SOC Audit

When a company handles customer data or provides technology services, there’s often a requirement to “get a SOC audit.” But what does that actually mean, and how do you prepare—especially when you’re a small business without a massive security team?

A quick primer on SOC audits

SOC stands for System and Organization Controls. It’s an auditing framework developed by the American Institute of Certified Public Accountants (AICPA). You might see references to different types of SOC audits:

• SOC 1: Focuses on an organization’s controls related to financial reporting.
• SOC 2: Evaluates controls around non-financial criteria, especially relating to security, availability, processing integrity, confidentiality, and privacy. This is what most people think of as a “SOC Report”
• SOC 3: Essentially a shorter, more “public-friendly” version of SOC 2 that companies can share more broadly.

For most small businesses that host applications, store or process customer data, or operate in a SaaS model, SOC 2 is the relevant report. It proves to customers and partners that you have effective policies, practices, and controls to protect information.

What does a “Type 1” or “Type 2” audit mean?

A SOC 2 audit can be done as Type I or Type II:

• Type I: Evaluates the design of your controls at a single point in time (The date on your report).
• Type II: Evaluates the operating effectiveness of those controls over a period of time (usually 3–12 months).

They way most companies do it is to start with a SOC 2 Type I report, which evaluates the company as of a certain date, say July 1, 2025.

Then once you are SOC 2 Type I certified, you begin following your own controls and policies and schedule your SOC 2 Type II assessment for say, July 1, 2026.

During the assessment on July 1, 2026, they assessors will look back over the past 12 months to see how well you followed your own controls and policies.

How much does a SOC 2 audit cost?

This is one of the most common questions we get, and it’s also difficult to answer because no two companies are the same. Adsero Security provides SOC readiness services, remediation services as well as SOC required Risk Assessment services, and we work hand in hand with our clients to prepare and pass their SOC audits. Over the years we have gained valuable insight into the SOC 2 processes, including costs.

In our experience, the general range for a SOC 2 Type 1 audit runs between $10,000 on the very low end to over $100,000 on the high end. Most customers see are typically in the $25,000-$50,000 range for a SOC 2 Type 1 and then slightly higher for a SOC 2 Type 2 audit.

These prices are strictly for the SOC 2 audit itself from an AICPA certified audit company and don’t include things like our SOC Readiness services. As you can see, a SOC 2 is a real investment in time and money. It’s one of the reasons its critical to utilize experienced SOC 2 consultants like Adsero Security to ensure your investment is not wasted and your company is fully ready for the SOC 2 audit.

Step 1: Define your scope and objectives

Small businesses often worry they’ll have to document everything, and that everything they have and do will be inscope. But the scope of a SOC 2 audit can be tailored to fit your needs. You should focus on:

1. Which systems or services are in scope? Think specifically about the technology and processes that handle or store customer data.
2. Which Trust Services Criteria (TSC) apply? At a minimum, Security (also called the “Common Criteria”). If you handle personal information or need to demonstrate how you protect confidentiality, you might add the Confidentiality or Privacy criteria. If system uptime is critical for customers, consider Availability as well.

Your scope and objectives will guide everything else—especially your budget, timelines, and resources.

Step 2: Create or update your written policies

Having a complete set of information security policies is critical to maintaining a strong security program as well as passing a SOC 2 assessment. A complete policy set outlines all your companies security controls and how you protect your customers, employees, data and systems. Make sure your policy set is complete, covering all aspects of your business and meets all the control requirements for SOC 2.

Here are a few of the most critical policies you will need to pass a SOC 2 audit:

• Information Security Policy: Who’s responsible for security? How is data safeguarded?
• Access Control Policy: Requirements for passwords, MFA, termination of access when employees leave, etc.
• Change Management: How you plan, test, and approve changes to systems.
• Incident Response: Who’s on the response team, what steps to take, how incidents are escalated.
• Data Retention and Disposal: How long is data stored, and what are your secure destruction methods?
• Endpoint Protection Policy: How do you protect desktops, laptops and servers in your environment?

These policies must be realistic—don’t say you perform monthly access reviews if you never do. Your auditor will ask for evidence that you follow what you’ve written. Adsero Security provides full service policy creation and remediation services for SOC 2, contact us for details on how we can quickly prepare your company with SOC policies.

