# SOC 2 Type 2 Report: Benefits, Process & Best Practices

> Show your customers that their data is secure with a SOC 2 Type 2 report. Learn the benefits, processes, & best practices for safeguarding sensitive information.

Published: 2024-08-19  
Updated: 2025-10-21  
Canonical: https://jaluno.co/blog/soc-2-type-2-report-explained

There is a near-constant rate of cyber attacks with 1 attack occurring every 39 seconds according to a Clark School study.

But it’s not just about the money. Customers are freaking out about their data security, and who can blame them? They want more than a pinky promise — they need rock-solid proof that their sensitive info is, well, kept sensitive.

That’s where the SOC 2 Type 2 report steps in.

In this article, we'll explore what makes SOC 2 Type 2 stand out from other SOC reports, how it can supercharge your business, how much it costs, and the steps you need to get compliant.

## **What is a SOC 2 Type 2 report?**

SOC 2 Type 2 report is a security framework created by the [American Institute of Certified Public Accountants (AICPA)](https://www.aicpa-cima.com/home) that assesses how service organizations, which handle customer data, safeguard sensitive information over an extended period, typically between 3 and 12 months.

Think of it as a detailed scorecard that reflects how effectively a company implements its security protocols and procedures, ensuring continuous protection of sensitive information.

This report centers on these five essential [Trust Services Criteria](https://jaluno.co/blog/soc-2-requirements) (TSCs):

### **Who needs a SOC 2 Type 2 report?**

Now, a SOC 2 Type 2 audit isn't just for cloud-based vendors vying for enterprise clients; it holds value for various types of businesses.

While the list of potential beneficiaries is extensive, we recommend you consider a SOC 2 if your business meets any of the following criteria:

### **Why is a SOC 2 Type 2 report important?**

In May 2024, Dell faced a massive cyberattack that compromised [49 million customer accounts](https://www.forbes.com/sites/daveywinder/2024/05/10/dell-confirms-database-hacked-hacker-says-49-million-customers-hit/), while MOVEit experienced one of the [largest breaches of 2023](https://www.ncsc.gov.uk/information/moveit-vulnerability), with damages soaring to $12 billion.

The SOC 2 Type 2 certification not only reduces the risk of costly breaches but also positions you as a leader in data security.

Adopting SOC 2 Type 2 also helps you meet regulatory requirements and avoid the scrutiny of regulators like the GDPR and HIPAA.

Preparing for a SOC 2 Type 2 audit also highlights areas for operational improvement, making your processes smoother and more secure.

**P.S:** If you want to dive deeper into how to actually get SOC 2 compliant, check out our [detailed SOC 2 checklist.](https://jaluno.co/blog/soc-2-compliance-checklist)

### **What is the scope of a SOC 2 Type 2 report?**

The scope of a SOC 2 Type 2 report follows the American Institute of Certified Public Accountants (AICPA) guidelines. According to the [AICPA criteria](https://us.aicpa.org/content/dam/aicpa/interestareas/frc/assuranceadvisoryservices/downloadabledocuments/soc2_csa_ccm_report.pdf), an SOC 2 Type 2 report scope should focus on the following:

- **Infrastructure:** Physical and hardware components such as networks and data centers.
- **Software:** Applications and systems used for processing data.
- **People:** Roles and responsibilities of personnel involved in system management and security.
- **Data:** Management of data including storage, access, and protection.
- **Procedures:** Manual and automated procedures that ensure consistent and secure service delivery.

The scope is tailored to the organization’s specific needs, determined by the type of data collected, storage methods, and business operations.

While the SOC 2 Type 2 report may focus on one or more Trust Services Criteria, it offers flexibility to address only the controls pertinent to the organization's operations and security requirements.

