When a company asks for your SOC 2 report, they’re really asking: Can we trust you with our data? With rising cybersecurity risks, growing regulatory scrutiny, and an endless stream of vendor assessments, trust can’t just be claimed — it needs to be proven. That’s the challenge SOC 2 is designed to address — by offering proof, not just promises.
Rather than relying on self-asserted security claims or lengthy questionnaires, SOC 2 offers third-party validation that your security, and other selected controls like availability, and privacy controls are actually doing their job. It gives prospects a clear reason to say yes — and gives your team a structured way to build credibility from the inside out.
In this blog, we’ll explore who needs SOC 2 compliance, how it applies across industries, and what it takes to go from readiness to report.
Who needs SOC 2 compliance?
System and Organization Controls 2 (SOC 2) compliance is relevant to any organization that handles customer data, especially in a digital or cloud-based environment. It’s not just about ticking a box — it’s about proving to your customers, partners, and stakeholders that you take data security seriously.
If your systems process, store, or transmit sensitive information, your clients will expect reassurance that your operations are secure, private, and reliable. SOC 2 offers that assurance. It evaluates how well your internal controls protect customer data based on five key principles like security, availability, and confidentiality.
While SOC 2 isn’t legally required for any specific industry, it’s quickly become the gold standard for demonstrating data security and operational integrity across many sectors.
Here’s a breakdown of industries where SOC 2 compliance is often expected — and why:
1. Technology and SaaS
Companies offering cloud-based services often manage large volumes of customer data. Clients — especially enterprise buyers — routinely ask for a SOC 2 report before signing contracts. It shows that your service is secure, reliable, and enterprise-ready.
2. Fintech and financial services
Handling financial data comes with serious risk. While regulations like GLBA (Gramm-Leach-Bliley Act) or PCI-DSS may apply, SOC 2 provides an added layer of trust for internal controls. It reassures investors, partners, and users that your systems are resilient and trustworthy.
3. Healthcare and healthtech
Although HIPAA governs healthcare data, SOC 2 supports broader assurance around security controls. Healthtech startups and healthcare SaaS vendors often pursue HIPAA+SOC 2 to show they’re going beyond minimum legal requirements.
4. E-commerce and retail platforms
If you’re processing customer payments, order data, or user accounts, security lapses can lead to serious reputational and financial damage. SOC 2 shows you’ve put controls in place to reduce that risk.
5. Professional services (consulting, HR, legal, etc.)
Firms that manage client data — whether legal documents, employee records, or confidential strategy — often use SOC 2 compliance to prove that their data handling practices are secure and well-governed.
6. Managed service providers (MSPs)
Clients trust MSPs with access to their IT environments and infrastructure. SOC 2 is a key trust marker to show you’re not just technically competent, but also process-driven and secure by design.
Why do you need SOC 2 compliance?
SOC 2 compliance is one of the clearest ways to prove to your customers, partners, and investors that you take data security seriously. It’s not just about risk mitigation; it’s a competitive differentiator. In industries where deals are won (or lost) based on your ability to protect sensitive data, SOC 2 sends a powerful message: your systems, policies, and operations are built with trust in mind.
Here’s why companies invest in SOC 2:
1. It builds credibility with customers
In the absence of a SOC 2 report, many buyers — especially in the enterprise space — will walk away. SOC 2 shows you’re not asking them to just “trust you” on security; you’ve had an independent audit that proves your controls work.
2. It reduces friction in the sales cycle
Security questionnaires are a time sink for growing teams. With a SOC 2 report in hand, you can answer most of them with a single document, speeding up due diligence and reducing back-and-forth.
3. It helps you protect sensitive data
Whether you’re handling financial information, user credentials, or internal IP, SOC 2 gives you a structured framework to safeguard that data — and prove you’re doing it consistently.
4. It supports long-term scalability
As your team grows and your systems get more complex, having clear, audited controls helps you scale without chaos. SOC 2 pushes you to define responsibilities, automate checks, and stay organized.
5. It opens doors to regulated markets
Selling into fintech, health tech, or other regulated sectors? These industries expect high security standards from vendors — even when compliance isn’t legally required. SOC 2 helps you meet those expectations from day one.
In short, SOC 2 isn’t just about staying compliant. It’s about proving you’re serious about doing business the right way — securely, responsibly, and transparently.
Is SOC 2 compliance legally required?
No. SOC 2 is not mandated by law or regulation. However, it’s often contractually required by enterprise clients or business partners, especially if your services involve handling sensitive data.
Are there any laws or regulations that enforce SOC 2?
No. There’s no regulation that specifically mandates SOC 2. However, industry regulations like HIPAA, GLBA, or GDPR may require strong security controls — and SOC 2 can help demonstrate that you meet those expectations but does not replace them.
So why do companies still get SOC 2?
Because it builds trust. Many buyers and partners won’t even consider working with a vendor unless they’ve passed a SOC 2 audit. It’s a key differentiator in competitive markets.
What are the SOC 2 report requirements?
