SOC 2 Audit Checklist: An 8 Step Guide to Ensuring Compliance

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Imagine this: A potential client is ready to sign a contract with you, but before they do, they ask a simple question, "Are you SOC 2 compliant?" If you can’t confidently answer “yes,” you might lose the deal. In fact, Forbes revealed that 79% of companies say that meeting compliance requirements like SOC 2 helps close deals faster.

SOC 2 compliance isn’t just a regulatory checkbox. Whether you store sensitive customer information or provide cloud-based services, a SOC 2 audit ensures your security measures align with industry best practices. This SOC 2 audit checklist will walk you through the key steps to achieving SOC 2 compliance so you can stay ahead of requirements.

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TL;DR

• A SOC 2 audit assesses how well your company protects customer data based on five Trust Services Criteria (TSC): security, availability, processing integrity, confidentiality, and privacy.
• SOC 2 compliance helps you win deals, build customer trust, and reduce security risks.
• Define clear objectives, choose the right report (Type I or II), scope the audit properly, conduct a risk assessment, hire a qualified auditor, analyze control gaps, implement strong security controls, and ensure continuous monitoring.
• Poor risk management, inadequate security controls, lack of employee awareness, and ignoring third-party risks can lead to compliance failures.
• CloudEagle.ai automates SOC 2 compliance with access reviews, security monitoring, and audit-ready reporting, helping you maintain compliance effortlessly.

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1. What is SOC 2 Audit?

A SOC 2 audit is an independent assessment that evaluates how well your company protects customer data based on the Trust Services Criteria (TSC). These criteria cover five key areas: security, availability, processing integrity, confidentiality, and privacy.

However, security is the only mandatory criterion. Your company can choose which additional categories apply based on your business operations and customer expectations. During the audit, a licensed CPA firm reviews your controls, policies, and procedures to ensure they meet SOC 2 standards. 

The result is a SOC 2 report, which provides a detailed evaluation of your security posture. There are two types of SOC 2 audits: Type I, which assesses your controls at a single point in time, and Type II, which evaluates their effectiveness over a longer period. 

You can go for SOC 2 Type II because it showcases ongoing compliance, giving your clients greater confidence in your security practices. As cybersecurity expert Bruce Schneier says,

This implies the importance of continuous evaluation and improvement, which is an important aspect of SOC 2 audits. Make sure you pay close attention to SOC 2 audit checklist to get your enterprise compliant. 

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2. What is Trust Service Criteria?

Trust Service Criteria (TSC) define the key areas your organization must focus on to achieve SOC 2 compliance. Developed by the American Institute of Certified Public Accountants (AICPA), these criteria set the standards for managing customer data securely and ensuring your systems operate as expected.

SOC 2 audits evaluate businesses based on five Trust Service Criteria:

• Security: Ensures that systems are protected against unauthorized access, data breaches, and cyber threats. This is the only required criterion for every SOC 2 audit.
• Availability: Confirms that your services are up and running as promised, with minimal downtime.
• Processing Integrity: Verifies that data is processed correctly, without errors or manipulation.
• Confidentiality: Ensures that sensitive business information is only accessible to authorized individuals.
• Privacy: Focuses on how personal data is collected, stored, and shared in compliance with privacy regulations.

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3. Why SOC 2 is Important?

A. Stand Apart from the Competition

SOC 2 compliance can significantly differentiate your company. It will work as solid proof of your commitment to data security, providing a clear advantage over competitors who lack this certification. Following a SOC 2 audit checklist not only enhances your reputation but also makes your company more trustworthy. 

A great example is Salesforce, which leveraged its SOC 2 compliance to gain trust from enterprises in regulated industries like finance and healthcare. This certification helped secure high-value deals and drive its growth into a $31 billion CRM leader.

Moreover, many clients and potential customers, especially mid-market and enterprise companies, require a SOC 2 audit report before engaging in cthe ompany. Without it, sales processes may stall or fall through during procurement and security reviews. Therefore, obtaining SOC 2 compliance not only sets you apart but also ensures smoother company transactions.

B. Build Trust with Your Consumers

SOC 2 compliance will help your customers understand your dedication to safeguarding customer data, which significantly enhances trust. As data breaches are increasingly common, consumers are more concerned about their sensitive information. According to Pew Research, more than 57% of Americans pay close attention to their online privacy. 

