Welcome to our article on conducting a SOC 2 audit: What to expect. Just like embarking on a challenging journey, navigating the SOC 2 audit process can be complex, calls for meticulous planning, team engagement, and deep knowledge of your internal control environment.  But fear not, we’re here to guide you every step of the way.

In this article, we’ll provide a comprehensive overview of the different types of SOC 2 audits, outline the key steps involved, and highlight the importance of working with qualified auditors.  If you’re in the preliminary phases, you might want to read our comprehensive guide on preparing for your SOC 2 audit as a first step in your compliance journey.  So, let’s dive in and demystify the SOC 2 audit process together.

SOC 2 Process Overview 

To start, we will be discussing the importance of conducting a SOC 2 audit and understanding the steps involved in the process. A SOC 2 audit assesses your organization’s adherence to one of the most demanding security compliance frameworks in today’s landscape. Whether you’re pursuing a SOC 2 type 1 audit or a more detailed SOC 2 type 2 audit, each has its nuances and requirements that will be part of the audit scope. The audit begins with a checklist that should be part of your compliance automation platform to streamline the process. Unlike a SOC 1 audit, which focuses on financial reporting, SOC 2 digs deep into your information security policies and procedures.

The SOC 2 audit process consists of several steps that must be followed to achieve compliance and certification. First, it is crucial to choose the appropriate report type. There are two options: Type I and Type II. Type I audits assess the design of the system at a specific point in time, while Type II audits evaluate the design and functionality over a period of time, typically 6 months or 1 year.

Next, the scope of the audit needs to be defined. This involves determining whether the audit will cover the entire company or specific services, selecting the appropriate Trust Services Criteria (TSC) to audit for, and gathering relevant documentation for systems and controls.

Once the scope is defined, a gap analysis should be conducted to identify areas where the system falls short of SOC 2 compliance requirements. This analysis helps in creating a remediation plan to address any gaps.

After the gap analysis, a readiness assessment is completed with the assistance of a SOC auditor. The auditor performs a gap analysis and provides recommendations, ensuring that the selected TSC requirements are fully understood. A report is then generated, outlining the relevant controls and identified gaps.

The evaluation and follow-up stage involves the auditor consulting with process owners to gain a better understanding of the business processes and security practices. This may include requesting clarification on processes or controls and asking for additional documentation. Compliance gaps that can be quickly fixed should be addressed before proceeding.

At the end of the audit, a written SOC 2 report is provided, which outlines the audit results. An unqualified opinion indicates a positive outcome, while areas for improvement may be identified. The report serves as a guide to address any identified gaps, and a management response can be included to explain exceptions or provide updates.

For smaller organizations, the cost of a SOC 2 audit can be substantial, but it’s an investment in building trust. Clients, stakeholders, and regulatory bodies see SOC 2 certification as an assurance that your organization takes security seriously. So, let’s walk you through what you’ll need to know about SOC 2 audits, from continuous compliance to receiving your final SOC 2 audit report.

The Initial Consultation with Auditors

Let’s schedule a meeting with the auditors to go over the initial consultation and discuss our expectations for the SOC 2 audit. This meeting will set the stage for the audit and ensure that everyone is on the same page. Here’s what we can expect in the initial consultation:

