Maybe you've been asked to provide a SOC 2 report as part of the sales cycle, or you anticipate you will need SOC 2 compliance at some point. You're wondering how much time and money you must budget to become SOC 2 compliant.
Quoting a SOC 2 audit price without additional context or information is highly subjective. There's no single SOC 2 audit size that precisely fits all. Reports may be as small as 25 pages or more than 100 pages. A service auditor cannot quote a flat rate for every SOC engagement.
Between prep work and the audit, the total cost of achieving a SOC 2 compliance can range from $10K to $150K or more, including SOC 2 audit costs. Audits are typically conducted annually, which means incurring costs each year.
Type I versus Type II
An additional factor for both cost and time is whether you choose to pursue a SOC 2 Type I or a Type II. A Type I report is issued at a point in time and represents an auditor's review and approval of your systems at that moment in time. A Type II report shows that you understand the necessary security procedures and follow them over time, generally 6 – 12 months, but it can be as little as 3 months.
A Type I can be faster than a Type II because minimal testing is involved. But it's worth noting that if you start with a SOC 2 Type 1, you'll likely also need to get a SOC 2 Type 2 report. Many enterprise customers require the more substantial Type II report because it tests the controls over the reporting period.
If a SOC 2 Type II is your goal, starting there can sometimes be more cost-effective. SOC 2 Type II audits will require at least six months to 12 months to accumulate evidence.
Factors That Influence the Cost of SOC 2 Type II Reports
The Trust Services Criteria (TSC) That You Choose
SOC 2 involves an audit based on Security and one or more of the other four Trust Services Criteria. The criteria define the primary business objectives of your information management system and the corresponding necessary controls needed to guarantee satisfactory performance. The requirements to meet AICPA standards across the five TSCs can lead to significant investment in technology and best practices. You choose TSCs based on the contractual obligations of your business services and the reporting requirements of your customers.
The Size of Your Organization
A SOC 2 audit examines the people, processes and technology used to manage the business's information system. As companies grow through mergers and acquisitions, their information systems' complexity increases. It stands to reason that larger organizations have more details in scope. Nevertheless, there are reasonable steps organizations of all sizes can take to minimize the overall scope of the SOC 2 program.
The Number of In-Scope Systems and Processes
The scale and scope of your services and the particular cybersecurity architecture you have impact testing that may be required. The system(s) under audit can be an entire enterprise, a single business unit, or even a single service offering. The scope is meant to be flexible to meet your particular reporting requirements.
Tools and Technology
Your current infrastructure and security outlook may require that you roll out new or updated tools to perform control functions. Examples:
- Asset Inventory Management
- Automated Security and Compliance Reports
- Intrusion Detection
- Data Loss Prevention
- Vulnerability Management
Your Current State of Readiness
Naturally, the overall maturity of your existing cybersecurity, privacy, and compliance program impacts the cost of the current audit exercise. Mature organizations have processes for annually updating and maintaining their SOC 2 programs, whereas startups are usually starting from scratch. Truvantis can work with you to tailor a program based on your business needs, no matter where you are on the spectrum.
Our SOC 2 services include a robust readiness assessment to speed up your preparation. We'll work with you to analyze the state of your cybersecurity environment. We can help you plan, install and maintain any security features that might be missing according to TSC requirements.
Additional SOC 2 Costs to Consider
- Productivity Costs
Senior staff will be temporarily diverted from their everyday tasks.
- Staff Training
Training is vital to embed security into your employee's mindset and processes.
- Legal Fees
Legal fees include expenses associated with attorneys reviewing relevant contracts.
- Audit Services
SOC 2 compliance requires approved CPA auditors. Truvantis can help you choose an appropriate CPA. To minimize cost and business disruption, we will work with you and the CPA to contain the scope of the audit and keep it on track.
Get Started on SOC 2 Compliance Now
One of the most cost-efficient ways to achieve SOC 2 certification is to entrust professionals to guide you through the process—for example, the Five-Step Truvantis SOC 2 Compliance Program.
The path often seems unclear and overwhelming when preparing for a SOC 2 audit. Some online organizations use overused buzzwords and tell you that if you pay to use their online portal, everything will be done for you automatically. A trusted cybersecurity firm like Truvantis can help take the mystery out of the SOC 2 process.
Truvantis provides full-service support for getting to your SOC 2 report. We will advise on the best approach and choices, work with you and your auditor to agree on the design of your program and manage the implementation. We will then train your staff and guide you through the audit.
Let's get started. Contact Truvantis today.