How much does a SOC 2 Audit Cost in 2024

When you look to pitch for high-value projects in new markets, having a robust organization-wide security culture and a SOC 2 compliance report can be a significant advantage. Your security compliance could become the deciding factor that tips the scales in your favor. But a SOC 2 doesn’t come cheap. 

Did you know a good chunk of your SOC 2 cost comprises the SOC 2 audit cost? In this article, we will discuss how much a SOC 2 audit costs, its additional cost components, and how to select your SOC 2 auditor.

SOC 2 Audit Costs Overview

To best appreciate the many cost components of SOC 2 audits, it’s essential to understand what SOC 2 audits entail. In essence, your auditor will evaluate the design (SOC 2 Type 1) and operating effectiveness (SOC 2 Type 2) of your internal controls by testing some of the controls and asking for evidence of deployment of the others.

Your audit cost will depend on the types of audits sought. The SOC 2 Type 1 audit cost and SOC 2 Type 2 audit cost typically vary. A SOC 2 Type 1 is less expensive than Type 2 as the time required to conduct the audit and the time covered within the audit review is higher for the latter.

Which factors determine your SOC 2 Audit Cost?

SOC 2 audit cost isn’t a simple price menu. No one number can be pinned down as the exact cost of your SOC 2 audit from start to finish. So, at best, we can only give you an estimate/range of the audit costs. The actual number will depend on several factors, some of which are listed below:

SOC 2 Type 1 vs Type 2 Audit Costs

First the basics – what is a SOC 2 audit? During a SOC 2 audit, the auditor will examine your policies, procedures, and controls to ensure they keep your customers’ data safe and secure. Auditor costs typically increase with the increase in your employee count, the complexity of your organization’s systems and controls, your audit readiness and the type of auditor chosen.

For instance, audit costs can spiral up rather quickly for a company with multiple products and multiple workplace management platforms.  

The Big 4 audit firms (Deloitte, E&Y, KPMG, and PWC) are expensive and may be too high for startups or smaller organizations. Audit pricing of mid-tier and boutique audit firms is lower in comparison. To limit the audit costs for small businesses, it’s best to scout for auditors (or firms) who meet your budget and other qualitative requirements such as relevant experience. Here again, there is room to negotiate based on the scope of your SOC 2 audit and the size of your organization.

For instance, while some auditors charge $12000 for SOC 2 Type 1 audit and $15000 for SOC 2 Type II, there are some that charge based on the TSC chosen – $20000 for only Security, $26000 for Security, Availability & Confidentiality (same prices for Type I and II). 

In your efforts to contain your audit costs, don’t choose the cheapest. Make sure you pick an auditor with established credentials and experience auditing businesses like yours. 

Cutting corners here won’t help, especially if you plan to use your SOC 2 Type 1 and SOC 2 Type 2 reports. Your auditor’s reputation will also reflect on your organization and influence your customers/prospects’ confidence in your infosec posture. A SOC 2 compliance is as much about your infosec posture and best practices as it is about getting the attestation from an established CPA.  

Additional SOC 2 Audit Costs

Outside of the direct SOC 2 audit costs, other cost components add to your certification cost. From readiness assessment (optional) to additional SOC tools to security training for employees to the cost of lost productivity of the employees who helm the SOC 2 journey for your organization, SOC 2 audit costs can bloat up quickly.  The opportunity costs in terms of time spent by your internal team (typically runs into hundreds of hours) to prepare for an audit can be quite big.

While budgeting for SOC 2, you must also account for recurring costs you’ll have to consider to uphold your compliant status such as penetration tests, security tools, security awareness training, and legal fees, to name a few. Here’s the SOC 2 audit cost total breakdown:

How to lower the SOC 2 Audit Cost?

While you cannot drastically lower your Soc 2 certification cost, there are ways to keep a check on them. A must-read cheat sheet on SOC 2 audit for the smaller businesses. Here are five ways to lower your SOC 2 audit costs: 

• Narrow the audit scope to a single product and the TSC(s) that are a growth priority.
• Start your SOC 2 compliance journey early when your product and system of internal controls are relatively simple.
• Be diligent about audit prep and promote a security-first culture in your organization.
• Scout for CPAs that meet your requirements, and negotiate hard. Some auditors give bundled pricing for Type 1 and Type 2 reports, while some offer discounts on subsequent audits after the first one. 
• Invest in compliance automation

Invest in Compliance Automation

Investing in compliance automation platforms such as Sprinto can help you become cost-efficient in the long run. Audits and compliance are recurring costs, and you can expect them to increase with the addition of more frameworks as your business grows into newer geographies. 

Compliance automation adds strength to your security posture by helping you stay on top of your security practices all the time. And did we mention automating evidence collection? Sprinto makes evidence collection easy, error-free and fast.

Talk to us to know more about how Sprinto can help you automate your SOC 2 compliance journey.

You can read some of our customer case studies here and here.

How Long Does a SOC 2 Audit Take to Complete?

The time taken for your SOC 2 depends on the type of SOC 2 report needed, the complexity of your system of internal controls, and your choice of auditor. 

SOC 2 Type 1 audit is less intrusive as it only reviews the design of your internal controls at a point in time. However, SOC 2 Type 2 audit can take anywhere between three-six months or even more – Type 2 audit tests the operating effectiveness of your internal controls over the audit period. A good practice here would be to run an internal audit prep exercise and ready the evidence to demonstrate the operating effectiveness of your internal controls.

What Does a SOC 2 Audit Include?

In a SOC 2 audit, an independent certified CPA (or CPA firm) evaluates whether your organization provides a secure, available, confidential, and private solution to your customers. They examine your organization’s control over one or more of your chosen Trust Services Criteria. And as we mentioned earlier, the cost of your audit will vary depending on the type of SOC 2 report needed, the TSCs involved, and much more. 

SOC 2 Type 1 audit is relatively more straightforward;  the auditor only reviews the design of your internal controls at a point in time as per compliance requirements.

SOC 2 Type 2 audits are extensive and spread over a period of three-six months. They typically involve a more protracted to and for with the auditor. 

Here are some of the oft-asked questions during the audit for which you will need to share evidence. 

• Do all your employees undergo background verification? 
• Are changes in your code repositories peer-reviewed before its merged?
• Do you remove access to emails and databases once an employee is offboarded? 

If you cannot produce demonstrable proof of your SOC 2 compliance requirements, the auditor can flag them as exceptions (and trust us, you don’t want that!).