Summary

Security is the only mandatory Trust Services Criterion. Every SOC 2 audit must include it. The Common Criteria (CC) covers logical and physical access controls, system operations, change management, and risk mitigation. For SOC 2 Type I, most software companies can be ready in 2–4 months if they start with a readiness assessment. SOC 2 Type II requires an observation period of at least 6 months, so the total timeline is typically 9–14 months from start to report. No. Security (Common Criteria) is the only mandatory criterion. Most software companies also include Availability. Add Confidentiality, Processing Integrity, or Privacy based on your product type and customer requirements.

SOC 2 Requirements List for Software Companies: A Complete Guide

If you’re a software company handling customer data, SOC 2 compliance is no longer optional — it’s a competitive necessity. Enterprise clients demand it, security-conscious buyers ask for it, and your legal team will eventually require it. But navigating the SOC 2 requirements list can feel overwhelming without a clear roadmap.

This guide breaks down exactly what your software company needs to achieve SOC 2 compliance, organized by Trust Services Criteria and practical implementation steps.

What Is SOC 2 and Why Does It Matter for Software Companies?

SOC 2 (System and Organization Controls 2) is an auditing framework developed by the American Institute of Certified Public Accountants (AICPA). It evaluates how well a service organization manages customer data based on five Trust Services Criteria (TSC).

For software companies — especially SaaS providers, cloud platforms, and B2B tools — SOC 2 compliance demonstrates that your security controls are real, tested, and trustworthy. It’s often a prerequisite for closing enterprise deals and can reduce the friction of lengthy security questionnaires.

There are two types of SOC 2 reports:

SOC 2 Type I – Evaluates whether controls are designed appropriately at a single point in time
SOC 2 Type II – Evaluates whether controls operated effectively over a period (typically 6–12 months)

Most enterprise buyers require Type II.

The Core SOC 2 Requirements List

1. Security (Common Criteria) — Required for All Audits

Key requirements under Security include:

Access controls – Role-based access control (RBAC), least-privilege policies, multi-factor authentication (MFA) for all critical systems
Encryption – Data encrypted in transit (TLS 1.2+) and at rest (AES-256 or equivalent)
Vulnerability management – Regular vulnerability scans, penetration testing at least annually, patch management procedures
Incident response – A documented incident response plan with defined roles, escalation paths, and communication protocols
Change management – Formal procedures for code deployments, infrastructure changes, and configuration updates
Risk assessment – Annual or ongoing risk assessments that identify, evaluate, and address threats
Vendor management – Third-party vendor risk assessments and documented due diligence
Security awareness training – Annual training for all employees, with completion tracking
Background checks – Pre-employment screening for employees with access to sensitive systems
Physical security – If you operate your own infrastructure, documented physical access controls

2. Availability — Optional but Commonly Requested

Availability criteria apply if your customers depend on your system being reliably accessible. Most SaaS companies include this criterion.

Requirements include:

Defined uptime commitments (SLAs) and documented monitoring procedures
Redundancy and failover mechanisms (load balancing, multi-region deployments)
Disaster recovery (DR) and business continuity plans (BCP) with tested recovery objectives
Capacity planning processes to prevent performance degradation
Incident and outage communication procedures for customers

3. Processing Integrity — For Data-Sensitive Applications

Processing integrity ensures that system processing is complete, accurate, timely, and authorized. This criterion is most relevant for fintech, data processing, and analytics platforms.

Requirements include:

Input validation and error handling procedures
Quality assurance checks on data processing pipelines
Logging and monitoring of data processing activities
Procedures for identifying and correcting processing errors

4. Confidentiality — For Companies Handling Sensitive Business Data

Confidentiality covers how you protect information designated as confidential, such as contracts, financial data, or proprietary business information.

Requirements include:

Data classification policies that identify confidential information
Access restrictions and encryption for confidential data
Confidentiality agreements (NDAs) with employees and vendors
Secure disposal procedures for confidential data

5. Privacy — For Companies Processing Personal Information

Privacy criteria align closely with regulations like GDPR and CCPA. If you collect, store, or process personal information, this criterion is increasingly expected.

