December 4, 2025

What Is SOC 2 Type 2? A Guide To Requirements, Compliance And Implementation

Deirdre Dolan

Sr. Director of Product Marketing

Increasing trust with AI for audit and advisory firms.

SOC 2 Type 2 audits verify that a company's security controls, like access management, encryption, and monitoring, are properly designed and operating effectively over 6 to 12 months. Unlike Type 1 audits that assess controls at a single point in time, Type 2 requires testing control effectiveness across multiple quarters.

Enterprise buyers now require SOC 2 Type 2 reports before engaging B2B SaaS vendors, making it one of the fastest-growing practice areas for audit and advisory firms. Understanding SOC 2 fundamentals is essential whether you're preparing for your first engagement or developing expertise in security attestation.

This guide covers what distinguishes Type 2 from Type 1, which control requirements get tested, how Trust Services Criteria organize the audit scope, and how SOC 2 compares to frameworks like ISO 27001. You'll learn the foundational concepts that inform day-to-day testing procedures across governance, access controls, change management, and vendor oversight.

An Overview of SOC 2 Type 2

SOC 2 Type 2 is an attestation (not a certification) performed by independent CPAs using the Trust Services Criteria framework developed by the AICPA. These outcome-based attestation standards define what constitutes effective security, availability, processing integrity, confidentiality, and privacy controls.

The key difference between Type 1 and Type 2 comes down to time. Type 2 audits assess how controls operate over 6 to 12 months, rather than at a single point in time. Auditors evaluate three elements: whether the system description accurately reflects what's in scope, whether controls are properly designed, and whether those controls operated effectively throughout the entire observation period.

The final deliverable is a detailed report containing the auditor's opinion on control effectiveness, management's assertion about their controls, a system description defining what was examined, and a summary of testing procedures and results.

SOC 2 Type 2 matters because it provides independent verification rather than vendor self-attestation. Enterprise procurement teams can distinguish between vendor security whitepapers (marketing claims) and CPA firm attestation reports (professional examination under auditing standards).

Why Is SOC 2 Type 2 Compliance So Important?

SOC 2 Type 2 has evolved from a competitive advantage to a baseline requirement for B2B technology companies. Enterprise buyers now mandate SOC 2 Type 2 reports as contract requirements before engaging vendors. Companies without current attestation often can't even participate in procurement processes.

This market shift has made SOC 2 one of the fastest-growing areas in audit and advisory work. Key factors driving demand:

Market requirement: Enterprise procurement teams require current SOC 2 Type 2 reports before vendor selection, creating consistent engagement pipelines
Framework efficiency: The AICPA publishes official mappings between SOC 2 and other frameworks like ISO 27001, NIST CSF, NIST 800-53, and GDPR. This means SOC 2 work often serves as the foundation for multi-framework compliance
Business credibility: Independent CPA attestation carries more weight than vendor security whitepapers or self-assessments in procurement decisions

While sector-specific requirements still apply (HIPAA for healthcare, PCI DSS for payment processing, ISO 27001 for international operations), SOC 2 Type 2 serves as the baseline that most U.S. technology companies pursue first.

What Are the Pillars of SOC 2 Type 2?

SOC 2 audits evaluate controls against the Trust Services Criteria, which defines what constitutes effective security, availability, processing integrity, confidentiality, and privacy. These five categories form the foundation of every SOC 2 audit.

1. Security

Security addresses whether a company’s systems are protected against unauthorized access. Every SOC 2 audit includes Security as the foundational requirement, which may include multi-factor authentication, firewall configurations, intrusion detection, and security training. Auditors verify that authentication mechanisms prevent unauthorized access, network segmentation isolates systems, and monitoring detects anomalous activity.

When companies handle protected health information (PHI) or payment card data (PCI), audits include additional authentication testing beyond standard MFA. This typically means verifying hardware token usage for privileged access and reviewing session recordings for administrative activities.

2. Availability

Availability validates that a company’s systems operate and remain accessible as committed in service level agreements. Auditors examine controls including:

Redundant infrastructure with automated failover
Network performance monitoring with alerting thresholds
Backup power and HVAC protections
Disaster recovery procedures

Audit firms include Availability in scope when clients make uptime commitments material to their service delivery.

