SOC 2 Standard for SaaS Companies

Currently, SaaS software providers are developing rapidly and strongly in Vietnam. The increasing number of newly established businesses shows that this is a highly potential industry with significant growth opportunities in Vietnam. For businesses in this sector to integrate and thrive, having a robust information security system is a major advantage in the eyes of partners. SOC 2 certification is considered one of the strongest pieces of evidence that helps your business gain the approval of customers and partners. This article from SQC Certification will share with you the SOC 2 Standard for SaaS companies.

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SaaS Software Providers

SaaS companies are companies that provide software as a service (Software as a Service – abbreviated as SaaS). Instead of selling software for customers to download and install on their computers, SaaS companies provide software over the internet – usually as web applications or online platforms.

Characteristics of SaaS companies:

• Subscription-based business model:
• Users pay a monthly or annual fee to use the software.
• Cloud-based storage:
• Data and software are stored on the company’s servers, requiring no manual installation.
• Continuous and automatic updates:
• SaaS companies can update software without customer intervention.
• Scale and accessibility from anywhere:
• Users can access the service from any device with internet access.

It is evident that SaaS software companies are currently experiencing significant growth and account for a substantial portion of IT businesses worldwide and in Vietnam.

What is SOC 2?

SOC 2 is an information security assessment standard used to examine how companies use cloud computing to build internal control systems and protect customer data. Developed by the American Institute of Certified Public Accountants (AICPA), this standard is now widely used in technology companies, especially B2B SaaS companies.

SOC 2 revolves around five core principles called the Trust Services Criteria (TSC), which include: Security, Availability, Integrity in Processing, Information Security, and Privacy.

When a business builds and implements comprehensive controls according to these criteria, an independent auditor is invited to assess them. If everything meets the requirements, the company receives a SOC 2 report – proof that they are managing customer data securely and reliably.

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Why is SOC 2 Important for SaaS Companies?

SOC 2 is crucial for SaaS (Software as a Service) companies for the following reasons:

1. Building Customer Trust

SaaS companies often process and store sensitive customer data on a cloud platform. An SOC 2 report demonstrates that the company has rigorous security measures in place, reassuring customers that their data is safe.

2. Competitive Advantage in B2B Sales

Many businesses, especially large enterprises, require partners to have SOC 2 certification before signing contracts. Having an SOC 2 report helps SaaS companies accelerate the sales process and pass security audits.

3. Driving Growth & Scaling

SOC 2 is an internationally recognized standard. Obtaining this certification makes it easier for SaaS companies to expand into new markets, as there is already evidence of compliance with regulations and appropriate risk management.

4. Internal Improvement & Risk Reduction

Achieving SOC 2 requires businesses to test, improve, and standardize internal security processes – from access management and data encryption to system monitoring. This helps minimize the risk of data leaks, security breaches, or service disruptions.

5. Compliance with Legal and Industry Requirements

SOC 2 does not replace legal regulations such as GDPR or HIPAA, but compliance with SOC 2 shows that the company is on the right track in protecting user privacy and data, making it easier to meet other requirements when needed.

Is SOC 2 a mandatory requirement for SaaS companies?

The answer is no – there are currently no legal regulations requiring SaaS companies to have a SOC 2 certification. However, if your product involves processing customer data, especially in industries like finance, healthcare, legal, or other highly scrutinized sectors, you’re likely to face this requirement from clients soon.

It’s worth noting that the SOC 2 requirement isn’t usually asked directly. Instead of asking “Do you have an SOC 2 report?”, buyers will often send you security questionnaires, risk assessment lists, or vendor approval criteria. In these forms, they want to know if you have tight access controls, continuous system monitoring, and processes in place. Whether or not troubleshooting is done systematically.

In that situation, having a SOC 2 report is like a “passport” – helping you answer all those questions with a single document, instead of having to prove everything from scratch.

SOC 2 Compliance Requirements for SaaS Companies

SOC 2 is built on 5 Trust Services Criteria. Each criterion represents a set of controls that SaaS companies need to establish and maintain to ensure the security and reliability of the system.

• Security is a mandatory criterion in every SOC 2 report. It reflects the ability of the business to prevent unauthorized access to the system – through measures such as firewalls, multi-factor authentication (MFA), endpoint protection, and regular security audits. 
• Availability assesses the system’s ability to maintain stable operation even in the event of a failure. This requires strategies such as data backup, failover, and infrastructure performance testing to minimize downtime.
• Processing integrity ensures that the system operates as expected – without errors or unintended changes. Related factors include software version control, system change tracking, and automated authentication processes.
• Confidentiality focuses on protecting sensitive information. This requires role-based access control, the application of encryption standards, and strict controls over the processing of restricted data.
• Privacy applies to how a business collects, stores, or processes personal data. Controls must accurately reflect what is stated in the privacy policy – ​​from the time of collection, use, storage, to the deletion of information.

Among these principles, Security is always a mandatory foundation in all SOC 2 reports. The remaining criteria will be applied depending on the type of data you process and the specific requirements from the customer or industry. Most SaaS companies typically start with Security, then expand to other principles as needs arise from contracts, audits, or industry standards.

