What is SOC 2? A Guide to SOC 2 Compliance & Certification

Trust is paramount. If you're a tech or FinTech company that handles sensitive customer data, you owe it to your users to provide a level of trust. That's why a SOC 2 compliance report is necessary. Are you wondering—what is SOC 2 and why does my business need it?

A SOC 2 compliance report is one of the most prominent compliance assessments in the world. Whether you are an early-stage startup or a scaling company, SOC 2 certification will only help you better secure your data resources, comply with regulatory requirements, and earn the trust of clients.

This post will cover what a SOC 2 compliance report is, how the certification process works, and how Bitpulse can get you there quickly and efficiently.

What is SOC 2 Compliance?

SOC 2 stands for System and Organization Controls 2. The AICPA (American Institute of Certified Public Accountants) took it upon itself to create a framework that defines trust service criteria to evaluate how well a company manages data to protect the privacy of its clients.

To become SOC 2 compliant, you need to pay attention to these five Trust Service Criteria:

• Security: Protection against unauthorized access and cyber threats.
• Availability: Ensuring systems are accessible when users need them.
• Processing Integrity: Systems process data accurately and without error.
• Confidentiality: Access to sensitive data is restricted appropriately.
• Privacy: Personal data is collected and handled according to privacy laws.

For FinTech companies and their partners, cloud hosting companies, and SaaS providers, SOC 2 compliance demonstrates quality, information security, and compliance with industry best practices.

What is a SOC 2 Report?

A SOC 2 report is a type of third-party attestation provided by an independent auditor who assesses whether your company's internal controls comply with SOC 2 requirements.

There are two types:

• Type I: Indicates whether the design of your controls is in line with SOC 2 requirements at a certain point in time.
• Type II: Indicates whether the design and operational effectiveness are in line with requirements over an extended period (typically 6–12 months).

SOC 2 Type I is good, but SOC 2 Type II is better—it demonstrates consistent adherence to best practices.

What is a SOC 2 Audit?

A SOC 2 audit is the assessment that determines whether your security controls, policies, and systems meet the SOC 2 requirements. A licensed CPA firm performs a SOC 2 audit using the following procedure:

• Interview stakeholders
• Review documentation
• — Assess how security controls are operating

Regardless of whether you opt for a SOC 2 Type I report or a SOC 2 Type II report, your assessment takes place either within a set timeframe of your choosing or an extended period with greater depth and detail. The end result is a detailed report you can share with customers to show they can trust your organization to be secure.

Why SOC 2 Compliance Matters

Your company is required to be SOC 2 compliant for these reasons—it's not merely a compliance check but an ongoing competitive advantage:

• Builds Customer Trust: Clients are increasingly demanding proof that their data is secure. SOC 2 provides that confidence.
• Drives Sales: Many enterprise clients and partners will only work with SOC 2-certified vendors.
• Mitigates Risk: Regular audits and internal assessments help catch vulnerabilities early.
• Supports Regulatory Compliance: SOC 2 aligns well with other frameworks like ISO 27001, GDPR, and NIST.

Find out how our Cybersecurity Solutions align with SOC 2 and other regulatory frameworks.

How to Get SOC 2 Certified

Achieving SOC 2 certification involves several stages:

1. Understand the Criteria: Review the five Trust Service Principles.
2. Gap Assessment: Identify where your current practices fall short.
3. Remediation: Implement controls, policies, and tools to close those gaps.
4. Pre-Audit Readiness: Perform a mock audit or internal review.
5. Third-Party Audit: Hire a licensed auditor to conduct the SOC 2 audit.
6. Address Audit Findings: Resolve any control weaknesses flagged in the report.

Need help with the readiness process? Learn about our expert-led CISO Services to support your SOC 2 journey.

Conclusion

Getting SOC 2 compliance is more than just a box-checked security accomplishment. It means you value your customers and want to prevent breaches or compliance fines from impacting your organization. For companies of all shapes and sizes from startup to scaling, SOC 2 certification means that you can:

• Win new business
• Build long-term credibility
• Prevent data breaches and reputational damage

With the right guidance and tools, your company can confidently meet SOC 2 standards—and Bitpulse is here to help.

 

Frequently Asked Questions (FAQ)

What does SOC 2 stand for?

SOC 2 stands for System and Organization Controls 2—a framework for managing and securing customer data.

 

Who needs SOC 2 certification?

Any service provider storing or processing customer data, especially SaaS, FinTech, and cloud providers.

 

What’s the difference between SOC 2 Type I and Type II?

Type I evaluates your controls at a single point in time; Type II reviews how those controls perform over months.

 

How long does it take to become SOC 2 compliant?

It typically takes 3–12 months depending on your company’s current state of readiness.