While some organizations implement hot-standby architectures to support aggressive uptime targets (such as 99.9% SLAs for SaaS platforms), SOC 2 does not require any specific resilience model. Evidence varies based on the company’s actual architecture and risk posture, and auditors assess whether the implemented controls appropriately support the organization’s stated commitments.

3. Processing Integrity

Processing Integrity confirms that system processing is complete, valid, accurate, timely, and authorized. Controls evaluated include:

Input validation
System reconciliation
Error detection with automated correction
Quality assurance testing

Fintech companies handling payment processing and data analytics platforms typically include Processing Integrity in scope. For payment processors, testing verifies dual-control reconciliation where two systems independently verify transaction amounts. For data analytics platforms, testing focuses on checksums that detect data corruption during transfers.

4. Confidentiality

Confidentiality verifies that information designated as confidential receives protection consistent with organizational commitments, distinct from Security's focus on unauthorized access prevention. Controls evaluated include:

Data classification policies defining what qualifies as confidential
Non-disclosure agreements with employees and vendors
Access restrictions limiting confidential data to authorized personnel only
Encryption requirements based on data sensitivity levels

Data loss prevention testing verifies that controls block unauthorized transfers, watermarking procedures track confidential documents, and access logs capture who accessed confidential data and when.

5. Privacy

Privacy addresses whether personal information is collected, used, retained, disclosed, and disposed of properly according to the company’s privacy notice and applicable privacy frameworks. Auditors examine:

Privacy notice accuracy
Consent mechanisms for collection and use
Individual rights management for access and deletion requests
Data retention policies with automated disposal
Privacy impact assessments for new data processing activities

What Are the Requirements of SOC 2 Type 2?

Auditors evaluate controls organized in the foundational Security (Common Criteria) category, which applies universally, plus category-specific requirements when Availability, Processing Integrity, Confidentiality, or Privacy are included in scope.

1. Governance and risk management

The control environment establishes the foundation for everything else in a SOC 2 audit. Testing starts with organizational charts showing security roles and reporting lines, evaluating whether responsibilities are clearly defined. Risk assessment documentation verifies that companies identify threats using consistent methodology. Board meeting minutes confirm executive oversight includes security metrics and periodic control discussions.

While SOC 2 doesn't explicitly mandate specific HR controls, audits commonly examine code of conduct acknowledgments, background check records, and security training completion rates. These supporting controls help establish that personnel understand their security responsibilities throughout the observation period.

2. Access management and authentication

Access controls protect system access through multiple layers. SOC 2 audits commonly evaluate multi-factor authentication for privileged accounts, role-based access control, periodic access reviews, prompt deprovisioning when employees leave, and physical security controls for data centers or offices.

The framework requires effective and documented controls based on risk assessments rather than prescribing specific timelines or frequencies. Testing verifies that these controls work together to create comprehensive access protection throughout the organization.

3. Change Management and Development

System change controls ensure modifications don't introduce security vulnerabilities. Auditors examine:

Change request and approval workflows requiring manager sign-off before implementation
Segregation of development, testing, and production environments preventing untested code in live systems
Code review requirements mandating documented peer approval before deployment
Rollback procedures enabling rapid recovery from failed changes with tested restoration processes
Change documentation and communication protocols notifying stakeholders of system modifications

Testing verifies these processes maintained system integrity throughout the observation period while clients deployed updates and improvements.

4. System monitoring and incident response

System monitoring testing examines detection capabilities that identify threats and operational issues. This includes reviewing alerting configurations, testing whether monitoring actually triggers on suspicious activity, and confirming someone responds to alerts. SOC 2 requires effective security controls without prescribing specific technologies like intrusion detection systems or SIEM platforms.

Testing evaluates whether controls achieve required outcomes: monitoring suspicious activity and protecting against malware. Formal incident response plans are explicitly required, defining roles, escalation procedures, and communication protocols for timely threat management.

