Understanding SOC 2 Type 2 Audits and 5 Tips for Passing Yours

What Is SOC 2 Type 2? 

A SOC 2 Type 2 report is an audit that assesses how effectively a company’s security controls operate over an extended period, typically 6 to 12 months. It verifies a service organization’s controls related to security, availability, processing integrity, confidentiality, and privacy, providing assurance to customers that their data is being handled securely. 

Unlike a Type 1 report, which is a snapshot in time, a Type 2 report provides a more rigorous, long-term view of a company’s security posture.

What a SOC 2 Type 2 report evaluates:

• Operational effectiveness: This is the key difference from a Type 1 report. The auditor tests the controls over a specific period to ensure they are consistently operating as designed. 
• Trust Services Criteria (TSC): An independent auditor evaluates a company’s system against the five TSCs established by the American Institute of Certified Public Accountants (AICPA): security, availability, processing integrity, confidentiality, and privacy. 
• Report contents: The final report includes the auditor’s opinion, a description of the service organization’s system, and an evaluation of whether the controls are both designed appropriately and operating effectively to meet the TSCs.

This is part of a series of articles about SOC2 compliance

Why Is SOC 2 Type 2 Important? 

SOC 2 Type 2 plays a critical role in building trust and credibility, particularly for organizations that handle sensitive customer data. Here’s why it matters:

• Demonstrates operational maturity: Achieving SOC 2 Type 2 shows that an organization not only designed controls but also maintained them over time, proving long-term commitment to data protection and process reliability.
• Builds customer trust: Clients increasingly demand proof of data security. A SOC 2 Type 2 report signals to customers that their data is being handled securely and consistently.
• Reduces risk exposure: By following the trust services criteria, organizations strengthen their internal controls, which helps identify and mitigate risks related to data loss, service outages, or operational failures.
• Supports competitive differentiation: In industries where data handling is a core concern, having a SOC 2 Type 2 report can be a market differentiator, especially when bidding for enterprise contracts.
• Aligns with vendor management requirements: Many companies now require their vendors to provide SOC 2 Type 2 reports as part of their third-party risk management programs.

What a SOC 2 Type 2 Report Evaluates 

Operational Effectiveness

The central focus of SOC 2 Type 2 is verifying the operational effectiveness of a company’s internal controls over a specific period. Auditors assess not just the existence of documented policies and procedures, but also the consistency and accuracy with which they are implemented over time. The audit involves scrutinizing real-world activity against control objectives to ensure that what’s in place is working as intended when challenged by live business events.

The evaluation covers elements like access management, system monitoring, incident response, and data backup processes. Auditors look for evidence that controls work day in and day out, from verifying regular completion of security training to reviewing logs for proper escalation of security incidents.

Trust Services Criteria (TSC)

The trust services criteria (TSC) are the foundation for SOC 2’s evaluation process. These five criteria—security, availability, processing integrity, confidentiality, and privacy—guide the definition and assessment of controls within the organization. Security (also known as “common criteria”) is mandatory and deals with protecting information against unauthorized access or modification. The other criteria are optional, addressing business or customer requirements.

During the SOC 2 Type 2 audit, organizations select which TSCs are in scope depending on customer commitments and service offerings. The controls for each selected criterion are then examined for their design and put to the test for operational effectiveness. The TSC framework keeps the assessment highly relevant, ensuring the report addresses customer risk concerns.

Report Contents

A SOC 2 Type 2 report is thorough, including sections on management’s description of the system, the auditor’s opinion, detailed testing results, and any exceptions identified during the assessment period. The system description outlines the scope, boundaries, infrastructure, and relevant policies, so readers understand exactly what was reviewed. The auditor’s opinion states whether the controls were suitably designed and operated effectively.

The detailed section covers control objectives, specific controls tested, testing procedures used, and results for each control. This information enables customers to perform their own risk assessments based on the transparency provided. Any deviations or exceptions are highlighted and explained, giving readers crucial insight into weaknesses and remediation steps.

SOC 2 Type 1 vs. Type 2 Reports 

The primary distinction between SOC 2 Type 1 and Type 2 reports lies in the duration and depth of testing for controls. A SOC 2 Type 1 report focuses on the suitability of control design at a single point in time, essentially a snapshot, affirming that control structures exist as described on a given date. This may be sufficient for organizations demonstrating controls to new clients for the first time or preparing for a full Type 2 audit.

