SOC 2 Type II Compliance

SOC 2 Type II compliance guide

Demonstrate operational security and trustworthiness with SOC 2 Type II attestation. We help you implement controls, collect evidence and prepare for audits aligned with AICPA Trust Service Criteria.

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What is SOC 2 Type II?

SOC 2 (Service Organization Control 2) is an auditing standard developed by the American Institute of Certified Public Accountants (AICPA) that evaluates how service organizations manage customer data based on five Trust Service Criteria: Security, Availability, Processing Integrity, Confidentiality and Privacy.

Type II vs Type I: While Type I reports on whether controls are designed properly at a point in time, Type II demonstrates that controls operated effectively over a period of time (typically 6-12 months), providing stronger assurance to customers.

Comprehensive

Tests control operation over time

Market standard

Expected by enterprise customers

Complements ISO 27001 for information security and NIST AI RMF for risk management.

Who needs SOC 2 Type II?

SaaS providers

Customer contracts often require SOC 2 attestation

Cloud service providers

Demonstrates security and availability commitments

Healthcare technology

Complements HIPAA compliance requirements

Financial services

Third-party risk management and regulatory expectations

Data processors

Required by enterprise customers for vendor due diligence

Technology service providers

Competitive differentiator in security-conscious markets

How VerifyWise supports SOC 2 Type II compliance

Concrete capabilities that address Trust Service Criteria requirements

System inventory and scope definition

Document all systems, applications and infrastructure within your SOC 2 scope. The platform maintains detailed system descriptions, data flows and dependencies required for the system description section of your audit.

Addresses: All TSCs: Foundation for comprehensive control environment

Risk assessment and treatment

Identify and assess risks to each Trust Service Criteria. Track risk treatments, assign owners and maintain documentation that demonstrates your risk management processes to auditors.

Addresses: Security, Availability: Risk-based control implementation

Control documentation and evidence

Maintain control narratives, policies and procedures aligned with TSCs. The platform organizes evidence by control objective and generates the structured documentation auditors expect.

Addresses: All TSCs: Control environment documentation

Access management and user reviews

Track user access, permissions and regular access reviews. Document provisioning workflows, de-provisioning procedures and maintain audit trails for all access changes.

Addresses: Security, Confidentiality: Access control requirements

Monitoring and incident tracking

Log security incidents, availability events and processing exceptions. Track response activities, root cause analysis and remediation with timestamps and assigned responsibilities.

Addresses: Security, Availability, Processing Integrity: Continuous monitoring

Vendor risk management

Assess third-party vendors, track security questionnaires and maintain vendor documentation. The platform structures vendor risk assessments in the format SOC 2 audits require.

Addresses: All TSCs: Third-party oversight and due diligence

All evidence is timestamped, version-controlled and assigned to responsible owners. This audit trail demonstrates continuous control operation rather than documentation assembled for audit purposes.

Complete Trust Service Criteria coverage

VerifyWise provides dedicated tooling for all SOC 2 Trust Service Criteria

Control categories covered

Categories with dedicated tooling

100%

Coverage across all TSCs

Security12/12

Access, encryption, monitoring, incident response

Availability8/8

Uptime, capacity, disaster recovery, monitoring

Processing Integrity6/6

Data processing accuracy, completeness, timeliness

Confidentiality5/5

Data protection beyond PII, access controls

Built for SOC 2 audits from the ground up

Continuous evidence collection

Automated timestamping and versioning for audit trail

Audit-ready reports

Evidence organized by control objective and TSC

Vendor risk management

Track sub-service organization SOC 2 reports

Multi-framework support

Crosswalk to ISO 27001 and NIST frameworks

Five Trust Service Criteria

AICPA defines five categories for evaluating service organization controls

Security

(Mandatory for all SOC 2 audits)

The system is protected against unauthorized access, use and modification.

Common criteria

CC1.1-1.5: Control environment
CC2.1-2.3: Communication and information
CC3.1-3.4: Risk assessment
CC4.1-4.2: Monitoring activities
CC5.1-5.3: Control activities
CC6.1-6.8: Logical and physical access
CC7.1-7.5: System operations
CC8.1: Change management
CC9.1-9.2: Risk mitigation

Additional focus areas

Access control policies and procedures
Multi-factor authentication implementation
Encryption for data in transit and at rest
Security monitoring and logging
Incident response procedures
Vulnerability management
Security awareness training

Availability

The system is available for operation and use as committed or agreed.

Common criteria

CC1-CC9: All common criteria apply

Additional criteria

A1.1: System availability commitments
A1.2: Availability monitoring
A1.3: Environmental protections
Disaster recovery and business continuity plans
Backup procedures and testing
System capacity planning
Performance monitoring and alerting
Redundancy and failover procedures

Processing Integrity

System processing is complete, valid, accurate, timely and authorized.