5. Data protection and encryption

Data security testing covers information protection throughout its lifecycle. For data in transit, this means reviewing TLS configurations and certificate validity. For data at rest, testing examines storage encryption settings and key management procedures.

SOC 2 requires secure coding practices, vulnerability management, and backup recovery testing without prescribing specific technical implementations. Testing verifies that data remains protected whether stored or transmitted across networks.

6. Vendor management and third-party risk

Third-party oversight completes the control environment testing:

Vendor risk assessments review how companies evaluated security posture before engaging third parties, looking for consistent criteria across vendors
Contracts are examined to verify right-to-audit clauses exist and enable ongoing oversight
Access logs show when vendors connect remotely and what they access
When companies rely on subservice organizations like AWS for hosting or payment processors for transactions, the SOC 2 report documents these dependencies—testing may require reviewing the subservice organization's own SOC 2 report
Periodic vendor reassessments through updated security questionnaires demonstrate ongoing oversight beyond initial due diligence

Third-party relationships often create security gaps when vendors have broad system access but inadequate oversight, making this a critical testing area.

7. Complementary User Entity Controls (CUECs)

CUECs are controls that a company's customers must implement for the overall control environment to remain effective. Common examples include customers configuring access controls within the application, encrypting data before upload, or monitoring activity logs the service provider makes available.

CUECs get documented in the SOC 2 report, clearly establishing that implementation responsibility rests with the service organization's customers, not the service organization itself. This means control failures can occur at the customer level even when the service organization's controls operate perfectly.

Requirements vary significantly based on which Trust Services Criteria are in scope. Depending on the environment, security-only audits typically cover 60-80 controls, while audits including all five categories address 100-140 controls. The Trust Services Criteria provide detailed specifications, though most audits tailor control sets to the specific environment. After testing these controls over the observation period, findings get documented in a structured attestation report that stakeholders use to evaluate control effectiveness.

What's the Difference Between SOC 2 Type 2 vs Type 1?

Type 1 audits assess whether controls are properly designed and implemented as of a specific date. Type 2 audits evaluate both control design and operating effectiveness over a sustained period, typically 6 to 12 months. This time difference represents the fundamental distinction: Type 1 demonstrates controls are built correctly, while Type 2 proves they work consistently over time.

Factor	SOC 2 Type 1	SOC 2 Type 2
Audit Scope	Control design and implementation as of specific date	Control design and operating effectiveness over time
Observation Window	Single point in time	3-12 months (typically 6-12 months)
Timeline	6-12 weeks from kickoff to report	6-18 months including observation period
Cost	Lower than Type 2 cost	Full engagement cost
Assurance Level	Controls exist and are designed properly	Controls work consistently when operated
Best Use Cases	Quick market credibility; budget constraints; first-time attestation	Enterprise procurement requirements; mature control environments; renewal audits
Report Validity	Valid only as of issuance date	Generally considered valid for 12 months; reports don't technically expire but customers typically expect current reports
Customer Acceptance	Limited; primarily startups and smaller buyers	Required by enterprise procurement teams

What's the Difference Between ISO 27001 and SOC 2 Type 2?

ISO 27001 is an international information security management system standard that requires comprehensive risk-based implementation and results in formal certification. SOC 2 Type 2 is a US-focused attestation that validates specific controls against Trust Services Criteria through independent CPA examination, producing reports rather than certificates.

Companies serving both international and US markets often pursue both frameworks. European customers typically require ISO 27001 certification, while American enterprise buyers mandate SOC 2 reports. The AICPA publishes official mappings between the frameworks, enabling more efficient integrated audits compared to conducting completely separate assessments.

Scale Your SOC 2 Practice Without Adding Headcount

SOC 2 Type 2 attestation provides independent verification that security controls operate effectively over time, enabling market access for B2B technology companies. Beyond procurement validation, it serves as a foundation for multi-framework compliance across ISO 27001, NIST CSF, and other standards.

Audit and advisory firms conducting these engagements face capacity challenges when scaling without proportional headcount growth. Fieldguide's engagement automation platform helps firms standardize workflows and streamline evidence collection through its Agentic AI capabilities.

Request a demo to see how Fieldguide transforms SOC attestation workflows.