What is a SOC 2 Report? A Guide to SOC 2 Reporting for Technology Businesses

Digital data is increasingly becoming a critical asset for every business. It serves as a key competitive resource that drives growth in today’s digital era. However, alongside these opportunities come significant risks related to information security. This is why SOC 2 has become an essential standard – especially for companies in technology, SaaS, and cloud services.

So, what is a SOC 2 report, what role does it play, and what do businesses need to prepare to achieve this certification? Let’s explore the details in the article below from SQC Certification.

The SOC 2 (System and Organization Controls 2) report is a type of audit report that assesses the level of data security and safety of a business – especially common in technology, SaaS, and cloud companies.

Contents

What is SOC 2?

As mentioned earlier, SOC 2 (System and Organization Controls 2) is an auditing standard developed by the American Institute of Certified Public Accountants to evaluate an organization’s ability to control and protect customer data.

According to AICPA, SOC 2 focuses on how organizations design and operate internal controls related to security and data protection. A SOC 2 report is not just a certificate—it is proof that a company operates under strict and reliable security standards.

What is a SOC 2 Report?

A System and Organization Controls 2 (SOC 2) report is an independent assessment report that shows how a business manages and protects customer data based on the Trust Services Criteria set of criteria issued by the AICPA (Association of Chartered Certified Accountants). Modern SOC 2 reports focus on key elements such as security, availability, confidentiality, processing integrity, and privacy.

In simple terms, a SOC 2 report proves that a company’s systems and processes are secure, reliable, and designed to protect data effectively. This makes it especially important for businesses in technology, SaaS, and cloud computing when proving their security capabilities to clients and partners.

Which Businesses Need a SOC 2 Report?

SOC 2 report is applicable to any organization handling data, but it is particularly important for the following groups:

1. SaaS (Software-as-a-Service) Companies

This group has the highest demand for SOC 2 because they store and process customer data on the cloud. Clients – especially in the U.S. – almost always require SOC 2 compliance.

2. Cloud / Hosting Service Providers

TIncluding businesses such as Cloud infrastructure, Data centers, Hosting services, etc. These organizations manage critical data infrastructure, so they must demonstrate that their systems are: secure, highly available, capable of recovery

3. Fintech, Payment, and Digital Banking Companies

Businesses in the financial sector such as e-wallets, payment gateways, or trading platforms. These organizations handle extremely sensitive data (financial and identity information), so SOC 2 helps:

Increase trust
Reduce fraud risks

4. Outsourcing / IT Services Companies

Including software outsourcing companies and IT service companies that work with foreign clients, especially in the US.

5. Cybersecurity / Data / AI Companies

Organizations that handle large-scale and critical data systems – such as data analytics firms, AI, and machine learning companies a

5 Trust Services Criteria in SOC 2

A SOC 2 report is built on five core Trust Services Criteria. Depending on their scope, organizations may apply one or more of the following:

1. Security

This is the mandatory criterion in every SOC 2 report. It evaluates whether systems are protected against unauthorized access, cyberattacks, security risks

2. Availability

Ensures that the system is always stable, capable of recovering from failures, and meets service level agreements (SLAs).

3. Processing Integrity

Ensuring that data is processed accurately, completely, and on time.

4. Confidentiality

Relating to the protection of sensitive information such as contracts, business data, and customer information.

5. Privacy

Assessing how businesses collect, use, store, and delete personal data in accordance with legal regulations.

Types of SOC 2 Reports

According to the American Institute of Certified Public Accountants, SOC 2 reports are divided into two main types:

SOC 2 Type I

Evaluates control design at a specific point in time
Suitable for companies just getting started
Faster to complete

SOC 2 Type II

Evaluates operational effectiveness over time (typically 3–12 months)
Provides higher reliability
Most common choice for companies expanding internationally

In practice, SQC Certification’s clients who have implemented the SOC 2 standard often rate the SOC 2 Type II report higher because it reflects the actual operational capabilities of the system.

Why Businesses Need a SOC 2 Report

For organizations in the IT and technology sector, a SOC 2 report has become an essential document for data security. Its importance lies in:

1. Building Trust and Credibility

SOC 2 acts as strong proof that a company meets international security standards—especially important when working with clients in the U.S. and Europe.

2. Gaining Competitive Advantage

In SaaS and tech industries, SOC 2 is almost an unwritten requirement. Without it, businesses may be eliminated early when pitching to large clients.

3. Minimizing Security Risks

The process of deploying a SOC 2 and producing a well-structured SOC 2 report will help businesses detect and fix vulnerabilities in their systems, thereby minimizing the risk of data leaks.

4. Supporting Fundraising and Business Expansion

Many investment funds and strategic partners require businesses to have a SOC 2 before collaborating.

How to build a SOC 2 and produce a complete SOC 2 report in steps

This article from SQC Certification shares with you the roadmap for building an SOC 2 to help you produce an SOC 2 report according to AICPA standards. These important steps will help businesses produce a quick and complete SOC 2 report:

Phase 1: Defining Scope & Strategy

1: Defining the Scope (Assessment Scope)

This is the most important step for businesses to make decisions about which systems are assessed, which data needs to be protected, and which departments are involved.

2: Choosing the Trust Services Criteria (TSC)

As mentioned, the SOC 2 standard has 5 criteria:

Security (mandatory)
Availability
Confidentiality
Processing Integrity
Privacy

Choosing which criteria to prioritize is crucial for businesses. Currently, about 90% of businesses choose Security + Availability + Confidentiality.

Defining scope and strategy

3: Choosing report type

Type I → audit at one point in time
Type II → audit over 3–12 months

The current popular strategy for businesses is to do Type I first → then move to Type II.

