust Service Criteria
Security (required) is the foundation. It covers protection against unauthorized access through firewalls, intrusion detection, multi-factor authentication, and related controls.
Availability addresses whether systems are operational and accessible as committed. Relevant for SaaS companies with uptime SLAs.
Processing Integrity ensures system processing is complete, valid, accurate, and timely. Critical for companies handling financial transactions or data processing.
Confidentiality covers protection of information designated as confidential, such as business plans, intellectual property, or client data.
Privacy addresses personal information collection, use, retention, and disposal. Often included by companies handling consumer PII.
What Enterprise Buyers Expect
When a prospect asks "Are you SOC 2 compliant?" they almost always mean Type II with at least the Security criterion. Larger enterprises may request Availability and Confidentiality as well. Share your report under NDA through a secure portal rather than emailing PDF copies.
A clean SOC 2 Type II report with no exceptions is the gold standard. Reports with noted exceptions are not failures — they are common — but each exception requires explanation during security reviews.