SOC 2 is the compliance report enterprise procurement most commonly asks for in B2B SaaS. Teams without a SOC 2 Type II usually get filtered out of enterprise deals during security review.
SOC 2 is an auditing framework from the AICPA that evaluates how a service organization handles data across five criteria: security, availability, processing integrity, confidentiality, and privacy. Type I reports evaluate controls at a point in time. Type II reports evaluate them over a period, usually six to twelve months. A SOC 2 Type II report is the enterprise B2B SaaS standard for proving security maturity to buyers. Teams undergoing audit are "in progress" until the report is issued.
The five things to understand about SOC 2 before answering a buyer's security questionnaire.
SOC 2 (Service Organization Control 2) is an auditing framework developed by the American Institute of Certified Public Accountants (AICPA). An independent auditor evaluates a service organization's controls against the framework and issues a report. SOC 2 is specifically designed for service organizations that handle customer data.
The five Trust Services Criteria. Security is required; the other four are optional and selected based on scope. Security covers access control, authentication, infrastructure security, and incident response. Availability covers uptime commitments. Processing integrity covers data accuracy. Confidentiality covers protecting sensitive data. Privacy covers personal data handling.
Type I evaluates controls at a specific point in time: do the controls exist and are they designed correctly. Type II evaluates controls over a period (typically 6 to 12 months): are the controls operating effectively. Type II is substantially more rigorous and is what most enterprise buyers require.
The auditor delivers a SOC 2 report describing the organization's controls, the auditor's evaluation of those controls, and any exceptions found. The report is confidential and shared under NDA with buyers who request it. Reports are usually dozens of pages long and are read primarily by buyer security teams during procurement.
A company undergoing SOC 2 Type II audit can describe the state as "SOC 2 Type II in progress, target delivery in Q4 2026" (for example). Honest timing commitments stand up to buyer scrutiny. Claims of SOC 2 compliance without a current report are usually caught in security review.
The five criteria define what controls the audit evaluates. Security is required; the other four are optional based on the organization's scope. The six-paragraph breakdown below is what the SOC 2 framework actually tests.
Security covers access control, authentication, encryption, infrastructure security, incident response, change management, and vendor management. Every SOC 2 audit includes security. The criterion represents the foundation of information security controls that modern service organizations should operate.
Availability covers whether the service is accessible when customers expect it. SLAs, monitoring, incident response, backup and recovery, and capacity planning all live under availability. Organizations with uptime commitments to customers usually include availability in the scope.
Processing integrity covers whether the system processes data accurately, completely, and in authorized ways. The criterion matters for applications that transform or compute on customer data (billing, financial, transactional). Many SaaS applications include processing integrity in scope.
Confidentiality covers protecting information designated as confidential: trade secrets, customer financial data, intellectual property. The criterion is about how the organization identifies, handles, and disposes of confidential information. Organizations handling customer business-sensitive data often include confidentiality.
Privacy covers how the organization collects, uses, retains, discloses, and disposes of personal information. The criterion aligns with privacy regulations like GDPR and CCPA. Organizations handling personal data (customer email, consumer records, employee data) often include privacy.
The organization decides which criteria to include based on customer requirements and operational scope. Security plus availability is common. Adding confidentiality and privacy makes sense for most SaaS. Processing integrity is specifically relevant for transactional systems. The scope matters because it determines what the audit covers.
Enterprise buyers almost always ask for Type II reports because Type I is a snapshot that does not prove sustained operation. The six-card comparison below covers the practical differences.
Type I evaluates whether controls exist and are designed appropriately at a specific moment. The auditor confirms the controls are in place. The report is useful for early-stage companies but does not prove the controls operate effectively over time.
Type II evaluates whether controls operate effectively over a period, usually 6 to 12 months. The auditor samples control execution across the period. The report proves the controls work in practice, not just on paper. Type II is the enterprise standard.
Type I audits typically take 2 to 4 months to prepare and complete. Type II audits take 9 to 15 months because the observation period itself is 6 to 12 months. Early-stage companies often start with Type I and progress to Type II in the following year.
