How Often Are SOC 2 Audits Done? A Breakdown

A System and Organization Controls (SOC) 2 audit report provides information on a service organization’s controls relevant to security, availability, processing integrity, confidentiality, or privacy. These reports are important for businesses that handle customer data. Obtaining a SOC 2 report demonstrates a commitment to safeguarding sensitive information, building trust with clients and stakeholders. It serves as an independent assurance that an organization’s systems and processes meet defined trust criteria.

Understanding SOC 2 Reports

SOC 2 reports are categorized into two primary types: Type 1 and Type 2, each serving a distinct purpose. A SOC 2 Type 1 report focuses on the suitability of the design of controls at a specific point in time. This report provides a “snapshot” of an organization’s control environment, confirming that the controls are appropriately designed to meet the applicable Trust Services Criteria.

Conversely, a SOC 2 Type 2 report offers a more comprehensive evaluation by assessing the operating effectiveness of controls over a period of time. This report goes beyond just the design, examining how controls actually performed during a defined audit period. It provides assurance that the controls are not only well-designed but also consistently effective in their operation.

Typical Audit Frequency

The frequency of SOC 2 audits varies based on the type of report and the organization’s needs. A SOC 2 Type 1 report is often a one-time engagement, particularly for organizations new to SOC 2 compliance. It may also be pursued when there are significant changes to systems or controls, requiring a baseline assessment of the new design. This initial report helps an organization establish its control framework and demonstrate its design effectiveness to potential clients.

SOC 2 Type 2 audits are typically conducted annually to provide continuous assurance to clients and stakeholders. While an initial Type 2 audit might cover a shorter period, such as three to six months, subsequent audits generally span a full 12-month period. This allows for a comprehensive assessment of controls over an entire year of operations.

Although annual audits are standard, specific client requirements or industry regulations can influence audit frequency. Significant changes within the organization, such as a major system migration or a new service offering, might also prompt discussions about the timing of the next audit. However, the foundational expectation remains an annual Type 2 report to demonstrate ongoing commitment to data security and privacy.

The Audit Review Period

For a SOC 2 Type 2 report, the audit assesses the operating effectiveness of controls over a specific “review period.” Common review period lengths include three months, six months, or twelve months. While a twelve-month period is preferred for demonstrating consistent, ongoing assurance, shorter initial periods are common for an organization’s first Type 2 report. This allows a new organization to obtain a Type 2 report sooner, demonstrating operational effectiveness without waiting a full year.

Organizations often maintain continuous assurance between annual audit reports through various means. If a client requires assurance for a period not fully covered by the latest Type 2 report, a “bridging letter” or “gap report” might be provided. This letter can offer an update on the control environment since the last report. Continuous monitoring and robust internal control activities throughout the entire year are also important to ensure readiness for the next audit and to maintain a strong control posture.