SOC 2 Compliance Checklist That Every Organization Should Follow

Many businesses fail to meet SOC 2 requirements because they don’t clearly understand what needs to be done and lack a proper plan. This leads to errors, confusion, and security failures.

A SOC 2 compliance checklist helps solve this by outlining the key steps and controls needed to meet regulatory standards. It breaks down complex security tasks into smaller, manageable actions, making it easier for teams to stay focused and prevent cyber threats.

From managing data access to preparing for security incidents, the checklist ensures nothing important is missed. Whether you’re just starting or improving your current setup, a SOC 2 compliance checklist can save time, reduce errors, and enhance your overall security. Thus, this helps your business meet the SOC compliance requirements and build customer trust.

What is a SOC 2 Compliance Checklist?

The SOC 2 compliance checklist is a guide that includes all data security practices as per TSC standards. Organizations follow this checklist to assess how customer data is collected, processed, stored, and accessed to achieve compliance.

SOC 2 Compliance Checklist: Common Criteria You Must Address

1. The Control Environment

The Control Environment (CC1 series) sets the foundation for all security controls within an organization. It outlines the following things:

• Defines how management is structured, including reporting lines and responsibilities.

• Considers the organization’s security needs and interactions with external parties.

• Focuses on hiring and retaining skilled individuals who understand their security roles.

• Conducts background checks during hiring to ensure the right candidates are selected.

• Take proper action against employees responsible for privacy violations that cause security issues.

2. Information and Communication

Information and Communication (CC2 series) helps security controls work effectively. It includes:

• Identifying and using relevant information by collecting and processing accurate data from inside and outside the organization.

• Tracks how data moves through the system and manages information assets such as systems and software.

• Organizes information based on its importance (e.g., private customer data) to identify risks and design proper security controls.

• Clear internal communication about goals, control responsibilities, and how to report system issues or concerns.

• Share information to improve security awareness through training and provide external parties with guidance on privacy goals and how to report incidents.

3. Risk Assessment

Risk Assessment (CC3 series) helps identify and analyze risks that could stop the organization from reaching its goals. This means:

• Identifying and assessing organizational risks by reviewing internal and external factors that may pose potential threats.

• Measures the seriousness of each risk and decides how to respond (accept, avoid, reduce, or share).

• Identifies security threats from intentional (e.g., cyberattacks), unintentional actions, and natural events. 

• Considers changes in leadership, technology, systems, or vendor relationships that may introduce new risks.

4. Monitoring Activities

Monitoring of Controls (CC4 series) ensures that security controls are working properly. This occurs with the following steps:

• Uses ongoing and separate evaluations to check the controls.

• It takes into account how quickly things are changing in the business.

• Builds a clear understanding of the control system as a starting point.

• Uses trained and knowledgeable people to carry out the evaluations.

• Quickly identify and report control issues to the appropriate stakeholders and management; the board reviews and resolves issues on time.

5. Control Activities

Control Activities (CC5 series) are actions the organization takes to reduce risks to acceptable levels. These activities are closely linked to the risk assessment process to ensure risk responses are followed. It includes a mix of manual, automated, preventive, and detective controls. These are:

• The organization sets up general control activities over technology to support its goals.

• Controls over technology infrastructure, security processes (like access restrictions), and managing technology changes or updates.

• Control activities are implemented through policies and procedures that set expectations and assign responsibility.

• Policies and procedures are reviewed regularly to keep them up-to-date and relevant.

6. Logical and Physical Access Controls

Logical and Physical Access Controls (CC6 series) describe how the organization limits access to protect information and facilities. This includes:

• Identifying and managing information assets restricting access through software, rules, and configuration standards.

• Verify and authenticate users using multi-factor authentication before granting access.

• Manages credentials for individuals and systems and uses encryption to protect data based on risk strategy.

• Limit physical access to facilities and assets to authorized personnel only, with clear procedures for granting, changing, or removing access.

• Prevents, detects, and responds to unauthorized or malicious software by restricting installations/changes, using change detection, and implementing antivirus/anti-malware software.

7. System Operations

System Operations (CC7 Series) focuses on how an organization manages and operates its systems to keep them secure and running smoothly.

