Key Takeaways
- SOC 2 is a strategic tool for tech companies to prove trust, security and reliability.
- Planning phase aligns audit scope with cloud architecture, APIs and platform infrastructure.
- Type 1 vs. Type 2 matters: Type 2 is more rigorous and better suited for scaling tech orgs.
- Walkthroughs show how controls work in real systems—e.g., identity management, Git workflows.
- Substantive testing validates control effectiveness across time using logs, configs and analytics.
- Final report becomes a credibility asset for customers, partners and investors.
- SOC 2 readiness signals operational maturity in SaaS, fintech, healthtech and cloud platforms.
- Compliance isn’t just a checkbox; it’s a competitive differentiator in the tech space.
This article kicks off our comprehensive series on SOC reporting—an essential guide for technology leaders navigating the frameworks that underpin trust, transparency and compliance in today’s digital-first world. As data security and system reliability become increasingly critical to customer trust and competitive advantage, understanding SOC 2 is no longer optional; it’s strategic.
Each article in this series will unpack key elements of SOC 2 reporting, with a special focus on how this type of audit examination (and underlying controls framework) applies to technology-driven organizations, from SaaS providers and cloud platforms to fintech and healthtech innovators. Whether you’re preparing for your first SOC 2 audit or refining your compliance posture, this series is designed to equip you with the clarity and confidence needed to lead through the SOC experience.
The SOC 2 Timeline: A Technology Leader’s Roadmap
Any audit can feel overwhelming, especially for tech companies who are new to the process. SOC 2 examinations are no exception. But with the right guidance and preparation, they can become a powerful tool for demonstrating operational maturity and building stakeholder trust.
Here’s a breakdown of the key stages in the SOC 2 journey.
- Planning – The SOC 2 process begins with the execution of an engagement letter and planning discussions. For technology organizations, this phase is critical for aligning the audit scope with the system architecture – whether it’s a cloud-native platform, a hybrid infrastructure, or a complex API ecosystem. Auditors will seek to understand the broader context of your system, including stakeholder expectations and regulatory considerations.
- Fieldwork – Fieldwork varies depending on whether the engagement is a SOC 2 Type 1 or Type 2:
- A Type 1 examination focuses on the design and implementation of controls at a specific point in time.
- A Type 2 examination evaluates both the design and operational effectiveness of controls over a defined period covered by the report.
Depending on whether the engagement is a SOC 2 Type 1 or a SOC 2 Type 2 examination, fieldwork may involve just walkthroughs of the processes that support the system or, for a Type 2, substantive testing of the controls in place over a defined period to support the system.
- Walkthroughs – The purpose of a walkthrough is to observe how controls are designed and implemented. Your auditor will ask to see a demonstration of the processes underlying each control. This typically involves selecting one or a few transactions involving the control and observing the control processes (aka “assertions”) for those transactions. In a tech context, this might involve showing how access controls are enforced in identity management systems, or how change management is tracked in version control platforms like GitHub or GitLab.
- Substantive testing -In SOC 2 Type 2 examinations, auditors test whether controls operated effectively throughout the reporting period. This could include:
- Testing a sample of occurrences or transactions from a larger population spanning the period.
- Sampling logs from cloud infrastructure.
- Observing and inspecting configurations.
- Running analytics on system-generated reports.
- Corroborating test results through inquiries with management, engineering and IT leadership.
- Reporting
Once testing concludes, a draft report is shared with management. This provides management and the auditors the opportunity to discuss key findings in the report and address any outstanding questions prior to issuance.
After final review and signing of the representation letter, the SOC 2 report is issued, ready to be shared with customers, partners, and investors as a mark of operational excellence.
Turning Compliance into Competitive Advantage
For technology leaders, the SOC 2 timeline isn’t just a checklist, it’s a strategic journey that reinforces your organization’s commitment to security, reliability and operational excellence. Whether you’re building a SaaS platform, managing sensitive customer data or scaling cloud infrastructure, a successful SOC 2 examination signals to stakeholders that your systems are not only compliant, but resilient and trustworthy.
By understanding each phase of the SOC 2 process—from planning to reporting—you can lead your organization with confidence, reduce audit friction and ultimately turn compliance into a competitive edge in the marketplace.
If you need assistance with a SOC 2 exam, or if you have any questions, please contact Travis Hewell or Dean Flores.
Stay tuned for the next article in our SOC series.