"I consider data protection to be one of the most important issues of the 21st century. We need a bill of rights for the digital world!" – Tim Cook, CEO of Apple. 

Furthermore, SOC 2 audit compliance provides customers with assurance that your company has implemented robust controls to protect their data. This commitment not only meets regulatory requirements but also exceeds them. Such assurance is crucial in building and maintaining strong, trust-based relationships with your customers.

C. Better Risk Management

SOC 2 compliance improves your risk management by helping you identify and mitigate security threats. It ensures that your company follows strict controls to protect sensitive data. As a result, you reduce the risk of data breaches, fraud, and cyberattacks.

Apart from that, SOC 2 also improves visibility into how your data is stored and protected. This helps your security team detect vulnerabilities early and respond quickly, preventing potential breaches before they happen. 

An example of such breaches Bayview. In 2021, Bayview Asset Management suffered a breach affecting 5.8 million customers, resulting in a $20 million settlement. Investigations revealed cybersecurity weaknesses due to SOC 2 non-compliance practices. 

A stronger security posture also leads to operational efficiency. Companies that achieve SOC 2 compliance through the SOC 2 audit checklist often experience fewer security incidents and lower costs related to cyber threats. Addressing risks proactively means fewer disruptions and a more stable business environment.

D. Marketing Advantages

If you look at the market, you’ll see many companies claiming that they prioritize security. However, having SOC 2 compliance provides tangible proof of your commitment. This certification can set you apart from competitors who lack such credentials. 

Moreover, SOC 2 compliance can enhance your enterprise’s reputation. It demonstrates to customers and partners that you have implemented rigorous controls to protect data, thereby building trust and credibility. According to PwC, 93% of business executives believe that establishing and maintaining trust positively impacts profitability.

Furthermore, promoting your SOC 2 compliance can reassure prospects concerned about data security. It signals that your organization takes data protection seriously, which can be a decisive factor for clients when choosing between service providers. ​

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4. SOC 2 Audit Checklist to Follow 

A. Have a Clear Objective

Before you begin your SOC 2 audit, you need to define a clear objective. This means understanding why you’re undergoing the audit and what you aim to achieve. Identifying your primary goal will help you align your security policies and controls with the audit’s requirements.

A well-defined objective in the SOC 2 audit checklist also helps in selecting the right SOC 2 trust service criteria. While security is mandatory, you may need to include additional criteria like availability or confidentiality, depending on your business model. Without a clear purpose, you risk spending time and resources on an audit that doesn’t fully serve your needs.

Take the time to document your objectives, discuss them with key stakeholders, and ensure your entire team understands the audit’s importance. This will set the bar for a smooth compliance process.

B. Know the Type of SOC 2 Report

Not all SOC 2 reports serve the same purpose. You need to understand the two types of SOC 2 reports and determine which one aligns with your company’s needs.

SOC 2 Type I

This report evaluates your company’s controls at a specific point in time. It verifies that you have the right security processes designed effectively but doesn’t assess their long-term effectiveness. Type I is ideal if you need a quick compliance report to satisfy customers or internal stakeholders.

SOC 2 Type II

This report assesses how well your controls operate over a period of time (typically 3–12 months). It provides stronger assurance to clients, proving that your security measures are consistently followed. Type II is often preferred for long-term credibility and enterprise contracts. Here’s an image to help you understand the consequences of inappropriate security measures.

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If you’re just starting with the SOC 2 audit checklist, a Type I report might be a good first step. However, if your customers demand ongoing proof of compliance, a Type II report will provide the strongest assurance. Choosing the right report ensures you meet expectations without unnecessary delays.

C. Know Your Scope

Your scope of SOC audit determines which systems, processes, and teams will be evaluated, helping you focus on what truly matters for compliance. A poorly defined scope can lead to unnecessary work, higher costs, and a longer audit timeline. When determining your SOC 2 scope, consider the following key factors:

• Trust Service Criteria: Security is mandatory, but do you also need to include availability, confidentiality, processing integrity, or privacy? Choose based on your business model and customer expectations.
• Systems and Services Covered: Identify which applications, databases, and infrastructure components fall under SOC 2 compliance. If you handle sensitive customer data, those systems should be a priority.
• Business Processes Involved: Outline which internal processes impact security and compliance, such as data access controls, incident response, and employee training.
• Third-Party Vendors: If you rely on cloud providers or third-party software, consider whether they should be included in your audit. Your compliance depends on their security as well.