• Implement and monitor system components using defined configuration standards.

• Regular checks to identify unauthorized or unknown components and ensure systems remain compliant.

• Vulnerability scans identify and address potential security weaknesses within the system.

• Systems monitoring for anomalies using defined policies, procedures, and tools (such as intrusion detection systems).

• Follow a structured incident response plan to address security events, restore operations, and evaluate the root causes to prevent future incidents.

Criteria Under the 5 Trust Service Principles

Here is the breakdown of the five important criteria with specific controls in the SOC 2 compliance checklist:

1. Security

• Establish a strong control environment with defined roles and responsibilities to promote accountability.

• Design and implement controls to restrict unauthorized access and safeguard system resources.

• Continuously monitor controls and systems to detect and respond to security events.

2. Availability

• Monitor and manage system capacity to ensure performance aligns with service commitments.

• Design, develop, implement, and manage environmental protections.

• Regular disaster recovery and backup procedure testing is conducted to ensure availability during disruptions.

3. Processing Integrity

• Define and enforce procedures to ensure data processing is complete, timely, and accurate.

• Generate, communicate, and maintain data records that reflect actual processing activities.

• Implement controls to prevent and detect processing errors and unauthorized changes.

4. Confidentiality

• Identify and classify confidential information to determine appropriate levels of protection.

• Apply access controls and encryption to protect confidential data from unauthorized disclosure.

• Enforce policies and procedures to manage the lifecycle of confidential information securely.

5. Privacy

• Provide clear privacy notices to inform customers how their data is used and protected.

• Limit data collection to only what’s necessary, ensuring it’s relevant and used appropriately.

• Maintain data accuracy, relevance, and currency, and allow individuals to access and correct their data.

SOC 2 Compliance Checklist Template

1. Planning & Scoping

Many companies don’t clearly understand which Trust Services Criteria (TSC) apply to them. This confusion can lead to missed controls, wasted resources, and even failed audits. You can avoid this through the following steps:

• Identify applicable Trust Service Criteria (TSCs) based on your business.

• Determine the type of SOC 2 report you need (Type I or Type II).

• Set a realistic timeline for the compliance process.

• Understand how your current security controls align with SOC 2 requirements.

• Select a qualified auditor with experience in your industry to meet regulatory standards.

• Involve cross-functional teams (e.g., IT, HR, Legal, Operations) early to avoid gaps and last-minute changes before the audit.

2. Conduct Risk Assessment

A risk assessment helps identify and evaluate threats to the security and integrity of systems and data. It is conducted by the security or compliance team, which analyzes the impact and likelihood of each risk and implements measures to manage them. Conduct regular risk assessments to make your security controls effective and compliant with SOC 2 standards.

3. Gap Analysis

Many organizations only uncover security weaknesses during audits, resulting in missed deadlines and potential breaches. Avoid this by:

• Conduct a thorough gap analysis comparing your current controls with SOC 2 requirements.

• Identifying common gaps, such as poor access controls, logging, or incident response.

• Maintaining a report to prioritize remediation efforts.

• Creating an actionable plan with tasks, timelines, resources, and responsibilities.

4. Policy & Procedure Implementation

Develop and document a framework of SOC 2 policies to guide employees and vendors.  Implement 21 key SOC 2 policies, including password management, encryption, and remote access. Regularly update the documentation to reflect changes in systems, processes, or personnel. Ensure changes are reviewed, approved, and tracked via your change management process. Show evidence of adherence during the SOC 2 Type II audit.

You can either do it manually or use an automation platform. The manual process takes more time, including collecting screenshots and documents. Consider using an automation platform to manage evidence collection efficiently and reduce manual errors.

5. Readiness Assessment

Conduct a readiness assessment to prepare your organization for the final audit. Choose a self-assessment or a formal SOC 2 readiness assessment according to your organization’s needs.

• Self-assessment – Internal review of policies, systems, and documentation.

• Formal assessment – External review by a consultant or auditor for more rigorous validation.

6. SOC 2 Audit

Choosing the right auditor is important for a successful SOC 2 audit. Even if you excel in every other stage, an experienced, licensed auditor familiar with your industry can make all the difference. Provide necessary documentation, ask relevant questions, and collaborate with your team for a smooth audit process.