Common criteria

CC1-CC9: All common criteria apply

Additional criteria

PI1.1: Processing integrity commitments
PI1.2: Processing monitoring and review
PI1.3: Input completeness and accuracy
PI1.4: Processing completeness and accuracy
PI1.5: Output completeness and accuracy
Data validation and error handling
Processing exception management
Reconciliation procedures

Confidentiality

Information designated as confidential is protected as committed or agreed.

Common criteria

CC1-CC9: All common criteria apply

Additional criteria

C1.1: Confidentiality commitments
C1.2: Confidential information disposal
Data classification policies
Need-to-know access principles
Non-disclosure agreements
Confidential data encryption
Data retention and disposal procedures

Privacy

Personal information is collected, used, retained, disclosed and disposed of properly.

Common criteria

CC1-CC9: All common criteria apply

Additional criteria

P1.1: Notice and communication of objectives
P2.1: Choice and consent
P3.1-3.2: Collection
P4.1-4.3: Use, retention and disposal
P5.1-5.2: Access
P6.1-6.7: Disclosure to third parties
P7.1: Quality
P8.1: Monitoring and enforcement
Privacy policy and notices
Data subject rights procedures
Cookie consent management

SOC 2 Type I vs Type II

Understanding the critical differences between the two report types

Aspect	Type I	Type II
Scope	Point-in-time assessment	6-12 month observation period
Testing	Design effectiveness only	Design + operating effectiveness
Timeline	3-4 months typical	12-18 months typical (includes observation)
Evidence	Policies, procedures, configurations	Continuous evidence over observation period
Auditor testing	Walkthrough and design review	Statistical sampling of control operation
Customer preference	Initial compliance, lower maturity	Standard requirement, demonstrates maturity
Report value	Shows controls exist	Proves controls work over time
Cost	Lower audit fees	Higher audit fees, more evidence collection
Maintenance	Snapshot at audit date	Requires continuous compliance

Recommendation: Most organizations should pursue Type II directly if time permits. Type I can be useful as an interim step while building toward the 6-12 month observation period Type II requires.

Type II implementation roadmap

A practical 18-month path to SOC 2 Type II attestation

Phase 1Weeks 1-4

Scoping and readiness

Define SOC 2 scope (systems, locations, TSCs)
Conduct initial gap assessment
Select auditor and schedule engagement
Establish project team and governance

Phase 2Weeks 5-16

Control design and implementation

Document policies, procedures and controls
Implement missing controls identified in gap assessment
Configure monitoring and logging systems
Train staff on SOC 2 requirements

Phase 3Weeks 17-68 (Type II requires 6+ months)

Evidence collection and review period

Collect evidence of control operation
Conduct internal control testing
Remediate control deficiencies
Maintain continuous evidence collection

Phase 4Weeks 69-76

Audit and certification

Auditor fieldwork and testing
Respond to auditor inquiries and requests
Address audit findings
Receive SOC 2 Type II report

Audit preparation essentials

What auditors need to see for a successful SOC 2 Type II engagement

Documentation

System description (narrative of infrastructure, software, people, procedures, data)
Organizational chart with roles and responsibilities
All policies, procedures and standards
Network diagrams and data flow diagrams
Vendor contracts and SOC 2 reports
Risk assessment documentation

Evidence collection

User access reviews (quarterly or more frequent)
Monitoring and logging reports
Incident response records
Change management tickets and approvals
Backup and recovery test results
Security training completion records
Vulnerability scan and penetration test results

Testing readiness

Internal control testing before audit
Remediation of identified gaps
Mock auditor walkthroughs
Evidence organized by control objective
Access to systems for auditor testing
Point of contact list for each control area

Pro tip: Start evidence collection at the beginning of your observation period, not when the audit begins. Auditors sample across the entire period and missing evidence for early months can delay or compromise your audit.

How SOC 2 compares to other standards

Understanding the relationship between major security and compliance frameworks

Aspect	SOC 2	ISO 27001	PCI DSS
Authority	AICPA (American Institute of CPAs)	ISO/IEC international standard	PCI Security Standards Council
Focus	Trust Service Criteria (security, availability, etc.)	Information security management system	Payment card data protection
Applicability	Service organizations (especially SaaS)	Any organization globally	Entities handling payment card data
Legal status	Voluntary (market-driven requirement)	Voluntary certification	Mandatory for payment card industry
Public availability	Type I/II shared under NDA with customers	Certificate publicly available	Attestation of Compliance (AoC)
Recertification	Annual audit required	Annual surveillance, 3-year re-certification	Annual reassessment (quarterly scans)
Best for	SaaS vendors, US market trust	Global operations, EU market	E-commerce, payment processing

Note: These frameworks complement rather than replace each other. Many organizations maintain SOC 2 for US customers, ISO 27001 for global recognition and PCI DSS if handling payment data. VerifyWise supports multi-framework compliance.

