SOC 2 Report: What Is Included and 7 Ways to Ensure Readiness 

What Is a SOC 2 Report?

SOC 2 is a framework created by the American Institute of Certified Public Accountants (AICPA), which validates internal controls, allowing companies to assure partners and customers their systems are secure and reliable.

A SOC 2 report is an independent audit report assessing a service organization’s controls over customer data, focusing on the Trust Services Criteria: Security, Availability, Processing Integrity, Confidentiality, Privacy. There are two types of SOC 2 reports: Type 1 (point-in-time) and Type 2 (over a period) reports. 

Key aspects of SOC 2 reports:

• An audit report based on the AICPA’s Trust Services Criteria (TSC), which evaluates controls for Security, Availability, Processing Integrity, Confidentiality, and Privacy.
• Provides assurance to customers that their data is protected by a service provider.
• Relevant for service organizations that store, process, or transmit customer data, cloud computing, SaaS, data centers, and managed IT providers, companies facing vendor risk assessments, or contractual data security requirements.

This is part of a series of articles about SOC2 compliance

The Need for SOC 2 Reports 

SOC 2 reports are critical for companies that provide cloud services or handle sensitive customer information. They demonstrate a commitment to data security and build trust with clients by proving that systems keep information safe and available.

Customers, especially enterprise clients, increasingly require SOC 2 compliance as part of their vendor risk management. A SOC 2 report can be a key differentiator in competitive markets, and lacking one may exclude a company from deals or partnerships. In regulated industries, SOC 2 reports can also support compliance with legal and contractual obligations related to data handling and protection.

SOC 2 Type I vs. SOC 2 Type II Reports

SOC 2 Type I and Type II reports differ in scope and duration of assessment.

A Type I report evaluates whether a company’s controls are suitably designed at a specific point in time. It provides a snapshot of the organization’s control environment and confirms that the required policies and procedures are in place. This type of report is often used by companies early in their compliance journey or when they need to meet a short-term contractual requirement.

A Type II report examines the operational effectiveness of those controls over a defined review period, typically three to twelve months. It shows not only that the controls exist, but also that they function consistently over time. Type II reports carry more weight with customers and partners because they provide stronger assurance of ongoing compliance.

While a Type I report is faster to obtain, a Type II report offers more value and credibility. Many organizations start with a Type I report and later pursue a Type II as part of their long-term security and compliance strategy.

What Is Included in a SOC 2 Report 

Assertion of Management

The management assertion is a formal, signed statement from the service organization’s leadership team, typically the CEO or other responsible executives. It confirms that the system described in the report fairly represents the services provided as of a specific date (Type I) or over a specific period (Type II).

Management also asserts that the controls relevant to the chosen trust service categories were suitably designed (for Type I) and, if applicable, operated effectively throughout the review period (for Type II). The assertion must align with AICPA standards and is a critical part of the audit, as it sets the basis upon which the auditor’s procedures are performed.

The assertion includes:

• The system description boundary
• The time frame covered
• The selected trust service categories
• Management’s responsibility for control design and operation
• A statement of accuracy and completeness of the system description

Independent Service Auditor’s Report

This section provides the auditor’s opinion on the controls and system described by the organization. It includes a detailed summary of the audit’s objectives, scope, and methodology, and provides a conclusion about the fairness of the system description and the suitability and effectiveness of the controls.

The report includes:

• An introduction to the audit engagement
• Management’s responsibilities vs. the auditor’s responsibilities
• The criteria used (as defined by the AICPA’s trust service criteria)
• The audit procedures performed
• The auditor’s opinion (unqualified, qualified, adverse, or disclaimer)

In a Type I report, the auditor concludes whether the controls were suitably designed at a specified point in time. In a Type II report, the auditor also states whether the controls operated effectively over the defined period.

Description of Your System

This section, written by the organization but reviewed by the auditor, explains how the system is designed and operated to meet the selected trust criteria. It outlines the components that support the delivery of the services, including:

• Infrastructure: Physical and virtual resources (e.g., data centers, cloud providers, network components)
• Software: Applications, platforms, and tools used to deliver the service
• People: Roles and responsibilities of personnel involved in system operation and maintenance
• Processes: Business and IT processes, including change management, incident response, and user access
• Data: Types of data handled, data flow, and storage practices

The description also defines system boundaries and identifies components or subservice organizations that are excluded or carved out.

