SOC2 Type II: What You Need to Know Before Starting

SOC2 Type II certification is often the gold standard for demonstrating your organization's commitment to security, availability, and data protection. If you're considering pursuing SOC2 Type II compliance, understanding what's involved can help you prepare effectively and avoid common pitfalls. This guide covers everything you need to know before starting your SOC2 Type II journey.

Understanding SOC2: Type I vs Type II

Before diving into Type II specifics, it's crucial to understand the difference between SOC2 Type I and Type II:

SOC2 Type I

• Evaluates the design of your security controls at a specific point in time
• Takes 2-4 months to complete
• Demonstrates that controls are suitably designed
• Lower cost and faster to achieve
• Good starting point for compliance journey

SOC2 Type II

• Evaluates the operational effectiveness of controls over time
• Requires minimum 6-month observation period (some auditors require 12 months)
• Demonstrates controls are not only well-designed but also operating effectively
• More expensive and time-intensive
• Preferred by enterprise customers and required by many contracts

The Five Trust Service Criteria

SOC2 audits are based on five Trust Service Criteria. Organizations choose which criteria to include based on their business needs:

1. Security (Required): Protection against unauthorized access
2. Availability: System availability for operation and use
3. Processing Integrity: System processing is complete, valid, accurate, and authorized
4. Confidentiality: Protection of confidential information
5. Privacy: Personal information collection, use, retention, and disclosure

Note: Security is always required. Most organizations pursue Security + Availability as their core criteria.

Timeline and Phases

Understanding the timeline helps you plan resources and set realistic expectations:

Phase 1: Preparation (2-4 months)

• Gap analysis and readiness assessment
• Policy and procedure development
• Control implementation
• Staff training
• Select and engage auditor

Phase 2: Observation Period (6-12 months)

• Continuous operation of controls
• Evidence collection
• Regular monitoring and documentation
• Internal reviews and testing
• Issue remediation

Phase 3: Audit (1-2 months)

• Formal audit kickoff
• Evidence submission
• Testing and verification
• Issue resolution
• Report issuance

Total Timeline: 9-18 months from start to SOC2 Type II report delivery

Key Requirements and Controls

Your specific control requirements will depend on your chosen criteria, but here are common areas:

Organization and Management

• Information security policies and procedures
• Risk assessment processes
• Organizational structure and responsibilities
• Board and management oversight

Access Controls

• User authentication (MFA required)
• Role-based access control (RBAC)
• Quarterly access reviews
• Privileged access management
• Secure password policies

System Operations

• Change management procedures
• Backup and recovery
• Monitoring and logging
• Incident response plan
• Business continuity planning

Software Development (if applicable)

• Secure development lifecycle
• Code review processes
• Vulnerability management
• Testing procedures
• Deployment controls

Vendor Management

• Vendor security assessments
• Annual vendor reviews
• Contractual security requirements
• Subservice organization controls

Evidence Collection: The Make-or-Break Factor

The most challenging aspect of SOC2 Type II is maintaining consistent evidence throughout the observation period:

Types of Evidence Required

• Screenshots: Of configurations, settings, and system states
• Logs: Access logs, change logs, monitoring logs
• Documents: Policies, procedures, meeting minutes
• Tickets: Issue tracking, change requests, incident reports
• Reports: Vulnerability scans, penetration tests, access reviews
• Emails: Approvals, notifications, communications
• Training Records: Completion certificates, attendance records

Evidence Best Practices

1. Create a centralized evidence repository
2. Use version control for documents
3. Timestamp and date all evidence
4. Maintain a evidence collection calendar
5. Automate evidence collection where possible
6. Regular evidence reviews (monthly recommended)
7. Document exceptions immediately

Costs and Resources

Budget appropriately for your SOC2 Type II journey:

Financial Costs

• Auditor Fees: $15,000 - $75,000+ (depending on scope and company size)
• Consultant Fees: $20,000 - $100,000+ (if using compliance consultants)
• Tools and Software: $5,000 - $30,000/year (GRC platforms, security tools)
• Training: $2,000 - $10,000 (staff training and certification)
• Penetration Testing: $10,000 - $50,000 (annual requirement)

Human Resources

• Dedicated compliance/security lead (50-100% time during prep and audit)
• IT/DevOps support (20-40% time)
• Management involvement (10-20% time)
• Department stakeholders (5-15% time)

Tools That Can Help

Consider these tools to streamline your compliance journey:

GRC Platforms

• Vanta: Automated compliance monitoring
• Drata: Continuous compliance automation
• Secureframe: Compliance automation and monitoring
• Tugboat Logic: Compliance management platform

Security Tools

• SIEM: Splunk, Datadog, Sumo Logic
• Vulnerability Scanning: Qualys, Tenable, Rapid7
• Endpoint Protection: CrowdStrike, SentinelOne
• Access Management: Okta, Azure AD, Auth0

Selecting an Auditor

Your auditor choice is critical. Consider:

• Experience: Look for auditors with experience in your industry
• Reputation: Choose recognized CPA firms (Big 4 or reputable boutique firms)
• Responsiveness: Ensure they provide adequate support throughout the process
• Cost: Get quotes from multiple firms
• Timeline: Confirm they can meet your desired timeline
• Additional Services: Some offer readiness assessments or consulting

Preparing Your Team

Success requires organization-wide participation:

1. Executive Buy-In: Ensure leadership understands commitment required
2. Training: Provide security awareness training for all employees
3. Clear Ownership: Assign clear control owners
4. Regular Communication: Keep team informed of progress and requirements
5. Culture Change: Foster a security-first mindset

Common Challenges and How to Overcome Them

Challenge 1: Evidence Gaps

Solution: Implement a monthly evidence review process and use automation tools

Challenge 2: Control Fatigue

Solution: Integrate controls into existing workflows; don't treat them as separate tasks

Challenge 3: Vendor Management

Solution: Start vendor assessments early and maintain a vendor management database

Challenge 4: Resource Constraints

Solution: Consider using compliance automation tools or hiring consultants

Challenge 5: Scope Creep

Solution: Define scope clearly upfront and resist expanding during the observation period

After You Achieve SOC2 Type II

Certification isn't the end:

• Annual Audits: SOC2 reports are valid for 12 months; plan for annual renewals
• Continuous Monitoring: Maintain controls year-round
• Report Distribution: Share reports with customers under NDA
• Continuous Improvement: Use audit findings to strengthen controls
• Expand Scope: Consider adding additional trust criteria

Is SOC2 Type II Right for You?

Consider pursuing SOC2 Type II if:

• You handle sensitive customer data
• Enterprise customers require it for contracts
• You want to demonstrate mature security practices
• You're in a competitive market where compliance is differentiator
• You have resources to dedicate to the process

Conclusion

SOC2 Type II certification is a significant undertaking that requires careful planning, dedicated resources, and sustained effort. However, the benefits—increased customer trust, competitive advantage, and improved security posture—make it worthwhile for most SaaS and technology companies.

Start by assessing your current state, allocating appropriate resources, and building a realistic timeline. With proper preparation and the right support, achieving SOC2 Type II is an attainable goal that will pay dividends for years to come.