Key Takeaways
- The cost of a SOC 2 audit depends on several variables that include audit type, size of the company, complexity of the system, security preparedness, and audit fees.
- Type 1 audits assess controls at a point in time, whereas Type 2 audits involve assessing how controls work over a period of time and are more complex.
- Firms can control the costs associated with SOC 2 through careful scoping, early documentation preparation, and the right tool selection.
SOC 2 helps a company prove its commitment to customer data and cybersecurity; however, the process of preparation takes time, personnel, and funding. The total SOC 2 audit cost is rarely just the auditor’s invoice. Other possible expenses include compliance management software, security measures improvement, employee training, pentesting, and consulting.
There is no standard rate. A small SaaS company that has developed the appropriate internal controls will likely incur lower costs compared to a growing company with more complicated systems and control gaps.
What Is Included in SOC 2 Audit Cost?
The fee for the audit relates to the process involved in the evaluation of the controls relative to the chosen Trust Services Criteria. The total fee will depend on factors such as the extent of the scope, the amount of evidence, the number of systems/ processes to be assessed, and the work involved in testing the controls.
SOC 2 compliance automation costs may be higher due to:
- Pre-audit consultation and preparations: Professionals may discover weak points, assist in interpreting compliance requirements, and even provide remediation before the audit itself.
- Compliance software: There is plenty of software that can assist in distributing work, collecting information, managing controls, and managing vendors. Price will depend on the size of the company and features of the software.
- Security upgrades: The company may need better access controls, logging, endpoint security, data backup, or vulnerability scanning.
- Penetration testing: Some companies may conduct penetration testing to find vulnerabilities, depending on company risks and client requirements.
- Time of employees: Engineering, IT, security, HR, legal, and other departments will be busy preparing documentation and collecting evidence.
- