SOC 2 Certification Cost: How Much, Breakdown

When it comes to demonstrating trust and security to customers, the SOC 2 framework stands out as a gold standard. Developed by the American Institute of Certified Public Accountants (AICPA), SOC 2 focuses on managing customer data based on five trust service criteria: security, availability, confidentiality, processing integrity, and privacy. Achieving SOC 2 compliance is not just a badge of honor—it’s a strategic necessity for companies looking to win over enterprise clients and stand apart in competitive markets.

However, neglecting SOC 2 compliance can come at a steep price. Beyond the obvious reputational risks, non-compliance may result in lost business opportunities, strained client relationships, and an uphill battle in securing enterprise deals. While the financial penalties are indirect, the long-term costs of missed revenue and diminished trust can far outweigh the expense of certification. 

Speaking of costs, the journey to SOC 2 compliance is an investment, with total expenses ranging anywhere from $20,000 to $80,000 for SMEs, depending on the scope, organizational complexity, and the tools or external help utilized. The expense is even higher, reaching hundreds of thousands of dollars, for enterprise organizations or if you prefer to employ one of the Big Fours as your auditor.

To better understand how these costs break down, keep reading as we dissect the various components of the SOC 2 certification process.

Types of SOC 2 Reports

SOC 2 compliance is divided into two types of reports: Type 1 and Type 2. Each serves a distinct purpose and caters to different business needs. While both reports focus on the same Trust Services Criteria, the primary difference lies in the scope and duration of the assessment. 

Generally, SOC 2 Type 2 is more comprehensive and, as a result, more expensive, making it a preferred choice for organizations looking to demonstrate long-term operational reliability to their customers. That is why most organizations opt for the SOC 2 Type 2 report.

SOC 2 Type 1

Definition: A SOC 2 Type 1 report evaluates the design of an organization’s security controls at a specific point in time. This report essentially answers the question: “Do the necessary controls exist?” It does not, however, assess whether those controls are consistently operating effectively over time.

Unique requirements:

• Focuses only on the design of controls.
• Requires documentation to demonstrate the existence of controls but not their long-term performance.
• Typically quicker to achieve, with audits lasting around 1-2 months.

Total cost: SOC 2 Type 1 compliance costs typically range from $15,000 to $40,000, including auditor fees, readiness assessments, and any tools or platforms utilized for automation. The lower cost is due to the shorter timeframe and narrower scope.

SOC 2 Type 2

Definition: A SOC 2 Type 2 report assesses not only the design of security controls but also their operational effectiveness over a defined period, typically 3 to 12 months. This report answers the question: “Are these controls consistently functioning as intended?”

Unique requirements:

• Requires ongoing evidence collection to demonstrate the operational effectiveness of controls.
• Demands a longer observation period and more rigorous auditing.
• Often involves the use of compliance automation platforms to streamline evidence collection and control monitoring.

Total cost: SOC 2 Type 2 compliance costs range from $30,000 to $80,000, depending on the observation period, audit scope, organization size, and complexity. The higher cost reflects the extended audit duration and deeper evaluation of control effectiveness.

If your organization needs to provide consistent proof of security over time, SOC 2 Type 2 is the gold standard. However, Type 1 may suffice as an initial step or for companies with limited resources aiming to achieve compliance quickly.

Cost factors to consider for the SOC 2 Compliance

Achieving SOC 2 compliance involves various cost components, and your chosen method—manual process or automation—significantly impacts these costs. Here’s a detailed breakdown to help you understand the expenses associated with both methods:

1. Readiness assessment costs

Before starting the compliance process, organizations typically conduct a readiness assessment to identify gaps in their controls.

• Manual process costs: Engaging consultants for a readiness assessment can cost $5,000 to $15,000, depending on their scope of involvement. Internal teams will also need to allocate significant time (100-200 person-hours), incurring indirect costs of $5,000 to $10,000. These costs increase significantly if experienced professionals are employed in the team.