D. Focus on a Complete Risk Assessment

Without a thorough risk assessment, you risk leaving gaps in your security framework that could lead to compliance failures or even data breaches. A complete risk assessment allows you to identify, evaluate, and mitigate potential threats before they become a problem.

For example, in 2024, Deutsche Bank was fined $24.3 million by Germany's financial regulator, BaFin, for several regulatory lapses. This case showcases the severe financial and reputational consequences of insufficient risk management practices.

That said, you should map out all the assets within your organization that interact with sensitive data. This includes applications, databases, network infrastructure, and even third-party services. Once you have a clear inventory, assess the risks associated with each asset.

After identifying risks, the next step SOC 2 audit checklist point is prioritization. Not all risks carry the same weight. Some may have minimal consequences, while others could disrupt operations or violate customer trust. With categorization, you can allocate resources effectively to mitigate the most critical threats first.

E. Find a Reliable Auditor

A knowledgeable and experienced auditor ensures a smooth audit process, provides valuable insights, and helps you avoid unnecessary delays or compliance gaps. On the other hand, an inexperienced or unqualified auditor can lead to confusion, rework, and even a failed SOC 2 audit.

When selecting an auditor, look for firms that specialize in SOC 2 assessments and have experience working with companies in your industry. Consider factors such as their track record, client reviews, and certifications. Many reputable auditors are affiliated with the American Institute of Certified Public Accountants (AICPA) and follow its strict guidelines for SOC 2 reporting.

Before signing a contract, ask about their audit timeline, reporting process, and post-audit support. SOC 2 compliance isn’t a one-time event; it’s an ongoing commitment, so having an auditor who offers long-term guidance on the SOC 2 audit checklist can be beneficial.

F. Analyze the Control Gap

Another important aspect of the SOC 2 audit checklist is control gap analysis. A control gap analysis helps you identify weaknesses in your security, policies, and procedures before the SOC 2 audit begins. This step ensures that your company meets the required Trust Service Criteria (TSC) and helps you avoid surprises during the audit process.

Look at areas such as access controls, data encryption, incident response, and vendor management. If any of these controls are missing or ineffective, you need to take corrective action before the formal audit. A gap analysis involves the following steps:

• Reviewing Your Policies and Procedures: Ensure your documented policies align with SOC 2 requirements and are actively followed by employees.
• Assessing Technical Controls: Check if your security tools (e.g., firewalls, intrusion detection, MFA) are properly configured and enforced.
• Evaluating Employee Awareness: Test whether staff understand security protocols and follow best practices for data protection.
• Identifying Weaknesses: Pinpoint any security gaps or operational inefficiencies that could lead to compliance failures.

Once gaps are identified, create an action plan to address them. This might involve updating policies, implementing new security measures, or providing additional training to employees. A well-executed control gap analysis reduces the risk of audit failure and ensures your organization is fully prepared for SOC 2 compliance.

G. Implement Proper Controls and Test Them

Having the right security controls in place is essential for passing a SOC 2 audit and maintaining strong data protection practices. However, simply implementing controls isn’t enough. You need to test them regularly to ensure they function as intended.

Once your controls are in place, you need to validate their effectiveness through rigorous testing. This involves:

• Regular Security Audits: Conduct internal reviews to ensure security measures are being followed and are still effective.
• Penetration Testing: Simulate cyberattacks to identify weaknesses in your systems before an actual breach occurs.
• Incident Response Drills: Test how well your team reacts to security incidents, ensuring they follow the correct protocols.
• Access Control Reviews: Verify that only authorized personnel have access to sensitive data and systems.

H. Monitor Continuously

Ongoing monitoring ensures that your security controls remain effective over time. Here are a few steps to consider to monitor SOC 2 compliance:

• Automated Security Tools: Implement security information and event management (SIEM) systems, intrusion detection, and endpoint monitoring solutions to track suspicious activity in real-time.
• Regular Log Reviews: Analyze system logs to detect unauthorized access, failed login attempts, and anomalies that could indicate security incidents.
• Employee Compliance Audits: Conduct periodic checks to ensure that employees follow security policies, such as access control rules and data protection guidelines.
• Third-Party Risk Assessments: Review security practices of vendors and service providers to ensure they maintain compliance with SOC 2 standards.

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5. How CloudEagle.ai Can Help You Stay Compliant?

