The SOC 2 compliance audit: A definitive guide

For organizations pursuing SOC 2 compliance, understanding the audit process is crucial for success. While implementing controls is important, effectively navigating the evaluation process that examines those controls is equally essential. This guide focuses specifically on the SOC 2 compliance audit—the systematic evaluation that determines whether your security practices meet the required standards and earn auditor approval.

Whether preparing for your first audit or optimizing your compliance program, we’ll walk you through each critical stage of the process, providing actionable insights to help you approach your next audit with confidence and maximize the business value of your compliance investment.

Key takeaways

• The SOC 2 compliance audit process involves seven distinct phases, from auditor selection to report issuance, with proper preparation significantly impacting outcomes
• Organizations receiving SOC 2 audit reports should view them as strategic tools for security improvement rather than mere compliance checkmarks
• Thoropass streamlines SOC 2 audits through automation and expertise, helping organizations reduce audit time by 50% and compliance costs by 25% while enabling continuous compliance

The SOC 2 audit process explained

The SOC 2 audit isn’t a single event but a structured process with distinct phases. Understanding each phase helps you prepare effectively and avoid common pitfalls.

1. Selecting an auditor

As required by the American Institute of Certified Public Accountants (AICPA), only CPA firms can conduct SOC 2 audits. When selecting an auditor, consider these critical factors:

• AICPA membership: Verify the firm’s credentials and standing with the AICPA and state boards
• Industry experience: Seek auditors with expertise in your specific sector
• Technology understanding: Ensure they comprehend your technical environment
• References: Request and check client testimonials

Remember that your auditor isn’t just a compliance gatekeeper but a potential partner in your security journey. 

2. Engagement letter and scoping

Once you’ve selected an auditor, the formal process begins with an engagement letter that establishes:

• Audit timeline and key milestones
• Scope of the system being evaluated
• The Trust Services Criteria (TSCs) included in your audit scope
• Respective responsibilities of both parties
• Fee structure and payment terms

The scoping phase is critical—it defines exactly what systems, processes, and data will be examined. A properly scoped audit focuses resources efficiently while providing meaningful assurance to stakeholders.

3. Audit kickoff

This kickoff meeting outlines the communication protocols, evidence collection methods, and interview schedules, setting the foundation for a smooth audit process.Key participants typically include:

• Your compliance and security leaders
• System and process owners
• Auditor team members
• Project management representatives

4. Evidence collection and delivery

The most labor-intensive phase involves gathering and organizing evidence that demonstrates your service organization’s controls are properly designed and operating effectively. Evidence typically includes:

• Security policies and procedures
• System configurations and screenshots
• Access control records
• Risk assessment documentation
• Monitoring and incident response logs
• Vendor management evidence
• Training records

5. Auditor fieldwork

During fieldwork, auditors conduct comprehensive testing through:

• Document review and analysis
• System configuration examination
• Process walkthroughs
• Personnel interviews with key control owners
• Sample-based testing of control implementation

This phase typically lasts several weeks for a Type 2 audit. Availability of key personnel and prompt responses to additional evidence requests significantly influence the timeline.

6. Findings and management response

Auditors will communicate potential exceptions or control deficiencies as they’re identified. This gives you the opportunity to:

• Provide additional clarifying evidence
• Explain mitigating controls
• Develop remediation plans for identified gaps

If exceptions are noted in the final report, your management response outlines your position on the findings and your planned corrective actions. This response becomes part of the formal report.

7. Final report issuance

The complete report includes:

• Independent auditor’s opinion
• Management assertion 
• Detailed system description
• Testing procedures and results
• Any exceptions identified and management responses

For a Type 1 report, this represents a point-in-time assessment. For Type 2, it reflects control operation over the specified period (typically 6-12 months).

Type 1 vs. Type 2 audits: Key differences

When planning your SOC 2 audit, understanding the fundamental differences between Type 1 and Type 2 reports is essential:

• Type 1 audits assess control design at a specific point in time and provide assurance that controls are properly designed.
• Type 2 audits evaluate both design and operating effectiveness over a period of time (3-12 months), require ongoing evidence collection, and have become the industry standard for vendor security assessments.

SOC 2 audit preparation: Setting yourself up for success

Effective preparation is the cornerstone of a successful SOC 2 audit. Organizations that invest time in thorough preparation typically experience smoother audits, fewer exceptions, and more meaningful compliance outcomes.

The critical role of gap assessment

A gap analysis (or gap assessment) serves as the foundation for your SOC 2 preparation. This comprehensive assessment:

• Identifies discrepancies between your current security practices and SOC 2 requirements
• Prioritizes remediation efforts based on risk and implementation complexity
• Establishes a realistic timeline for addressing identified gaps
• Provides a baseline for measuring progress

Performing a thorough gap analysis early in your compliance journey allows you to systematically address deficiencies before the formal audit begins.

Strategic control implementation

Once gaps are identified, organizations must implement controls that satisfy SOC 2 requirements while aligning with business objectives. Effective control implementation involves:

• Designing controls that address specific Trust Services Criteria
• Integrating controls into existing business processes where possible
• Balancing security needs with operational efficiency
• Documenting control design and intended operation
• Testing controls internally before external validation

Remember that SOC 2 allows flexibility in how controls are implemented. 