1. Understand the SOC 2 Type: During the initial consultation, we will discuss the specific SOC 2 Type that we want to pursue. This will depend on our needs and the level of assurance we want to provide to our stakeholders. The auditors will explain the differences between SOC 2 Type I and Type II audits and help us choose the most appropriate option.  Auditors will then proceed with discussing the specific SOC 2 controls and standards that are relevant to your organization. This is crucial for setting the audit scope. While SOC 2 compliance isn’t a one-size-fits-all, there are common frameworks and controls that every SOC 2 audit will explore. Therefore, alignment with auditors on these issues will define the contours of your SOC 2 journey.
2. Discuss Audit Cost, Length and Scope: Another important aspect to discuss during the initial consultation is the cost of the SOC 2 audit. The auditors will provide us with an estimate based on the scope of the audit, the complexity of our systems and controls, and the duration of the engagement. This will help us plan our budget accordingly.  Wondering how long is a SOC 2 audit? The initial consultation will give you a clearer timeline. The length varies depending on factors like the size of your organization, complexity of the system subject to the audit, and the type of audit—be it a formal SOC 2 Type 1 or Type 2 audit.
3. Compliance and Certification Requirements – Auditors will talk you through the audit requirements. SOC 2 certification requires a systematic approach. Whether your organization already uses a compliance automation platform or intends to implement one, being aware of these requirements will facilitate the process to perform a SOC 2 audit efficiently.
4. Building Trust – It’s essential to establish a rapport and build SOC 2 trust with auditors. Remember, the audit is not an adversarial process but a collaborative effort aimed at making SOC 2 compliance achievable for your organization. This initial consultation will give you an insight into the auditing procedure and what you can expect as you proceed to obtain a SOC 2 report.
5. Review the SOC 2 Audit Report: The auditors will also give us an overview of what to expect in the SOC 2 audit report. They will explain the different sections of the report, including the auditor’s opinion, the management assertion, the description of the system or service, and the test results. This will give us an understanding of how the audit findings will be presented and how we can use the report to address any identified gaps.

By conducting this initial consultation with the auditors, we will ensure that we have a clear understanding of the SOC 2 audit process and can set our expectations accordingly. This meeting will lay the foundation for a successful audit engagement.

Team Engagement: Who Needs to be Involved?

During the team engagement discussion, we will determine which internal teams need to be involved. Conducting a SOC 2 audit requires collaboration from various teams within the organization to ensure comprehensive coverage and successful audits, evidence gathering and preparation, and possible gap remediation activities. The table below outlines the key internal teams that should be involved and their respective roles in the audit process:

Internal Team	Role	Responsibilities
IT/Security Team	Ensure compliance with SOC controls and implement necessary security measures	Implement and maintain security controls, conduct risk assessments, monitor systems for vulnerabilities and threats, and provide evidence of compliance
Legal/Compliance Team	Interpret and apply legal and regulatory requirements, review contracts, and provide guidance on compliance	Ensure the organization adheres to legal and regulatory requirements, review contracts for compliance implications, and provide legal guidance throughout the audit process
Operations Team	Provide information on business processes and operations and assist with gathering relevant documentation and control evidence.	Collaborate with auditors to provide information on business processes, assist in gathering necessary documentation, and ensure operational controls are in place and functionally operating as expected.
HR/People Team	HR policies, workforce risk management, address employee concerns, and support employee well-being.	Creates policies, develop controls and manages risks related to employees and the entire workforce.  Ensure proper background investigations and compliance training are in place.
Senior Management	Strategic Leaders	Provide organizational buy-in and financial support for the compliance and SOC 2 certification journey.  This is crucial in setting the audit’s scope.

Most often, these activities are being performed by internal resources that are on top of their usual day-to-day activities and responsibilities.  In order to mitigate stress and burnout during the SOC 2 audit, it is important to prioritize team well-being. This can be achieved by setting realistic expectations, distributing workload effectively, and providing necessary support and resources. Clear communication and regular check-ins can also help in addressing any concerns or challenges that may arise during the audit process. Additionally, fostering a positive and supportive work environment can contribute to the overall well-being of the teams involved. By prioritizing team engagement and well-being, organizations can ensure a smoother and more successful SOC 2 audit process.

The Role of a Specialized CPA Firm

We highly recommend hiring a specialized CPA firm to ensure a successful SOC 2 audit, as they bring expertise and experience in navigating complex financial regulations. Here is what you can expect when conducting a SOC 2 audit with a specialized CPA firm:

1. In-depth knowledge of SOC 2 audit process:  A specialized CPA firm is well-versed in the intricacies of the SOC 2 audit process. They understand the specific requirements and criteria set by the AICPA’s Trust Services Criteria (TSC). Their expertise ensures that your audit is conducted thoroughly and accurately.
2. Guidance on scope and documentation:  A specialized CPA firm will assist you in defining the scope of your audit, including the tech stack, data flows, infrastructure, business processes, and people. They will help you determine which Trust Service Categories (TSC) to include and ensure that you have all the necessary documentation and evidence for the audit.  The provision of an exhaustive SOC 2 audit checklist is often a service offered by these specialized firms. This checklist serves as your roadmap, helping you understand the scope of a SOC 2 audit, and what you’ll need to become SOC 2 compliant.
3. Cost-Efficiency – While the initial 2 audit cost may seem steep, a specialized firm can often expedite the process, reducing the overall time (and therefore money) spent. The firm will guide you on how much a SOC 2 audit actually costs, without hidden or unexpected charges.
4. Security Focus – Given that SOC 2 is an auditing procedure primarily focused on information and data security, specialized CPA firms also have an in-depth understanding of technology and security controls. This ensures that the audit helps your organization become more secure, aligning with SOC 2 security requirements.
5. Effective communication and transparency:  With a specialized CPA firm, you can expect clear and open communication throughout the audit process. They will keep you informed about the progress of the audit, address any questions or concerns you may have, and provide regular updates. Their transparency ensures that you have a complete understanding of the audit and its outcomes.
6. Maintain Ongoing Relationships – The journey to SOC 2 compliance isn’t a one-time event; it’s a continuous compliance journey. Building a long-term relationship with a specialized CPA firm can provide ongoing support, from helping you prepare for your SOC 2 audit to issuing the formal SOC 2 audit report.

Choosing a specialized CPA firm is essential for a successful SOC 2 audit because they have the knowledge, experience, and resources to guide you through the process effectively. Their expertise in conducting SOC 2 audits, coupled with their ability to communicate and collaborate with you, will ensure that your audit is conducted smoothly and yields accurate results.

Creating Management Attestations

When undergoing a SOC 2 compliance audit, the process doesn’t solely rest on technology and security measures. One significant step in the actual audit is the creation of management attestations.  The management attestations play a crucial role in demonstrating our commitment to compliance and providing assurance to stakeholders during the SOC 2 audit process. Management attestations are statements that affirm our adherence to SOC compliance requirements and the effectiveness of our information security and compliance controls. These attestations are created by management and are an integral part of the SOC 2 audit process.

Management attestations serve a dual purpose:

1. Legal Accountability: They hold senior management legally accountable, ensuring the organization’s internal controls are up to par with SOC 2 requirements.
2. Credibility: Attestations add a layer of credibility to your SOC 2 compliance journey, as they provide third-party assurance that you meet SOC 2 compliance requirements.

How to Prepare Management for Attestations

1. Understanding the Scope – Educate your management team on what the SOC 2 audit scope entails. Make sure they understand what is at stake and what they’ll be attesting to.
2. Review Existing Controls – Before issuing any attestations, review the organization’s existing controls and frameworks. Make sure these controls align with the SOC 2 framework and that they are effective in maintaining security and compliance.
3. Draft and Review – Once you’re certain that you meet the SOC requirements, draft the attestation statements. These should be reviewed by both legal and compliance teams to ensure they are factual and meet SOC 2 compliance audit standards.
4. Legal Consultation – For significant legal implications, consult with specialized legal teams well-versed in compliance audits. They will ensure the attestations are aligned with what the actual audit is expected to cover.
5. Simulation – Before the actual process of getting your SOC 2 report, consider running a simulation or an internal review where management can practice issuing these attestations.

By understanding and adequately preparing for management attestations, you not only comply with SOC 2 requirements but also benefit from SOC 2 compliance in the long term. These attestations serve as a critical checkpoint in your compliance journey and provide actionable insights into areas for improvement.

Management attestations serve as a crucial piece of evidence for auditors during the SOC 2 audit process. They provide assurance to stakeholders that we are taking information security and compliance seriously and that our controls are effective in protecting data and maintaining the confidentiality, integrity, and availability of systems. By creating thorough and accurate management attestations, we can enhance the credibility of our SOC 2 audit and demonstrate our commitment to maintaining a secure and compliant environment.

