SOC 2 is a report from an independent CPA firm on the controls a service organization uses to protect customer data and run its service. It is not a certificate or a law. Companies that store or process other businesses' data, such as SaaS vendors, usually need it because customers ask for it during procurement.
What is a SOC 2 report?
The AICPA describes System and Organization Controls (SOC) as a suite of services that CPAs may provide on the system-level controls of a service organization. The SOC 2 guide is titled as a report on an examination of controls relevant to security, availability, processing integrity, confidentiality or privacy. These are the five trust services categories.
The AICPA says such reports give users the information they need to assess and address the risks of outsourcing services. In practice a customer reads your report to decide whether it is safe to hand you its data.
Two points follow. First, the auditor, not the company, issues the opinion. Second, you choose which categories are in scope. Security is the common starting point, and the others are added when your service or customers require them.
Type 1 and Type 2
Reports are commonly described in two forms. A Type 1 looks at whether your controls are designed appropriately at a single point in time. A Type 2 looks at whether they operated over a period, so it carries more weight with buyers. The AICPA pages we fetched do not define these, so agree the exact scope and period with your auditor before you promise a date to a customer.
Who needs it?
SaaS and cloud vendors selling to businesses. This is the core case. Security questionnaires and vendor reviews often end in "send us your SOC 2."
Managed service providers and data processors. Any company that holds client data or runs client systems.
Startups moving upmarket. The first enterprise deal is often where the request first appears.
Companies that sell only to consumers or run no customer data. Usually not needed. Other frameworks or simple policies may fit better.
Nothing in law requires SOC 2. The market does. Some buyers also accept other reports, so ask which assurance your largest prospects expect before you commit months of effort.
A warning worth reading
The AICPA's own news feed carries headlines in 2026 about the credibility of SOC engagements, including "Promises of 'fast and easy' threaten SOC credibility" and guidance for peer reviewers on SOC 2 risks. The lesson for buyers of audit services is plain: a very quick, cheap report may not carry weight with the people who read it. Choose an auditor you would defend to a skeptical customer.
What to do
- Ask your top prospects and customers which report they require and which categories.
- Start with security and add categories only when needed.
- Write down your system description: services, infrastructure, people, data and boundaries.
- Run a readiness assessment to find control gaps before the audit window starts.
- Collect evidence as a habit: access reviews, change records, vulnerability remediation, incident logs.
- Pick an auditor for fit and reputation, not only price and speed.
- Decide on Type 1 first or straight to Type 2 based on what buyers will accept.
- Plan to repeat it every year, as the report only covers a stated period.
Quick check
Is SOC 2 a certification?
No. It is an attestation report in which an independent CPA firm gives an opinion on your controls. Avoid saying you are "SOC 2 certified" and say you have a SOC 2 report for the stated period.
Does a startup need SOC 2 to sell to enterprises?
Often buyers ask for it, but no law requires it. Ask your target customers what they accept before you start.
Sources
- AICPA and CIMA: SOC suite of services, fetched 18 October 2026.
Type 1 and Type 2 are described in general terms and are not quoted from the AICPA page.
Last reviewed: 18 October 2026.