Evidence documentation best practices

Auditors make determinations based on evidence, not assertions. Develop a structured approach to evidence collection that:

• Creates a centralized repository for compliance documentation
• Establishes naming conventions and organization schemas
• Implements version control for policies and procedures
• Captures evidence contemporaneously when controls are performed
• Aligns evidence with specific control objectives

Evidence should demonstrate both control design (how the control is supposed to work) and operating effectiveness (proof that the control worked as designed). For Type 2 audits, establish processes to collect evidence throughout the audit period, not just at the beginning or end.

Risk assessment considerations

A thorough risk assessment informs both your control selection and audit scope. An effective risk assessment:

• Identifies threats to your information assets and services
• Evaluates potential impact and likelihood of identified threats
• Prioritizes risk mitigation efforts
• Demonstrates due diligence to auditors
• Provides context for your control environment

Auditors will evaluate whether your risk assessment process is commensurate with your business complexity and industry requirements. Document your methodology, findings, and how risk assessment results influenced your control implementation.

The SOC 2 audit checklist: Beyond the checkbox approach

Unlike other compliance frameworks with rigid requirements, SOC 2 offers flexibility in how organizations implement controls. 

While there’s no universal SOC 2 audit checklist, auditors consistently examine several critical control domains across organizations. What’s most important isn’t just having controls in these domains, but implementing them in ways that effectively address your specific risks and service commitments.

Key control domains under examination

Beyond the checklist: A strategic approach

While understanding these domains provides valuable guidance, successful SOC 2 audits require moving beyond a checkbox mentality. Consider these strategic principles:

• Focus on risk alignment: Tailor control implementation to your specific risk profile rather than implementing generic controls
• Demonstrate process maturity: Show how controls have evolved through continuous improvement rather than being hastily implemented for compliance
• Emphasize operational integration: Embed controls within normal business operations instead of creating parallel compliance processes
• Document rationale: Explain the strategic thinking behind control selection and implementation, not just the controls themselves
• Prepare for nuanced inquiry: Auditors will explore how controls function in practice, not just whether they exist on paper

Who can perform a SOC 2 audit?

The selection of a qualified auditor is fundamental to SOC 2 compliance success. Not just any security professional can perform this assessment—the AICPA maintains strict requirements to ensure SOC 2 report integrity.

CPA requirement

The AICPA explicitly mandates that only licensed CPA firms can conduct SOC 2 audits:

• The audit must be performed by a CPA firm registered with the appropriate state boards
• The firm must maintain active AICPA membership
• The attestation must follow the AICPA’s Statement on Standards for Attestation Engagements (SSAE) No. 18

This requirement isn’t a mere technicality—it’s essential for ensuring your SOC 2 report will be accepted by clients and partners. Reports issued by non-CPA entities lack legitimacy and won’t satisfy due diligence requirements.

Technical qualifications

While the CPA credential establishes the baseline, effective SOC 2 audits require specialized expertise beyond traditional accounting:

• Framework expertise: Deep understanding of the Trust Services Criteria
• Technical proficiency: Ability to evaluate complex IT systems and security controls
• Industry knowledge: Familiarity with your sector’s technical environment and regulations

Many qualified firms employ professionals with supplementary certifications like CISA, CISSP, or CRISC to provide the technical depth required for effective audits.

Independence requirements

Auditor independence is non-negotiable. The auditor must not:

• Have a financial interest in your organization
• Have designed or operated the controls being tested
• Have relationships that would compromise objectivity

This means the firm that helps design and implement  controls should not be the same firm auditing those controls, preserving the credibility of the findings.

Understanding audit results

Every organization that completes a SOC 2 audit receives a report, regardless of the outcome. Unlike simple pass/fail assessments, SOC 2 reports include nuanced opinions that communicate the auditor’s findings about control effectiveness. Understanding these potential results helps organizations interpret their reports accurately and respond appropriately.

Types of audit opinions

The auditor’s opinion, which appears in the report’s first section, falls into one of four categories:

Interpreting control exceptions

Beyond the overall opinion, SOC 2 reports document specific control exceptions. Each exception includes:

• The control objective and criteria affected
• The nature and extent of the deviation
• The impact on overall control effectiveness
• Management’s response and remediation plans

Not all exceptions carry equal weight. Organizations should evaluate exceptions based on:

• Risk significance and potential impact
• Frequency and consistency of the deviation
• Compensating controls that mitigate the risk
• Root causes and systemic implications

Maximizing value from audit results

Regardless of the opinion received, a SOC 2 report provides valuable insights for security improvement:

• Prioritize remediation efforts based on risk rather than simply addressing all exceptions equally
• Analyze root causes of exceptions rather than implementing superficial fixes
• Develop a formal remediation plan with clear ownership and timelines
• Communicate results transparently with stakeholders while highlighting improvement initiatives
• Incorporate lessons learned into your continuous compliance program

SOC audit timeline and costs

SOC 2 audits vary significantly in timeline and costs based on organizational factors. 

