What's Inside

So, your customer or client asked you for a Systems and Organization Controls 2 (SOC 2) report. Now what? A SOC 2 report is a CPA-certified attestation that your company meets security standards. You’re probably wondering what exactly this report looks like, why you need it, and most importantly, how to get it. 

While each SOC 2 report is as unique as the organization it audits, there are common themes woven throughout each report. We dig into what SOC 2 reports entail and how they’re structured, and include images of SOC 2 report examples below.

What is a SOC 2 Report?

A SOC 2 report is an attestation by a certified public accountant (CPA) stating that your organization meets the official SOC 2 standards issued by the American Institute of Certified Public Accountants (AICPA). 

The report—typically requested by a prospective or existing customer—helps them confirm that your company’s security complies with or exceeds industry standards. Or, in other words: You’ll keep their data, customers, and systems protected. 

There are two types of SOC 2 reports: 

SOC 2 Type 1 is a point-in-time report. This means the auditor checks your security at a single point in time. Are you secure today? A Type 1 report asks the auditor to check your security for that particular moment. 

This report is a great way to ensure the security measures you’ve recently implemented meet industry standards. It can help you prove to leadership that the hard work your team has been putting into compliance will pay off. And it can prove to prospective customers and clients that you are on your way to long-term, ongoing security compliance. 

That said, Type 1 is considered a lower-value type of report because it doesn’t show long-term commitment to compliance. It only shows that at one specific point in time, you were able to meet the standards. 

The more valuable report is SOC 2 Type 2. This report shows compliance over time—often covering a period of time of at least three months to up to a year. In this report, the auditor looks at your compliance—not just for the last week, but for the past year (or the past three or six months). This report helps prospective clients feel comfortable with your ongoing commitment to risk management, security, and compliance.

Which Trust Services Criteria Are Required for a SOC 2 Report?

SOC 2 reports focus on one or more of AICPA’s five Trust Services Criteria (TSC): 

• Security. This is the only mandatory TSC for a SOC 2 report. It protects systems against vulnerabilities like unauthorized access or data breaches, helping safeguard sensitive data and operations. Internal controls include firewalls, encryption, and multi-factor authentication. 

• Availability. Availability measures whether your systems are running when your customers need them. If you’ve promised 99.9% uptime in your SLA, this is the TSC that backs it up. Practices like disaster recovery plans and real-time system capacity monitoring help meet this criteria. 

• Processing integrity. Processing integrity emphasizes the accuracy, reliability, and validity of system operations. This criteria is especially relevant for industries where data errors or delays can have significant repercussions, such as finance or healthcare. Controls here might include error detection systems, process checks, and automated data validation. 

• Confidentiality. Confidentiality is what keeps sensitive information private. This could mean protecting customer data, trade secrets, or other proprietary information. Encryption, strict access controls, and secure storage solutions are all examples of ways to meet this criterion.

• Privacy. Privacy covers how your organization collects, uses, and manages personal information. Meeting privacy requirements often involves adhering to laws like GDPR or CCPA, as well as having clear policies on data use, retention, and disposal. 

Many companies also choose to audit their Availability and Confidentiality because both requirements help prove to customers their data is protected. For companies in healthcare, a Privacy audit may also be requested. While rare, some companies may choose to include Processing Integrity criteria.

What’s Included in a SOC 2 Report?

No matter which combination of TSC you audit for, a completed SOC 2 report includes five sections: 

• The auditor report 

• Management assertion 

• Detailed system description 

• Test results 

• Other Information Provided by the Service Organization (Optional)

The Auditor Report

This report—also known as an opinion letter—is the auditor’s summary of their audit. It typically includes: 

• When the auditor started the project 

• The scope of their review 

• The time period covered (is it a single point-in-time or a year’s review?) 

• Anything good or bad they found during the audit process

• An opinion on your security (or other criteria) 

The opinion section can fall into four categories. 

• Unqualified is an A-plus. It means everything looks great. You’re fully compliant. 

• Qualified means you came close. Your SOC 2 compliance is looking good, but the auditor still wants you to address a few things. 

• Adverse means you aren’t there yet. Your compliance program needs work. 

• Disclaimer of Opinion means the auditor cannot issue an opinion due to limitations in the scope of their audit.

Management Assertion

This is where you (the business owner) and your management team talk about the audit from your perspective. It covers the scope, timeline, and other relevant considerations from the business's perspective instead of the auditor's.

While you’re required to write the management assertion, it can be a tricky task for those going through a SOC 2 audit for the first time. You can ask your auditor to provide an example or two of what a management assertion could look like. 

Detailed System Description

Your system description makes up the bulk of your SOC 2 report. This section is authored by you (the business owner) and/or your teams. Think of this portion of the report as an overview of your company and its systems, teams, and security controls. 

