A Practical and Complete Guide to SOC 2 Compliance

SOC 2 is an independent audit report that evaluates how a company protects customer data. It is issued by a licensed third-party auditor under a framework developed by the AICPA (American Institute of Certified Public Accountants).

It is delivered as a detailed report that enterprise customers review to assess whether they can trust your company with sensitive data.

No. SOC 2 is not a certification. It is an attestation report expressing an auditor's opinion on whether your security controls are properly designed and operating effectively.

There is no "pass" or "fail." What matters is:

• • The scope of systems included
• • The Trust Services Criteria covered
• • The auditor's findings and exceptions

SOC 2 evaluates your controls against the Trust Services Criteria (TSC):

• • Security (mandatory): Protection against unauthorized access
• • Availability: Systems are available and operational as agreed
• • Processing Integrity: Data is processed accurately and completely
• • Confidentiality: Confidential information is protected
• • Privacy: Personal data is collected, used, and disclosed properly

Every SOC 2 report must include Security. The other criteria are optional and should be chosen based on customer expectations and business needs.

SOC 2 Type I is a point-in-time assessment. It confirms that your controls are properly designed at a specific date.

SOC 2 Type II evaluates how those controls operate over time, typically over 3 to 12 months.

👉 Most enterprise customers expect a SOC 2 Type II, as it demonstrates real operational maturity.

There is no single answer, but for most small companies:

• • SOC 2 Type I: ~1 to 2 months
• • SOC 2 Type II: 3 to 12 months (including the observation period)

The timeline depends mainly on:

• • Company size (process change is harder as teams grow)
• • Technical stack complexity
• • Existing security maturity
• • Internal time availability

For companies with a simple stack, the actual technical work can take less than 10 hours. Most of the time is spent on documentation, evidence collection, and audit coordination.

You can estimate your SOC 2 timeline by answering three questions:

1. Have customers or prospects asked for SOC 2?

   If yes, you likely need it now.

2. Is your infrastructure relatively stable?

   Frequent changes slow audits dramatically.

3. Who will own compliance internally?

   SOC 2 always requires someone accountable.

Traditionally, readiness takes 1 to 4 months, followed by the audit and (for Type II) the observation period. With an expert-led approach like Probo, the readiness phase can be drastically shortened.

For a small company, a realistic annual SOC 2 budget is around $10,000 if done efficiently.

Typical breakdown:

• • Audit: $6,000–$7,000
• • Implementation & tooling: varies widely
• • Hidden cost: internal time and distraction

Consultants can cost $50,000+, and automation tools still require a dedicated internal owner.

The biggest hidden cost is internal time:

• • Defining scope
• • Customizing policies
• • Managing evidence
• • Coordinating auditors

In many startups, this turns a CTO or engineer into a part-time compliance manager for months.

No. SOC 2 does not require penetration testing.

It can be useful once your product stabilizes, but it is not mandatory and often overkill for early-stage startups.

It's probably too early if:

• • You don't handle sensitive customer data
• • No customer, partner, or investor has asked for it
• • Your infrastructure changes weekly
• • Your product or market is still being validated

Doing SOC 2 too early often wastes time and money. A better approach is to focus on security fundamentals first.

Speed comes from expertise, not tools alone.

With a done-for-you service like Probo:

• • Scoping is done correctly from day one
• • Documentation is written for your real workflows
• • Engineers only implement what's necessary
• • Audit coordination is fully managed

This turns months of internal effort into a focused, low-distraction process.

• • SOC 2 produces a detailed report focused on customer trust (common in North America)
• • ISO 27001 produces a certification proving you run a formal Information Security Management System (ISMS)

They are not interchangeable. Customers usually ask for one or the other.

Choose SOC 2 if:

• • Your customers are mainly in North America
• • You sell B2B or enterprise software

Choose ISO 27001 if:

• • You target international or European markets
• • You need a globally recognized certification

Many growing startups eventually need both.

Yes. SOC 2 is often:

• • A requirement to pass vendor security reviews
• • A blocker in enterprise sales cycles
• • A strong trust signal for customers and partners

A well-scoped SOC 2 report can significantly shorten sales cycles and unlock larger deals.

Probo provides a done-for-you SOC 2 service, supported by a dedicated compliance platform:

• • We design a custom compliance program tailored to your business, customers, and technical stack
• • We provide the tool to centralize evidence, policies, and audit workflows in one place
• • We write and maintain documentation that reflects how your company actually operates
• • We manage the audit end-to-end, including auditor coordination and evidence preparation
• • We reduce engineering distraction to a minimum by focusing your team only on what's strictly necessary

You still meet the auditor (it's your company) but Probo handles everything else, combining expert guidance with the right tooling so compliance doesn't slow you down.