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Achieving SOC 2 compliance is a critical milestone for SaaS companies and technology providers, especially those looking to scale. It signals to customers, partners, and stakeholders that your organization takes data security seriously and has the controls in place to protect customer data against unauthorized access. But the journey doesn’t end with a SOC 2 report. Maintaining that compliance, and proving it continuously, requires more than just passing an audit.
In this article, we’ll go beyond the basics of SOC 2 compliance to help security leaders navigate the full process with confidence. You'll learn what it takes to prepare for and pass an audit, avoid common pitfalls, and maintain compliance over time. We'll also explore how continuous testing supports ongoing audit readiness and share a practical SOC 2 checklist to guide your efforts. As always, if you have questions, our team of experts is here to help.
What Is SOC 2 Compliance?
SOC 2 stands for "System and Organization Controls 2." It was developed by the American Institute of Certified Public Accountants (AICPA) that evaluates how an organization manages customer data based on the Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. It's designed specifically for service providers that store or process customer data in the cloud.
SOC 2 is not a one-size-fits-all framework. It gives organizations the flexibility to design their own controls, as long as they align with the Trust Services Criteria. The outcome is a SOC 2 report that demonstrates to customers, partners, and auditors that your organization has the right safeguards in place to reduce risk.
There are two types of SOC 2 reports:
- Type I evaluates your controls at a single point in time.
- Type II evaluates the operating effectiveness of those controls over a defined period (typically 3 to 12 months).
For organizations looking to build long-term trust and signal maturity, a SOC 2 Type II report is the gold standard.
Who Needs SOC 2 Compliance?
SOC 2 compliance is especially important for SaaS companies, cloud-based service providers, and vendors that handle customer data. It’s often required during procurement processes, third-party risk assessments, and due diligence by enterprise clients.
If you’re storing, processing, or transmitting customer data, SOC 2 isn’t just a nice-to-have. It’s quickly becoming table stakes. Many prospects, customers and partners often ask for formal proof that your security program meets recognized standards, and a SOC 2 report provides that assurance.
Beyond external validation, SOC 2 also plays a critical role in strengthening internal processes. Preparing for an audit requires teams to closely examine how data is handled across the organization, including access controls, monitoring practices, and enforcement of data security policies. It encourages teams to formalize documentation, identify and close process gaps, and build consistent security practices that protect sensitive information. This level of internal alignment helps reduce risk, improve operational efficiency, and create a stronger foundation for secure growth.
The SOC 2 Compliance Process
Getting SOC 2 compliant isn’t a quick checkbox exercise. It takes planning, cross-functional collaboration, and a commitment to long-term accountability. Here’s an overview of what the process looks like:
- Perform a Readiness Assessment
Identify gaps between your current state and SOC 2 requirements. This is often done with the help of a compliance consultant or platform. - Define Scope and Controls
Choose the Trust Services Criteria relevant to your business and document how your systems meet each one. - Remediate Gaps
Implement missing controls and policies. This often includes tightening access controls, updating security tools, and formalizing procedures. - Select an Auditor
Only licensed CPA firms can perform a SOC 2 audit. Choose one familiar with your industry and size. - Undergo the Audit
For a Type I report, the auditor reviews your controls at a single point in time. For Type II, they test those controls over several months. - Receive Your SOC 2 Report
This includes detailed findings and is typically shared with customers and partners under NDA.
Common SOC 2 Compliance Challenges
SOC 2 is meant to be flexible, but that flexibility often introduces complexity. Here are some challenges organizations face:
- Scoping too broadly or narrowly
- Underestimating time and resource requirements
- Keeping evidence organized and audit-ready
- Lack of cross-team accountability
- Over-reliance on point-in-time assessments
The biggest misconception? That passing the audit means you’re secure. SOC 2 compliance is not a guarantee of security, it’s a baseline that must be maintained continuously.
How Continuous Testing Supports SOC 2 Compliance
SOC 2 Type II is all about demonstrating the operating effectiveness of your controls over time. That means ongoing evidence, not just annual check-ins. This is where continuous security testing comes into play.
Modern day security teams are turning to platforms like Inspectiv to help:
- Detect vulnerabilities in real time
- Support information security and access controls across cloud environments
- Catch misconfigurations and exposures before they’re exploited
- Provide continuous proof of monitoring and response for audit purposes
Solutions like Pentesting as a Service and Bug Bounty as a Service allow you to simulate real-world attacks and show auditors that your security controls don’t just exist—they work.
SOC 2 Compliance Checklist
Use this high-level checklist to understand what you’ll need for SOC 2 compliance. This checklist isn’t exhaustive, but it covers the critical elements that will help you prepare for a SOC 2 audit and maintain compliance beyond it.
Preparation & Scoping
- Complete a SOC 2 readiness assessment
- Define which Trust Services Criteria apply (Security is required; Availability, Processing Integrity, Confidentiality, and Privacy are optional based on your services)
- Identify in-scope systems and services
Policies & Controls
- Document and implement formal policies and procedures
- Establish identity and access controls
- Encrypt data at rest and in transit
- Define and enforce password and authentication policies
- Create incident response and disaster recovery plans
Monitoring & Logging
- Set up centralized logging and monitoring
- Enable alerts for unauthorized access and suspicious activity
- Review access logs regularly
- Conduct periodic internal audits
Risk & Personnel Management
- Perform regular risk assessments
- Provide security awareness training for all employees
- Implement vendor risk management processes
Audit & Evidence
- Maintain documentation of all implemented controls
- Collect and organize evidence to demonstrate control effectiveness
- Engage a certified CPA firm for your SOC 2 audit
- For Type II: maintain controls over a minimum audit period (typically 3-12 months)
Continuous Compliance
- Continuously monitor your environment for new risks
- Use automated tools to detect misconfigurations and vulnerabilities
- Validate controls through continuous security testing or bug bounty programs
- Update policies and procedures as systems evolve
Frequently Asked Questions
What does SOC 2 compliance mean?
SOC 2 compliance means your organization has controls in place to safeguard data and has been evaluated by an independent auditor against the AICPA’s Trust Services Criteria.
Is SOC 2 compliance mandatory?
Not legally, but it is widely required in B2B and enterprise contracts.
What does SOC 2 Type II stand for?
It evaluates both the design and the operating effectiveness of your controls over a defined period.
What is the difference between SOC 1 and SOC 2?
SOC 1 focuses on financial reporting controls, while SOC 2 evaluates security, availability, and confidentiality controls relevant to data handling.
Who regulates SOC 2 reports?
The AICPA (American Institute of Certified Public Accountants).
Is SOC 3 higher than SOC 2?
Not higher, just different. SOC 3 reports are more general and intended for public consumption, while SOC 2 reports are detailed and confidential.
Final Thoughts: Compliance is Ongoing
SOC 2 compliance is more than a badge, it’s a reflection of how seriously your organization takes security. Achieving that first report is a win. Maintaining it through continuous validation is how you build lasting trust.
The most forward-thinking teams treat compliance as an outcome of good security not the other way around.
If you're ready to move beyond checklists and point-in-time testing, talk to us about how Inspectiv can support your compliance journey with continuous security testing, actionable insights, and audit-ready evidence.here to help
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