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SOC 2 – Security & Trust Services Reporting Explained

An overview of SOC 2, who it applies to (including SaaS and service organisations), the difference between Type 1 and Type 2 reports, and how it demonstrates control effectiveness to customers.

What is SOC 2?

SOC 2 (System and Organisation Controls 2) is an information security assurance framework designed for service organisations that store, process or manage customer data.

Developed by the American Institute of Certified Public Accountants (AICPA), SOC 2 assesses how organisations design and operate controls aligned to the Trust Services Criteria:

  • Security

  • Availability

  • Processing Integrity

  • Confidentiality

  • Privacy

Unlike ISO 27001, SOC 2 is not a certifiable standard. Instead, it results in an independent audit report issued by a licensed CPA firm.

A SOC 2 Type 2 report provides assurance not only that controls are suitably designed, but that they have operated effectively over a defined period (typically 3-12 months).

Who is SOC 2 aimed at?

SOC 2 is particularly relevant for:

  • SaaS providers

  • Cloud service providers

  • FinTech platforms

  • Data processors and technology vendors

  • Managed service providers

It is widely expected by US-based customers and increasingly requested by enterprise clients globally.

If your organisation handles customer data - particularly in a B2B SaaS environment - SOC 2 is often required during procurement and due diligence processes.

Why might SOC 2 be useful?

1. Demonstrates Control Effectiveness

A SOC 2 Type 2 report provides independent assurance that security controls are not only designed appropriately but are operating effectively over time.

2. Supports Enterprise Sales

Many US and multinational customers require a SOC 2 report before entering into contracts with service providers.

3. Strengthens Governance

Preparing for SOC 2 requires formalising policies, access controls, monitoring processes and risk management activities.

4. Builds Customer Trust

SOC 2 reporting provides transparency into how customer data is protected.

5. Aligns with Other Frameworks

SOC 2 overlaps significantly with ISO 27001 and other security standards, allowing organisations to leverage existing controls where frameworks are integrated.

What is the difference between Type 1 and Type 2?

  • SOC 2 Type 1 assesses whether controls are suitably designed at a specific point in time.

  • SOC 2 Type 2 assesses whether controls are suitably designed and operating effectively over a defined review period.

Most enterprise customers prefer or require a Type 2 report because it provides stronger assurance.

Is SOC 2 mandatory?

SOC 2 is not a legal requirement. However, in many technology markets - particularly in North America - it is a commercial expectation.

For SaaS and service organisations seeking enterprise clients, SOC 2 is often considered a baseline trust requirement.

How Adoptech Can Help

Preparing for SOC 2 can be resource-intensive, particularly for growing technology companies balancing product development and compliance.

Adoptech supports organisations by:

  • Structuring controls aligned to the Trust Services Criteria

  • Centralising evidence collection and monitoring

  • Aligning SOC 2 with ISO 27001 and other frameworks

  • Supporting readiness for Type 1 and Type 2 audits

If you would like to understand whether SOC 2 is appropriate for your organisation, or how to prepare efficiently for a Type 1 or Type 2 report, please contact a member of the Adoptech team for further guidance.