SOC 2 Compliance Tools, Software, and Service Providers

1. Drata

Drata is a platform that automates SOC 2 compliance for businesses that handle sensitive customer data. It provides pre-built risk assessments, endpoint monitoring, and a centralized policy center to simplify audit preparation and reduce manual work.

Drata offers over 75 native integrations with platforms like AWS, Google Cloud, and Azure, provides a SOC 2 Readiness Score to track progress, and enables auditor access for a faster compliance process.

However, it comes with high costs that may not suit small businesses, involves a complex initial setup with limited customization, and has been noted for inconsistent customer support.

2. Vanta

Vanta is a great platform for large enterprises with more compliance needs. It automates your compliance process from scratch to close bigger deals faster than ever. It provides features like AI-powered security questionnaires, continuous GRC, vendor risk management, and more to save time on multiple team tasks.

Vanta supports over 35 compliance frameworks and offers more than 375 integrations, making it a powerful tool for managing security and compliance. However, it can be complex and time-consuming for new users to navigate, and some tools may not integrate smoothly with the platform.

3. Ace Cloud Hosting

With Ace Cloud Hosting, you can rest assured that your organization is fully prepared to meet SOC-2 requirements and handle security risks and threats. As a trusted Managed Security Service Provider (MSSP), it specializes in governance, risk, and compliance—helping you confidently navigate the journey to SOC 2 compliance.

It can help you with:

• Gap analysis to identify weak areas in your current control system.

• Regular security checks for audit readiness.

• 24x7x365 monitoring and expert support to keep systems safe from threats.

Common Challenges in SOC 2 Compliance

1. Inconsistent Policies & Missing Documentation

SOC 2 requires a lot of documents, including policies, procedures, and risk assessments. It can delay the process if your documents are outdated, incomplete, or inconsistent.

Collecting and organizing the right documents for multiple audits can also be overwhelming. Use a tool or software to store all your documents in one place and automate the collection process. This helps you find the right documents quickly, reduces repeated work, and keeps everything consistent.

Update your security policies regularly to meet SOC 2 requirements. Here are the Key Documents for completing the SOC 2 Compliance checklist:

• Management Assertion

• System Description

• Controls Matrix

• HR Documents

• IT & Technical Documents

• Privacy Policies

• Compliance Reports

• Business Operation Documents

2. Third-Party Vendor Risk

Many companies depend on third-party providers for cybersecurity, accounting, and data backups. However, your sensitive data could be exposed if these providers don’t have strong security controls. This can lead to data breaches and financial loss, harming your overall market reputation.

Assess the risks of each vendor before working with them. Ask for their SOC 2 reports to confirm they meet SOC compliance standards. Set clear security rules in your service-level agreements (SLAs) to make sure they protect your data properly.

3. Lack of Employee Security Training

Compliance isn’t just the responsibility of IT or compliance teams. Many employees don’t follow security rules because they haven’t been trained properly. They might use weak passwords, click on harmful links, or fall for phishing attacks, which can lead to security breaches.

Provide regular security training for all employees with clear guidelines, videos, and modules on phishing simulations and best security practices. Update them about the latest threats to avoid falling into hackers’ traps.

4. Long and Costly Audits

SOC 2 audits can be time-consuming and expensive, especially if you are a small business. They require detailed logs to track security events and incidents. When you are not well-prepared, the auditor can find multiple gaps in your security controls. This means you’ll have to start again from scratch to pass the audit, leading to higher costs and delays.

To avoid these situations, use an SIEM tool (Security Information and Event Management) to automate log collection, monitoring, and retention. Furthermore, a readiness assessment for SOC 2 should be conducted before the official audit. This helps you identify and fix gaps early to prepare for the final audit.

5. Weak Access Controls & User Management

IT administrators or security teams manage user roles, permissions, and login policies. They use various tools and systems to control access to various resources in the organization. If these controls are not handled properly, unauthorized users may gain access to sensitive data, leading to data breaches.

Failing to enforce least privilege access, use multi-factor authentication (MFA), or remove access during employee offboarding can also result in compliance violations and legal penalties.

