SOC 2 has become the de facto security certification for technology and SaaS companies selling to enterprise customers — particularly in the US market. If you are a UK-based SaaS provider, cloud services company, or managed service provider with US clients or prospects, you will almost certainly be asked for a SOC 2 report as part of their vendor due diligence process.

This guide explains what SOC 2 actually involves, how it differs from ISO 27001, and how UK companies can prepare efficiently.

What Is SOC 2?

SOC 2 (System and Organisation Controls 2) is an auditing standard developed by the American Institute of Certified Public Accountants (AICPA). It evaluates whether a service organisation has adequate controls in place to protect the security, availability, processing integrity, confidentiality, and privacy of customer data.

Unlike ISO 27001, which is a certification you achieve and maintain, SOC 2 produces an audit report — a detailed document prepared by an independent CPA firm that describes your controls and the auditor's findings. Customers use this report to assess your security posture as part of their vendor risk management process.

The Five Trust Services Criteria

SOC 2 is structured around five Trust Services Criteria (TSC):

  • Security (CC): The only mandatory criterion. Covers logical and physical access controls, change management, risk assessment, monitoring, and incident response. This is what most people mean when they say "SOC 2".
  • Availability (A): System availability meets agreed-upon commitments. Relevant for SaaS products with uptime SLAs.
  • Processing Integrity (PI): System processing is complete, valid, accurate, timely, and authorised. Relevant for financial processing or data transformation services.
  • Confidentiality (C): Information designated as confidential is protected. Relevant for services handling sensitive business data.
  • Privacy (P): Personal information is collected, used, retained, disclosed, and disposed of in accordance with the organisation's privacy notice. Relevant for services processing personal data.

Most UK SaaS companies pursue SOC 2 Type II covering Security and Availability as a minimum. Adding Confidentiality is common for B2B data services.

Type I vs Type II: What Is the Difference?

SOC 2 Type I is a point-in-time assessment. The auditor evaluates whether your controls are suitably designed as of a specific date. It is faster to achieve (typically 2–4 months) and demonstrates that you have the right controls in place, but does not prove they are operating effectively over time.

SOC 2 Type II covers a period of time — typically 6 or 12 months. The auditor tests whether your controls operated effectively throughout the audit period. This is what enterprise customers actually want to see. A Type I report is sometimes used as a stepping stone while you build the evidence base for Type II.

Our recommendation for most UK companies: aim for Type II from the outset. The additional time investment is modest, and Type I reports are increasingly viewed as insufficient by US enterprise procurement teams.

How SOC 2 Compares to ISO 27001

Both frameworks address information security, but they serve different markets and have different structures:

  • ISO 27001 is a certification (pass/fail) recognised globally, particularly in Europe, the Middle East, and Asia-Pacific. It is process-oriented and requires an ISMS.
  • SOC 2 produces a report (not a certification) primarily recognised in North America. It is controls-oriented and more prescriptive about specific technical controls.
  • The two frameworks have significant overlap — an organisation with ISO 27001 has most of the controls required for SOC 2 already in place.
  • If you are selling to both European and US enterprise customers, pursuing both is increasingly common. ISO 27001 first is usually the more efficient path if you are starting from scratch.

The SOC 2 Audit Process

1. Scoping

Define which systems, services, and Trust Services Criteria are in scope. Narrower scope means faster and cheaper audit — but be careful not to scope out systems that customers will expect to be covered.

2. Readiness Assessment

Before engaging an auditor, conduct an internal readiness assessment against the SOC 2 criteria. Identify gaps between your current controls and what is required. This is where most of the work happens.

3. Remediation

Address the gaps identified in the readiness assessment. Common remediation items include: implementing formal change management procedures, deploying vulnerability scanning, formalising access review processes, implementing security awareness training with documented completion records, and establishing vendor risk management procedures.

4. Evidence Collection

SOC 2 is evidence-intensive. You need to demonstrate that controls operated throughout the audit period. This means: access review logs, patch management reports, security training completion records, incident logs, change management tickets, and vendor assessment records. Implement a GRC tool (Vanta, Drata, Secureframe, or Tugboat Logic) to automate evidence collection — manual evidence gathering for a 12-month Type II audit is extremely time-consuming.

5. Auditor Engagement

Engage a licensed CPA firm to conduct the audit. The auditor will review your system description, test your controls, and issue the report. Audit timelines vary: Type I typically takes 4–8 weeks once you are ready; Type II fieldwork typically takes 6–10 weeks after the observation period ends.

Common Pitfalls

Underestimating the evidence burden. SOC 2 Type II requires continuous evidence collection over the audit period. If you start collecting evidence only when the auditor arrives, you will fail. Implement automated evidence collection from day one of your observation period.

Scoping too broadly. Including every system in scope dramatically increases the audit cost and complexity. Work with your auditor to define a defensible but manageable scope.

Treating it as a one-time project. SOC 2 reports are typically renewed annually. The controls and evidence collection processes need to be embedded in your operations, not treated as a project that ends when the report is issued.

Ignoring vendor risk management. The SOC 2 criteria require you to manage the risks posed by your own vendors. You need a documented vendor assessment process and evidence that you have assessed your critical suppliers.

Timeline and Cost Expectations

For a UK SaaS company starting from a reasonable security baseline:

  • Readiness and remediation: 2–4 months
  • Type II observation period: 6–12 months
  • Audit fieldwork and report: 2–3 months
  • Total time to first Type II report: 10–18 months from starting
  • Auditor fees: £15,000–£40,000 depending on scope and auditor
  • GRC tooling: £8,000–£20,000/year for automated evidence collection platforms

Baycop provides end-to-end SOC 2 readiness support — gap assessment, control implementation, evidence collection setup, and auditor liaison. Book a free SOC 2 readiness call to understand your current position and get a realistic timeline.