Step 3: Put your controls into practice

Policies are the “what,” but auditors also look for the “how.” In other words, do you have actual processes and tools that align with those policies? This is the meat and potatoes of a SOC 2 audit. In this step you need to review every process in your company and ensure it is designed and operating securely and meets the control requirements for SOC 2. Common examples:

• Technical Controls
  • Setting up firewalls and monitoring network traffic.
  • Encrypting data in transit (e.g., HTTPS/TLS) and at rest.
  • Using a system for logging events and detecting anomalies (SIEM).
• Administrative Controls
  • Conducting regular security training.
  • Approving system changes through documented tickets.
  • Performing background checks during hiring.
  • Reviewing vendors’ security posture before signing contracts.

The more automated you can make these controls (e.g., using a single sign-on platform for centralized user management, a continuous monitoring tool for logs), the easier your audit prep will be. Adsero Security can help with the heavily lifting and can assist your IT Team in ensuring your systems are properly configured and ready for a SOC 2 audit.

Step 4: Document, document, document!

From Adsero’s experience, one of the top reasons organizations fail (or rather have lots of negative findings) on their SOC 2 is lack of good documentation. An auditor needs evidence—logs, screenshots, tickets, training records—to confirm you follow your own processes.

• Onboarding/Offboarding Checklists: Show that you assign and remove access properly.
• Change Logs: Prove that every change goes through a review process.
• Incident Reports: If there’s a security alert, keep a record of how it was discovered, investigated, and resolved.
• Audit Trails: Record who accessed what data and when.

Organizing all of this proactively can save you a ton of time once the formal audit begins. If you need help with documenting your company’s compliance, let us know, it’s what we do!

Step 5: Choose a reputable SOC 2 auditor

Only a licensed CPA firm that specializes in SOC audits can issue an official SOC 2 report. Evaluate auditors based on:

• Experience: Have they audited organizations of your size and complexity?
• Industry Knowledge: Some auditors specialize in SaaS providers, healthcare, or financial services. Pick one familiar with your domain.
• Approach: Do they offer a straightforward process? Are they known for being supportive and educational, rather than adversarial?

We have experience helping our clients select the right auditor for their needs. If you have questions, let us know.

Step 6: Audit Time!

Now that you have done all the prep work it’s time for the SOC 2 Audit itself. This is where the rubber meets the road, and you get to put all your hard work to the test! SOC 2 Type 1 audits typically take between 60-120 days depending on your size and the total number of controls.

During the SOC 2 audit itself:

1. Evidence Collection: The auditor will request policies, logs, access reviews, and more. Be prepared to supply documentation quickly and accurately.
2. Interviews/Observations: They may want to see your processes in action or speak to staff (e.g., a DevOps engineer or HR manager) to verify procedures.
3. Testing (Type II): If it’s a Type II audit, they’ll verify that each control operated effectively over the testing window (e.g., 6 or 12 months).

Staying organized—and ensuring your team is on the same page—makes the audit run far more smoothly. We also offer full service Audit Preparation and Audit Readiness services to assist companies who need to get through a SOC 2 audit quickly and cleanly. For those companies who are under a quick deadline, we can help you get prepared, documented and through a SOC 2 audit fast. Contact us today to find out how we do it!

Step 7: Review, Remediate, and Maintain

After the audit, you’ll receive a SOC 2 report listing any exceptions (where your controls fell short). If there are issues, create a plan to fix them. Either way, remember that security and compliance is an ongoing effort. SOC 2 reports are typically renewed every year or two, and continuous improvement is part of the game. Adsero Security offers full Audit Remediation services as well to help you understand your audit results and find solutions to any audit findings quickly and painlessly.

FInal Thoughts

Preparing for a SOC 2 audit can feel like a marathon, but it’s also an investment in your company’s credibility, resilience, and trustworthiness.

As We have said before, SOC isn’t just a checkbox—it’s about building customer confidence and establishing a strong control environment. By scoping your audit correctly, shoring up policies and procedures, documenting rigorously, and choosing the right auditor, even small businesses can achieve SOC 2 success.

Once your organization has that SOC 2 report in hand, you’ll have real proof that you take data security seriously—a valuable tool for building customer trust and standing out in a competitive market.