System and Organization Controls 2
Demonstrating security practices to customers through independent attestation
What is SOC 2 and do you need it?
SOC 2 is an attestation report issued by a licensed CPA firm that examines your security controls against the [AICPA Trust Services Criteria](https://www.aicpa-cima.com/resources/download/2017-trust-services-criteria-with-revised-points-of-focus-2022). It is not a law or a certification; it is an auditor's opinion on whether your controls are suitably designed (Type I) or operating effectively over time (Type II). SOC 2 is voluntary, but for SaaS companies, MSPs, and data processors, enterprise customers routinely require a current Type II report before signing a vendor agreement. Security is the one required category. You choose whether to add Availability, Processing Integrity, Confidentiality, or Privacy based on what your customers need to see.
// What is SOC 2?
SOC 2 is an auditing framework developed by AICPA for service organizations demonstrating their security controls to customers and stakeholders. Unlike prescriptive standards like PCI-DSS, SOC 2 provides criteria-based requirements allowing organizations flexibility in how they implement controls.
The framework evaluates controls across five Trust Service Criteria: Security (required), plus optional categories for Availability, Processing Integrity, Confidentiality, and Privacy. Organizations choose which criteria to include based on their services and customer expectations.
SOC 2 reports come in two types: Type I assesses control design at a point in time, while Type II examines both design and operating effectiveness over a period (typically 6-12 months). Enterprise customers increasingly require Type II reports as vendor qualification criteria.
// Inside the Regulation
SOC 2 evaluates controls against the Trust Service Criteria (TSC), which define the characteristics of reliable systems. Security is always included; organizations select additional criteria based on their service commitments.
Security (Common Criteria)
CC SeriesThe foundation of every SOC 2 examination, covering how the organization protects information and systems against unauthorized access.
CC1: Control Environment
Management's commitment to integrity and security, organizational structure, and accountability mechanisms.
CC2: Communication and Information
How security information is communicated internally and externally, including policies and incident communication.
CC3: Risk Assessment
Processes for identifying, analyzing, and managing risks to achieving security objectives.
CC4: Monitoring Activities
Ongoing evaluation of controls and communication of deficiencies to appropriate parties.
CC5: Control Activities
Policies and procedures ensuring management directives are carried out, including technology controls.
CC6: Logical and Physical Access
Controls restricting logical and physical access to systems and facilities based on authorization.
CC7: System Operations
Detection of anomalies and security events, incident management, and recovery procedures.
CC8: Change Management
Controls ensuring changes to infrastructure and applications are authorized, tested, and documented.
CC9: Risk Mitigation
Controls addressing risks from vendors, business disruptions, and other external factors.
Availability
A SeriesOptional criteria evaluating whether systems are available for operation as committed.
A1: Availability Commitments
Controls supporting system availability including capacity planning, backup, recovery, and incident response.
Processing Integrity
PI SeriesOptional criteria assessing whether system processing is complete, accurate, timely, and authorized.
PI1: Processing Integrity Commitments
Controls ensuring data processing achieves intended results without unauthorized modification.
Confidentiality
C SeriesOptional criteria for protecting information designated as confidential.
C1: Confidentiality Commitments
Controls protecting confidential information throughout its lifecycle including collection, use, and disposal.
Privacy
P SeriesOptional criteria addressing personal information collection, use, retention, and disclosure.
P1-P8: Privacy Principles
Controls covering notice, choice, collection, use, access, disclosure, quality, and monitoring of personal information.
Note: Type I reports assess whether controls are suitably designed at a specific point in time. Type II reports evaluate both design and operating effectiveness over a period (typically 6-12 months). Enterprise customers generally require Type II reports, as they demonstrate controls actually work over time, not just on paper.
// Who Must Comply
- 1 SaaS and cloud service providers serving enterprise customers
- 2 Data centers and hosting providers
- 3 Managed service providers (MSPs) and managed security service providers (MSSPs)
- 4 Payment processors and fintech companies
- 5 HR and payroll service providers
- 6 Any service organization where customers require security assurance
// Key Requirements
Security Controls
Implement controls protecting against unauthorized access, including access management, encryption, and monitoring
Policies & Procedures
Document security policies and operational procedures governing all in-scope systems
Continuous Monitoring
Monitor systems for security events, anomalies, and control failures with defined response procedures
Vendor Management
Assess and monitor third-party vendors with access to systems or data in scope
Change Management
Control changes to infrastructure, applications, and configurations through formal processes
Incident Response
Maintain and test incident response procedures for security events and breaches
// Enforcement & Penalties
SOC 2 is a voluntary framework. There are no direct regulatory penalties. However, the business consequences of failing to achieve or maintain SOC 2 certification can be significant, as enterprise customers increasingly require it for vendor qualification.
No regulatory fines (voluntary framework)
Examples:
- Loss of enterprise sales opportunities requiring SOC 2 reports
- Removal from vendor qualification for existing customers
- Increased scrutiny and custom security assessments from prospects
- Higher cyber insurance premiums without attestation
// Cyber Insurance Impact
SOC 2 Type II reports demonstrate security program maturity to cyber insurers, often resulting in more favorable terms. Insurers view current SOC 2 attestation as evidence of baseline security practices. Organizations without SOC 2 may face additional underwriting scrutiny or higher premiums, particularly in the technology and services sectors.
// How Breach Craft Helps
We help organizations achieve SOC 2 compliance through genuine security improvements, not checkbox exercises. Our services address the specific requirements and challenges of SOC 2.
Gap Assessment
Measure your security against industry standards.
Penetration Testing
Find the gaps before attackers do.
Virtual CISO
Executive security leadership on demand.
Vulnerability Assessment
Thorough security scanning and risk prioritization.
Application Testing
Find what scanners miss.
API Security Testing
Secure your API attack surface.
Wireless Security Testing
Secure your wireless infrastructure.
Red Teaming
Adversary simulation with teeth.
Purple Teaming
Attack and defense, working together.
// Common Questions
What is the difference between SOC 2 Type I and Type II?
Is SOC 2 legally required?
What are the five Trust Service Criteria categories?
How long does it take to get a SOC 2 report?
How do I get ready for a SOC 2 audit?
// Industries That Need SOC 2
These industries commonly require SOC 2 compliance as part of their regulatory obligations.
Guide last reviewed: June 16, 2026
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