What is Service Organization Control 2 (SOC 2)?

A Service Organization Control 2 (SOC 2) is a compliance framework that evaluates how organizations manage customer data based on five trust service criteria.

Developed by the American Institute of Certified Public Accountants (AICPA), SOC 2 audits assess whether companies have appropriate controls in place to protect sensitive information, particularly for technology and cloud computing organizations that store customer data.

The framework evaluates five key areas: Security (protection against unauthorized access), Availability (system accessibility for operation and use), Processing Integrity (complete, valid, accurate, timely, and authorized system processing), Confidentiality (protection of confidential information), and Privacy (collection, use, retention, disclosure, and disposal of personal information). Organizations can choose which criteria apply to their services.

SOC 2 reports come in two types: Type I examines the design of controls at a specific point in time, while Type II evaluates the operational effectiveness of those controls over a period of time, typically six to twelve months. These audits are conducted by independent certified public accountants and help organizations demonstrate their commitment to data security to customers, partners, and stakeholders, often serving as a competitive differentiator in the marketplace.

The AICPA introduced SOC 2 in 2011 as part of a broader effort to standardize how service organizations report on their internal controls. It replaced the earlier SAS 70 audit standard, which had become widely used but was never designed for assessing security controls. SAS 70 focused primarily on financial reporting controls, leaving a gap when it came to evaluating the security posture of technology service providers.

As cloud computing took off in the late 2000s, customers needed a reliable way to assess whether their vendors could be trusted with sensitive data. The old audit frameworks didn't address the specific risks that came with storing data in third-party systems. SOC 2 filled this need by creating criteria specifically designed for evaluating data security, availability, and privacy.

The framework built on the AICPA's existing Trust Services Principles, which had been developed throughout the 2000s. Over time, SOC 2 has become the de facto standard for SaaS companies and cloud service providers who need to prove they take security seriously. The framework continues to evolve as new technologies and threats emerge, with regular updates to guidance and criteria.

SOC 2 compliance has become a baseline expectation for technology vendors, particularly in industries handling sensitive data like healthcare, finance, and government. Without a SOC 2 report, many enterprise customers won't even consider a vendor, regardless of how good their product might be. It's not just about checking a box—the audit process often reveals real security gaps that organizations need to address.

The distinction between Type I and Type II reports matters more than many people realize. A Type I report only shows that controls existed on paper at a single point in time. Type II demonstrates that those controls actually worked consistently over months. Savvy customers know to ask for Type II reports because they provide much better evidence of operational security.

The framework's flexibility can be both a strength and a weakness. Organizations can choose which of the five trust service criteria to include in their audit, which means not all SOC 2 reports are equivalent. A company might achieve SOC 2 compliance based only on security criteria while ignoring privacy or confidentiality. This makes it important to understand exactly what a vendor's SOC 2 report covers before assuming comprehensive protection.

Plurilock helps organizations prepare for and maintain SOC 2 compliance through comprehensive security assessments, control implementation, and ongoing monitoring. Our team includes practitioners who've guided dozens of companies through successful audits, not just process managers who create documentation.

We focus on building controls that actually work rather than producing paperwork that looks good but fails under scrutiny. Whether you're pursuing your first SOC 2 audit or addressing gaps identified in a previous report, we help you implement effective controls efficiently.

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