These are just a few questions that auditors will ask during a SOC 2 audit. If you can’t provide verifiable proof like documented processes, screenshots, logs, or signed attestations, you risk audit exceptions. And if too many pile up, your audit report could carry a dreaded disclaimer, potentially damaging trust with customers and partners.
In this comprehensive guide to SOC 2 Compliance, we break down everything you need to know, from what SOC 2 is, why it matters, and how to approach it strategically, step by step. Whether you’re just starting your journey or want to tighten your compliance posture, this guide will help you view SOC 2 not as a box-checking burden, but as a growth enabler that builds customer confidence and enterprise credibility.
📋 Quick Summary for Decision Makers
Key Highlights:
- What it is: SOC 2 evaluates internal controls for data protection, system integrity, and privacy.
- Who needs it: Any company that stores or processes customer data in the cloud (especially B2B SaaS).
- SOC 2 Reports: Type 1 (snapshot of controls) vs. Type 2 (effectiveness of controls over time).
Core Steps to Compliance:
- Choose relevant TSCs based on your business and data use.
- Conduct internal risk assessments and gap analysis.
- Define and implement required policies and technical controls.
- Map controls to individual TSC criteria (61 in total).
- Automate continuous monitoring to stay audit-ready.
- Undergo an audit by an independent CPA firm.
Why It Matters:
- Builds customer trust and unlocks enterprise deals.
- Mitigates audit risk with proof-ready logs, policies, and access controls.
- Serves as a competitive differentiator in security-conscious markets.
Sprinto’s Edge:
- Access to a trained auditor network, with full audit support.
- End-to-end automation of SOC 2 workflows.
- Prebuilt templates, policy packs, and auditor-ready dashboards.
- Smart scoping, control mapping, and real-time evidence tracking.
What is SOC 2 Compliance?
SOC 2 compliance is a voluntary compliance standard developed by the American Institute of CPAs (AICPA) that specifies how organizations should manage customer data based on the Trust Services Criteria (TSC) of Security, Availability, Confidentiality, Processing Integrity, and Privacy.
In other words, SOC 2 is a compliance protocol that assesses whether your organization manages its customers’ data safely and effectively within the cloud. It provides evidence of the strength of your data protection and cloud security practices in the form of SOC reports. SOC 2 compliance isn’t a regulatory requirement but is a globally-accepted compliance benchmark.
What is a SOC 2 Compliance Report?
A SOC 2 compliance report examines your organization’s control over one or more of the TSC. The TSC is the control criteria used to analyze the design and operating effectiveness of the controls you have set (for each of the five criteria) for your organization’s information and systems. We will cover this in detail in the later section.
An external auditor attests the SOC 2 compliant report. It is the most trusted way to showcase how well you provide a secure, available, confidential, and private solution to your customers and prospects.
Who Needs to Prepare for SOC 2 Compliance?
The SOC 2 checklist is explicitly designed for businesses that store customer data in the cloud. So, in essence, it will apply to most SaaS companies and cloud vendors. Besides, the SOC compliance framework offers good security practices for data loss prevention, incident response, intrusion detection, unauthorized access, and other security incidents to ensure business continuity.
3 months of SOC 2 observation
and Engineering at Dassana
How to get SOC 2 compliant?
The next important step is understanding the many SOC 2 compliance requirements and interpreting their fit into your specific environment.
To do that, you will need to do the following:
Before diving into the five TSCs, it is essential to note that each of the five criteria will apply to – Infrastructure, Software, People, Data, and Procedures in your organization.
1. Understand the SOC 2 Trust Service Criteria
Formerly known as the Trust Principles, there are five Trust Services Criteria that businesses are evaluated on during a SOC 2 audit. Think of each criterion as a focus area for your infosec compliance program; each defines a set of SOC compliance objectives your business must adhere to with your defined controls.
Security – It must be in scope for every SOC 2 audit and is, therefore, referred to as the common criteria. It requires you to enable access control, entity-level controls, firewalls, and other operational/governance controls to protect your data and applications. This TSC takes substantial effort and will require participation from your IT development, IT Infrastructure, HR, senior management, and operations teams.