• Automated process costs: Compliance automation platforms often include readiness assessment features as part of their subscription, reducing consultant reliance and keeping this cost around $10,000 to $15,000 annually.

Purpose: To pinpoint areas requiring improvement before the audit phase.

2. Control implementation costs

Implementing SOC 2 controls can be resource-intensive and is a key step in the compliance journey.

• Manual process costs: Requires purchasing tools like access management systems, developing policies manually, and training staff.
  
  • Technology investments: $5,000 to $30,000 for tools.
  • Policy creation (consultants): $5,000 to $10,000.
  • Training: $2,000 to $5,000.
• Automated process costs: Platforms like Scrut Automation streamline control implementation by automating evidence collection and providing pre-built policies and templates. They provide seamless integration with the mobile device management (MDM) agents for perpetual evidence collection. This reduces manual effort, costing around $10,000 to $30,000 annually.
  

Purpose: To ensure controls are designed, implemented, and aligned with SOC 2 Trust Service Criteria.

3. Penetration testing costs

Penetration testing is an essential part of SOC 2 compliance. It identifies vulnerabilities in systems and demonstrates the security of infrastructure.

• Manual process costs:
  • Penetration testing conducted by third-party providers typically costs $5,000 to $15,000, depending on the complexity and scope of the test.
  • Additional manual effort may be needed to remediate findings, incurring extra costs.
• Automated process costs:
  • Automation platforms often include integrations for penetration testing, reducing the overhead of manually managing these tests. These services generally cost $5,000 to $12,000, depending on the provider and scope. 

Purpose: To identify and address potential vulnerabilities, ensuring compliance and enhancing your security posture.

4. Audit costs

SOC 2 audits, whether Type 1 or Type 2, form the core of certification. The choice of manual or automated processes impacts the efficiency of audit preparation.

• Manual process costs:
  
  • Type 1 audit fees: $15,000 to $25,000.
  • Type 2 audit fees: $20,000 to $60,000. 
  • The audit fees depend on the type of audit, the scope of the audit, the reputation of the auditor, and the size and complexity of the organization.
  • Additional manual effort for audit readiness and evidence collection can cost $5,000 to $10,000 in internal resource effort.
• Automated process costs: Platforms reduce preparation time by automating evidence collection and providing real-time dashboards, keeping audit readiness efficient. Audit fees remain the same, but the internal effort is reduced significantly, saving $5,000 to $10,000.
  

Purpose: To provide an external evaluation and official report on control design and operational effectiveness.

5. Internal resource costs

The manual method places a heavy burden on internal teams to manage documentation, evidence collection, and audit coordination.

• Manual process costs: Internal team effort adds up to $10,000 to $30,000, depending on the complexity of controls and the time spent on compliance tasks.
• Automated process costs: Automation reduces manual work significantly, lowering internal resource costs to $5,000 to $10,000.

Purpose: To allocate organizational resources effectively for compliance.

6. Automation platform costs

Using an automation platform for SOC 2 compliance simplifies the entire process, making it a highly efficient alternative to manual efforts.

• Platform subscription: Costs range from $10,000 to $30,000 annually, covering evidence collection, control monitoring, and audit readiness.
• Onboarding/setup: A one-time onboarding fee of $1,000 to $5,000 may apply.

Purpose: To streamline SOC 2 compliance while saving time and reducing manual errors.

7. Maintenance and re-certification costs

SOC 2 compliance is not a one-time effort. Organizations need to maintain their controls and undergo periodic audits for re-certification.

• Manual process costs: Ongoing monitoring, re-certification audits, and repeated manual effort can cost $20,000 to $50,000 annually.
• Automated process costs: Automation platforms include continuous monitoring features, reducing maintenance efforts by $15,000 to $30,000 annually.

Purpose: To ensure compliance is maintained and controls remain effective over time.

Why automation is the smarter choice for your SOC 2 compliance journey

While the manual process might seem appealing for its lower upfront costs, it often results in hidden inefficiencies, prolonged timelines, and a higher overall burden on your team. Automation, on the other hand, offers a future-proof solution that not only simplifies compliance but also prepares your organization for scaling with minimal effort.