SOC 2 attestation isn’t a one-size-fits-all checklist. Instead, it’s a tailored evaluation of how well your internal systems and processes align with a set of criteria known as the Trust Services Criteria (TSC) — established by the AICPA.
There are five categories under TSC, and your audit can cover any combination of them based on your business context. While security is a mandatory requirement an organization can choose any other relevant TSCs for their SOC 2 report:
- Security: This is the foundation of every SOC 2 audit. It focuses on whether your systems are protected against unauthorized access, both physical and logical.
- Availability: Demonstrates that your systems are operational and accessible as agreed upon with clients (e.g., uptime SLAs).
- Processing Integrity: Ensures systems process data accurately, completely, and on time.
- Confidentiality: Validates that confidential information is protected as promised.
- Privacy: Verifies how your systems handle personal information in accordance with your privacy notice and relevant laws.
Follow this SOC 2 audit checklist to complete your audit successfully:
- Establish security policies: You’ll need documented policies and procedures covering everything from access controls and incident response to change management and vendor risk.
- Implement controls: These can be technical (like multi-factor authentication, logging, backups) or administrative (like employee training and background checks).
- Maintain evidence: Auditors will want proof — screenshots, system logs, configuration files, ticketing histories — that controls are not just written down, but actually followed.
- Use automated monitoring: Tools that track compliance status, detect anomalies, and generate alerts make it easier to stay compliant year-round.
SOC 2 reports come in two types:
- Type I evaluates whether controls are designed correctly at a specific point in time.
- Type II assesses how effectively those controls work over a period, typically ranging from 6 to 12 months.
Type II is more rigorous — and more valuable for customer assurance.
SOC 2 also expects maturity, not just intent. You don’t just say you encrypt data — you show that encryption is properly configured, applied consistently, and monitored for failures.
Who can perform a SOC 2 audit?
Only a licensed CPA (Certified Public Accountant) firm — or a CPA affiliated with one — is authorized to conduct a SOC 2 audit. But here’s the thing: not all CPAs are created equal when it comes to SOC 2. Since the audit digs deep into how you manage data security, availability, and privacy, you’ll want a team that knows the ins and outs of IT systems, cybersecurity, and risk management.
That’s why most companies choose CPA firms that specialize in SOC audits. These firms typically have dedicated teams who can guide you through the audit process — from mapping controls to collecting evidence — without missing a beat.
Can any security firm conduct a SOC 2 audit?
No. A SOC 2 audit must be performed by a licensed CPA firm, or a firm operating under a CPA license. Security consultants or non-CPA firms can’t issue an official SOC 2 report — no matter how experienced they are. That’s because SOC 2 is governed by the AICPA and falls under the attestation standards outlined in SSAE 18 (Statement on Standards for Attestation Engagements No. 18).
If a security firm offers SOC 2 “support,” it’s likely they’re helping you prepare for the audit — not conducting the audit itself.
Can internal teams perform a SOC 2 audit?
No. Internal reviews can help with readiness, but the actual audit must be conducted by an independent third-party CPA firm to ensure objectivity and credibility.
Are all CPA firms qualified to do SOC 2 audits?
Not necessarily. The firm should have experience with SOC 2 and knowledge of information security practices. Many specialize in SOC audits and offer guidance throughout the process.
Who needs your SOC 2 report?
A SOC 2 report is primarily used by your customers, partners, and prospects — especially those evaluating your organization as a potential service provider. It gives them confidence that you’ve implemented the right controls to protect their data.
Procurement teams use it to assess third-party risk. Security and compliance teams rely on it to vet vendors before granting access to sensitive systems. Legal teams may request it during contract negotiations to ensure their company won’t be exposed to unnecessary risks.
In other words, a SOC 2 report isn’t just for your internal records. It’s a business asset that helps others trust you — faster. It acts as a single, independent source of truth your stakeholders can use to validate that your security practices are not just claimed, but audited and verified.
That’s why many companies refresh their SOC 2 report every 12 months — to provide up-to-date assurance that they remain compliant as systems and risks evolve.
How Scrut can help you achieve SOC 2 compliance
SOC 2 compliance can feel overwhelming — especially when you’re juggling security, operations, and customer demands all at once. That’s where Scrut comes in. Our platform helps you take the guesswork out of SOC 2 — from documentation to audit readiness.
With 1400+ pre-mapped controls, policy templates, continuous monitoring, and auditor-approved evidence collection, Scrut helps you go from readiness to report without the manual effort. You’ll know exactly where you stand at every step, and what to fix before your audit begins.
We also work closely with top-tier audit firms so that when you’re ready for the official SOC 2 audit, your house is already in order.Ready to earn trust, close deals faster, and stay audit-ready year-round?
Megha Thakkar has been weaving words and wrangling technical jargon since 2018. With a knack for simplifying cybersecurity, compliance, AI management systems, and regulatory frameworks, she makes the complex sound refreshingly clear. When she’s not crafting content, Megha is busy baking, embroidering, reading, or coaxing her plants to stay alive—because, much like her writing, her garden thrives on patience. Family always comes first in her world, keeping her grounded and inspired.
