SOC 2 is a framework for managing data security and privacy that has become increasingly relevant for IT teams, particularly those involved in the handling of customer data.
Developed by the American Institute of CPAs (AICPA), SOC 2 is specifically designed for service providers storing customer data in the cloud, which means it's highly pertinent to software-as-a-service (SaaS) companies and various other technology and cloud-computing-based businesses.
This blog outlines the best practices for SOC 2 compliance and provides a clear roadmap on how to get SOC 2 compliant, helping IT teams and SaaS companies protect sensitive data, implement effective controls, and maintain continuous security and audit readiness.
TL;DR
- SOC 2 is a compliance framework for cloud service providers handling sensitive customer data, focusing on security, availability, processing integrity, confidentiality, and privacy.
- SOC 2 reports come in two types: Type I evaluates control design at a point in time, while Type II assesses operational effectiveness over a period of at least six months.
- The Trust Services Criteria in SOC 2 provide a clear framework to ensure data is handled responsibly across five key areas: security, availability, processing integrity, confidentiality, and privacy.
- Implementing SOC 2 involves defining scope, performing gap analysis, applying required controls, documenting policies, training teams, and conducting audits for continuous improvement.
- Stitchflow helps organizations maintain SOC 2 compliance by continuously auditing all apps, identifying orphaned or hidden accounts, and generating audit-ready reports for complete access and security management.
What is SOC 2?
SOC 2—short for System and Organization Controls 2—is a compliance framework designed for service providers that handle sensitive customer data. It focuses on how organizations manage, protect, and secure data, particularly in the cloud.
SOC 2 is based on the Trust Services Criteria (TSC), which includes security, availability, processing integrity, confidentiality, and privacy.
What is the Trust Service Criteria in SOC 2?
When we talk about the Trust Service Criteria in SOC 2, it’s a checklist for how well a company takes care of its clients’ data. It gives a clear framework to make sure data is handled responsibly. The focus is on five main areas:
- Security (keeping data safe)
- Availability (making sure systems work when needed)
- Processing Integrity (making sure data is accurate and reliable)
- Confidentiality (protecting sensitive information)
- Privacy (handling personal info properly)
Let’s explore each area in more detail, along with a practical SOC 2 compliance checklist for IT teams:
Security
Security is the foundation of SOC 2 and refers to protecting systems, networks, and data from unauthorized access, misuse, or damage. It involves monitoring for threats, enforcing access controls, encrypting sensitive data, and preparing for potential incidents to minimize risk.
🔹At Stitchflow, we protect customer data by enforcing least-privilege access, MFA across all systems, and continuous monitoring of our infrastructure. Sensitive customer data is encrypted both in transit and at rest. We also run regular penetration tests and vulnerability scans and have an incident response plan that is tested periodically to ensure readiness.
Tools like SIEM platforms (Splunk, IBM QRadar), antivirus software (Symantec, McAfee), and vulnerability scanners (Tenable Nessus, Qualys) help continuously monitor and strengthen security.
Security-related action items for IT teams
- Conduct regular security assessments
- Implement multi-factor authentication (MFA)
- Update and patch systems regularly
- Employee security training
- Develop an incident response plan
Availability
Availability ensures systems, applications, and services are reliable and accessible whenever users need them. This means designing resilient architectures that can handle traffic spikes, hardware failures, or unexpected disruptions without impacting service delivery.
🔹For example, Stitchflow is designed with redundancy and resilience to minimize downtime. We monitor system health and availability 24/7, maintain disaster recovery plans with tested RPO/RTO objectives, and provide SLAs around uptime.
Monitoring tools (Nagios, Datadog), cloud infrastructure (AWS, Azure, Google Cloud), disaster recovery solutions (Veeam, Zerto), and load balancers (F5, Nginx) are key to keeping services reliable.
Availability-related action Items for IT teams
- Invest in redundant infrastructure
- Monitor system performance
- Establish SLAs
- Test disaster recovery plans
- Optimize load balancing
Processing integrity
Processing integrity ensures that data is processed completely, accurately, and only by authorized users. It involves validation checks, logging, and automated workflows to prevent errors and maintain data reliability.