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Achieving and maintaining SOC 2 compliance can be complex. Even if you follow a proper SOC 2 audit checklist, the process can be quite daunting. This is where CloudEagle.ai comes in. This SaaS management and procurement platform can help you discover, optimize, govern, and renew SaaS licenses. 

Thanks to CloudEagle.ai, you can identify risks, enforce security policies, and generate audit-ready reports with ease. Here is how CloudEagle.ai can help you with your SOC 2 compliance.

Centralized Compliance Management

Non-compliance can result in fines or legal issues, but CloudEagle.ai minimizes this risk by ensuring continuous compliance. Real-time alerts help detect potential violations early, allowing you to address issues before they lead to penalties.

CloudEagle.ai lets you monitor user activity, track app access, and maintain detailed records in one centralized platform. It streamlines compliance management by reducing complexity and improving efficiency.  

With a focus on key regulations like SOC 2, ISO 27001, and GDPR, CloudEagle.ai offers centralized access control, monitoring, and auditing. This unified approach eliminates the need for multiple tools, making compliance management more seamless and effective.

Automated Compliance Reporting

CloudEagle.ai simplifies compliance reporting with automated audit report generation, ensuring all necessary data is readily available for auditors. This saves time and minimizes manual effort.  

The platform also provides real-time audit logs, offering complete visibility into access events and app usage. This allows organizations to maintain compliance, monitor activity, and swiftly address any issues during audits.

Continuous Monitoring and Risk Management

CloudEagle.ai offers real-time monitoring of user access and data transactions, ensuring security controls remain effective. This continuous oversight allows organizations to quickly detect and resolve security gaps or compliance risks, reducing potential vulnerabilities.  

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The platform also identifies compliance gaps early, delivering actionable insights to address issues before they escalate. With continuous compliance monitoring, you can proactively mitigate risks and maintain a strong security posture.

Automated Access Reviews

Compliance standards like SOC 2 and ISO 27001 require regular user access reviews, and CloudEagle.ai simplifies this process with automation, saving time and minimizing manual effort.  

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CloudEagle.ai continuously tracks and validates user access, ensuring that only authorized individuals can access sensitive data. By automating access reviews, CloudEagle.ai reduces non-compliance risks and helps organizations maintain strong security and regulatory adherence with ease.

Audit Trails

CloudEagle.ai helps you to maintain detailed audit trails of all system activities, ensuring data integrity and simplifying SOC 2 and ISO 27001 audits. Easily accessible audit logs make it effortless to provide evidence during compliance reviews.  

The platform also helps enforce security policies to meet SOC 2, ISO 27001, and GDPR standards. You can customize policies to align with your organization's specific needs and regulatory requirements, ensuring continuous compliance.

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6. Wrapping Up

Remember that achieving SOC 2 compliance is one of the most important tasks you must consider for your company. It can enhance your company’s security posture, customer trust, and market competitiveness. It will showcase that you can protect sensitive data effectively while committing to security excellence. 

With CloudEagle.ai, you don’t need to worry about staying non-compliant. CloudEagle’s SOC 2 Type 2-certified platform will help you enforce access controls, monitor SaaS apps, and streamline compliance workflows. With audit logs, security monitoring, and built-in reporting, you can stay ahead of your next SOC audit. 

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7. Frequently Asked Questions

1. What does SOC stand for?

SOC stands for System and Organization Controls. It refers to a set of compliance frameworks developed by the AICPA.

2. Is SOC 2 the same as ISO 27001?

No, SOC 2 and ISO 27001 are different. SOC 2 assesses security controls based on AICPA’s Trust Services Criteria, while ISO 27001 focuses on ISMS implementation. SOC 2 is common in the U.S., whereas ISO 27001 is globally recognized.

3. Is SOC 2 a standard or framework?

SOC 2 is a framework, not a formal standard. It provides guidelines based on the AICPA’s Trust Services Criteria to assess a company's security, availability, processing integrity, confidentiality, and privacy controls.

4. Who needs a SOC 2 report?

If you handle customer data, especially SaaS providers, cloud service companies, and technology firms, you need a SOC 2 report. It showcases security and compliance to your clients, partners, and regulators.

5. Can you fail a SOC 2 audit?

Yes, you can fail a SOC 2 audit if your controls do not meet the Trust Services Criteria. A report with significant gaps or weaknesses may result in a qualified or adverse opinion, indicating non-compliance and potential security risks.

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