Gathering Evidence: What You Need

To ensure a comprehensive SOC 2 audit, our management team collaborates with auditors, gathering evidence and providing insights into our information security and compliance controls. When conducting a SOC 2 audit, there are certain expectations regarding the gathering of evidence. Here’s what you need to know:

1. Understand the types of evidence required: During a SOC 2 audit, auditors typically request various types of evidence to assess the effectiveness of your controls. This may include:
   • Documentary Evidence: Policies, procedures, and system-generated reports that attest to your controls.
   • Testimonial Evidence: Oral evidence usually collected through interviews or inquiries with individuals responsible for controls.
   • Analytical Evidence: Performance metrics, KPIs, or other analytical data that can validate the effectiveness of controls.
   • Physical Evidence: Direct observations or inspections of processes, equipment, or facilities.
2. Collect evidence efficiently: Gathering evidence can be a time-consuming process, so it’s important to have a well-organized system in place. Here are some guidance on how to perform this:
   • Define the Scope: First, determine the range of your official audit to know precisely what evidence needs to be collected.
   • Identify Responsible Parties: Appoint team members responsible for each category of evidence.
   • Use a Checklist: Create or adopt a SOC 2 audit checklist to ensure nothing is overlooked.
   • Leverage Technology: Use secure storage solutions, logging mechanisms, and automated data retrieval systems for efficient collection.
3. Organize evidence effectively: It is crucial to organize your evidence in a logical and easily accessible manner. This involves:
   • Create an Evidence Repository: Centralize all your evidence in one secure location, making it easier to present when SOC 2 auditors arrive.
   • Categorize and Tag: Use a folder structure or tagging system based on SOC 2 standards to organize your evidence.
   • Maintain an Audit Trail: Record who collected the evidence, when it was collected, and any alterations made to it.
4. Automating Evidence Collection: Whenever possible, automated mechanisms of gathering and collecting evidence is much preferred. Some methods include:
   • Compliance Software: Use compliance software that automates the collection and organization of evidence, saving time and reducing human error.
   • Automate Analytical Reports: Schedule automated reports to collect and centralize analytical evidence.
   • Regular Audits: Periodic internal reviews can help identify areas where automation can simplify the process for future audits.
5. Futureproofing:  Identify opportunities to improve procedures by embedding review, analysis, and feedback within day-to-day activities.
   • Review Processes: After each audit, review the evidence-gathering process for improvements.
   • Feedback Loops: Create feedback loops with compliance and operational teams to continuously improve the process.

By diligently collecting and organizing your evidence, you not only make it easier to receive a SOC 2 report but also significantly streamline future audits. Adopting automation where possible ensures you’re well on your way to achieving and maintaining SOC 2 compliance.

Challenges and Solutions

Every SOC 2 Type II audit comes with its unique challenges. Preparing to achieve SOC 2 compliance is only half the battle; the actual audit can bring unforeseen obstacles. In this section, we delve into common pitfalls and offer actionable solutions, particularly on dealing with unexpected findings.

Challenges

• Unidentified Readiness Gaps: Sometimes, despite your best efforts, auditors may identify gaps that were not caught during readiness assessment exercises.
• Cost Overruns: Many organizations underestimate how much does a SOC 2 audit actually cost, leading to budget issues.
• Documentation Inconsistencies: Discrepancies in gathered evidence, especially when there’s a lack of a unified system for organization.
• Lack of Stakeholder Engagement: It can be challenging to get all necessary parties involved and committed to the process.
• Delayed Timelines: Due to unexpected issues, the audit process can sometimes take longer than anticipated.

Solutions

• Post-Readiness Assessment Review: As soon as the readiness assessment is complete, hold a review meeting to double-check the identified controls against SOC 2 criteria.
• Budget Contingency: Always allocate a budget buffer to cater for any unforeseen costs. Get a SOC 2 audit cost estimate from your chosen audit firm upfront.
• Documentation Review: Regularly review your gathered evidence to ensure that everything aligns and that there are no inconsistencies. This should be part of your ongoing SOC 2 compliance requirements.
• Stakeholder Workshops: Hold workshops to engage all key stakeholders, explaining why achieving SOC 2 compliance is crucial for the organization.
• Project Timeline Buffer: Incorporate extra time into your SOC 2 audit scope for unexpected delays. This also includes preparing for the time it takes to review and possibly adjust controls after findings are identified.

