If your customers are asking for proof that you take security seriously, chances are they're looking for a SOC 2 Type 2 report.

A SOC 2 Type 2 audit doesn’t just check whether you’ve designed the right security controls. It verifies they’ve been operating effectively over a period of time (usually 6–12 months). It’s one of the clearest ways to show prospects and partners that you can be trusted with their data.

In this guide, we’ll explain what a SOC 2 Type 2 report is, why it matters, what’s in scope, how the audit works, and how to approach it without slowing your business down.

SOC 2 Type 2 Audit

SOC 2 Type 2 is an independent audit conducted by an external firm. It covers:

• Your controls: the policies, processes, and systems you’ve put in place
• Their effectiveness: whether those controls actually worked during the audit period

Unlike a Type 1 report (which is point in time), Type 2 is backward-looking. You’re proving with external audits that your compliance program ran consistently for the full audit period. That’s why customers value it more -it proves ongoing commitment, not just a snapshot.

Why It Matters 

SOC 2 Type 2 is relevant to most digital businesses because it covers broad security, availability, and privacy best practices. Many enterprise buyers won’t move forward without it.

A strong SOC 2 Type 2 report can:

• Win deals by meeting enterprise security requirements
• Strengthen trust with existing customers
• Differentiate you from competitors without mature security programs

Trust Services Criteria

The core of a SOC 2 Type 2 report is the five Trust Services Criteria created by the American Institute of Certified Public Accountants (AICPA).

Exactly what your SOC 2 Type 2 audit scope will be depends on which of the five TSC you choose to measure your company against. One of the major benefits of SOC 2 Type 2 is the flexibility to self-select the relevant TSC.

The TSC are:

• Security (required): Systems and data are protected against unauthorized access and disclosure. 
• Availability: Information and systems can be relied on for operation and use. 
• Processing integrity: System processing is complete, valid, accurate, and timely. 
• Confidentiality: Confidential information is protected. 
• Privacy: Personal information is safeguarded against unauthorized access and use. 

How the Audit Works

Because of the flexible nature of SOC 2, audits can be quite different from one company to another. There a few high-level steps that are consistent: 

1. Define scope: Security is the only required criteria for SOC 2, so we strongly recommend starting there. You may choose other relevant criteria if necessary to meet internal or customer requirements. 
2. Document controls: Starting with general controls first based on best practices will help you land on solid controls as you get down to specific implementation. 
3. Implement controls: Based on the requirements you’ve established, write up the policies, put the processes in place, and start collecting evidence.
4. Conduct a readiness assessment: Many auditors include a gap assessment as part of their audit contract. This gives you an opportunity to identify any remaining issues and ensure all controls are implemented before the audit.
5. Conduct the audit: Once you have maintained your compliance posture for the time period you’ve selected for the audit (6 months to 1 year), it’s time for the audit itself! Your auditor will request evidence and schedule field work, which will typically last 2-4 weeks. They will then prepare your audit report. 

Audit Planning and Timing 

Because SOC 2 Type 2 is backward-looking over a period of time, it’s critical to plan ahead. From the time you define controls and identify any gaps, you will still need to get the defined controls implemented. After that, you’ll need to wait for time to elapse so you can provide evidence for the full period. 

For example, if it will take you 6 months to implement your controls, and you are conducting a 6 month Type 2 audit, a full year will pass between starting this effort and starting the audit! If you have customers or market entry with SOC 2 Type 2 requirements, you want to get ahead of the curve. 

Audit Costs

The audit costs for a growing company range from $10,000 to $30,000 on average. Audit cost depends on several factors: 

• Audit Scope: The number of Trust Services Criteria you select and the complexity of your system will directly impact the time and effort required for the audit. 
• New Security Tools: Any new tools you implement to satisfy your developed controls -like runtime scanning, endpoint management, or data analysis -will incur costs. Expect to spend $2,000 to $20,000 depending on your platform and infrastructure.
• Penetration testing: Penetration testing by an external tester is a very common control, although it isn’t a hard SOC 2 requirement. Costs run from $4,000 to $20,000.
• Your selected auditor: There can be significant rate variations among auditors, from $5,000 up to $50,000. Some auditors charge separately for a readiness assessment at rates of $5,000 to $15,000. 
• Opportunity cost: Depending on the controls implemented, the systems you are using to implement those controls, and how you are collecting and providing evidence, your team may be leaving other critical efforts by the wayside to focus on compliance programs.

💡 This is why Openlane exists: to help growing companies with open source tools that make SOC 2 attainable, affordable, and easier to implement.

The Best Path to Achieving SOC 2

1. Assign a compliance owner
In the early stages of your business, you will likely not need a full time compliance hire, rather someone will be responsible for the program. Decide who tracks issues, responds to alerts, and keeps activities on schedule.

2. Monitor continuously
You don’t want to discover during the audit that you skipped onboarding steps or missed a quarterly risk review. Continuous monitoring helps you catch issues in real time.

3. Test before the audit
Conducting a gap analysis confirms you have put the right programs in place and ensures you pass your upcoming audit. Many auditors include a gap assessment in their audit contract, which is immensely helpful for first-time SOC 2 implementers.

🔍 Need more detail? Dig into our SOC 2 docs: SOC 2 Documentation 

Get Started with Openlane

Openlane helps you:

• Streamline compliance management
• Track and assign compliance activities
• Reduce time, cost, and stress in the SOC 2 process

Get in touch to see how we can simplify your compliance journey: info@theopenlane.io