SOC 2 is an independent audit that examines how a service company protects customer data, based on five trust criteria: security, availability, processing integrity, confidentiality, and privacy. A SOC 2 report is produced by a licensed auditor, not a self-certification, and it tells customers that a company’s controls were tested against a recognized standard. For software, being SOC 2 ready means the system and processes are built to meet those criteria so the company can pass the audit.
Produced by a licensed auditor against five trust criteria, not a self-certification.
Controls designed and in place at a point in time, or operating effectively over a period.
A development partner builds and configures software to support SOC 2.
The five trust services criteria
SOC 2 is built around five criteria. Security is required; the others are included based on what is relevant.
- Security: protection against unauthorized access (the foundation, always included).
- Availability: the system is up and accessible as committed.
- Processing integrity: the system processes data completely and accurately.
- Confidentiality: confidential information is protected.
- Privacy: personal information is handled per the company’s privacy commitments.
Type I vs Type II
SOC 2 Type I
A point in time
- Checks that the right controls are designed and in place at a point in time.
SOC 2 Type II
Over a period
- Checks that those controls actually operated effectively over a period.
- Type II is the stronger report.
Why SOC 2 matters
When you sell software or services to other businesses, especially in finance, healthcare, or enterprise, your customers’ security teams will ask how you protect their data. A SOC 2 report answers that question with independent evidence, which can be the difference between winning and losing a deal.
What SOC 2-ready software looks like
A SOC 2 audit covers both the company’s processes and its software. On the software side, readiness means: access controls and least privilege, encryption, audit logging, secure development practices, monitoring, and the documentation to prove it. Building these in from the start is far cheaper than retrofitting them before an audit. (See What Is Custom Software Development.)
Figure 1. What a SOC 2 audit covers, and who does what
The audit covers both the company’s processes and its software; the company pursues and holds the report, and a development partner builds and configures software to support it. Drawn from this article; the figure shows no measured values.
Related in this topic: production readiness checklist; financial IT services.
SOC 2 compliance FAQs
What is SOC 2 in simple terms?
An independent audit of how a company protects customer data, measured against five trust criteria, resulting in a report customers can trust.
What are the five SOC 2 criteria?
Security, availability, processing integrity, confidentiality, and privacy. Security is always included; the rest are based on relevance.
What is the difference between SOC 2 Type I and Type II?
Type I checks controls are designed and in place at a point in time; Type II checks they operated effectively over a period. Type II is stronger.
Can you build SOC 2-ready software?
Yes. We build software with the access controls, encryption, logging, and documentation a SOC 2 audit looks for. The company pursues and holds the report; we engineer the software to support it.
Building software that will face a SOC 2 review? Request a free consultation and we will build it to support the audit.
Related guides
Guides:
- What Is FedRAMP?
- What Is Custom Software Development?
- How Much Does Custom Software Development Cost in 2026?
Services: Cybersecurity, Production Readiness Audit
Standard: System and Organization Controls: SOC Suite of Services (AICPA)
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