SOC 2 Type 2 examines not just whether controls are suitably designed, but also if they operate effectively over a sustained period, typically six months or more. This reporting period gives stakeholders greater confidence that an organization’s processes are embedded into daily operations and consistently manage risk. As a result, SOC 2 Type 2 reports carry more weight in vendor assessments and are frequently required by security-conscious clients and large enterprises.

What Happens During a SOC 2 Type 2 Audit 

Pre-Audit Readiness and Documentation Review

The SOC 2 Type 2 audit process begins with a pre-audit readiness assessment, during which organizations review their existing controls, policies, and procedures against the trust services criteria. This phase helps identify gaps or misalignments in current practices, allowing time for corrective action before formal testing begins. It is common for organizations to conduct internal mock audits or readiness workshops with consultants to ensure all required documentation is up-to-date and accurately reflects operational realities.

Auditors then perform an initial documentation review, scrutinizing written policies, organizational charts, access management records, and incident response procedures. The goal is to validate that the control environment as described on paper matches actual business practices and is ready for in-depth testing. 

Control Testing Methodologies

Control testing is the heart of the audit, employing a mix of techniques to validate that controls work as intended. Auditors use inquiry (asking personnel to explain processes), observation (witnessing controls in action), inspection (reviewing documentation and artifacts), and reperformance (independently re-executing activities) to ensure thorough, objective assessment. 

These methods test the design and operating effectiveness of controls over the reporting period. The methodologies chosen depend on the nature of each control. For example, employee onboarding may be tested by reviewing hiring paperwork and access logs, while incident response could involve inspecting escalation documentation and interviewing responsible staff. 

Evidence Collection and Sampling

Evidence is central to any SOC 2 Type 2 audit, with auditors seeking concrete records that demonstrate consistent control performance. Instead of relying solely on verbal assurances, they gather system logs, access history, incident tickets, employee training confirmations, and policy acknowledgment records over the entire review period. The evidence must be both objective and directly related to the controls under evaluation.

Sampling is used to manage workload while maintaining audit rigor. Rather than reviewing every transaction, auditors select representative samples for each control based on risk, frequency, and volume of activity. For example, they might select access requests from each month of the audit period or investigate a subset of vendor contracts. The sampling approach ensures that the controls are measured across various times and conditions.

Handling Exceptions and Deviations

Despite preparation, exceptions and deviations are often discovered during SOC 2 Type 2 audits. These events occur when controls fail to operate as intended or documented, for example, a missing evidence trail for a terminated employee’s access removal, or a delayed incident response. Auditors document each exception, providing details about what went wrong, its context, and potential risk to the organization or its stakeholders.

Handling exceptions involves immediate remediation planning. Auditors will often work with the client to understand root causes and assess whether exceptions were isolated incidents or part of systemic control weaknesses. The final report transparently details all exceptions found, their business impact, and any compensating controls or corrective actions taken.

How Much Does a SOC 2 Type 2 Audit Cost? 

The cost of a SOC 2 Type 2 audit varies widely depending on company size, system complexity, and scope. For small to midsize organizations, audits typically range from $12,000 to $20,000. Larger enterprises may pay $30,000 to $100,000 or more, especially if they include all five trust services criteria or operate complex cloud environments. 

These numbers are rough estimates only and actual costs can vary. Several factors can impact the total cost of an audit:

• Audit scope: Broader scopes with multiple TSCs or complex infrastructures require more effort and time to evaluate. 
• Internal workload: Preparing for the audit often pulls internal teams away from their usual responsibilities, which can affect productivity and project timelines.
• Security tooling: Organizations may need to invest in tools like endpoint protection platforms, password managers, or security awareness training solutions to meet control requirements. 
• Penetration testing: Though not always mandatory, this is commonly used as a readiness step to uncover system vulnerabilities before the audit begins.
• Auditor selection: Rates vary among CPA firms, and working with one of the Big Four accounting firms typically results in higher fees due to their premium services and brand reputation. Choosing a firm with specialized SOC 2 experience may offer better value while ensuring audit quality.

Pro Tips for Passing A SOC 2 Type 2 Audit 

Organizations should consider the following best practices to ensure compliance with SOC 2 Type 2.

