How Much Does a SOC 2 Certification Cost in 2024?

Is the idea of a $100,000 SOC 2 certification cost keeping you awake at night?

Six-figure expenses and nearly a year of preparation can be overwhelming.

But compliance doesn't have to drain your time and budget.

In this article, we'll break down the costs and show you how to achieve SOC 2 certification faster and cheaper.

What drives the cost of SOC 2 certification?

Several factors influence the total cost of achieving SOC 2 compliance:

Size of your organization

The larger your organization, the higher the audit costs tend to be. More employees and complex systems mean auditors need to invest additional time examining processes and controls.

For example, a company with multiple departments and extensive IT infrastructure will require a more in-depth audit than a smaller firm with straightforward operations.

Scope of the audit

Are you addressing all five Trust Services Criteria or focusing on just one or two? Expanding the scope increases the audit's complexity and, consequently, the cost.

If you're covering security, availability, processing integrity, confidentiality, and privacy, expect the process to be more comprehensive — and pricier.

Your readiness and preparation

Being unprepared can inflate costs. Organizations lacking necessary documentation or with outdated policies may need to invest in readiness assessments, gap analysis, and remediation efforts.

For instance, if your security protocols aren't well-documented, auditors will spend more time reviewing and advising, which adds to the expense.

The audit firm's rates

Audit firms set their fees based on experience and reputation. Engaging one of the Big Four firms — Deloitte, Ernst & Young, KPMG, or PwC — can be substantially more expensive than working with a mid-tier or boutique firm.

Consulting and advisory expenses

Hiring external consultants for readiness assessments or remediation adds to your overall costs. These services can typically range from $10,000 to $50,000 depending on scope.

A breakdown of typical SOC 2 certification expenses

Planning your budget? Here's a general breakdown of the costs associated with SOC 2 compliance:

Ongoing compliance and renewal costs

Maintaining SOC 2 compliance demands annual audits. These recurring audits incur costs similar to your initial fees.

Internal resource commitments

Achieving SOC 2 compliance requires significant time from your team. Employees across departments need to dedicate hours to prepare documentation, implement controls, and coordinate with auditors.

How Much Does SOC 2 Type I Certification Cost?

A SOC 2 Type I audit evaluates an organization's internal controls related to data security at a specific point in time. So, there's no prolonged audit period –– preparation is the main part that drives the cost.

Let's dive into the details.

SOC 2 Type I certification typically costs between $10,000 and $25,000. This range depends on several factors, including the number of Trust Services Criteria (TSC) you choose to include.

If you're covering up to three TSCs, you might pay around $10,000. Opting for more than three TSCs can increase the cost to $25,000 or more.

Factors influencing the cost:

• Organization Size: Larger companies often face higher fees due to more extensive systems.
• System Complexity: Complex IT infrastructures require more thorough audits.
• Audit Readiness: Being well-prepared can reduce both time and expenses.
• Auditor Selection: Fees vary among auditing firms.

Consider additional expenses like readiness assessments, which can cost between$10,000 to $50,000. You'll also need to account for investments in security tools and possible lost productivity as your team focuses on compliance efforts.

For example, a mid-sized tech company might spend $15,000 on the audit, plus an extra $10,000 on new security software, such as Data Loss Prevention and Encryption Software, and Vulnerability Assessment tools.

Preparing for and completing the SOC 2 Type I audit usually takes 3 to 6 months. This timeframe gives you an idea of when you might start seeing the benefits of certification.

How Much Does SOC 2 Type II Certification Cost?

SOC 2 Type II certification generally ranges from $15,000 to $80,000, and can exceed $100,000 for larger organizations. On average, expect to spend about $30,000 on the audit alone.

What affects the cost?

• Audit Duration: Type II audits span 3 to 12 months, increasing costs over time.
• Number of TSCs: Covering more criteria leads to higher fees.
• Organization Size and Complexity: Larger, more complex organizations incur greater expenses.
• Audit Readiness: Efficient preparation can save money.

For instance, a large enterprise auditing over a 12-month period and covering all five TSCs might see costs exceeding $100,000. Conversely, a smaller business with fewer criteria over a shorter period might keep costs closer to $20,000.

Don't forget additional costs:

• Readiness Assessments: Similar to Type 1, around $10,000.
• Legal Fees: Reviewing contracts and policies can add about $10,000.
• Staff Training: Security training sessions might cost up to $15,000.
• Compliance Tools: Necessary software ranging from $12,000 to $60,000.

The entire SOC 2 Type 2 process typically takes 6 to 12 months. This longer period reflects the audit's comprehensive nature, evaluating your controls over time.

Hidden Costs You Might Overlook

Training your team: time and expenses

Traditional methods consume hundreds of man-hours. It's exhausting and costly.

But there's more. When your staff spends time on training, they're not focusing on other productive tasks. This creates a double burden:

• Opportunity costs: Valuable time is diverted from core activities.
• Employee burnout: Extra workload can lead to fatigue and low morale.

These hidden costs drain resources and energy, leaving your team tired and your progress stalled.

Productivity loss during the audit process

Audits can paralyze your workforce. Anxiety rises, morale dips, and output decreases.

Imagine this:

• Lost time: If each of your 100 employees loses just one hour of productivity daily, that's 100 hours gone every day.
• Financial impact: This could mean over $50,000 lost each month.

When your team focuses on audits and compliance, critical business functions take a back seat. Opportunities slip away, and financial strain intensifies.

Your bottom line suffers, and regaining momentum becomes an uphill battle.

Cut SOC 2 Costs in Half with EasyAudit

Why let SOC 2 certification drain your resources?

EasyAudit offers an AI-powered platform that slashes your compliance costs in half and saves you over 100 hours of manual labor.

Unlike traditional approaches that burden your team with intricate tasks and escalating fees, EasyAudit provides custom-tailored security controls specific to your business needs, ensuring a smooth and accurate path to compliance.

EasyAudit helps you every step of the way:

• Readiness assessment
• Crafting custom security controls
• Generating evidence documentation
• Penetration testing
• Referring audit firms with the most competitive pricing

Don't let hidden costs and productivity losses hinder your progress.

Get started today and see how EasyAudit can help you secure those major contracts without emptying your pockets.

FAQs

How often does a SOC 2 Type 2 audit need to be conducted?

Ever wondered how frequently you should schedule a SOC 2 Type 2 audit?

An annual audit is generally recommended.

This keeps your security controls up to date and aligns with industry best practices.

But could your situation require a different approach?

Consider these factors:

Your Risk Profile

If your organization handles highly sensitive data or operates in a high-risk environment, more frequent audits might be necessary.

Regulatory Changes

New laws and regulations can emerge. Staying compliant might mean adjusting your audit schedule accordingly.

Business Growth

Experiencing rapid expansion or significant operational changes? Additional audits can ensure your controls keep pace with your evolving business.

Client Expectations

Some clients might demand more frequent audits as part of their partnership agreements or due diligence processes.

Previous Audit Findings

If past audits revealed significant issues, conducting audits more often helps monitor corrective actions effectively.

What is the typical duration for achieving SOC 2 certification?

How long does it take to achieve SOC 2 certification?

It varies based on the type of report and your organization's complexity.

• Type I: Up to 6 months
• Type II: 6 months to a year or more

But what influences this timeline?

Complexity of Your IT Infrastructure

A company with a straightforward IT setup might move through the process quicker than one with extensive, diverse systems.

Size and Location of Your User Base

A large team spread across multiple locations, especially with remote users, can extend the audit's scope and duration.

Preparation Level

If you've already implemented strong security controls and documentation, you might accelerate the timeline.