With an automated platform like Scrut Automation, you can:

• Save time: Cut down compliance timelines by up to 50% with automated evidence collection and control monitoring.
• Reduce effort: Eliminate repetitive, manual tasks, freeing up your team to focus on product development and business growth.
• Increase efficiency: Seamlessly manage multiple compliance frameworks without duplicating efforts.
• Prepare for the future: Build a scalable compliance infrastructure that evolves with your organization’s needs.

For fast-growing companies, automation is not just a tool—it’s a strategic enabler that accelerates growth by turning compliance into a streamlined, manageable process.

Choose Scrut Automation for your SOC 2 compliance and focus on what you do best: growing your business.

Additional cost factors to consider for the SOC 2 framework

Achieving SOC 2 compliance involves multiple cost components that vary based on the size, complexity, and specific needs of your organization. Here’s a detailed breakdown of the additional key cost factors to help you budget effectively:

1. Monitoring and maintenance costs

SOC 2 compliance requires ongoing monitoring of controls to ensure they remain effective and aligned with the Trust Service Criteria.

• Manual process costs:
  
  • Continuous manual tracking and documentation can cost $5,000 to $15,000 annually, depending on the size of the organization and the complexity of controls.
  • External consultants may charge additional fees for periodic reviews, ranging from $5,000 to $10,000 annually.
• Automated process costs:
  
  • Compliance automation platforms offer continuous monitoring features, costing $10,000 to $30,000 annually, depending on the subscription plan and features.

Cost type: Recurring.

Purpose: To ensure that compliance controls remain operational and effective, reducing the risk of non-compliance during audits.

2. Re-certification audit costs

SOC 2 certification is not permanent; it requires periodic re-certification audits to validate ongoing compliance.

• Audit fees: Similar to initial certification, re-certification audit fees range from $15,000 to $40,000, depending on the type of SOC 2 report (Type 1 or Type 2).
• Preparation costs: For manual processes, preparing for re-certification can add $5,000 to $10,000 in internal resource effort or external consultant fees. Automated platforms minimize this cost by maintaining audit readiness throughout the year.

Cost type: Recurring (typically every 12 months).

Purpose: To renew SOC 2 certification and demonstrate ongoing compliance to clients and stakeholders.

3. Employee training costs

As your organization grows, new employees may need to be trained on compliance processes and requirements.

• Manual process costs: Compliance training programs or sessions conducted by consultants can cost $2,000 to $5,000 annually, depending on the team size.
• Automated process costs: Many automation platforms include built-in training modules, reducing or eliminating this expense.

Cost type: Recurring (as needed).

Purpose: To ensure all employees understand and adhere to compliance practices, reducing the risk of human errors.

4. Technology upgrade costs

Maintaining SOC 2 compliance may require upgrading or expanding your technology stack to meet evolving requirements.

• Examples: Enhancing access controls, implementing additional monitoring tools, or upgrading existing systems.
• Costs: These upgrades can range from $5,000 to $20,000, depending on the complexity and scope.

Cost type: Occasional (as needed).

Purpose: To stay aligned with security best practices and meet the expectations of auditors and clients.

5. Client-specific requests and security questionnaires

Many enterprise clients require regular evidence of compliance, including customized security questionnaires or additional reports.

• Manual process costs: Completing these requests manually can take significant time, costing $5,000 to $10,000 annually in resource effort.
• Automated process costs: Compliance platforms often include features for automating security questionnaire responses, reducing this cost to a minimal $1,000 to $5,000 annually.

Cost type: Recurring.

Purpose: To satisfy client requests and maintain strong business relationships.

6. Incident response and remediation costs

If a control fails or an incident occurs, the cost of remediation and response can be significant.

• Costs: Incident investigations, control redesigns, and consultant involvement can add $10,000 to millions of dollars, depending on the severity and scope of the issue. IBM reported that the average cost of a data breach in 2024 reached a whopping $4.88M.

Cost type: Occasional (based on incidents).

