SOC 2 compliance refers to an organization’s ability to meet the AICPA Trust Services Criteria through documented, tested, and independently verified controls. It is a voluntary but widely expected cybersecurity and internal-controls standard for service organizations. When a SOC 2 Type I or Type II assessment confirms the design and operation of controls for security, availability, processing integrity, confidentiality, and privacy, the organization is considered compliant.
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How SOC 2 Compliance Works
Understanding how SOC 2 functions starts with the AICPA, which maintains the framework. Everything in the audit, from controls to evidence and testing, comes from those Trust Services Criteria.
Achieving SOC 2 compliance means aligning policies, technical safeguards, and internal processes with the TSC. Independent CPA firms issue SOC 2 reports under SSAE attestation standards, so the assessment must follow a strict, validated method. This is what gives customers confidence that the environment meets recognized security expectations.
SOC 2 offers two report types:
- Type I: Focuses on whether controls are designed effectively on a specific date.
- Type II: Tests whether those controls work consistently over three to twelve months.
Most organizations pursue Type II because it shows real operational discipline rather than a one-day snapshot.
Even though SOC 2 is not a law, enterprises rely on these reports to speed up due diligence checks, reduce lengthy questionnaires, and confirm a vendor’s security posture before sharing sensitive data.
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The Five Trust Services Criteria Explained
Each Trust Services Criterion addresses a different aspect of organizational risk. Security serves as the anchor, and the remaining criteria are added based on the system’s purpose and data sensitivity.
Security (Required)
Every SOC 2 report includes Security. Even when the AICPA clarified that Security is technically optional, CBIZ’s 2024 benchmark showed 100% of SOC 2 reports still included it. This category covers multi-factor authentication, network protection, access controls, logging, monitoring, and mechanisms that prevent unauthorized access.
Availability
Availability focuses on system uptime and resilience. Controls involve disaster recovery plans, data-center continuity measures, and capacity management. CBIZ found 75.3% of SOC 2 reports included Availability, making it common for cloud-based platforms and services that promise reliability.
Processing Integrity
Processing Integrity ensures data is processed accurately and fully. For example, workflow automation tools or financial systems often need this category to demonstrate predictable output.
Confidentiality
Confidentiality protects sensitive business data. CBIZ reported a major year-over-year jump: The number of SOC 2 reports, including this category, rose from 34% to 64.4%. This shift mirrors how organizations prioritize intellectual property and customer data protection.
Privacy
Privacy applies specifically to personal information, that is, how it is collected, retained, used, disclosed, or deleted. It aligns with expectations found in GDPR or HIPAA, even though SOC 2 itself is a voluntary framework. It creates a structured way to review how personal data is handled.
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Why SOC 2 Compliance Matters
The simplest way to understand the importance of SOC 2 is to look at the current risk climate. IBM’s 2024 findings showed the global average cost of a data breach reached $4.88 million, the largest increase since the pandemic. The 2025 data dropped slightly to $4.4 million, but that number still forces organizations to rethink how they manage risk. For financial services firms, the impact is even sharper, with breach costs averaging $6.08 million, about 22% above the global figure.
Leaders have taken notice. PwC’s 2025 global survey found 51% of executives now place cybersecurity and data protection at the top of their compliance priorities. Another 77% said compliance failures directly hurt growth drivers, suggesting that organizations lose opportunities when they cannot prove control strength.
AI introduces additional tension. IBM reported that 97% of organizations experiencing AI-related incidents lacked proper AI access controls, and 63% had no AI governance. Those issues show up in environments where new tools are adopted before controls mature. SOC 2’s structured governance and documentation requirements counter these risks by forcing consistency and oversight.
Because of these pressures, SOC 2 has become central to third-party risk management. Enterprises, especially those in regulated industries, often require vendors to present SOC 2 Type II reports before onboarding them. Without it, many companies cannot pass procurement reviews.
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Organizations That Need SOC 2 Compliance
The organizations that typically need SOC 2 are those that store, process, or handle customer data. SaaS providers, cloud platforms, managed services, HR technology, payment processors, and data-processing systems commonly rely on SOC 2 to build trust with customers.
Regulated sectors, such as financial services, healthcare, and public-sector agencies, also expect SOC 2 Type II as a baseline requirement. Vendors cannot compete for enterprise contracts without it.
Modern environments complicate this further. CBIZ’s 2024 benchmark showed 89.6% of SOC reports included subservice providers, meaning organizations must consider the control posture of hosting providers, payment gateways, and other integrated systems. As multi-vendor architectures grow, SOC 2 becomes a shared responsibility across the ecosystem.
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Common Challenges in Achieving SOC 2 Compliance
SOC 2 requires thoughtful planning. Many challenges come from documentation gaps, unclear scope, or reliance on third-party providers. Addressing these issues early helps avoid exceptions during the audit.
Evidence & Documentation Burden
SOC 2 Type II requires consistent, dated evidence. Logs, screenshots, service-ticket records, and change-management approvals must reflect real operational activity. Missing quarterly reviews or skipped disaster-recovery tests can trigger exceptions even if the environment is otherwise well controlled.
Over-scoping or Under-scoping the Audit
Organizations sometimes choose a scope that is either too narrow or too broad. A narrow scope might not satisfy customer expectations, while an overly broad one increases the number of required controls.
Third-Party Dependencies
Subservice organizations influence SOC 2 boundaries. If a cloud provider or payment processor plays a major role, their responsibilities must be documented clearly through carve-out or inclusion. CBIZ’s data shows high reliance on subservice providers, which means many organizations must trace responsibilities carefully.
Sustaining Compliance Year-Round
SOC 2 is ongoing. Controls must operate consistently, as access reviews, log monitoring, security training, and change-approval workflows cannot be one-off tasks. Without continuous management, the next Type II audit may surface gaps from missed recurring activities.
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How to Prepare for SOC 2 Compliance
Preparing for SOC 2 works best when it follows a structured, repeatable plan. Using steps makes the process easier to manage.
- Define the audit scope: Clarify the systems, locations, and Trust Services Criteria that apply to your environment.
- Conduct a readiness assessment or gap analysis: This helps identify missing policies, technical controls, and documentation requirements before the audit window opens.
- Implement the required controls: Address gaps by updating processes, deploying security controls, or assigning responsibilities.
- Perform internal testing: Some teams run a pre-audit test to confirm that controls work as intended before involving an external auditor.
- Maintain an evidence-collection calendar: Quarterly or monthly evidence checkpoints prevent last-minute collection challenges during the Type II period.
- Review and verify subservice providers: Request SOC 2 reports or assess vendor responsibilities to ensure the audit scope reflects the actual environment.
- Use compliance automation tools when needed: These tools help manage tasks, workflows, and evidence storage. They do not replace controls but make operations more organized.
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Strengthen Your Compliance With OTAVA
OTAVA understands that SOC 2 audits require consistent controls, clean documentation, and an environment designed for reliability. Our secure cloud infrastructure, compliant data centers, and managed services support organizations working toward SOC 2 readiness. Our environments align with controls for security, availability, and confidentiality, and we provide access to our SOC 2 audit reports under NDA for added assurance.
If you are preparing for SOC 2 compliance or need infrastructure that supports long-term audit success, we can help. Reach out to our team to start a conversation about how our cloud services can simplify your path to a successful SOC 2 outcome.
