SOC 2 Type 2 is an essential audit for organisations that wish to demonstrate their long-term commitment to maintaining stringent security controls and compliance practices.
It’s particularly beneficial for service organisations that handle sensitive data and need to prove to their clients that their security measures are consistently effective over time.
SOC 2 is part of the broader SOC (System and Organisation Controls) reporting framework designed to help organisations demonstrate the effectiveness of their internal controls related to security, availability, processing integrity, confidentiality, and privacy.
SOC 2 Type 2 focuses on evaluating the operational effectiveness of these controls over a period, typically six to twelve months. This ongoing assessment differentiates it from SOC 2 Type 1, which only reviews the design of controls at a specific point in time.
SOC 2 Type 1 audits assess the design of security controls at a given point, while SOC 2 Type 2 audits evaluate not just the design but also the operational effectiveness over a defined period.
As a result, Type 2 is generally more comprehensive and often involves higher costs, but it provides a more complete assurance of your security measures.
For more information on SOC 2 Type 2 compliance, visit our SOC 2 Type 2 page.
SOC 2 Type 2 audits offer an ongoing validation that your organisation’s controls are not just designed well but are continuously functioning as intended.
This ongoing assurance is vital for building long-term trust with your clients and partners, especially when they rely on your organisation to protect sensitive data.
SOC 2 Type 2 audits are essential for businesses that want to demonstrate their commitment to continuous data security.
SOC 2 Type 2 reports are particularly relevant for SaaS providers, cloud services, fintech, and healthcare organisations.
These reports prove that security controls are operating effectively over time. These audits are highly valued by businesses that need to demonstrate consistent adherence to the highest security standards.
For more on SOC 2 compliance and certification, read SOC 2 Certification.
SOC 2 Type 2 reports include detailed assessments of your organisation’s security controls and how they’ve been operational over a specified period. The report assesses the following Trust Service Criteria:
SOC 2 Type 2 reports are often shared with clients, regulatory bodies, and potential partners to provide evidence of your operational effectiveness.
Use cases include:
1. Preparation: Understand your internal controls and assess your readiness for a Type 2 audit.
2. Audit Planning: Work with auditors to define the scope, timeline, and areas of focus.
3. Implementation: The audit will evaluate your controls over a defined period (6–12 months).
4. Reporting: The auditor will generate a report detailing the effectiveness of your controls.
5. Remediation (if needed): If any issues arise, work to address them and ensure your controls meet the required standards.
SOC 2 Type 2 audits typically take longer than SOC 2 Type 1 audits because they cover a longer period. On average, a Type 2 audit takes between 6 to 12 months to complete, depending on the complexity of your organisation and the scope of the audit.
For a detailed breakdown, see our full guide on SOC 2 Costs.
SOC 2 Type 2 audits cover the five Trust Service Criteria (Security, Availability, Processing Integrity, Confidentiality, and Privacy) and assess how effectively your organisation maintains and enforces these principles over time.
These criteria are the backbone of SOC 2 Type 2 audits and must be documented and implemented correctly. This includes ensuring all SOC 2 Type 2 controls are followed to meet these criteria.
To pass SOC 2 Type 2, organisations must have documented internal controls for each of the Trust Service Criteria. These include:
These SOC 2 Type 2 controls form the foundation of your SOC 2 Type 2 report and ensure your organisation meets the required standards for SOC 2 Type 2 compliance.
The cost of SOC 2 Type 2 compliance can vary depending on several factors, such as the complexity of your systems, the size of your organisation, the scope of the audit, and the resources you have available internally.
For a detailed cost breakdown, see our SOC 2 Costs.
SOC 2 Type 2 audits often involve both initial certification and ongoing monitoring costs. The initial audit can range from $15,000 to $40,000, while annual surveillance audits are typically priced between $5,000 and $10,000 per year.
Having a solid understanding of these costs helps you prepare financially for both the certification process and the long-term commitment.
Before undergoing a SOC 2 Type 2 audit, conducting a readiness assessment is crucial. This process helps identify any gaps in your security controls and ensures you are well-prepared for the audit. Addressing these gaps before the audit can save you time and costs in the long run.
To achieve a successful SOC 2 Type 2 audit outcome:
For more information on SOC 2 Type 2 audits and external support, refer to our SOC 2 Audit Framework Services.
SOC 2 Type 1 audits assess the design of security controls at a given point in time, while SOC 2 Type 2 audits assess both the design and operational effectiveness of those controls over a specified period.
SOC 2 Type 2 audits typically take 6 to 12 months, depending on the complexity of your organisation and the scope of the audit.
SOC 2 Type 2 reports include an evaluation of the design and operational effectiveness of your security controls, covering the Trust Service Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy.
SOC 2 Type 2 audits can range from $15,000 to $40,000 for the initial audit, with annual surveillance audits typically costing $5,000 to $10,000.
The main requirements include demonstrating operational effectiveness of your security controls over time, including continuous monitoring and adherence to the Trust Service Criteria.