Dealing with Unexpected Findings

When auditors identify findings that were not previously noted, take the following steps:

• Immediate Stakeholder Meeting: Convene an urgent meeting with all relevant stakeholders to review the findings.
• Gap Analysis: Perform a swift gap analysis to understand the extent and impact of the findings.
• Remediation Plan: Develop and execute a rapid remediation plan. This ensures that the audit is still in line with SOC 2 compliance requirements.
• Re-evaluate Processes: Once the audit is complete, take time to re-evaluate your readiness exercises and adjust them to catch similar issues in the future.

To summarize the challenges and solutions encountered during the SOC 2 audit process, we have created the following table:

Challenges	Solutions	Additional Actions for Unexpected Findings
Unidentified Readiness Gaps	Post-Readiness Assessment Review: Double-check identified controls against SOC 2 criteria.	Immediate Stakeholder Meeting: Review the findings with stakeholders.
Cost Overruns	Budget Contingency: Allocate a budget buffer and get a SOC 2 audit cost estimate upfront.	Gap Analysis: Perform a quick gap analysis to assess the impact.
Documentation Inconsistencies	Documentation Review: Regularly check gathered evidence for consistency. Should align with SOC 2 compliance requirements.	Remediation Plan: Develop and execute a rapid remediation plan.
Lack of Stakeholder Engagement	Stakeholder Workshops: Hold workshops to engage all key stakeholders.	Re-evaluate Processes: Adjust readiness exercises for future audits.
Delayed Timelines	Project Timeline Buffer: Add extra time into your SOC 2 audit scope for unforeseen delays.

By foreseeing these challenges and preparing accordingly, you’re not just surviving the SOC 2 audit process; you’re mastering it. 

The Value of Being Proactive

Throughout the SOC 2 audit process, we have learned the importance of being proactive in order to effectively address compliance requirements and ensure the security and integrity of our systems. Being proactive allows us to stay ahead of potential issues and vulnerabilities, and it helps us to be better prepared for the audit assesses our SOC security. Here are three key reasons why being proactive is crucial in conducting a SOC 2 audit:

1. Identify and address compliance gaps early: By conducting a gap analysis and readiness assessment, we can identify areas where our system falls short of SOC 2 compliance requirements. This allows us to proactively create a remediation plan to address these gaps, ensuring that we are well-prepared for the audit.
2. Streamline the audit process: By working with auditors early on and providing necessary information and evidence, we can streamline the audit fieldwork. This not only saves time and effort but also ensures that we are able to resolve any control exceptions during the audit process.
3. Stay up to date with SOC framework and resources: Being proactive means actively staying informed about the latest updates and resources for the audit. It is important to regularly review and update our controls to ensure ongoing compliance with the SOC framework. Utilizing tools and platforms like Drata can help us automate and streamline our compliance processes, making it easier to become SOC compliant.

Frequently Asked Questions

What is a SOC 2 audit?

A SOC 2 audit is a comprehensive evaluation of a service organization’s systems, focusing on five trust principles: security, availability, processing integrity, confidentiality, and privacy. Conducted by an independent auditing entity, this audit is the process that assesses the extent to which a company adheres to the high standards set forth by the American Institute of Certified Public Accountants (AICPA).

Why is it important, you may ask? In an ecosystem teeming with data breaches and cybersecurity threats, SOC 2 compliance requires meticulous attention to safeguarding customer data. It instills confidence among stakeholders by showing that the organization has robust controls in place to manage data securely.

So, when the question of “What’s it like SOC 2?” comes up, think of it as a rigorous yet necessary journey towards gaining a competitive advantage in the business landscape. It’s not just about compliance; it’s about setting a gold standard for your organization’s integrity and operational excellence.

What is the audit process for SOC 2 certification?