1. Enforce Device-Level Isolation and Compliance for Remote/BYOD Devices

To maintain SOC 2 Type 2 compliance in remote or hybrid work environments, organizations must enforce strict device-level isolation and security policies. This includes using endpoint management and monitoring tools to ensure only authorized, compliant devices access sensitive systems and data. For bring-your-own-device (BYOD) scenarios, technical controls such as endpoint detection, encryption, and containerization further reduce risks of unauthorized access or data leakage.

Regular compliance checks and automated enforcement of security baselines help detect policy violations early, minimizing the window of exposure. Organizations should require periodic attestation that BYOD devices adhere to software update, antivirus, and password standards, and revoke access promptly if risks or violations are found. Clear documentation of remote access protocols and user responsibilities strengthens the overall control environment.

2. Maintain Vendor Risk Management

Vendor risk management is critical for SOC 2 Type 2, given that third parties often have access to data or integrated systems. Organizations must perform thorough due diligence before onboarding new vendors, reviewing their security practices, policies, and independent audit results. Contracts should require vendors to meet minimum control requirements and to notify clients of any relevant incidents or breaches.

Ongoing monitoring and regular reassessment of vendors are equally important, as risks and service scopes evolve over time. This includes updating vendor inventories, verifying quarterly or annual compliance attestations, and reviewing vendor SOC reports for exceptions or new findings.

3. Document System Changes Comprehensively

Change management is a recurring focus area in SOC 2 Type 2 audits. Organizations must document all major system changes—software deployments, infrastructure upgrades, process modifications, or policy updates—with thorough records of what changed, why, who approved, and any associated risks or rollbacks. This level of documentation supports operational transparency and enables auditors to confirm that changes did not unintentionally weaken existing controls.

Automating change management processes with ticketing, approval workflows, and change logs ensures that documentation is consistent and readily available during audits. Maintaining detailed, time-stamped records of all changes also simplifies incident investigation, root cause analysis, and evidencing compliance for each relevant trust services criterion.

4. Train Staff with Role-Based Security Education

Security awareness training must be continuous and tailored to employees’ roles, focusing on threats and responsibilities relevant to their day-to-day work. Technical staff need in-depth training on secure code development and incident response, while business users should cover phishing detection, data handling, and reporting procedures. Organizations should track and document participation in training programs, including attendance, completion rates, and results of simulation exercises or knowledge assessments.

Role-based security education raises situational awareness and reduces chances of user-driven incidents, such as misrouted data, weak passwords, or social engineering attacks. Regularly updated training content keeps staff prepared for both evolving threat landscapes and new organizational systems.

5. Conduct Periodic Internal Control Audits

Regular internal audits provide early detection of control failures or gaps before the external SOC 2 Type 2 audit begins. These audits assess the design and effectiveness of controls across each relevant trust services criterion, verifying documentation accuracy, evidence completeness, and adherence to policy. Findings should be prioritized for remediation, and improvement actions tracked to completion, building a continuous improvement cycle.

Leveraging both automated tools for control monitoring and manual walkthroughs ensures comprehensive coverage. Internal audit reports should be retained for reference and shared with executive stakeholders, supporting a broader risk management strategy. By identifying issues early, organizations reduce the chance of costly audit exceptions.

Supporting SOC2 Compliance with Venn

Venn’s Blue Border™ helps organizations maintain SOC 2 compliance by protecting company data and applications on BYOD computers used by contractors and remote employees. Similar to an MDM solution but for laptops, work lives in a company-controlled Secure Enclave installed on the user’s PC or Mac, where all data is encrypted and access is managed. Work applications run locally within the Enclave – visually indicated by Venn’s Blue Border™ – protecting and isolating business activity while ensuring end-user privacy.

Key features include:

• Seamless MFA integration: Works with Okta, Azure, and Duo for smooth, secure authentication
• Encrypted workspace: Protects all data and applications with robust encryption
• Context-aware access controls: Enforces policies based on user, device, and environment
• Comprehensive session logging: Tracks all activity with full audit visibility, supporting SOC 2 reporting
• Unified Zero Trust solution: Combines endpoint protection, remote access, and Zero Trust security
• Faster, scalable alternative: Optimized performance compared with legacy VPNs and VDI

Schedule a demo of Blue Border.