Applicable Trust Service Categories, Criteria, Related Controls, Tests of Controls, and Results of Tests

This is the core of the SOC 2 report. For each trust service category selected (such as security, availability, confidentiality, processing integrity, or privacy) the report presents:

• Criteria: Specific principles and sub-criteria defined by the AICPA that must be met
• Controls: The specific policies, procedures, and technical safeguards the organization has implemented to meet each criterion
• Tests of Controls: Descriptions of how the auditor tested each control (e.g., inspection of documents, re-performance of procedures, observation, or inquiry)
• Results of Tests: Findings for each control, indicating whether it operated effectively (Type II) or was suitably designed (Type I)

This section is often presented in a tabular format, and discrepancies, exceptions, or control failures (if any) are documented here.

Organization Information Not Covered by Service Auditor’s Report

This optional section allows the organization to include relevant information that was not within the scope of the audit or not tested by the auditor. Examples include:

• Planned security or compliance initiatives
• Updates on remediation of control gaps identified in prior audits
• Descriptions of services or components intentionally excluded from the system description
• Subservice organizations handled under a carve-out method (i.e., not included in the audit scope)

Because this section is not part of the auditor’s opinion, it should be clearly labeled as unaudited to avoid confusion. It can help provide broader context for users of the report, especially when they need to understand future improvements or limitations in the current scope.

Best Practices for SOC 2 Report Readiness 

Organizations should consider the following practices to ensure readiness fo SOC 2 reports.

1. Leverage Secure BYOD Controls for Compliance

Bring Your Own Device (BYOD) policies are common in modern work environments, but they also introduce security risks. For SOC 2 compliance, it’s essential to implement strict controls around personal device usage. This includes requiring endpoint encryption, enforcing mobile device management (MDM), using VPNs for remote access, and disabling local storage or copy-paste functionality for sensitive data.

Employees should authenticate using strong methods (ideally multi-factor authentication) and devices must meet minimum security baselines before being granted access. These measures help protect data confidentiality and support the security and privacy principles in SOC 2.

2. Choose the Right Trust Services Criteria

Selecting the appropriate trust services criteria is one of the first steps in a SOC 2 engagement. Security is mandatory, but the other categories (availability, confidentiality, processing integrity, and privacy) should align with your service offerings and customer expectations.

For example, if you process sensitive data like healthcare records, confidentiality and privacy are likely critical. If uptime is part of your SLA, availability should be included. Choose only the relevant criteria to keep the audit scope focused and manageable, but ensure that the selection reflects actual customer risks and contractual obligations.

3. Prioritize SOC 2 Type II Early

Although Type I reports are faster to obtain, Type II reports offer much stronger assurance and are often required by enterprise clients. Waiting too long to pursue a Type II can delay partnerships or sales.

Companies should plan for Type II early in their compliance roadmap. This means establishing mature controls, documenting processes, and maintaining evidence from day one. Early readiness reduces gaps during the audit window and shortens the time to achieve full compliance.

4. Automate Evidence Collection Where Possible

Manual evidence gathering is time-consuming and prone to error, especially for SOC 2 Type II, which requires proof of operational effectiveness over time. Automating this process improves accuracy, saves time, and reduces the burden on internal teams.

Tools that integrate with your infrastructure, code repositories, ticketing systems, and HR platforms can automatically collect evidence such as user access logs, change tickets, and system configurations. Automation helps maintain audit readiness throughout the year instead of scrambling before the assessment.

5. Align Controls with Real Operations

SOC 2 controls should reflect how the organization actually works, not just what looks good on paper. Overly complex or aspirational controls that don’t align with business operations are difficult to implement and maintain, and they often fail during audits.

When designing controls, work closely with engineering, DevOps, HR, and IT teams to ensure feasibility and sustainability. The best controls are integrated into day-to-day workflows, monitored continuously, and regularly reviewed for effectiveness.

6. Manage Vendors and Subservice Organizations

SOC 2 requires transparency around subservice providers, especially when they impact the trust service criteria. Organizations can choose to include them (inclusive method) or exclude them (carve-out method), but either approach requires a vendor risk management process.

Maintain an inventory of vendors, assess their security posture, and request their SOC reports when available. Document shared responsibilities and ensure appropriate security clauses are included in contracts. Failing to manage vendor risks can weaken your overall compliance posture and introduce blind spots in the audit.

7. Maintain Continuous Compliance

SOC 2 Type II requires consistent adherence to controls throughout the year. To avoid compliance drift, organizations should implement continuous monitoring, periodic internal audits, and regular training programs.

Track control effectiveness with metrics and dashboards, and respond quickly to incidents or control failures. Continuous compliance builds operational resilience and simplifies the next audit cycle by ensuring your environment is always in an audit-ready state.

Supporting SOC 2 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.