🔹Stitchflow, for example, ensures data accuracy and reliability through automated validation checks, reconciliation pipelines, and monitoring alerts. All changes are logged and auditable, and engineering pushes are tested in staging environments before production release.
Automation tools (Power Automate, Zapier), databases (Oracle, SQL Server), and monitoring software (New Relic, AppDynamics) help maintain accuracy, while audit logging tools (Splunk, ELK Stack) track every transaction.
Processing integrity-related action items for IT teams
- Automate data checks
- Implement transaction logging
- Conduct system audits
- Validate data input/output
- Restrict user access
Confidentiality
Confidentiality protects sensitive information from unauthorized disclosure by enforcing encryption, access controls, and strict handling procedures. Maintaining confidentiality prevents legal issues, data leaks, and loss of trust.
🔹In Stitchflow, confidential information is restricted by role-based access controls (RBAC), and customer data access is limited to authorized personnel on a need-to-know basis. We also use encryption, secure key management, and secure file transfer protocols to prevent data exposure.
Encryption (VeraCrypt, BitLocker), secure file transfer (Globalscape EFT, IBM Aspera), access control (Cisco ISE, Azure AD), document management (SharePoint, M-Files), and VPNs (NordVPN, Cisco AnyConnect) ensure data remains private.
Confidentiality-related action items for IT teams
- Encrypt sensitive data
- Enforce access controls
- Train employees on confidentiality
- Review policies regularly
- Use secure communication channels
Privacy
Privacy ensures personal data is handled responsibly throughout its lifecycle, from collection to disposal, in compliance with regulations like GDPR or HIPAA. It includes consent management, anonymization, and secure storage to protect individuals’ rights and organizational reputation.
🔹Stitchflow follows global privacy regulations (e.g., GDPR, CCPA) by collecting only the data necessary to deliver our service, maintaining transparency in its use, and honoring data subject rights such as deletion requests. Customer data is logically segregated, with strict retention and deletion policies consistently enforced.
Tools like privacy compliance software (OneTrust, TrustArc), data discovery tools (Spirion, Varonis), consent management platforms (Cookiebot, Quantcast), data anonymization tools (ARX, Informatica), and customer data platforms (Salesforce CDP, Adobe Real-time CDP) help organizations enforce privacy standards.
Privacy-related action items for IT teams
- Develop a clear privacy policy for data collection, use, and protection
- Implement mechanisms to manage user consent
- Collect only necessary data (data minimization)
- Conduct privacy impact assessments for new projects
- Train staff regularly on privacy laws and regulations
Types of SOC 2 reports
As an IT leader in your organization, it’s crucial to understand the different types of SOC 2 reports, as they play a key role in demonstrating your organization’s commitment to maintaining high standards in handling customer data. There are two primary types of SOC 2 reports: Type I and Type II.
SOC 2 Type I report
A SOC 2 Type I report is an audit that evaluates and documents the design of your organization’s controls at a specific point in time. It assesses whether your systems are correctly designed to meet the Trust Service Criteria.
Focus areas:
- Design effectiveness: The auditor looks at whether the controls are suitably designed to achieve the desired objectives according to the Trust Service Criteria.
- Point-in-time evaluation: The assessment is based on the state of the system at a specific date.
A Type I report is ideal for organizations starting their SOC 2 journey, providing a baseline for how their controls are designed. It offers clients and stakeholders a degree of confidence that you are committed to maintaining a secure and compliant environment.
SOC 2 Type II report
A SOC 2 Type II report goes a step further by evaluating the operational effectiveness of these controls over a period, typically covering a minimum of six months.
Focus areas:
- Operational effectiveness: The auditor assesses if the controls are not only designed appropriately but also operating effectively over the review period.
- Time-period evaluation: It provides a historical perspective of how well the controls functioned during the audit period.
Type II report demonstrates that your organization consistently maintains the required standards over time, not just at a single point in time. It is often seen as more comprehensive and can be a deciding factor for clients and partners when assessing the reliability and security of a service provider.