You’ll talk about the trust service principles and how your compliance program addresses them. And you’ll give clients a detailed look at the best practices in place across your organization.

This section often includes: 

• Key features of the system

• Principle service commitments and system requirements

• System boundaries

• Trust Services Criteria not applicable to the system

• Subservice organizations

• Relevant aspects of the control environment, risk assessment, information and communications, and monitoring

• Incidents and system changes

Test Results

Test results are the final section where the auditor backs up your assertions and covers the systems, teams, and security controls in their own words. 

This section includes: 

• The controls applicable to the TSC. 

• A description of the tests performed by the auditor. 

• The results of the auditor’s tests.

Other Information Provided by the Service Organization

This final section is optional and provides additional relevant information not covered in the report. Typically, this section will include management's responses to exceptions, but can include any information the service organization is relevant to the report user, such as information about a recent acquisition.

Audit Exceptions in SOC 2 Reports

SOC 2 audit exceptions are findings in your SOC 2 audit where a control doesn’t perform as expected or isn’t implemented correctly. These exceptions are essentially gaps in your compliance program, and usually fall under one of three types:

• System description misstatements. These exceptions arise when the system description provided by your organization contains inaccuracies or doesn’t fully reflect how the system operates. For example, a service description might state that backups are encrypted, but the auditor finds that some backups are stored without encryption.

• Deficiency in the design of a control. This occurs when a control is poorly designed and doesn’t adequately address the associated risk. For instance, a policy might require that all employees use unique passwords, but there’s no mechanism in place to enforce this requirement.

• Deficiency in the operating effectiveness of a control. These exceptions happen when a well-designed control isn’t executed as intended. For example, if a control requires quarterly access reviews, but some reviews were missed or delayed, this would indicate an operational deficiency.

Not all exceptions carry the same weight, and that’s a good thing. In some cases, a control may not operate as intended, but if other controls are in place to mitigate the associated risks, the auditor may determine that the overall criteria was still met. When compensating controls are effective, it’s possible to receive an unqualified opinion despite isolated exceptions.

The significance of exceptions ultimately depends on factors like their frequency, scope, and severity. A single isolated issue is unlikely to raise major concerns, but recurring or systemic problems can indicate deeper challenges. Customers will also view exceptions through the lens of their potential impact on data protection and how your organization responds. 

How to Address SOC 2 Control Deficiencies

If the final report came back with an unqualified opinion but included exceptions, don't overlook them. They're early warning signs, and addressing them now strengthens your controls and helps prevent bigger issues down the line. 

On the other hand, if your report resulted in a qualified or adverse opinion, resolving control deficiencies isn’t optional. You'll need to take corrective action if you want to meet SOC 2 standards and build trust with your customers. 

1. Analyze the Deficiencies

Before tackling fixes, you need to understand the scope and root cause of the deficiency. A thorough analysis ensures that you’re solving the right problem instead of just addressing its symptoms.

Go back to the report and examine exactly what the deficiency entails. Is it related to a control that didn’t work as intended, a missing control, or an operational lapse? Then, identify the root cause. For example:

• Was there a lapse in following established processes (e.g., access reviews weren’t conducted on time)?

• Was it due to resource constraints, like understaffing or outdated technology?

• Did unclear documentation or lack of training play a role?

Determine how this deficiency affects your security posture and compliance. Does it expose sensitive data to potential risks? Could it impact customer trust or service delivery? Is it an isolated incident or part of a broader pattern?

2. Prioritize the Findings

Each issue in your SOC 2 report requires attention, but some demand immediate action, while others can be addressed as part of your longer-term compliance strategy. Categorizing them will help you allocate resources effectively and address the most critical risks first.

When determining how to prioritize deficiencies, consider whether the issue creates a “reasonable possibility” that your organization might fail to meet customer commitments or protect sensitive data. This standard isn’t about the likelihood of a specific event occurring, but rather about the potential impact on trust, decision-making, and how stakeholders view your organization. Even a low-likelihood deficiency can have a big impact if it undermines customer confidence or introduces risks to your compliance posture.

3. Develop a Remediation Plan

Once you’ve prioritized the deficiencies in your SOC 2 report, you need to fix them. A remediation plan addresses immediate issues and strengthens your compliance posture for the future. 

To that end:

• Define specific actions. Spell out exactly what needs to happen to address each deficiency. Clear, actionable steps make it easier to measure progress. 

• Assign ownership. Someone needs to be in charge of every action item. Assigning ownership ensures accountability and makes it clear who’s responsible for moving the ball forward.

• Set deadlines. Deadlines help prioritize work and keep your team focused. The high-priority issues you identified in the previous step should be resolved as soon as possible, while lower-priority ones can have longer timelines.

• Bring in help if needed. Some fixes may require specialized expertise. For instance, if your backups aren’t encrypted, you might need to work with a cybersecurity consultant to select and implement the right solution.

4. Strengthen Ongoing Compliance

SOC 2 compliance is an ongoing commitment. Once your controls are in place and aligned with SOC 2 standards, the focus shifts to maintaining and improving those controls so that they remain effective. 

A great place to start is by embracing continuous monitoring. Tools that automatically alert you to missed access reviews, unusual login attempts, or expired credentials can help you spot problems before they spiral into bigger concerns. With these systems in place, you’re not scrambling to prepare for an audit, but simply keeping your operations secure every day.

Another key to long-term success is scheduling regular internal audits or readiness assessments. If you run your own checks at least quarterly, you can catch small issues early, fix them, and confidently head into the next audit cycle.

Compliance isn’t just about processes and tools, though—it’s also about people. Security awareness sessions for your entire workforce can go a long way toward avoiding mistakes, while targeted training for IT or compliance teams ensures the folks managing sensitive systems have the expertise they need. A well-trained team makes compliance second nature instead of a one-time project.

Finally, keep an eye on the bigger picture. Compliance frameworks like SOC 2 evolve over time, and industry-specific regulations are prone to changing. Staying informed about new standards or best practices helps you adapt quickly and stay ahead of potential risks.

SOC 2 Report FAQ

Below, we answer a few commonly asked questions about SOC 2 reports. 

Where Can I Find a SOC 2 Report Example?

To give you an idea of what a real SOC 2 report looks like, we recommend reviewing the AICPA’s SOC 2 report example. 

Who Needs a SOC 2 Report?

With security top of mind for pretty much everyone these days, any company that handles data (which is most of us) should be prepared to provide a SOC 2 report to prospective clients.

Remember that it can take over a year to become compliant and get a Type 2 report, so it’s best to work on compliance as soon as you can—even if you haven’t received a request from a prospect just yet. 

What Are SOC 2 Reports For?

The company requesting a SOC 2 report is typically one that wants to hire you as a vendor. They’re asking for SOC 2 because they want to confirm your security compliance and feel safe working with you.

Sometimes they'll request the report for their own peace of mind. Or maybe they need it to give their clients peace of mind. Sometimes they have industry standards to meet on their end. Other times there are compliance or regulatory standards they have to comply with. Often, all four of these reasons intersect.

Who Creates SOC 2 Reports?

CPAs must create and issue SOC 2 reports. Any CPA firm can technically do your report, but we suggest looking for one with strong security experience. If a firm only does a few SOC 2 reports each year, the process might not be as smooth and straightforward as it would be with a firm that has a dedicated team for SOC 2.

Look for CPAs experienced with SOC 2 reports and your specific industry. CISA and CISSP certifications are a plus. And don’t forget to check references before a firm.

How Does SOC 2 Differ From SOC 1 and SOC 3?

While we focus on SOC 2 in this article, there are actually three types of SOC reports. 

• SOC 1 is about meeting financial standards.

• SOC 2 is a more detailed, security-focused report. It often includes confidential information and a high level of detail about your security programs.

• SOC 3 is a high-level, public-facing version of a SOC 2 security report (with anything confidential scrubbed out).

How Much Does a SOC 2 Report Cost?

The cost of a SOC 2 audit can range from $12,000 to $100,000, depending on the complexity of your audit.

Factors that your auditor should be asking about when giving you an estimate include:

• The scope of your audit/report

• Your organization's size and complexity

• The maturity of your compliance program

• The number of trust services criteria you want to include

For an accurate quote, speak directly with a CPA firm.

How Long Does it Take to Achieve SOC 2 Compliance?

The timeline for achieving SOC 2 compliance depends on factors like your organization’s size, the complexity of your systems, and how prepared you are when starting the process. 

A SOC 2 Type 1 audit can take up to 6 months to complete, while a SOC 2 Type 2 audit can take anywhere from 3 to 12 months. A readiness assessment can help you identify gaps early on, streamlining the process and reducing delays.

How Often Should We Renew Our SOC 2 Report? 

Most organizations renew their SOC 2 report every year to maintain trust with customers and stay ahead of evolving compliance standards. 

During a renewal, auditors take a fresh look at your systems, review any changes made over the past year, and evaluate how well your controls have performed. 

How Drata Can Simplify Your SOC 2 Report Process

SOC 2 compliance is a vital part of being a tech vendor, but SOC 2 audits can be complicated, lengthy, and stressful. That’s where Drata comes in. 

Our automation software lets you easily collect and provide evidence auditors need, generate reports and overviews, and flag when there’s a risk to your compliance. Auditors can log into the tool and directly pull the info they need. Our tool also allows you to easily share dashboards and reports in a simple, easy-to-digest format.