SOC 2® FRAMEWORK

What is SOC 2®?

SOC 2 is an AICPA-developed security framework that helps service organizations protect customer data and demonstrate trust via independent audit reports.

Trust Services: Security Availability Processing Integrity Confidentiality Privacy

SOC 2 Overview

Developed by the AICPA, SOC 2 centers on five Trust Services Criteria (TSC): Security, Availability, Processing Integrity, Confidentiality, and Privacy.

Security (Common Criteria)
Foundational safeguards across access, change, and incident controls.
Availability
Uptime objectives, disaster recovery, and performance monitoring.
Processing Integrity
Accuracy, completeness, and timeliness of system processing.
Confidentiality
Data classification, encryption, and restricted handling.
Privacy
Collection, use, retention, and disposal of personal data.

SOC 2 Type I vs Type II

Both are attestation reports issued by a CPA firm, but they differ in scope and assurance level.

Type I
Evaluates design of controls at a point in time—answers "Are controls designed properly?"
Type II
Evaluates operating effectiveness over 3–12 months—answers "Do controls function as intended?"
Recommendation
Go for Type II where possible; consider a shorter review period if timelines are tight.
At a glance

Type I

  • Point-in-time design review
  • Faster to complete
  • Demonstrates control design

Type II

  • Operating effectiveness over time
  • 3–12 month review period
  • Strongest customer assurance

Unsure which to choose? We can help you scope the right report.

Who Needs SOC 2

Service Organizations Handling Customer Data

Cloud, SaaS, and data processors benefit most—customers and partners increasingly request SOC 2 reports to verify strong controls and governance.

SaaS Providers
Multi-tenant platforms, customer data, integrations.
Managed Service Providers
Security, hosting, and IT operations.
Data Processors
Analytics, storage, and processing services.
Industries That Commonly Require SOC 2

Where SOC 2 Is Most Expected

Customers, partners, and procurement teams often request SOC 2 reports as proof of robust security controls and governance across these sectors.

SaaS & Cloud Platforms
Multi-tenant apps, customer data, and integrations at scale.
FinTech & Payment Processors
Card data flows, payment operations, and partner assurance.
Healthcare Tech
PHI-adjacent services, data handling with strong safeguards.
Managed/Hosted Services
Infrastructure, backup, and security operations for clients.
HR, Payroll, People Ops
Sensitive employee data and regulated workflows.
eCommerce & Retail Tech
Customer data, order processing, and integrations.
Industrial & IoT Platforms
Telemetry, device data, and partner trust in supply chains.
LegalTech & RegTech
Compliance tooling and sensitive case or regulatory data.

SOC 1 vs SOC 2 vs SOC 3.

Different SOC reports address different assurance needs.

SOC 1
Controls relevant to financial reporting (ICFR).
SOC 2
Controls relevant to Trust Services Criteria (security etc.).
SOC 3
General-use summary report based on SOC 2.
Assurance and compliance comparison
FAQs

Frequently Asked Questions

Quick answers to help your team get aligned.

What does SOC 2 mean?

SOC 2 is a security and compliance standard from the AICPA that guides service organizations on protecting sensitive customer data via controls aligned to Trust Services Criteria.

What does a SOC 2 audit include?

A CPA-led examination of control design and operating effectiveness, including testing, evidence reviews, and interviews—resulting in an attestation report (Type I or Type II).

Is SOC 2 mandatory?

Not legally required. However, customers and partners often require SOC 2 to ensure strong data protection and risk management practices.

Who does SOC 2 apply to?

Any service organization that stores, processes, or transmits customer data—especially cloud-based and SaaS providers.

Accelerate Enterprise Risk Maturity

See how AI-driven automation reduces assessment cycles, improves reporting accuracy, and lets your team focus on strategic initiatives.

42%
Avg. Time Saved
99%
Audit Readiness
68%
Workflow Automation
4.8/5
Stakeholder Satisfaction