There is a near-constant rate of cyber attacks with 1 attack occurring every 39 seconds according to a Clark School study. Think about companies like MOVEit, Dell, and Trello which have had major breaches in the last year alone.
Attacks like these raised the number of cyber attack victims to 343 million users in 2023 and the average breach cost to a jaw-dropping $4.7 million in 2024.
But it’s not just about the money. Customers are freaking out about their data security, and who can blame them? They want more than a pinky promise — they need rock-solid proof that their sensitive info is, well, kept sensitive.
That’s where the SOC 2 Type II report steps in, like a digital bodyguard. It’s not just a badge; it’s your way of saying, “Relax, we’ve got this.”
In this article, we'll explore what makes SOC 2 Type II stand out from other SOC reports, how it can supercharge your SaaS business, how much it costs, and the steps you need to get compliant.
If you're ready to leap towards better security and peace of mind, check out what we offer at EasyAudit — we make compliance easier, faster, and more affordable.
What is a SOC 2 Type II Report?
SOC 2 Type II report is a security framework created by the American Institute of Certified Public Accountants (AICPA) that assesses how service organizations, which handle customer data, safeguard sensitive information over an extended period, typically between 3 and 12 months.
Think of it as a detailed scorecard that reflects how effectively a company implements its security protocols and procedures, ensuring continuous protection of sensitive information.
This report centers on these five essential Trust Services Criteria (TSCs):
Who Needs a SOC 2 Type II Audit?
Imagine you're in a boardroom, presenting to the leadership team of a Fortune 500 company.
They’re interested in partnering with you, but before any contracts are signed, they ask one critical question: "Can we see your SOC report?"
In this moment, your ability to confidently point to your SOC 2 Type II certification can be the difference between closing the deal and walking away empty-handed.
Now, a SOC 2 Type II audit isn't just for cloud-based vendors vying for enterprise clients; it holds value for various types of businesses.
While the list of potential beneficiaries is extensive, we recommend you consider a SOC 2 if your business meets any of the following criteria:
Don't let the lack of a SOC 2 report stand between you and your next big client. EasyAudit is your best option for this, offering a fast and cost-effective solution to streamline your SOC 2 process. Get started by booking a call now.
Why is SOC 2 Type II Compliance Important?
In May 2024, Dell faced a massive cyberattack that compromised 49 million customer accounts, while MOVEit experienced one of the largest breaches of 2023, with damages soaring to $12 billion.
These incidents underscore a critical truth: robust data protection isn’t just advisable—it’s essential. SOC 2 Type II compliance is your shield against such threats, proving your commitment to top-tier security.
Think of SOC 2 Type II as your badge of trust in a global marketplace. It shows clients and partners that you’re serious about data protection, making your business stand out. This certification not only reduces the risk of costly breaches but also positions you as a leader in data security.
Adopting SOC 2 Type II also helps you meet regulatory requirements and avoid the scrutiny of regulators like the GDPR and HIPAA. It’s not just about compliance; it’s about fortifying your operations against potential vulnerabilities.
Preparing for a SOC 2 Type II audit also highlights areas for operational improvement, making your processes smoother and more secure. And when customers see you’re serious about their data safety, their confidence in your business grows, turning first-time buyers into loyal patrons.
SOC 2 Type I and SOC 2 Type II Report Explained
There are 2 types of SOC 2 reports. SOC 2 Type I and SOC 2 Type II.
While they both evaluate the design and implementation of your company's controls, SOC 2 Type I showcases controls at a specific time, and the SOC 2 Type II report assesses the operating effectiveness of your internal controls over a 3-12-month period.
Another key difference lies in their timing and scope as the SOC 2 Type I typically takes weeks to prepare whereas its counterpart takes 3-15 months due to its comprehensive method.
SOC 2 Type II vs. ISO/IEC 27001 vs SOC1 Type II vs SOC 3: Difference and Distinction
Aside from the various SOCs, there are several other security standards out there, each with its purpose. An example is the ISO/IEC 27001 and the HITRUST. Here, we simplify these security standards and show you how they compare with the SOC 2.
SOC 2 Type II Report Scope
The scope of a SOC 2 Type II report follows the American Institute of Certified Public Accountants (AICPA) guidelines. According to the AICPA criteria, an SOC 2 Type II report scope should focus on the following:
- Infrastructure: Physical and hardware components such as networks and data centers.
