SOC 2
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Overview
What is SOC 2?
SOC 2 proves your company secures customer data with strong controls, boosting trust, sales, and risk management.
What is SOC 2?
As digital services become more embedded in our personal and professional lives, organizations face higher expectations for security and trust.
SOC 2 compliance is one of the most widely recognized ways to demonstrate that your company takes data protection seriously and operates with strong internal controls.
But what exactly does achieving SOC 2 compliance mean for your business?
In this guide, we’ll explain SOC 2, how it works, and how your organization can approach SOC 2 readiness successfully.
SOC 2 Explained
SOC 2 stands for System and Organization Controls 2.
It is a security and compliance framework developed by the American Institute of Certified Public Accountants (AICPA). SOC 2 helps service organizations demonstrate that they manage customer data securely and reliably.
The framework is based on the Trust Services Criteria (TSC):
Security: Protecting systems and data from unauthorized access
Availability: Ensuring systems are reliable and accessible as promised
Processing Integrity: Guaranteeing that systems process data accurately
Confidentiality: Safeguarding sensitive information from unauthorized disclosure
Privacy: Handling personal data in compliance with privacy laws and customer expectations
The goal of SOC 2 compliance is to validate that your organization operates with robust, auditable security controls and builds trust with customers and partners.
Who Needs SOC 2?
SOC 2 compliance is particularly relevant for technology companies and service providers that process or store customer data.
This includes:
SaaS platforms
Cloud infrastructure providers
AI and machine learning companies
Financial services vendors
Healthcare technology firms
Any vendor selling to security-conscious enterprises
If your customers request proof of your security practices or your business handles sensitive data, pursuing SOC 2 readiness should be a priority.
SOC 2 Type I vs. Type II Reports
SOC 2 reports come in two types:
SOC 2 Type I report: Evaluates whether your SOC 2 controls are properly designed and implemented at a single point in time.
SOC 2 Type II report: Assesses how effectively your controls operate over a period of time (typically 3 to 12 months). This is the more comprehensive and widely requested type of report.
Many companies begin with a Type I report to validate their initial controls, and later pursue a Type II audit as their compliance program matures.
How the SOC 2 Audit Process Works
The SOC 2 audit is performed by an independent licensed CPA firm. The typical SOC 2 audit process includes:
Scope definition: Determining which systems and processes are included.
Readiness assessment: Identifying gaps and preparing for the audit.
Audit fieldwork: Auditors review evidence, perform control testing, and evaluate operational effectiveness.
Audit report issuance: The auditor delivers a formal SOC 2 report documenting your compliance.
Importantly, SOC 2 is not a one-time project. It requires continuous monitoring and ongoing maintenance to ensure your controls remain effective and aligned with evolving threats and business needs.
Platforms like DSALTA help automate evidence collection, monitor control health, and ensure that your team is always audit-ready.
Why SOC 2 Matters
Achieving SOC 2 compliance delivers multiple business benefits:
Accelerate sales cycles: Many enterprise buyers require SOC 2 reports during vendor onboarding.
Strengthen customer trust: Demonstrate that security and privacy are core to your operations.
Reduce risk: Improve internal processes and reduce the risk of data breaches.
Gain competitive advantage: Use SOC 2 compliance to stand out in a crowded market.
Additionally, many organizations pursue SOC 2 alongside other frameworks like ISO 27001 and GDPR to build a holistic, integrated compliance program.
Building Trust Through SOC 2 Compliance
Understanding SOC 2 criteria and pursuing SOC 2 readiness helps your organization create a resilient security posture, gain customer confidence, and improve risk management.
Whether you’re a SaaS company, a cloud service provider, or a technology-driven business, achieving SOC 2 compliance signals that your organization takes protecting customer data seriously.