Availability – This principle requires you to demonstrate that your systems meet operational uptime and performance standards and includes network performance monitoring, disaster recovery processes, and procedures for handling security incidents, among others. Business continuity, data recovery and backup plans are critical pieces here.
Choose Availability if your customers have concerns about downtime.
Confidentiality – This principle requires you to demonstrate your ability to safeguard confidential information throughout its lifecycle by establishing access control and proper privileges (to ensure that data can be viewed/used only by the authorized set of people or organizations). Confidential data includes financial information, intellectual property, and any other form of business-sensitive details specific to your contractual commitments with your customer.
Choose Confidentiality if you store sensitive information protected by non-disclosure agreements (NDAs) or if your customers have specific requirements about confidentiality.
Processing Integrity – This principle assesses whether your cloud data is processed accurately, reliably and on time and if your systems achieve their purpose. It includes quality assurance procedures and SOC tools to monitor data processing.
Include Processing Integrity if you execute critical customer operations such as financial processing, payroll services, and tax processing, to name a few.
Privacy – It requires you to protect Personally Identifiable Information (PII) from breaches and unauthorized access through rigorous access controls, two-factor authentication, and encryption, among others.
Include Privacy if your customers store PII such as healthcare data, birthdays, and social security numbers.
2. Which Trust Service Criteria apply to you?
To begin with, evaluate your operating environment and scope out all the TSC before selecting which ones best fit your business model and the customer asks (based on the type of data you store or transmit). For instance, if you are a SaaS firm that stores personal data, Availability, and Privacy as TSC would be more relevant.
But if you manage customer financial transactions, processing integrity could become the critical criteria. To that extent, SOC 2 reports are unique to each business. Doing this will help you cut the flab in the audit process. And you won’t waste your business-critical time and resources chasing attestations and evidence that aren’t meaningful to your business and customers.
In our experience, most businesses only need Security, Availability, and Confidentiality (or their combination) as TSC in their SOC 2 journey. Select privacy and processing integrity if your business processes or holds PII or executes critical customer operations such as financial processing or data processing.
3. Internal Risk Assessment
Risk mitigation and SOC 2 risk assessment are crucial in your SOC 2 compliance journey. You need to identify any risks associated with growth, location, or infosec best practices, and document the scope of risks from identified threats and vulnerabilities.
The exercise is subjective, and you will need to assess risks for your business such as from vendors and business partners, misuse of access to information, leadership changes, regulatory, economic and physical environment changes, and technology changes.
You then need to assign a likelihood and impact to each identified risk and then deploy measures (controls) to mitigate them. During the audit, you will be required to demonstrate how you monitor, identify, analyze and prevent losses that could come from those.
4. Gap Analysis & Remediation
It is crucial to do a gap analysis at this stage. This will help you understand which policies, procedures, and controls your business already has in place and operationalized and how they measure against the SOC 2 requirements.
For instance, SOC 2 requires your production databases to be encrypted at rest and automation tests to be set up for all code repositories that support the application and website. It also requires you to set up a process of at least one review before merging.
If you don’t meet these requirements, you can form a remediation plan to plug the gaps and implement those controls against the gaps. As a best practice, base the remediation plan on your current situation as well as how you want to grow vis-a-vis SOC 2 requirements.
5. Mapping & Coverage of internal controls
Each of the five TSC in SOC 2 comes with a set of individual criteria (totaling 61). You will need to deploy internal controls for each of the individual criteria (under your selected TSC) through policies that establish what is expected and procedures that put your policies into action.
For instance, the confidentiality TSC has two individual criteria. So, your internal controls for Confidentiality will need to 1) demonstrate that you have procedures in place to identify and designate confidential information when it is received, determine the period over which the information will be retained, and 2) protect it from erasure or destruction.
You then need to carry out a mapping exercise to demonstrate how your organization meets the selected criteria by aligning your controls. For instance, you will need to map your internal controls to the 33 individual criteria under security (where relevant). While it is okay to repeat controls for some of the criteria, you need to ensure there is enough coverage for each TSC. And if there isn’t, close the gap by remapping some controls or implementing new ones.
Note that the criteria for each trust services category your organization addresses are considered complete only if all the individual criteria associated with that category are addressed. If any criterion is out of scope, you can keep it out of the audit purview with a suitable justification.