6. Incident Response & Disaster Recovery Readiness

Many organizations do not have a clear incident response plan (IRP) or fail to test it regularly to determine its effectiveness. Your business may risk non-compliance with industry regulations and face penalties if your team fails to handle security incidents effectively.

Create a formal incident response plan, run regular tabletop exercises, and keep detailed records of all security incident responses to prevent cyberattacks.

7. Difficulty Maintaining Continuous Compliance

Achieving the SOC 2 compliance checklist isn’t a one-time task. Businesses must consistently update their documents and policies to achieve SOC compliance. This means regularly monitoring systems and making necessary changes to prevent cyber threats. Many companies pass the audit once but struggle to stay compliant afterward.

Use automated tools like Drata or Vanta to track your controls and monitor your security in real time. These tools help you catch up on vulnerabilities early and stay organized without in-house teams managing everything manually.

8. Encryption/Protection Gaps

Many organizations lack consistent encryption policies for data in transit and at rest. This is a serious concern during SOC 2 audits, making it easier for attackers to exploit your systems.

Use end-to-end encryption, maintain secure backups, and manage encryption keys carefully to protect your organization’s sensitive data and information. Thus, only authorized or legitimate users can access your data.

Perform a gap analysis to find weaknesses in your current security controls and update or create new procedures for overall data protection.

Do You Have a SOC 2 Compliance Checklist?

A SOC 2 compliance checklist helps your organization stay organized, secure, and audit-ready. A clear checklist can reduce risk, avoid gaps in compliance, and build trust with clients. Whether you manage the process manually or use automation, staying aligned with SOC 2 requirements ensures your business meets high standards for data protection and operational integrity.

Are you looking for expert support with SOC 2 compliance? Ace Cloud Hosting is a Managed Security Service Provider (MSSP) offering expert support in governance, risk, and compliance. We can help you successfully navigate the path to SOC compliance. Book a free SOC-2 consultation today to learn how we can support your journey.

Frequently Asked Questions (FAQ)

Who can perform a SOC 2 audit?

A SOC 2 audit can only be conducted by a CPA licensed by the AICPA. He checks whether your internal data security controls are effective per TSC requirements relevant to your industry. They review your organization’s documents, conduct interviews, and test to provide an attestation report and give recommendations to address potential issues.

What is the cost of SOC 2 compliance?

The cost of SOC 2 compliance depends on various factors like organization size, complexity, audit type, etc. A SOC report is a document that details how a company manages and protects data and handles security risks as per TSC standards. SOC 2 reports are available in Type I and Type II reports.

A SOC 2 Type I report is generally quicker and more affordable, between $5,000 and $25,000. However, SOC 2 Type II report assessments take time and range between $7,000- $100,000 or more.

Can SOC 2 be combined with ISO 27001?

Yes, SOC 2 and ISO 27001 can be combined to provide a comprehensive approach to security and compliance. Both frameworks share overlapping controls and can complement each other, including incident management plans, physical security, access controls, etc. Thus, this improves your overall management systems and offers opportunities for partnership and collaboration.

How can SOC 2 compliance be maintained after the initial audit?

Regularly conduct internal audits, monitor systems with automated tools, and keep documentation up to date to maintain SOC 2 compliance. Prepare for future audits through pre-audit reviews and promote leadership support to demonstrate your commitment to security.

What are some essential tips or best practices that organizations should follow to achieve successful SOC 2 compliance?

• Access Management: Grant access to sensitive data strictly on a need-to-know basis. Regularly review user permissions and promptly update or revoke access as roles change.

• Maintain a Robust Security Program: Keep security policies current with evolving business needs, tech upgrades, and regulatory changes. Implement firewalls, encryption, and intrusion detection systems—and test them regularly.

• Foster a Security-First Culture: Educate employees on their role in safeguarding data. Ensure organization-wide adherence to security best practices and drive engagement with leadership support.

• Document Everything: Maintain detailed documentation of processes, controls, and incidents. It’s essential for audit readiness and demonstrating ongoing compliance.

• Automate Where Possible: Use compliance automation tools to monitor controls, generate reports, and track remediation—saving time and reducing manual errors.

• Perform Gap Assessments: Regularly conduct gap analyses to identify weak areas and take corrective actions well before an audit.