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SOC 2 Audit Process for SaaS Companies: Specific Steps

SOC 2 compliance is not simply a security test – it’s a multi-step process to ensure your systems and customer data are properly protected. Here are typical steps to prepare for a SOC 2 audit:

Step 1: Define the Scope

First, clarify the scope of systems involved in handling customer data – from cloud infrastructure (such as AWS, GCP), CI/CD tools (GitHub Actions, Jenkins), source code repositories, support platforms, to HR systems and identity providers (IdPs). If customer data passes through a particular system, that system needs to be included in the scope of the audit.

In addition, you need to determine the type of audit:

SOC 2 Type I: evaluating the design of control measures at a specific point in time.

SOC 2 Type II: evaluating the effectiveness of control measures over a period of time (usually 3–12 months).

Step 2: Analyze Gaps

Not all existing security processes or policies meet the standards. Some controls may not have been implemented, or they may exist but not be fully enforced. Review the system, compare practices with current policies, clearly define responsibilities, and ensure that controls are verifiable and traceable.

Step 3: List and legitimize existing controls

Many engineering teams have implemented security measures that haven’t been formalized into control policies – for example, using MFA, role-based access control, event logging, or system monitoring. These elements can be recognized as valid controls in SOC 2, provided they are clearly documented and assigned ownership.

Compare these controls to the trust principles (TSCs) you plan to implement and ensure that a person is primarily responsible for each measure – someone who can explain and provide evidence if needed.

Step 4: Gather Evidence

Gathering evidence is often the most difficult part – not because it’s complex, but because the data is often scattered in many places. You’ll need to provide system logs, screenshots, approval records, or automated reports, all in a verifiable format.

• For Type I, a snapshot of the current state is sufficient.
• For Type II, you must provide a continuous chain of evidence showing that controls were consistently enforced throughout the audit period.

Planning early will help you avoid rushing to gather documentation later.

Step 5: Choose the Right Auditor

Choose an audit firm authorized to issue SOC 2 reports and with specific experience in the SaaS industry. Find out how they approach cloud-native environments, ask about similar clients they’ve worked with, and how they interpret trust principles in a real-world context.

SomeSome audit firms work efficiently and flexibly, while others apply rigid processes. Choosing the right partner will directly impact the speed of implementation and the smoothness of the entire process.

Step 6: Readiness Assessment

Before proceeding with the formal audit, you should conduct an internal assessment to identify any remaining weaknesses. This is an opportunity to check the completeness of policies, consistency in implementation, and the ability to provide evidence.

You may discover:

• Incomplete logs
• Discrepancies between policies and practice
• Controls without clear accountability
• It is best to address these issues before the formal auditors begin.

Step 7: Conducting the Audit

Once the auditors submit their initial requests (access, evidence, etc.), the audit process begins. They will review the system, evaluate each control, and may request clarification throughout the process.

• Type I: Assessing control design at a specific point in time.
• Type II: Verifying that controls are effectively and consistently implemented over the long term.

After completion, the auditor will send a draft report for your final review. If no revisions are needed, the final report will be issued. Typically, this report is valid for 12 months and may include exceptions if non-compliance issues are found.

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How much does a SOC 2 compliance audit for SaaS cost?

There is no specific figure for the cost of an SOC 2 compliance audit. This cost depends on the type of audit, the audit firm you work with, and the maturity level of the control environment.

Type I audits typically cost between $10,000 and $25,000. Type II audits are usually more expensive—around $25,000 to $50,000 is common. This figure is for the auditor only. This doesn’t include the internal time you’ll spend preparing evidence, fixing vulnerabilities, or performing readiness checks.

Teams handle preparation differently. Some hire consultants to fill skill gaps. Others manage everything in-house or rely on automation to reduce manual effort and ensure predictable costs.

If you’re building from scratch, be prepared to invest more time, manpower, and budget. But if most controls are already in place and you have a process manager, the audit will be far less expensive than the figures above.

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SQC Certification’s SOC 2 Certification Service

SQC Certification Vietnam is a member of SQC Certification India and has a global presence, including Vietnam. We are proud to partner with thousands of businesses on their journey to establishing their position and integrating internationally.

At SQC Certification Vietnam, we pride ourselves on certifying organizations and fostering a culture of continuous improvement through our Advanced Management Systems Assessment and Training programs. SQC Certification Vietnam has been a trusted choice for numerous organizations, large and small, nationwide in achieving SOC 2 certification.

We have a team of leading domestic and international experts with extensive experience, delivering practical value and the most professional experience to our clients.

Clients using SQC Certification Vietnam’s services will receive:

• A scientific, transparent, and professional assessment process
• Fast and efficient procedures with maximum support throughout the certification process
• All-inclusive pricing with no unexpected additional costs
• 24/7 support – Dedicated and responsible partnership
• Attractive after-sales service – Exclusive offers for loyal customers

Let SQC Certification Vietnam help your business achieve international standards professionally and sustainably.

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