SOC 2 Type II is an independent attestation report that evaluates how effectively an organization’s controls related to information security, availability, processing integrity, confidentiality, and privacy operate over a defined period (typically 6–12 months). It is based on the American Institute of Certified Public Accountants (AICPA) Trust Services Criteria (TSC) and is especially relevant for service organizations that handle sensitive or customer data .
Purpose: To provide assurance to clients and stakeholders that an organization has robust, effective controls in place to protect data and systems over time.
Importance:
Demonstrates a commitment to security and compliance.
Enhances trust and credibility with customers and partners.
Helps meet regulatory requirements (e.g., GDPR, HIPAA, PCI DSS).
Provides a competitive advantage in industries where data protection is critical .
Scope
Design of controls
Design & operational effectiveness
Testing Period
Single point in time
Over a period (3–12 months)
Assurance Level
Limited (design only)
High (design + operation)
Use Case
Quick demonstration of controls
Ongoing, sustained compliance
Report Content
Auditor’s opinion on design
Auditor’s opinion + effectiveness
Cost/Time
Lower/Shorter
Higher/Longer
Security (Common Criteria)
Protection against unauthorized access, disclosure, and damage.
Controls: Firewalls, access controls, encryption, monitoring .
Availability
Systems are operational and accessible as needed.
Controls: Performance monitoring, disaster recovery, incident response .
Processing Integrity
System processing is complete, valid, accurate, timely, and authorized.
Controls: Data validation, error detection, monitoring .
Confidentiality
Information designated as confidential is protected.
Controls: Encryption, access restrictions, secure transmission .
Privacy
Personal information is collected, used, retained, disclosed, and disposed of in accordance with privacy policies and regulations.
Controls: Consent management, data protection, user access .
Define Scope
Identify systems, processes, and data to be audited.
Select relevant TSCs .
Risk Assessment
Identify vulnerabilities and threats.
Develop mitigation strategies .
Establish Controls
Implement policies, procedures, and technical controls.
Ensure controls align with selected TSCs .
Readiness Assessment
Conduct a mock audit to identify gaps.
Address deficiencies before the official audit .
Select Auditor
Choose a qualified CPA firm experienced in SOC 2 audits.
Audit Period
Controls are tested for operational effectiveness over 3–12 months .
Evidence Collection
Provide documentation: policies, logs, incident reports, training records, etc. .
Reporting
Auditor issues a detailed report with findings and recommendations.
Process Flows: Diagrams and descriptions of workflows.
Policies & Procedures: Security, privacy, incident response, data handling.
Evidence of Controls: Access logs, audit trails, encryption protocols, monitoring reports.
Training Records: Proof of employee training on security and compliance .
Navigating complex and evolving regulations.
Ensuring third-party/vendor compliance.
Maintaining up-to-date documentation.
Training and awareness for all staff.
Continuous monitoring and improvement of controls .
Risk-Based Approach: Regularly assess and prioritize risks .
Strong Internal Controls: Segregation of duties, automated workflows, continuous monitoring.
Continuous Monitoring: Regular internal audits and compliance checks.
Employee Training: Ongoing, role-specific training programs .
Leverage Technology: Use compliance management tools for automation and tracking .
Stakeholder Engagement: Involve all levels of the organization in compliance efforts.
Readiness Assessments: Conduct mock audits to identify and address gaps before the official audit .
Center for Internet Security (CIS): Completed a SOC 2 Type II audit to protect member data and meet compliance requirements .
ManagingLife: Embedded security and privacy into their business model to achieve SOC 2 compliance .
Shutlingsloe Ltd: Underwent a readiness assessment to prepare for SOC 2 Type II, highlighting the importance of preparation and gap analysis .
Purpose
Prove controls are effective over time; build trust
Scope
Security, Availability, Processing Integrity, Confidentiality, Privacy
Audit Period
3–12 months (controls tested over time)
Documentation
Policies, procedures, logs, evidence of controls, training records
Best Practices
Risk assessment, readiness assessment, continuous monitoring, training
Challenges
Regulatory complexity, third-party risk, documentation, training
Type I vs. Type II
Type I: Design at a point in time; Type II: Design + operation over time
Outcome
Detailed report for clients/stakeholders; recommendations for improvement
SOC 2 Type II is a rigorous, time-bound audit that demonstrates an organization’s ability to maintain effective controls for information security and privacy. It is essential for organizations handling sensitive data, providing a high level of assurance to clients and partners, and is a key differentiator in competitive markets. Preparation, documentation, and continuous improvement are critical to successful compliance .
Use this summary and cheat sheet as a foundation for understanding, preparing for, and maintaining SOC 2 Type II compliance.