Requirements include:

A published privacy notice describing data collection and use
Consent management procedures
Data subject rights processes (access, deletion, correction requests)
Data retention and disposal schedules
Privacy impact assessments for new features or data uses

Essential Policies and Documentation Your Software Company Needs

SOC 2 is a documentation-heavy process. Auditors will ask to see written policies, procedures, and evidence that those policies are actually followed. Here’s a core list of documents you must have:

Information Security Policy – Your master security framework document
Access Control Policy – How access is granted, reviewed, and revoked
Acceptable Use Policy – Rules for how employees use company systems
Incident Response Plan – Step-by-step procedures for detecting and responding to security events
Business Continuity and Disaster Recovery Plan – How you maintain operations during disruptions
Change Management Policy – Procedures for code and infrastructure changes
Vendor Management Policy – How you assess and monitor third-party vendors
Data Classification Policy – How data is categorized and handled based on sensitivity
Risk Assessment Procedure – How you identify and manage organizational risks
Password and Authentication Policy – Requirements for credentials and MFA
Employee Onboarding/Offboarding Procedures – Access provisioning and deprovisioning workflows
Vulnerability Management Policy – Scanning, patching, and remediation timelines

Technical Controls You Need to Implement

Policies alone aren’t enough. Auditors verify that technical controls are actually in place and functioning. For software companies, this typically means:

SIEM or log management – Centralized logging with alerting (e.g., Datadog, Splunk, AWS CloudWatch)
Endpoint detection and response (EDR) – Antivirus and threat detection on all endpoints
Cloud security configuration – Hardened cloud environments following CIS Benchmarks or equivalent
Code repository security – Branch protection rules, code reviews, secret scanning
CI/CD pipeline controls – Automated security testing in deployment pipelines
Data backup and recovery – Automated backups with tested restoration procedures
Network segmentation – Separation of production, staging, and development environments

The SOC 2 Audit Process: What to Expect

Understanding the audit process helps you prepare more effectively.

Scoping – Define which systems, services, and Trust Services Criteria are in scope
Readiness assessment – Identify gaps between current state and SOC 2 requirements
Remediation – Fix gaps, implement missing controls, and create required documentation
Evidence collection – Gather screenshots, logs, reports, and records that prove controls work
Auditor selection – Choose a licensed CPA firm to conduct the audit
Audit fieldwork – The auditor reviews evidence, interviews personnel, and tests controls
Report issuance – Receive your SOC 2 report, which you share with customers under NDA

For Type II, you’ll also need to maintain controls consistently throughout the observation period before the audit begins.

Common Mistakes Software Companies Make

Starting documentation too late – Policies need to exist and be followed before the audit window opens
Underestimating scope – Forgetting to include subprocessors, cloud services, or internal tools
Ignoring HR controls – Background checks, training, and offboarding are frequently cited findings
No evidence collection process – Auditors need proof, not promises; automate evidence gathering early
Choosing the wrong auditor – Not all CPA firms specialize in technology companies; choose one with relevant experience

Frequently Asked Questions

How long does it take to get SOC 2 certified?

For SOC 2 Type I, most software companies can be ready in 2–4 months if they start with a readiness assessment. SOC 2 Type II requires an observation period of at least 6 months, so the total timeline is typically 9–14 months from start to report.

How much does a SOC 2 audit cost?

Audit costs vary widely depending on scope and auditor. Expect to pay $15,000–$50,000 for a Type II audit from a reputable firm. Preparation costs (tools, consulting, documentation) can add another $10,000–$30,000 depending on your starting point.

Do we need all five Trust Services Criteria?

No. Security (Common Criteria) is the only mandatory criterion. Most software companies also include Availability. Add Confidentiality, Processing Integrity, or Privacy based on your product type and customer requirements.

What’s the difference between SOC 2 and ISO 27001?

SOC 2 is a U.S.-focused audit report primarily used in North American markets. ISO 27001 is an internationally recognized certification more common in European and global markets. Some companies pursue both. SOC 2 is generally the first priority for U.S.-based SaaS companies.

Can a small startup achieve SOC 2 compliance?

Absolutely. Many early-stage startups pursue SOC 2 to unlock enterprise sales. The key is right-sizing your controls for your company’s size and risk profile. A 15-person startup doesn’t need the same complexity as a 500-person company — but the fundamental requirements remain the same.

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