💡Type I audits usually start at $10,000–$20,000, while Type II audits, which involve collecting evidence over several months, can range from $20,000 to over $100,000 for larger or more complex organizations.
SOC 2 Type I or Type II report?
Type I focuses on the design of controls at a specific point in time—essentially setting up the right processes and measures. Type II focuses on how those controls are executed and maintained over a period of time, ensuring sustained compliance and security.
Here is a handy checklist to decide if you should pursue a Type I or Type II report:
If most of your answers point towards the SOC 2 Type I column, it suggests that a Type I report is a good starting point. However, if the answers lean more towards the SOC 2 Type II column, it indicates readiness for the more comprehensive Type II report.
Step-by-step SOC 2 implementation guide
Implementing SOC 2 compliance can feel complex, but breaking it down into a structured, step-by-step approach makes the process manageable and effective. This guide walks you through the key steps to prepare for and successfully achieve SOC 2 compliance.
Step 1: Understanding SOC 2
Before you dive into SOC 2 compliance, it’s important to really get what it’s all about. That means understanding the Trust Services Criteria, knowing the difference between Type I and Type II reports, and figuring out which one makes sense for your organization.
Think of this step as laying the foundation—you need to know what you’re building before you start. Helpful resources include the AICPA’s SOC 2 guide, online courses, and webinars that break it down in practical terms.
🎯Map to existing frameworks. If you already have ISO/IEC 27001, NIST, or other security frameworks, identify overlaps to avoid duplicating work.
At the same time, take a look at your current systems and processes to see where you already meet requirements and where you’ll need to make changes.
Step 2: Defining the scope
Once you have a solid understanding of SOC 2, the next step is to define the scope of your audit. This means deciding which systems, processes, and types of data will be included—basically, what you’re going to put under the SOC 2 microscope.
At this stage, it’s also a good idea to perform a gap analysis, comparing your current practices against SOC 2 requirements to see where improvements are needed. Use SOC 2 readiness checklists or gap analysis software to map out your current practices against SOC 2 requirements.
⚠️Inherited risk blindness: Third-party vendors and cloud providers within scope need their own SOC 2 reports.
📚Also read: The Complete SaaS Governance Framework to Eliminate Disconnected App Chaos
Step 3: Implementing required controls
With your scope defined and gaps identified, the next step is to put the right controls in place to meet SOC 2 requirements. This process can be broken down into two main steps:
- Update policies and procedures: Review and update your existing policies or create new ones to address any weaknesses identified during your gap analysis, ensuring they clearly define how security and privacy requirements are met.
- Implement security and privacy controls: Apply required security controls, such as access management, and implement privacy measures like encryption and monitoring to protect sensitive data throughout its lifecycle.
🎯Pro tip: Implement multiple controls for critical areas so if one fails, others provide backup.
You can also use policy templates to guide your work and project management tools to track progress and ensure nothing gets missed. Be sure to maintain detailed implementation plans and records of all changes, so you can show exactly what’s been done when it’s time for the audit.
Step 4: Developing policies and training teams
After implementing your controls, the next step is to document everything clearly and ensure your team knows how to follow it. Consolidate all SOC 2-related policies, procedures, and control implementations in a central system so they are easily accessible and maintained over time.
At the same time, develop and deliver comprehensive training for staff to make sure everyone understands their responsibilities and how to apply the new processes in their daily work, while tracking attendance and completion to maintain evidence of compliance.
🎯Provide role-based training: Create training programs custom to what each team actually needs to know and do.
Step 5: Conducting audits
Once your controls are implemented and your team is trained, it’s time to test them both internally and externally. Start with an internal audit to simulate the SOC 2 assessment, test the effectiveness of your controls, and identify any weaknesses before the formal audit.
Then, engage a qualified SOC 2 auditor to conduct the official assessment, providing the necessary documentation and collaborating throughout the process. This two-pronged approach ensures that your organization is well-prepared and that any gaps are identified early.
