Glossary

What Is SOC 2 (Service Organization Control 2)?

SOC 2 (Service Organization Control 2) is a compliance framework designed by the American Institute of Certified Public Accountants (AICPA) to evaluate how effectively a company safeguards customer data and ensures the security and integrity of its information systems.

SOC 2 is especially common for technology vendors, SaaS companies, cloud providers, and managed service providers who store or process customer data.

The framework assesses whether an organization has the right security, privacy, and operational controls in place to protect sensitive information — making it a critical requirement during procurement and vendor risk assessments.

Learn more about security workflows in our guide:
What Is a Security Questionnaire? (adjust link if needed)

What Does SOC 2 Cover?

SOC 2 evaluates controls across five Trust Services Criteria:

Security — protection against unauthorized access
Availability — systems operate and are available as agreed
Processing Integrity — systems process data accurately and reliably
Confidentiality — confidential information is protected
Privacy — personal data is collected, used, and stored responsibly

Companies can pursue one or multiple criteria depending on customer and industry requirements.

SOC 2 Type I vs. SOC 2 Type II

SOC 2 Report Types
Type	Description	Timeline
SOC 2 Type I	Evaluates controls at a single point in time	Faster to achieve (snapshot audit)
SOC 2 Type II	Evaluates controls over a period (usually 3–12 months)	Stronger validation of ongoing security maturity

Most enterprise buyers require SOC 2 Type II as part of vendor approval.

Why SOC 2 Matters

SOC 2 helps businesses:

Build trust with customers and partners
Demonstrate operational and security maturity
Meet enterprise procurement requirements
Reduce perceived vendor risk
Shorten due-diligence and security review cycles

For buyers, SOC 2 reports provide assurance that a vendor has been independently audited and meets rigorous security standards.

Learn why automation supports this process in our article:
Proposal Automation and Why the Human Element Still Matters

SOC 2 and Vendor Security Reviews

SOC 2 reports are frequently requested during:

Security questionnaires
Due diligence questionnaires (DDQs)
Vendor onboarding and procurement cycles

Vendors with completed SOC 2 audits have a competitive advantage when selling into regulated or enterprise environments.

See how SaaS teams streamline due-diligence in our article:
RFP Automation for SaaS Companies

Best Practices for SOC 2 Readiness

Organizations preparing for SOC 2 should:

Establish defined security and compliance policies
Centralize documentation and evidence
Maintain access controls and logging
Conduct regular risk assessments and security training
Use automation to organize and maintain security responses

SOC 2 isn’t a one-time certification — it requires ongoing operational discipline.

Related SOC 2 Resources

Explore these guides to strengthen your SOC 2 readiness and automation strategy:

SOC 2 Compliance Checklist: Reddit’s Unfiltered Guide – Real-world lessons from SaaS teams preparing for audit.
HECVAT vs SOC 2: Key Differences Explained – Understand when to use each framework and how they complement one another.
What Is a Security Questionnaire? – See how security questionnaires tie into SOC 2 and vendor due-diligence workflows.
Proposal Automation for Compliance Teams – Learn how automation helps maintain SOC 2 documentation and accuracy.

FAQs:

Q: What does SOC 2 compliance cover?
A: SOC 2 is a security and data integrity audit that evaluates a company across five Trust Service Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacyheyiris.ai. In essence, it checks that you have the proper controls in place to protect customer data and ensure reliable operations under those five categoriesheyiris.ai.
Q: What’s the difference between SOC 2 Type I and Type II?
A: Type I is a one-time snapshot that assesses if required controls are in place at a specific point in time. Type IIexamines those controls over an extended period (usually 3–12 months) to ensure they are consistently followedheyiris.ai. Most enterprises prefer a Type II report, since it demonstrates ongoing adherence to security practices (not just a one-day check)heyiris.ai.
Q: Which companies need SOC 2 compliance?
A: Generally, any service provider that handles or stores customer data should consider SOC 2. It’s especially common (and often required) for B2B SaaS companies, cloud providers, and tech vendors selling into enterprises or regulated industriesheyiris.ai. Achieving SOC 2 shows these clients that you take data security seriously.
Q: Why is SOC 2 important in vendor assessments?
A: SOC 2 provides independent assurance that a vendor has effective data security and privacy controlsheyiris.ai. During procurement or annual vendor reviews, a SOC 2 report can speed up the security review process because it gives the buyer confidence that the vendor meets a recognized standardheyiris.ai. Vendors with SOC 2 often have an edge in sales, as they’re seen as lower risk.

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