The entire process is intensive and time-consuming and can take a chunk of your CTO’s time (who already is swamped with new releases and meetings). But when you work with Sprinto, the process is streamlined, automated, and fast. Sprinto provides a template of 20+ editable security policies that make for an easy read. Did we say our policies’ templates are crafted with no legal jargon to throw you off your compliance game?
Sprinto’s approach to compliance is logical and goes from People, Policies, Infrastructure, Code Repos, Incident Management, and Access Control to Documentation – so you don’t miss out on any security measures. It ensures all the relevant controls under each of these buckets vis-a-vis your TSC are identified and set. Mapping is automated with Sprinto, saving you from hours of dreadful work. You can mark production and non-production assets and define the security criteria for each.
For instance, you can earmark some of your non-production assets from the purview of the audit or temporarily remove specific entities from the scope when an employee is away from work on maternity/paternity leave and can’t encrypt their laptops or update their operating systems.
Also, find out what the SOC 2 bridge letter is and how it is helpful.
6. Continuous Monitoring
Continuous monitoring is perhaps the most critical step in your compliance journey; one that will help keep you SOC 2 ready always. It’s akin to a continuous loop that requires you to test your controls, remediate the gaps, test again, and continuously collect evidence of compliance.
Depending on the control, you will be able to do this by either taking screenshots, producing policy documents or tickets, showing emails, and pulling out reports from the various tools you work with, to name a few.
You need to create a continuous monitoring system such that it not only validates your compliance with proof, it also alerts you when something isn’t done or done incorrectly.
For instance, when an employee leaves, a workflow should get initiated to remove access. If this doesn’t happen, you should have a system in place to flag this failure so it can be corrected. Continuous monitoring will help you demonstrate with evidence the periodic and dynamic implementation of controls and checks.
With Sprinto, your audit prep is as intensive and exhaustive (sometimes even more) but is entirely automated! From giving you a dashboard overview of your SOC 2 compliance readiness to providing a granular view of, say, which employees haven’t gone through their security training, Sprinto helps you focus on the controls that need investigation on a real-time basis through continuous monitoring. helpful
The dashboard is designed to capture your audit preparedness (there is even a % marker that shows your preparedness) and flags off lapses, oversights, and vulnerabilities that need fixing. And since each control is aligned to its evidence in the platform, Sprinto makes evidence collection and continuous monitoring easy and error-free. You could even add custom controls, classify your entities and select the evidence you want to share.
7. Audit SOC 2
A SOC 2 compliance is as much about your security posture and best practices as it is about getting the attestation from the auditor. Your approach to SOC 2, therefore, should focus equally on the means as well as the end.
At this stage, you need to authorize an independent certified auditor to complete your SOC 2 audit and generate a report. While SOC 2 compliance costs can be a significant factor, choose an auditor with established credentials and experience auditing businesses like yours. Additionally, you will need to find a way to securely share all the documentation and evidence to meet the auditor’s request (through shared drives, for instance).
Typically, you can expect a long-drawn to and fro with the auditor as you answer their questions, provide evidence, and discover non-conformities. An established continuous monitoring practice can help you sail through the audit easily.
With Sprinto, evidence collection and cataloging are automated. You also get access to Sprinto’s network of independent third-party auditors. The auditors (trained in using Sprinto) get all the information they need on Sprinto’s custom Auditor’s Dashboard, making evidence sharing easy for both of you. And unlike most other tools in the market, Sprinto offers 100% case coverage and completely manages the auditor for you!
Calculate your Compliance cost for free with our SOC 2 compliance cost calculator
Why do you need SOC 2 Type 2 Compliance?
From our experience working with hundreds of SaaS businesses, here’s a quick overview of why you need to be SOC 2 compliant.
SOC 1 and SOC 2 Compliance
While both SOC compliance frameworks attest to the controls used within your organization, the frameworks differ in focus. A SOC 1 audit focuses on internal control over financial reporting (ICFR) and is suitable if you are hosting or processing financial information that could affect your clients’ financial reporting. A SOC 2 audit focuses on the five trust principles outlined earlier and provides evidence of long-term, ongoing processes that can be trusted to protect customer data.
You can read more about the difference between SOC 1 vs. SOC 2.