Type I audits typically cost 10k to 40k dollars. Type II audits cost 30k to 100k dollars for a mid-market company, more for enterprise scope. Costs include auditor fees, internal preparation time, and tooling investment. The investment is substantial for early companies.
Enterprise B2B buyers almost always require Type II. Mid-market buyers often accept Type I with Type II in progress. SMB buyers may accept trust-center attestations without a formal report. The acceptance threshold depends on the buyer's own security posture and procurement rigor.
SOC 2 reports are typically renewed annually. A report issued in Q4 2026 covers controls through Q3 2026 and expires in late 2027 from a buyer-relevance standpoint. Continuous SOC 2 operation (annual Type II reports) becomes a stable ongoing cost for the organization.
A SOC 2 report is confidential and shared under NDA. The six questions below are the ones enterprise buyers should ask during security review.
Ask whether the vendor has Type I or Type II. Type I is a snapshot; Type II is sustained operation. For enterprise motions, Type II is the standard. Vendors who claim "SOC 2 compliant" without specifying Type should be asked for the specific report.
The observation period tells buyers how current the report is. A report with an observation period ending 15 months ago is largely stale. Reports issued within the last 12 months are the ones buyers can rely on for current procurement decisions.
Not every SOC 2 covers all five criteria. Ask which criteria are in scope. A security-only report may not satisfy a buyer whose primary concern is privacy or availability. The scope has to match the buyer's risk concerns.
The report lists any exceptions the auditor identified: controls that did not operate as designed. Exceptions are not disqualifying but should be understood. Buyers should ask about any exceptions and how the vendor is remediating them.
The auditor should be a licensed CPA firm. Reputable auditors include Big Four accounting firms, specialist security auditors, and regional CPA firms with information security practices. Audits performed by non-CPA firms do not meet AICPA requirements.
For vendors without a current report, ask the honest state: audit in progress, target delivery date, scope of the planned audit. "SOC 2 compliant" without a report is a yellow flag. "Type II in progress, target Q4 2026" is a legitimate state.
The published trust center carries the current SOC 2 Type II progress, HIPAA compliance, GDPR and CCPA alignment, and documented control posture. BAAs and compliance documents are available on request through the Strkr team.
SOC 1 reports on controls relevant to financial reporting (payroll, billing, financial transactions). SOC 2 reports on controls relevant to the five Trust Services Criteria (security, availability, processing integrity, confidentiality, privacy). SaaS and technology companies usually need SOC 2. Companies providing financial services usually need SOC 1.
From initial planning to issued Type II report usually takes 9 to 15 months. The observation period itself is 6 to 12 months. Teams that have not previously undergone audit should expect additional preparation time: implementing controls, documenting processes, selecting an auditor, and standing up continuous evidence collection.
Type I audits typically cost 10k to 40k dollars. Type II audits cost 30k to 100k dollars for a mid-market company. Costs include auditor fees, compliance tooling (automated evidence collection platforms), and significant internal preparation time. Enterprise-scope audits run higher. The investment is substantial for early-stage companies.
SOC 2 and GDPR overlap but are not the same. SOC 2 is an auditing framework for operational controls. GDPR is a regulation governing personal data handling. A SOC 2 report that includes the Privacy criterion covers many GDPR-relevant controls but does not substitute for GDPR compliance documentation.
Only with a current SOC 2 report from a licensed auditor. "SOC 2 ready" or "SOC 2 aligned" are honest states for teams implementing controls without a current report. "SOC 2 compliant" claims without a report are usually caught in buyer security review and damage credibility.
Strkr's SOC 2 Type II is in progress with target delivery in 2026-Q4. The audit covers the security, availability, confidentiality, and privacy criteria. The current state is published in the trust center. After issuance, the attestation report will be available to buyers under NDA on request through the Strkr team.
SOC 2 reports are typically renewed annually. A report issued in Q4 2026 covers an observation period ending in Q3 2026 and remains relevant for most buyer procurement through late 2027. Continuous SOC 2 operation (annual Type II reports) becomes an ongoing cost that mature SaaS companies budget as recurring compliance investment.
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