What is SOC 2 Compliance?
SOC 2 is an auditing standard developed by the AICPA that verifies a service organization's controls for security, availability, processing integrity, confidentiality, and privacy.
SOC 2 is an auditing standard developed by the AICPA that verifies a service organization's controls for security, availability, processing integrity, confidentiality, and privacy. It's the most common security certification required by enterprise SaaS buyers.
SOC 2 Types: Type I (verifies that controls are designed properly at a point in time) and Type II (verifies that controls operate effectively over a period of time, typically 6-12 months). Type II is more rigorous and more valuable.
The five Trust Service Criteria: Security (protection against unauthorized access), Availability (system uptime and accessibility), Processing Integrity (accurate and timely data processing), Confidentiality (protection of sensitive information), and Privacy (proper handling of personal data).
SOC 2 audit cost: $20,000-100,000+ depending on company size and scope. Ongoing compliance costs include: tool licenses, process maintenance, and annual re-audits.
Why It Matters
SOC 2 is effectively required for any SaaS company selling to enterprise customers. Without SOC 2, you'll be excluded from procurement processes at most mid-market and enterprise companies.
Frequently Asked Questions
What is SOC 2?
An auditing standard that verifies a company controls for security, availability, confidentiality, processing integrity, and privacy. Required by most enterprise SaaS buyers.
How long does SOC 2 take?
Type I: 2-4 months to prepare, then audit. Type II: 6-12 month observation period after controls are in place. Most companies start with Type I, then upgrade to Type II.
Related Terms
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