Connect with an expert

Phase 2: Gap Analysis

4. Assessing the current state of the system

The current comparison is to see if businesses actually meet the requirements of the SOC 2 standard. A thorough GAP analysis will be the first step to help your business familiarize itself with the SOC 2 system.

5. Building an implementation roadmap

The next step is to build The roadmap involves implementing a timeline and assigning responsible personnel. In this step, you should hire a consulting firm to help your business build a successful roadmap.

Phase 3: Building the Control System

6. Developing Policies & Documentation

SOC 2 requires numerous documents such as:

Information Security Policy
Access Control Policy
Incident Response Plan
Risk Management Policy

This is the “documentation” section, which is extremely important.

7. Setting up Controls

Some common controls currently used by organizations include:

MFA (Multi-Factor Authentication)
Access control
Log monitoring
Data backup
Vulnerability scanning

Controls must be:

Real
Verifiable
Auditable

8. Implementing Support Tools (Recommended)

Popular tools include:

Vanta
Drata
Secureframe

Helps automate evidence gathering and compliance management.

Phase 4: Operation & Evidence Gathering

9. System Operation

Type I → only need “design”
Type II → must “operate” for 3–12 months

Examples:

Access Logs
Ticket Troubleshooting
Backup Reports

10. Evidence Gathering

Auditor will request:

System Screenshots
Logs
Policy
Training Records

This is the most time-consuming part.

Phase 5: Pre-audit

11. Internal Audit

The goal of this phase is to ensure there are no errors before the official audit. This helps minimize risks such as audit failure and multiple NC issues.

Phase 6: Formal Audit

12. Working with the CPA Audit Firm

SOC 2 reports are only issued by CPA firms (accredited by AICPA). Auditors will review documents, interview personnel, and test the system.

13. Testing Controls

Assessment experts will test whether controls exist, whether they function correctly, and whether there is evidence.

For Type II → testing is conducted throughout the period (e.g., 6 months).

Phase 7: Issuing the SOC 2 Report

14. Receiving the SOC 2 Report

In this phase, your organization will receive the SOC 2 Report, which includes 5 main sections:

Independent Auditor’s Report
Management Assertion
System Description
Control Objectives & Controls
Tests of Controls & Results

This is the document you send to the client (NDA).

Recommendations for Successfully Achieving a SOC 2 Report

As a leading SOC 2 consulting and assessment provider in Vietnam, SQC Certification shares key practical insights to help your business successfully achieve a SOC 2 report. Proper preparation from the beginning will make the audit process smoother and increase the chances of obtaining a “clean” report.

Below are important experiences for businesses when implementing SOC 2:

Clearly Define Scope and Systems

The organization needs to clarify the scope of the SOC 2 standard assessment, whether it applies to the entire system or only a part of it (e.g., SaaS applications, cloud infrastructure, or a specific service). This scope will be described in the SOC 2 report and assessed by the auditor to determine its suitability to actual operations.

Prepare Complete Documentation & Security Policies

During the audit, auditors will review key documents such as:

Information Security Policy
Access Management Procedures
Incident Response Plan
Risk Management Process

These documents must reflect actual operations and include evidence showing that controls are consistently implemented.

Ensure Staff Awareness and Capability

SOC 2 audits often include employee interviews to assess:

Security awareness
Roles and responsibilities
Incident handling and data management

Businesses should conduct internal training on information security and procedures before the audit.

Conduct Internal Audit Before Official Assessment

A crucial step is to conduct internal audits to identify:

Gaps and non-conformities
Weaknesses in control systems

This allows your organization to fix issues before the official audit, reducing the risk of failure.

Implement and Track Corrective Actions

If non-conformities are found during operations or internal assessments, your business needs to:

Define corrective actions
Track progress
Maintain proper documentation as evidence

This is crucial for auditors to evaluate the effectiveness of your SOC 2 controls.

Strengthen Risk Management and Security Controls

SOC 2 places strong emphasis on:

Identifying security risks
Implementing appropriate controls
Continuous monitoring and improvement

A strong risk management system significantly increases your chances of achieving SOC 2 Type II.

Prepare Thoroughly for the Audit

The business needs to be well-prepared for the on-site audit, including scheduling meetings with the auditors, assigning responsibility for each system, and ensuring sufficient documentation and evidence. Auditors will review both documentation and the actual operation of the systems to ensure consistency.

Maintain and Continuously Improve After Certification

SOC 2 is not a one-time achievement. Especially for Type II, organizations need to:

Continuously maintain controls
Update policies when changes occur
Prepare for future audits

Reasons to Choose SQC Certification Vietnam

SQC Certification Vietnam is a member of SQC Certification India with a global presence, including Vietnam. We are proud to accompany thousands of businesses on their journey to strengthen their position and integrate into the international market.

At SQC Certification Vietnam, we take pride in certifying organizations and promoting a culture of continuous improvement through advanced management system assessment and training programs. We have become a trusted partner for organizations of all sizes across the country in achieving SOC 2 reports.

Our team consists of highly experienced local and international experts, delivering practical value and the most professional experience to our clients.

Clients using SOC 2 certification services from SQC Certification Vietnam will receive:

A scientific, transparent, and professional assessment process
Fast and streamlined procedures with full support throughout the certification journey
All-inclusive pricing with no unexpected additional costs
24/7 support – dedicated and responsible partnership
Attractive after-sales policies with exclusive benefits for loyal customers

Let SQC Certification Vietnam support your business in achieving international standards in a professional and sustainable way through SOC 2 certification.

Hotline: 0936 396 611
Website: https://sqccert.com.vn/