⚠️ Don’t assume SOC 2 Type I is a necessary first step. Type II requires 3–12 months of operating evidence from the start, so doing Type I first only delays your Type II timeline and increases audit costs. If your customers expect an SOC 2 audit, focus on collecting evidence for Type II right away and skip Type I.
📚Also read: How to set up an audit-ready offboarding process
Step 6: Addressing audit findings
After the audit is complete, review the auditor’s report and take action on any findings or recommendations. Update policies, procedures, and controls as needed, and establish a process for ongoing monitoring and continuous improvement.
This step not only resolves immediate issues but also helps maintain SOC 2 compliance over the long term and strengthens overall organizational security and trust.
🎯Continuous monitoring: Implement ongoing monitoring to catch issues between annual audits.
How Stitchflow helps with SOC 2 compliance
While SOC 2 provides the framework, achieving and maintaining compliance is often undermined by a hidden challenge: disconnected apps and unmanaged identities. Identity providers (Okta, Entra ID, etc.) and workflow tools only automate deprovisioning for apps with APIs or SCIM.
But in most enterprises, 30–40% of the stack—including AI apps, contractor accounts, and lower-tier SaaS plans—remains outside that automation. This “last mile” gap is exactly where SOC 2 audits break down.
Orphaned accounts, hidden contractor logins, and unused licenses create audit evidence failures, increase breach risk, and drain IT time on spreadsheets instead of strategy. SaaS management platforms, like Stitchflow, close this gap:
- Security: Continuously audits every app, finds and remediates orphaned, hidden, and unused accounts, eliminating breach vectors.
- Availability and integrity: Ensures that access and license data is always accurate and reconciled, providing IT with a single source of truth.
- Confidentiality and privacy: Extends least-privilege enforcement and access evidence to for non-SCIM apps, contractors, and AI tools—areas SOC 2 auditors scrutinize most.
- Continuous compliance: Generates audit-ready reports across all apps (federated and non-federated), removing the spreadsheet burden and helping IT prove complete, consistent control.
In practice, Stitchflow gives IT leaders exactly what SOC 2 requires: evidence that every user account across 100% of apps is continuously monitored, appropriately provisioned, and securely deprovisioned.
Book a free pilot with Stitchflow to see how continuous compliance works in your own environment. Or, if you just want a quick check-up, run a one-time SaaS user access audit and instantly surface hidden risks before your next SOC 2 review.
Frequently asked questions
To get SOC 2 certified, a company needs to have the right controls in place to protect data across security, availability, processing integrity, confidentiality, and privacy. Then, a qualified auditor checks whether those controls are designed well (Type I) or actually work over time (Type II).
The SOC 2 compliance timeline usually takes anywhere from 3 to 12 months, depending on your current security posture, the complexity of your systems, and whether you’re going for a Type I or Type II report. Costs vary widely—Type I audits typically start around $10,000–$20,000, while Type II audits, which require ongoing evidence over several months, can range from $20,000 up to $100,000 or more for larger, more complex organizations.
SOC 2 reports are typically renewed annually to demonstrate ongoing compliance. Many customers expect up-to-date evidence each year, and some high-trust industries may require continuous monitoring to maintain vendor status.
IT, Security, and Compliance teams do the heavy lifting—implementing controls, collecting audit evidence, and remediating gaps. Finance and HR also play supporting roles, since SOC 2 touches on vendor management, employee access, and data handling policies.
If IT teams can’t see all users and apps, orphaned accounts and unmanaged access slip through the cracks. These blind spots often lead to failed audits, compliance delays, and even breaches traced back to accounts that should have been deprovisioned.
No—SOC 2 is not a legal requirement. However, it has become a de facto standard for SaaS and cloud providers, and many enterprise customers require a current SOC 2 report before signing contracts.
Sanjeev NC started his career in IT service desk and moved to ITSM process consulting, where he has led award-winning ITSM tool implementations. Sanjeev was also a highly commended finalist for Young ITSM Professional of the Year in itSMF UK’s annual awards.