### **When should you conduct a SOC 2 Type 2 audit?**

The AICPA does not recommend a specific time for conducting a SOC 2 audit. However, we recommend you do so during the following:

1. **Before entering new markets:** If you’re expanding into a new region or industry with stringent data protection laws, a SOC 2 Type 2 report can help smooth the transition.
2. **When onboarding enterprise clients:** Enterprise clients often have strict security requirements. Having a SOC 2 Type 2 report ready can make the onboarding process smoother and faster.
3. **After significant changes to your IT infrastructure:** If you’ve made major updates to your systems or processes, it’s a good idea to conduct a SOC 2 Type 2 audit to ensure that your controls are still effective.
4. **Annually, as a best practice:** Regular audits help maintain high-security standards and ensure ongoing compliance. Most companies opt for annual SOC 2 Type 2 audits to keep their certifications up to date.
5. **Client requirements:** Many clients, especially those in regulated industries like finance and healthcare, may require a SOC 2 Type 2 report to ensure their data is handled securely.
6. **Contractual obligations:** When entering into contracts with clients or partners, a SOC 2 Type 2 audit might be stipulated as a requirement for the duration of the agreement.

### **How much does a SOC 2 Type 2 audit cost?**

![A comparison chart showing the cost, onboarding time frame, audit duration, and total time frame for SOC 2 Type II reports between the traditional method and EasyAudit service.](https://utfs.io/f/OkJPr7YvheNcByzwqLrO8Iz7X2GRplxmtPTZqHf3JAo5cFej)

The cost of a SOC 2 Type 2 audit may vary based on different factors. However, you can expect to spend as high as $100,000 through the entire process of an audit. Price may vary based on the following criteria:

- **Scope of the Audit:** The broader the scope, the higher the cost. Auditing multiple locations or including all five Trust Services Criteria will increase the price.
- **Size of the Organization:** Larger companies typically have more complex systems, which can drive up the cost of the audit.
- **Duration of the Audit:** The longer the audit period, the more expensive it will be.
- **Audit Firm:** The cost can also depend on the firm conducting the audit. Although a top-tier firm may charge a premium, it also brings more experience and expertise.

With EasyAudit, you can save up to $50,000 in costs and get compliant in as little as 8 weeks, instead of the usual 6-8 months. **[Schedule a demo](https://jaluno.co/demo?utm_source=blog&utm_medium=cta&utm_campaign=soc-2-type-2-report-explained)** and experience EasyAudit in action.

## **What are the key differences between a SOC 2 Type 1 and SOC 2 Type 2 report?**

Besides a SOC 2 Type 2 report, we also have a SOC 2 Type 1 report.

While they both evaluate the design and implementation of your company's controls, the key difference between them is that a [SOC 2 Type 1 report](https://jaluno.co/blog/soc-2-type-1) showcases controls at a specific time but the SOC 2 Type 2 report assesses the operating effectiveness of your internal controls over a 3-12-month period.

However, that's not all, let's dig a bit deeper:

## **How does SOC 2 Type 2 compare to other security frameworks?**

Aside from the various SOCs, there are several other security standards out there, each with its purpose. An example is the ISO/IEC 27001 and the HITRUST. For a detailed comparison between ISO 27001 and SOC 2, check out [our article comparing ISO 27001 vs SOC 2](https://jaluno.co/blog/iso-27001-vs-soc-2).

Here, we simplify these security standards and show you how they compare with the SOC 2.

## **How to achieve SOC 2 Type 2 compliance faster and cheaper with EasyAudit**

With EasyAudit, you can automate evidence collection, risk assessment and reporting, saving you hours of tedious work and 10,000's of dollars.

No more tedious back-and-forths or hefty bills. With a few buttons and zero IT knowledge, you can generate a self-assessment report, send it to an auditor, and get certified quickly.

**[Get started with EasyAudit today](https://jaluno.co/demo)** and simplify your path to SOC 2 Type 2 compliance.

## Next steps

- [Run the free Compliance Simulation](https://jaluno.co/compliance-simulation)
- [Estimate your cost with the Compliance Cost Calculator](https://jaluno.co/compliance-calculator)
- [Request a demo](https://jaluno.co/demo)

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