Purpose: To address control failures and ensure continued compliance.

By factoring in these additional and hidden costs, organizations can better prepare for the long-term commitment of maintaining SOC 2 compliance. Leveraging compliance automation platforms, such as Scrut Automation, can significantly reduce recurring expenses and manual overhead, making the journey not only smoother but also more cost-effective.

Get your personalized SOC 2 compliance quote with Scrut Automation

Ready to simplify SOC 2 compliance? Scrut Automation offers tailored solutions to fit your organization’s needs, helping you achieve certification faster and more efficiently.

Request a personalized quote today and take the first step towards hassle-free SOC 2 compliance!

FAQs

Do these costs change over time with the change of rules and policies?

Yes, SOC 2 compliance costs can change over time. The latest update in 2023 introduced enhanced “Points of Focus” by AICPA, which may increase costs for control updates, readiness assessments, and tools.

Can I get a free checklist or template to do a manual check for the SOC 2 framework?

Yes, free SOC 2 checklists and templates are available online to help organizations conduct manual checks. However, these are often generic and may not fully address the specific requirements of your organization’s compliance needs.

For a comprehensive checklist tailored to SOC 2 compliance, check out our SOC 2 Checklist for detailed guidance.

Are the costs of SOC 2 compliance the same across the globe?

No, SOC 2 compliance costs vary by country due to differences in local market rates, auditor fees, and operational expenses. Here’s a comparison of typical SOC 2 audit costs in India, the UK, and the US:

• United States (US):
  • SOC 2 Type 1 Audit: Approximately $5,000 to $25,000.
  • SOC 2 Type 2 Audit: Approximately $7,000 to $50,000
• United Kingdom (UK):
  • SOC 2 Type 1 Audit: Approximately £4,000 to £20,000
  • SOC 2 Type 2 Audit: Approximately £12,000 to £40,000
• India:
  • SOC 2 Type 1 Audit: Approximately ₹5,00,000 to ₹15,00,000
  • SOC 2 Type 2 Audit: Approximately ₹15,00,000 to ₹30,00,000

These figures are approximate and can vary based on factors such as the organization’s size, complexity, and the scope of the audit. It’s advisable to consult with local audit firms for precise estimates tailored to your specific needs.

What is the penalty charge for not being SOC 2 compliant?

There is no direct financial penalty for not being SOC 2 compliant, as it is not a legal requirement. However, the consequences can be significant, including:

• Loss of business opportunities, especially with enterprise clients.
• Damaged reputation and reduced customer trust.
• Increased difficulty in entering competitive markets.

Can a SOC 2 consultant help me reduce the cost?

Yes, a SOC 2 consultant can help reduce costs by streamlining the compliance process. They provide expert guidance, identify gaps efficiently, and help avoid costly errors during audits. However, hiring a consultant also adds to upfront expenses, so their cost-effectiveness depends on your organization’s readiness and internal resources.

What is the relevance of the SOC 2 report?

The SOC 2 report is relevant for 12 months from the date of issuance. Organizations must undergo an annual re-certification audit to maintain their compliance status.

Cost to renew:

• Type 1 re-certification audit: $15,000 to $25,000.
• Type 2 re-certification audit: $20,000 to $40,000.

The renewal cost may also include ongoing monitoring and preparation expenses, which can range from $5,000 to $15,000 annually.

Does the cost of the SOC 2 framework vary based on the total number of employees in an organization?

Yes, the cost of SOC 2 compliance can vary depending on the size of the organization. Larger organizations with more employees often face higher costs due to the increased complexity of their operations, more extensive controls, and additional evidence requirements. Conversely, smaller organizations typically incur lower costs as their operations and compliance needs are less complex.

Is automation better than the manual process for SOC 2 certification?

Yes, automation is generally better than the manual process for SOC 2 certification. Automation streamlines evidence collection, control monitoring, and audit preparation, significantly reducing time and manual effort. It minimizes errors, ensures scalability, and simplifies compliance management, making it a more efficient and cost-effective choice, especially for growing organizations.