Timeline considerations

The duration of a SOC 2 audit depends on several key factors:

• Organizational readiness:
  • Organizations with mature security programs may complete the process faster
  • Previous compliance experience (ISO 27001, NIST) can expedite the journey
  • First-time audits typically require more preparation time
• Scope decisions:
  • Additional Trust Services Criteria beyond Security extend timelines
  • Broader system boundaries increase assessment complexity
  • Type 2 audits include observation periods (3-12 months) plus audit execution
• General timeframes:
  • Gap analysis and readiness: 4-8 weeks
  • Control implementation: 8-16 weeks (highly variable)
  • Type 1 audit execution: 4-6 weeks
  • Type 2 observation period: 3-12 months
  • Type 2 audit execution: 4-8 weeks

First-time SOC 2 Type 2 audits typically require 9-18 months end-to-end, while subsequent audits generally follow more predictable cycles.

Cost variables

SOC 2 costs encompass more than just auditor fees and vary based on:

• Organizational factors:
  • Size and complexity of your environment
  • Geographic distribution of operations
  • Existing security maturity level
• Scope elements:
  • Number of Trust Services Criteria selected
  • Type 1 vs. Type 2 audit approach
  • System boundary definitions
• Implementation approach:
  • Internal resource allocation vs. external expertise
  • Technology investments in compliance tools
  • Documentation development requirements
• Efficiency strategies:
  • Conduct thorough readiness assessments before engaging auditors
  • Prioritize automation for evidence collection
  • Appropriately scope the audit to business objectives
  • Leverage compliance platforms that streamline the process

The most cost-effective approach views SOC 2 compliance as an integrated component of your security program rather than a one-time project, delivering ongoing value through improved security posture and operational maturity.

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How Thoropass streamlines the SOC 2 audit process

The SOC 2 audit process, while valuable, often becomes unnecessarily complex, time-consuming, and costly without the right systems in place. Thoropass addresses these challenges through a purpose-built compliance platform combined with expert guidance that transforms how organizations approach SOC 2 audits.

Unified compliance platform

Thoropass provides a centralized platform that simplifies compliance management throughout the audit lifecycle:

• Automated evidence collection integrates with key systems like AWS, Microsoft 365, and Atlassian suite to gather documentation without manual intervention
• Centralized evidence repository eliminates version control issues and creates a single source of truth
• Framework mapping allows evidence to satisfy requirements across multiple frameworks simultaneously
• Built-in policy templates provide customizable documentation that meets auditor requirements

This integrated approach eliminates the fragmentation that typically plagues compliance efforts, particularly for organizations managing multiple frameworks or divisions.

Expert-led audit process

Beyond technology, Thoropass offers a hands-on partnership approach:

• Direct auditor access enables efficient communication within the platform, reducing back-and-forth
• Compliance expertise helps translate complex requirements into actionable tasks
• Continuous guidance throughout the preparation and audit process
• In-house audit capabilities eliminate the need to coordinate with external firms

This expert-led approach transforms the traditionally adversarial audit relationship into a collaborative partnership focused on successful outcomes.

Measurable business impact

Thoropass customers consistently report significant operational and financial benefits:

• 50% reduction in audit time – The Access Group reduced their audit cycles from 12 months to just 6-7 months
• 25% decrease in compliance costs – The Access Group achieved substantial cost savings while improving quality
• 75% time savings on security questionnaires – CoEnterprise dramatically reduced the burden of responding to customer due diligence
• Multi-framework efficiency – CoEnterprise leveraged an 80% overlap between SOC 2 and ISO 27001 requirements to achieve dual certification in under a year

These metrics demonstrate that the right compliance approach doesn’t just satisfy requirements—it creates measurable business value through operational efficiency and strategic advantage.

Continuous compliance model

Rather than treating SOC 2 as an annual project, Thoropass enables a continuous compliance approach:

• Ongoing data security monitoring identifies potential issues before they become audit findings
• Automated alerts for configuration changes that could impact compliance
• Real-time compliance dashboards provide visibility into control effectiveness
• Streamlined annual reassessments build on existing evidence and documentation

This approach shifts the compliance paradigm from periodic scrambles to a sustainable, integrated component of security operations.

By combining technology, expertise, and a partnership mindset, Thoropass enables organizations to achieve SOC 2 compliance (and even multi-framework compliance) more efficiently while extracting greater value from their investment in security controls.

Maintaining ongoing SOC 2 compliance

Achieving SOC 2 compliance is not a one-time event but an ongoing commitment to security excellence. Organizations that approach compliance as a continuous process rather than an annual project realize greater value from their investment, maintain more effective controls, and avoid the resource-intensive scrambles that often precede audits. 

Thoropass enables this continuous compliance model through automated evidence collection, real-time monitoring, and integrated compliance management—transforming SOC 2 from a periodic burden into a strategic asset that enhances security posture year-round.

Unlike traditional audit firms that offer point-in-time assessments, Thoropass provides the unique combination of technology, expertise, and partnership that modern organizations need to navigate complex compliance requirements efficiently. 

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