What is SOC 2? SaaS Compliance Basics

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TL;DR

SOC 2 is a compliance framework for service organizations that proves you protect customer data. It covers five trust service criteria: security (required), availability, processing integrity, confidentiality, and privacy. Enterprise customers commonly require SOC 2 reports before purchasing SaaS products. Getting certified involves implementing controls and passing an audit by a CPA firm.

The Simple Explanation

Enterprise customers want proof that your SaaS product is secure. SOC 2 is that proof. An independent auditor examines your security controls and issues a report. You share that report with customers during sales. It is the standard security checkbox for B2B SaaS.

Trust Service Criteria

CriteriaFocusRequired?
SecurityProtection against unauthorized accessYes
AvailabilitySystem uptime and reliabilityNo
Processing IntegrityData processing accuracyNo
ConfidentialityProtecting confidential informationNo
PrivacyPersonal data handlingNo

Type I vs Type II

Key differences

Type I:

  • Point-in-time assessment
  • "Are controls designed correctly?"
  • Faster to obtain (1-3 months)
  • Good starting point

Type II:

  • Period of time (3-12 months)
  • "Did controls operate effectively?"
  • More valuable to customers
  • Usually required for enterprise deals

Common SOC 2 Controls

  • Access control: Role-based access, MFA, access reviews
  • Change management: Code reviews, deployment procedures
  • Incident response: Documented procedures, testing
  • Encryption: Data at rest and in transit
  • Monitoring: Logging, alerting, log retention
  • Vendor management: Third-party assessments
  • Employee security: Background checks, training

SOC 2 is ongoing. After your first report, you need annual audits to maintain compliance. Set up continuous monitoring and evidence collection from the start.

Getting SOC 2 Certified

  1. Choose which trust service criteria to include
  2. Perform gap assessment against requirements
  3. Implement missing controls and policies
  4. Collect evidence of control operation
  5. Select and engage a CPA firm
  6. Complete the audit
  7. Receive your SOC 2 report

What is the difference between SOC 2 Type I and Type II?

Type I evaluates if controls are properly designed at a specific point in time. Type II evaluates if controls operated effectively over a period (usually 3-12 months). Type II is more valuable to customers because it shows sustained compliance, not just a snapshot.

How long does it take to get SOC 2 certified?

For Type I, typically 1-3 months if you already have controls in place. For Type II, add the observation period (usually 6-12 months) plus audit time. Total timeline is often 9-15 months for first Type II. Using compliance automation platforms can speed up preparation.

Which trust service criteria do I need?

Security is required for all SOC 2 reports. The other four (availability, processing integrity, confidentiality, privacy) are optional. Most SaaS companies include Security and Availability at minimum. Add others based on customer requirements and what data you handle.

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Security Glossary

What is SOC 2? SaaS Compliance Basics