SOC 2 - Trust Service Criteria
Build Trust Through Security Excellence
In today's digital economy, customers entrust service providers with their most sensitive data—customer information, intellectual property, health records, financial data, and confidential business information. Before selecting a cloud provider, SaaS vendor, or technology partner, organizations need assurance that their data will be secure and handled properly. "Trust us" is no longer sufficient—customers demand independent verification of security controls. SOC 2 reports provide that critical validation. At Glocert International, we specialize in conducting independent SOC 2 audits that evaluate your controls based on the AICPA's Trust Service Criteria. As experts in the Testing, Inspection, and Certification industry, we conduct thorough SOC 2 examinations that help technology companies, cloud providers, SaaS vendors, and service organizations demonstrate security excellence, meet customer requirements, differentiate from competitors, and build lasting trust with clients and prospects.
What is SOC 2?
SOC 2 (System and Organization Controls 2) is an audit report on a service organization's controls relevant to security, availability, processing integrity, confidentiality, and privacy—collectively known as the Trust Service Criteria. SOC 2 reports are issued under AT-C Section 105 and Section 205 by the American Institute of Certified Public Accountants (AICPA).
Unlike SOC 1 which focuses on financial controls, SOC 2 evaluates operational controls related to data security and privacy. SOC 2 reports are designed for users who need detailed information about a service organization's controls and are restricted-use reports intended for management, regulators, business partners, and others with sufficient knowledge to understand the report.
Key Components of SOC 2 Reports
- Management Assertion: Service organization's description of its system and controls
- Service Auditor's Report: Independent CPA's opinion on control effectiveness
- System Description: Detailed description of the service organization's system
- Trust Service Criteria: Applicable criteria from the five TSC categories
- Control Objectives and Activities: Specific controls implemented to meet criteria
- Test Results: For Type 2, detailed testing results over the reporting period
- Complementary Subservice Organization Controls (CSOCs): If subservice organizations are used
- Other Information: Any exceptions, qualifications, or other relevant information
Why is SOC 2 Important?
SOC 2 audits are critical for technology companies and service providers handling customer data. Here's why SOC 2 reports are essential:
1. Customer Requirements and Trust
Customers increasingly demand SOC 2 reports from their vendors:
- Enterprise customers require SOC 2 reports before signing contracts
- Vendor risk management programs mandate SOC 2 for critical vendors
- Absence of SOC 2 report is a deal-breaker for many prospects
- SOC 2 reports reduce customer audit burden (replacing customer questionnaires)
- Independent validation builds trust with prospects and customers
- SOC 2 certification accelerates sales cycles by removing security concerns
2. Competitive Differentiation
SOC 2 provides market advantage through demonstration of security maturity to prospects, competitive requirement in cloud and SaaS markets, requirement for listing on software marketplaces (AWS, Azure, etc.), and credibility with investors and potential acquirers. SOC 2 badge signals trustworthiness to market.
3. Security and Risk Management
SOC 2 examinations improve security posture through independent assessment of security controls, identification of vulnerabilities and gaps, validation of control operating effectiveness, continuous improvement through annual examinations, and reduced risk of data breaches and incidents.
4. Regulatory and Compliance
While not a regulatory requirement, SOC 2 supports compliance with data protection regulations (GDPR, CCPA, HIPAA), industry standards, insurance requirements (cyber insurance often requires SOC 2), and contractual obligations in customer agreements.
5. Operational Excellence
SOC 2 drives operational improvements through formalization of security policies and procedures, enhanced incident response capabilities, improved change management, better vendor management, and documented business continuity and disaster recovery.
Trust Service Criteria (TSC)
SOC 2 examinations are based on five Trust Service Criteria categories. Organizations select which criteria are relevant to their services:
Security (Required for All SOC 2 Reports)
Definition: The system is protected against unauthorized access (both physical and logical).
Key Areas: Access controls, authentication, encryption, network security, vulnerability management, security monitoring, incident response.
Mandatory: Security criteria must be included in all SOC 2 examinations.
Availability (Optional)
Definition: The system is available for operation and use as committed or agreed.
Key Areas: System uptime, performance monitoring, capacity planning, backup and recovery, redundancy, disaster recovery, business continuity planning.