- Software: Applications and systems used for processing data.
- People: Roles and responsibilities of personnel involved in system management and security.
- Data: Management of data including storage, access, and protection.
- Procedures: Manual and automated procedures that ensure consistent and secure service delivery.
The scope is tailored to the organization’s specific needs, determined by the type of data collected, storage methods, and business operations.
While the SOC 2 Type II report may focus on one or more Trust Services Criteria, it offers flexibility to address only the controls pertinent to the organization's operations and security requirements.
When Should You Conduct a SOC 2 Type II Audit?
The AICPA does not recommend a specific time for conducting a SOC 2 audit. However, we recommend you do so during the following:
- Before entering new markets: If you’re expanding into a new region or industry with stringent data protection laws, a SOC 2 Type II report can help smooth the transition.
- When onboarding enterprise clients: Enterprise clients often have strict security requirements. Having a SOC 2 Type II report ready can make the onboarding process smoother and faster.
- After significant changes to your IT infrastructure: If you’ve made major updates to your systems or processes, it’s a good idea to conduct a SOC 2 Type II audit to ensure that your controls are still effective.
- Annually, as a best practice: Regular audits help maintain high-security standards and ensure ongoing compliance. Most companies opt for annual SOC 2 Type II audits to keep their certifications up to date.
- Client requirements: Many clients, especially those in regulated industries like finance and healthcare, may require a SOC 2 Type II report to ensure their data is handled securely.
- Contractual obligations: When entering into contracts with clients or partners, a SOC 2 Type II audit might be stipulated as a requirement for the duration of the agreement.
How Much Does a SOC 2 Type II Audit Cost?
The cost of a SOC 2 Type II audit may vary based on different factors. However, you can expect to spend as high as $100,000 through the entire process of an audit. Price may vary based on the following criteria:
- Scope of the Audit: The broader the scope, the higher the cost. Auditing multiple locations or including all five Trust Services Criteria will increase the price.
- Size of the Organization: Larger companies typically have more complex systems, which can drive up the cost of the audit.
- Duration of the Audit: The longer the audit period, the more expensive it will be.
- Audit Firm: The cost can also depend on the firm conducting the audit. Although a top-tier firm may charge a premium, it also brings more experience and expertise.
With EasyAudit, you can save up to 65% off the cost of having a SOC 2 Type II audit. We understand that this can sometimes be complicated and that’s why we offer a free consultation to get you started. Click the link to book a call now.
How Long Does It Take to Get a SOC 2 Report?
How long it takes to obtain a SOC 2 Type II report can vary significantly based on your organization's preparation and the audit window you choose.
If your company lacks an internal security compliance team, the first step is to hire an external firm to conduct a readiness assessment. This initial phase is crucial, as it helps identify and address any gaps in your controls and processes. Typically, this readiness assessment takes about 4 months.
Once the readiness phase is complete, your organization will undergo the SOC 2 Type II audit. The duration of this audit can range from 3 to 12 months. Most companies opt for a 6- or 12-month audit window to allow for a comprehensive evaluation of their controls over time. However, some may choose a shorter 3-month window for their initial audit to expedite the process, though this is less common for subsequent audits.
In total, from the readiness assessment to the completion of the audit, the process can take anywhere from 7 months to over a year. The approximate cost for obtaining a SOC 2 Type II report ranges from $50,000 to $100,000, depending on the complexity and duration of the audit.
Timeline and Cost Comparison: EasyAudit vs. Traditional SOC 2 Type II Process vs Other Automation Tools
Avoiding the high costs of traditional SOC 2 Type II reports, which can reach up to $100,000 annually, is crucial for businesses looking to maintain financial health. Here is how EasyAudit stacks up to the traditional SOC 2 process.
How to Achieve SOC 2 Type II Compliance Faster and Cheaper with EasyAudit
With our EasyAudit, you can automate evidence collection, risk assessment and reporting, while generating your compliance document automatically, saving you hours of tedious work and thousands of dollars.
No more tedious back-and-forths or hefty bills. With a few buttons and zero IT knowledge, you can generate a self-assessment report, send it to an auditor, and get certified quickly.
Book a call today and simplify your path to SOC 2 Type II compliance.
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