The SOC 2 audit process is a structured evaluation of an organization’s information systems, focusing on security, availability, processing integrity, confidentiality, and privacy. Once the decision to undergo SOC 2 is made, the first step involves selecting a specialized CPA firm to guide the organization through the audit’s scope, data collection, and assessment phases. Rigorous tests are conducted on the organization’s controls, and evidence is gathered to determine compliance with the established SOC 2 standards.

Upon successful completion of testing and evaluation, a SOC 2 report is generated, detailing the effectiveness of controls and any areas requiring improvement. This report serves as the basis for SOC 2 certification, confirming an organization’s commitment to maintaining a secure and compliant environment. Ongoing monitoring and periodic re-audits are essential for maintaining this status.

What is the difference between SOC 2 Type 1 and Type 2 reports?

A SOC 2 Type 1 report evaluates the suitability of the design of controls as of a specific date. It provides assurance that the controls are adequately designed to meet the trust service criteria. On the other hand, a SOC 2 Type 2 report assesses both the design and operating effectiveness of controls over a period of time, typically six months or more.

What is a Trust Service Criteria?

A Trust Service Criteria (TSC), previously known as Trust Service Principles, is a set of guidelines and criteria that an organization must meet to demonstrate that they are operating in a secure, reliable, and compliant manner. TSCs are an integral part of SOC 2 audits. They cover areas like security, availability, processing integrity, confidentiality, and privacy of a system. Compliance with these criteria is crucial for establishing trust with clients, stakeholders, and regulatory bodies.

When a SOC 2 audit is conducted, these Trust Service Criteria serve as the baseline for evaluating the effectiveness of an organization’s internal controls and processes. Assessing the alignment of an organization’s operations with these criteria is where SOC 2 comes into play, providing an industry-standard benchmark for managing and securing sensitive data.

What is the purpose of conducting a SOC 2 audit?

The primary purpose of a SOC 2 audit is to evaluate an organization’s information systems with respect to the security, availability, processing integrity, confidentiality, and privacy of data. These audits are particularly relevant for SaaS and cloud service providers who handle customer data. The SOC 2 audit provides a thorough review of how an organization’s information and systems are being managed and protected, based on the Trust Service Criteria established by the American Institute of Certified Public Accountants (AICPA).

By undergoing a SOC 2 audit, an organization can demonstrate to clients, partners, and regulatory bodies that it has robust security and compliance controls in place. The audit report serves as valuable evidence that the organization is committed to security and privacy, thereby building trust and gaining a competitive advantage in the market.

How long does it take to complete a SOC 2 audit?

The duration of a SOC 2 audit can vary significantly depending on various factors such as the complexity of the organization’s systems, the scope of the audit, and the readiness of the organization. Generally, a SOC 2 Type I audit, which assesses the design of controls at a specific point in time, can take between 4 to 8 weeks. A SOC 2 Type II audit, which evaluates the effectiveness of these controls over a period of time (typically 6 to 12 months), requires a more extended time frame.

It’s crucial to note that these timelines often exclude the preparation time, which could be several weeks or even months, especially for organizations going through the process for the first time. Also, any delays in providing required information or documentation can prolong the audit. Therefore, organizations should plan and allocate resources well in advance to ensure a smooth and timely audit process.

Final Thoughts

In wrapping up, understanding and successfully navigating a SOC 2 audit is more than a compliance requirement; it’s a competitive advantage that can instill trust among clients and stakeholders. From the initial consultation with specialized CPA firms to team engagement, and from gathering essential evidence to creating management attestations, each step serves a critical function in strengthening your internal controls and security posture. Even the challenges and pitfalls have their value, offering actionable insights to refine your compliance journey further. If you’re on the path to SOC 2 compliance or planning to get there, now is the time to engage your team, streamline your processes, and invest in compliance automation platforms that can make future audits more efficient.

Ready to step up your compliance game? Leverage this comprehensive guide to SOC 2 audits and embark on a journey that not only secures your organization but also fortifies your brand’s credibility.  Digital Ventures Online can provide the necessary guidance that you need.