Relevant For: Cloud infrastructure, SaaS applications, hosting services where uptime commitments exist.
Processing Integrity (Optional)
Definition: System processing is complete, valid, accurate, timely, and authorized.
Key Areas: Data validation, error handling, transaction processing, quality assurance, data integrity controls.
Relevant For: Payment processors, data analytics platforms, any system where processing accuracy is critical.
Confidentiality (Optional)
Definition: Information designated as confidential is protected as committed or agreed.
Key Areas: Data classification, encryption at rest and in transit, access restrictions, non-disclosure agreements, confidentiality in disposal.
Relevant For: Services handling trade secrets, proprietary information, or contractually confidential data.
Privacy (Optional)
Definition: Personal information is collected, used, retained, disclosed, and disposed of in conformity with commitments and applicable privacy regulations (GDPR, CCPA, etc.).
Key Areas: Notice and consent, data collection and use, data subject rights, retention and disposal, data transfers, privacy policies.
Relevant For: Services handling personally identifiable information (PII) or subject to privacy regulations.
SOC 2 Type 1 vs SOC 2 Type 2
SOC 2 examinations come in two types with different scopes:
SOC 2 Type 1
Focus: Design of Controls
Scope: Assesses whether controls are suitably designed to meet Trust Service Criteria at a specific point in time.
Testing: Service auditor evaluates control design but does not test operating effectiveness over time.
Use Case: Startups establishing first controls, organizations preparing for Type 2, or interim validation during Type 2 readiness.
Timeline: Shorter engagement, typically 4-8 weeks.
SOC 2 Type 2
Focus: Design and Operating Effectiveness
Scope: Assesses whether controls are suitably designed AND operating effectively throughout a period (minimum 6 months, typically 12 months).
Testing: Service auditor tests controls over the entire reporting period to validate sustained effectiveness.
Use Case: Most customers require Type 2 as it provides evidence of consistent control operation. Considered industry standard.
Timeline: Minimum 6-month reporting period plus 6-10 weeks for testing and reporting.
Recommendation: SOC 2 Type 2 reports are the market standard and strongly preferred by customers. Organizations should target 12-month Type 2 reports for maximum customer acceptance.
Benefits of SOC 2 Audit
Achieving SOC 2 audit provides technology companies and service providers with numerous commercial and operational benefits:
Customer Trust
Independent validation builds confidence with customers and prospects.
Win Enterprise Deals
Meet security requirements for enterprise customers and RFPs.
Accelerated Sales
Reduce security review time and speed up contracting process.
Competitive Advantage
Differentiate from competitors without SOC 2 certification.
Reduced Audit Burden
Replace repetitive customer security questionnaires.
Improved Security
Strengthen security posture through systematic assessment.
Investor Confidence
Demonstrate governance and risk management to investors.
Market Access
Required for cloud marketplaces and partner ecosystems.
Our SOC 2 Audit Process
At Glocert International, we follow a structured and systematic approach to conduct SOC 2 audits under AICPA standards:
Readiness Assessment
Initial consultation to understand your services, select applicable Trust Service Criteria, and assess readiness for SOC 2.
Engagement Planning
Define scope, Trust Service Criteria, reporting period, and audit timeline. Develop detailed audit plan.
System Understanding
Review management's system description, understand infrastructure, applications, and security controls.
Control Testing (Type 2)
Test controls throughout the reporting period including security monitoring logs, access reviews, change management, incident response, and backup testing.
Exception Documentation
Document any control deficiencies, exceptions, or deviations from expected controls.
Report Drafting
Prepare draft SOC 2 report including service auditor's opinion, system description, and detailed test results.
Management Review
Review draft report with management, address questions, and finalize management assertion.
Final Report Issuance
Issue final SOC 2 report with service auditor's signature for distribution to customers and prospects.
Who Needs SOC 2 Audit?
SOC 2 audits are essential for technology companies and service providers that store, process, or transmit customer data. Common examples include:
Cloud and Infrastructure
- Cloud infrastructure providers (IaaS, PaaS)
- Data center and colocation providers
- Managed hosting services
- CDN and edge computing providers
Software as a Service (SaaS)
- Enterprise SaaS applications (CRM, ERP, HRM, collaboration)
- Vertical SaaS (healthcare, financial, legal, etc.)
