SOC 1 & SOC 2 Compliance

Introduction

System and Organization Controls (SOC) reports, established by the American Institute of Certified Public Accountants (AICPA), are independent attestations of a service organisation's internal controls. They are essential for demonstrating security, availability, and financial control to enterprise clients.

What is AICPA SOC 1 & SOC 2?

SOC 1 (ISAE 3402 / SSAE 18) focuses on a service organisation's internal controls that are relevant to its clients' internal control over financial reporting (ICFR). It is commonly required for financial processors, payroll providers, and billing companies. SOC 2 focuses on controls related to operations and compliance, evaluated against the five Trust Services Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy. It is a critical requirement for SaaS providers, cloud hosts, and technology vendors managing sensitive client data.

Benefits of AICPA SOC 1 & SOC 2 Certification

• Improves security posture through rigorous technical and operational controls
• Builds strong customer confidence, particularly with enterprise procurement
• Requirements overlap significantly with ISO 27001, making joint audits efficient
• Provides a detailed, independent report validating system and financial security
• Reduces sales cycle length by satisfying security questionnaires in advance

Who Needs AICPA SOC 1 & SOC 2 Certification?

• SaaS and software providers
• Cloud hosting and data centre operators
• IT managed service providers (MSPs)
• Financial processors, payroll providers, and billing companies
• Any service provider storing client data in the cloud

AICPA SOC 1 & SOC 2 Requirements

• Establish security policies and procedures
• Implement access controls and multi-factor authentication
• Set up continuous monitoring and intrusion detection systems
• Develop disaster recovery and incident response plans
• Conduct regular vulnerability scans and penetration tests (VAPT)
• Establish vendor management and risk evaluation procedures

AICPA SOC 1 & SOC 2 Certification Process

Documents Required

• SOC Policy manual and control descriptions
• Access logs and administrative approval records
• System configuration and change logs
• Incident response and disaster recovery plans
• VAPT report and remediation records
• Business Associate Agreements (BAAs)

AICPA SOC 1 & SOC 2 Certification Cost

We don’t publish a fixed price, because cost depends on organisation size, number of locations, scope, process complexity, audit duration, consulting requirements and certification body fees. Request a scoped estimate and we’ll walk you through each factor.

Certification Timeline

Timelines depend on organisational readiness, scope and the complexity of your processes. A well-prepared, single-site organisation typically moves faster than a multi-site or highly regulated one — we’ll give you a realistic timeline after the initial gap analysis.

SOC Type I vs SOC Type II

Both SOC 1 and SOC 2 audits can be conducted as Type I or Type II. A Type I report assesses the design suitability of controls at a specific point in time. A Type II report assesses the operating effectiveness of controls over a specified observation period, typically 6 to 12 months.

Frequently Asked Questions