SOC 2 Type 1 and SOC 2 Type 2
If you aren’t handling the financial information of your customers, you will possibly need SOC 2 compliance reports. But there’s one more decision to make here. A SOC 2 compliant report comes in Type 1 and Type 2. You can decide which one you want depending on what your customers require of you (in terms of Trust Services Criteria) and the timelines you are ready to work with. (check out the SOC 2 report examples)
While a SOC 2 Type 1 report affirms that controls are in place at that point in time, Type 2 confirms that the controls in place are actually working too over a period of time; the one we think you will need eventually.
If you decide to go for Type 1, here’s what it would mean:
- It shows your committed to data security
- It indicates you plan on eventually becoming fully SOC 2 compliant
- It’ll give you a ringside view of which organizational controls to include in the Type 2 report
- It’ll give you a practical understanding of the criteria auditors will want to test against in a Type 2 report
Even though a Type 1 report takes less time and makes for a great starting point, as your business grows, there’s a high likelihood that your vendors and prospects will ask for the more comprehensive Type 2 compliance before working with you. Here again, you ought to be aware that to obtain your Type 2 report, you must operate the SOC 2 controls over a period of time, about three-six months for the first audit and one year for subsequent audits.
Learn more about SOC 2 Type 1 and SOC 2 Type 2.
Sprinto can help you get both Type 1 and Type 2 ready. And if you aren’t sure which type of SOC 2 you need, our team will help you decide on what best fits your immediate requirements. Sprinto will also sift through the hundreds of compliance requirements and break them down into easy-to-understand and implementable action items for you.
Also check out: How to get SOC 2 compliant as a small business
The SOC 2 Audit Report
Once you get the SOC 2 report, you can share it with your customers and prospects. You could also watermark it or request a signed NDA from your prospects before sharing it since the report contains sensitive information.
A SOC 2 audit report includes:
- An opinion letter
- Management assertion
- A detailed description of the system or service
- Details of the selected trust services categories
- Tests of controls and the results of testing
- Optional additional information
Sprinto makes it easier for you to do all this and much more by automating the changes to policies and procedures.
The smart way to become SOC 2 compliant
With Sprinto, your audit journey is a well-thought-out and detailed process during which we help define the controls and checks, and automate it all with our easy-to-use and intuitive platform. Sprinto replaces all the manual, error-prone, repetitive busy work with automation. Book a free demo here to see how Sprinto can help you successfully start and sail through your SOC 2 journey.
Why should you listen to us?
Sprinto was founded as a solution to the problems its founders faced when they needed to get a SOC 2 certification? While getting a certification for Recruiterbox, a B2B SaaS company they had co-founded earlier, the founders spent months, tens of thousands of dollars, and a ton of effort. During this time, their product development came to a grinding halt, and they landed up cannibalizing other projects!
As it turns out, this is a typical story with many companies. While the compliances by themselves aren’t unwieldy, the solutions to obtain them are all stuck in the past.
Sprinto ensures you don’t put your business growth on the back burner while working on getting security certifications to earn your customers’ trust. When done well, a SOC compliance can serve as a growth enabler and help swing those lucrative enterprise deals in your favor!
SOC 2 Compliance FAQs
SOC 2 audits are exclusively carried out by licensed CPA firms or agencies accredited by the AICPA. Also, the auditor or auditing firm must be an independent CPA, ensuring they have no affiliations or connections with the service organization being audited.
SOC 2 compliance is a voluntary standard established by the AICPA for service organizations. It outlines guidelines for effectively managing customer data. The SOC 2 standard is built upon the Trust Services Criteria, which includes the following key aspects: security, availability, processing integrity, confidentiality, and privacy.
SOC 2 compliance entails meeting specific criteria evaluated during an audit. In 2023, there are five essential TSCs that businesses need to adhere to. These criteria include Security, Availability, Confidentiality, Processing Integrity, and Privacy. Each TSC sets out your organization’s compliance requirements by implementing robust internal controls.
Pritesh Vora
Pritesh is a founding team member and VP Growth & Marketing at Sprinto. He comes with over a decade of experience and is a data-driven dynamo in growth strategy, sales, and marketing! His strategies have crafted the success of not one, but two early-stage SaaS startups to 7-digit revenues within a year – he’s your go to guy for all things growth.
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