Discuss multi-framework strategy

Business impact

Consequences of non-compliance

While SOC 2 is voluntary and has no direct regulatory fines, failing to maintain compliance creates significant business risks that can threaten company viability.

Loss of trust

Customer churn and damaged reputation

Contract requirements

Disqualification from enterprise deals

Competitive disadvantage

Lost opportunities to certified competitors

Most enterprise procurement processes require SOC 2 Type II as a minimum security baseline. Without it, sales cycles extend significantly or deals are simply not possible.

Policy templates

SOC 2-aligned policy repository

Access 37 ready-to-use policy templates covering SOC 2 Trust Service Criteria,ISO 27001andNIST AI RMFrequirements

Security TSC

• Information Security Policy
• Access Control Policy
• Incident Response Plan
• Business Continuity Policy
• Encryption Standards
• Security Monitoring Policy
+ 6 more policies

Availability & Processing

• Disaster Recovery Plan
• Backup and Restore Policy
• Change Management Policy
• Capacity Planning Policy
• Data Quality Standards
• System Monitoring Policy
+ 4 more policies

Confidentiality & Privacy

• Data Classification Policy
• Privacy Policy
• Data Retention Policy
• Vendor Management Policy
• NDA Templates
• Data Disposal Procedures
+ 3 more policies

Browse all policy templates

Frequently asked questions

Common questions about SOC 2 Type II implementation

SOC 2 Type I evaluates whether controls are properly designed at a point in time, while Type II tests whether those controls operated effectively over a period (typically 6-12 months). Type II is the industry standard and what most enterprise customers require. See AICPA's official SOC 2 page for detailed guidance.

Security is mandatory for all SOC 2 audits. Availability, Processing Integrity, Confidentiality and Privacy are optional and should be selected based on your service commitments. Most SaaS companies include Security and Availability at minimum. Consult with your auditor and customers to determine the appropriate scope.

A realistic timeline is 12-18 months from start to receiving your report. This includes 3-4 months of preparation and control implementation, 6-12 months of observation period where controls must operate effectively, and 2-3 months for the audit. Organizations with mature security programs can sometimes compress this timeline.

Audit fees typically range from $20,000-$100,000+ depending on company size, complexity, number of Trust Service Criteria and auditor selection. Type II audits cost more than Type I due to extended testing. Budget also for internal effort (equivalent of 1-2 FTEs during preparation) and tooling costs.

Control failures result in exceptions or findings in your SOC 2 report. Minor issues may be noted with management's remediation response. Significant deficiencies can result in a qualified opinion. Work with your auditor to understand severity, remediate promptly and document corrective actions. Some exceptions don't prevent report issuance if properly explained.

No, SOC 2 reports are confidential documents shared under NDA with customers and prospects who have a legitimate business need to review them. Unlike ISO 27001 certificates, SOC 2 reports are not publicly posted. You control distribution and typically share via secure document exchange platforms.

SOC 2 Privacy TSC addresses some privacy requirements but is not sufficient for GDPR compliance alone. SOC 2 focuses on your organization's privacy practices, while GDPR is a comprehensive legal requirement. Organizations serving EU customers typically need both SOC 2 (for US customer trust) and GDPR compliance (for legal requirements).

Yes, most modern SaaS companies rely on cloud infrastructure. You can leverage your cloud provider's SOC 2 reports for infrastructure controls via "carve-out" or "inclusive" methods. Your audit will focus on your application layer, access controls, monitoring and processes. Review your cloud provider's SOC 2 report and ensure proper service organization controls.

Expect requests for access review records, change management tickets, incident logs, monitoring reports, backup test results, security training completion, vulnerability scan results, penetration test reports, policy acknowledgments, vendor assessments and business continuity test documentation. Evidence should cover the entire observation period with consistent timestamps and ownership.

SOC 2 Type II reports are valid for the observation period covered (typically 6-12 months) but most organizations undergo annual audits to maintain continuous coverage. Plan to start your next audit cycle shortly after receiving your current report. Many companies align audit periods with fiscal year or calendar year for consistency.

For US-based SaaS companies, SOC 2 is typically the priority as it's the market expectation. ISO 27001 provides broader international recognition and may be preferred for European markets. Some organizations pursue both. Consider your customer base, market geography and internal security maturity when deciding.

VerifyWise provides centralized control documentation, evidence collection, risk assessment and vendor management aligned with SOC 2 Trust Service Criteria. Our platform organizes artifacts by control objective, tracks evidence over time and generates audit-ready documentation. We also support ISO 27001 and NIST AI RMF for organizations with AI governance needs.

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