- Business intelligence and analytics platforms
- Marketing and customer engagement platforms
Security and IT Services
- Managed security service providers (MSSPs)
- Managed IT service providers (MSPs)
- Security operations centers (SOCs)
- Identity and access management providers
Data and Analytics
- Data warehousing and storage services
- Big data and analytics platforms
- AI and machine learning platforms
- Data integration and ETL services
Other Technology Services
- Payment processors and gateways
- Communication platforms (email, messaging, video)
- Backup and disaster recovery services
- Any organization handling customer data in cloud or hosted environments
Key Indicator: If enterprise customers ask about your security controls or require security questionnaires, you need a SOC 2 audit.
SOC 2 Audit Pricing
Our SOC 2 audit pricing is transparent and based on your organization's size, complexity, and scope. We offer competitive rates with no hidden fees.
Get Your Instant Estimate
Use our free cost calculator to get a personalized estimate based on your organization's infrastructure, Trust Service Categories, and timeline.
What's Included in SOC 2 Audit Pricing:
- Pre-audit readiness assessment and gap analysis
- Engagement planning and scoping
- Control design evaluation (Type 1) or operating effectiveness testing (Type 2)
- Service auditor's examination under AICPA standards
- Comprehensive SOC 2 report with service auditor's opinion
- Management assertion development support
- Draft report review sessions with management
- Post-audit consultation and remediation guidance
Note: SOC 2 pricing varies based on number of Trust Service Criteria, infrastructure complexity, number of locations, report type (Type 1 vs Type 2), and reporting period length. Contact us for a detailed, no-obligation quote.
Frequently Asked Questions (FAQ)
Find answers to common questions about SOC 2 audits:
SOC 2 is an audit report on controls at a service organization related to security, availability, processing integrity, confidentiality, and privacy (Trust Service Criteria). Technology companies and service providers that store, process, or transmit customer data need SOC 2. This includes cloud providers, SaaS vendors, data centers, managed service providers, and any organization where customers ask about security controls. If you handle customer data and sell to enterprise customers, you need SOC 2.
SOC 2 Type 1 reports on the design of controls at a specific point in time without testing operating effectiveness. SOC 2 Type 2 reports on both design and operating effectiveness of controls over a period (minimum 6 months, typically 12 months) and includes testing results. Type 2 is the market standard—most customers require Type 2 as it provides evidence that controls operated effectively throughout the period. Type 1 is typically used as a stepping stone while preparing for Type 2.
Security is mandatory for all SOC 2 examinations. The other four criteria (Availability, Processing Integrity, Confidentiality, Privacy) are optional based on your services and customer requirements. Most SaaS and cloud providers include Security + Availability + Confidentiality. Add Processing Integrity if data processing accuracy is critical (payment processors, analytics platforms). Add Privacy if you handle personal information subject to privacy regulations (GDPR, CCPA). Review customer contracts and security questionnaires to understand what criteria customers expect. When in doubt, Security + Availability + Confidentiality covers most scenarios.
The timeline varies by audit type and organization maturity. SOC 2 Type 1 typically takes 4-8 weeks from engagement to report issuance. SOC 2 Type 2 requires a minimum 6-month reporting period (12 months strongly recommended) plus 6-10 weeks for testing and reporting after the period ends. First-time SOC 2 organizations should plan 12-18 months from starting preparation to receiving Type 2 report. Organizations should begin planning at least 6-9 months before they need the report for sales purposes.
SOC 2 is an audit report providing assurance about specific controls at a point or period in time, primarily used in North America, focused on Trust Service Criteria, and produces a detailed report for customers. ISO 27001 is a certification confirming your Information Security Management System (ISMS) meets international standards, recognized globally, focused on comprehensive ISMS including risk management, and results in a certificate. SOC 2 is more detailed and audit-focused; ISO 27001 is more systematic and certification-focused. Many organizations pursue both—SOC 2 for US customers and ISO 27001 for global recognition.
SOC 2 audit costs typically range from $20,000 to $100,000+ depending on organization size, infrastructure complexity, number of Trust Service Criteria, number of locations, Type 1 vs Type 2, and whether it's a first-time or renewal audit. Startups and small SaaS companies typically pay $20,000-$40,000 for Type 2. Mid-market companies typically pay $40,000-$75,000. Large enterprises may exceed $100,000. The investment is justified by the ability to win enterprise customers, accelerate sales, and reduce security review overhead. Many organizations see ROI from a single large deal enabled by SOC 2. Contact us for a specific quote.
SOC 2 audits should be performed annually to maintain continuous assurance for customers. Most organizations maintain a rolling 12-month Type 2 reporting period, obtaining a new SOC 2 report each year. Plan to start your next audit as soon as you receive the current report to maintain continuous coverage. Customers expect fresh SOC 2 reports (issued within last 12 months) and may require interim updates if your report ages significantly. Continuous SOC 2 coverage is essential for enterprise sales.
No, you should not publicly post SOC 2 reports. SOC 2 reports are restricted-use documents under AICPA standards, intended for parties with sufficient knowledge to understand the report. Share SOC 2 reports with qualified prospects and customers under NDA. Never post SOC 2 reports on your public website. You can publicly display a SOC 2 badge or trust seal indicating you have been audited, but the detailed report should remain confidential. Public posting could expose security details to attackers and violate AICPA restrictions.
If the service auditor identifies control exceptions or deficiencies during testing, they will be disclosed in the SOC 2 report. Exceptions don't automatically result in a qualified opinion—it depends on severity and impact on Trust Service Criteria. Minor exceptions may be noted without affecting the opinion. Significant exceptions may lead to a qualified opinion or disclaimer. Service organizations should remediate exceptions promptly and may choose to extend the reporting period to demonstrate corrected controls. Transparency about exceptions and remediation demonstrates maturity to customers. Most customers prefer a clean report with evidence of strong controls.
Possibly yes. While ISO 27001 and SOC 2 overlap significantly, they serve different markets and purposes. US enterprise customers typically require SOC 2 regardless of ISO 27001 certification. ISO 27001 provides a certificate; SOC 2 provides a detailed audit report. SOC 2 focuses on Trust Service Criteria; ISO 27001 covers broader ISMS. Many global organizations maintain both—ISO 27001 for international markets and SOC 2 for North American enterprise customers. If your target market is US enterprise, you need SOC 2. If selling globally, both certifications provide maximum market coverage.
Why Choose Glocert for SOC 2 Audits?
Expertise in SOC 2 Audits
Our team of experienced auditors possess in-depth knowledge of AICPA standards, Trust Service Criteria, cloud security, and technology infrastructure. We understand what enterprise customers need from SOC 2 reports and how to structure examinations that satisfy their security requirements. Our auditors bring backgrounds in cloud architecture, information security, and public accounting, ensuring thorough and credible SOC 2 examinations.
Technology-Focused Approach
We understand technology companies and their unique challenges. Glocert International specializes in auditing cloud-native architectures, microservices, containerized environments, DevOps practices, and modern security controls. Whether you're running on AWS, Azure, GCP, or hybrid infrastructure, we have the expertise to audit your environment effectively and provide meaningful insights.
Efficient and Transparent Process
We recognize that SOC 2 audits can be time-intensive for growing technology companies. Our structured, efficient approach minimizes disruption to your engineering and operations teams while ensuring thorough examination. We leverage automation, clear communication, and experienced teams to streamline the audit process and deliver your SOC 2 report on schedule to support your sales pipeline.
Partnership Approach
We view SOC 2 as a partnership, not just a checkbox exercise. Our team provides guidance on control improvements, shares security best practices, and helps you build a security program that scales with your business. We're invested in your success and aim to make each annual SOC 2 audit easier and more valuable than the last.
Related Services
Many technology companies need multiple types of compliance. Glocert International also provides SOC 1 audits for financial processes, ISO 27001 certification for global recognition, and ISO 27701 certification for privacy management. We can coordinate multiple engagements to maximize efficiency.
Unlock the Full Potential of Your Organization
Contact us today to learn more about our SOC 2 audit services and how we can help you build customer trust through security excellence.
Cutting-Edge Solutions
Choose Glocert for innovative TIC solutions at the forefront of modern technology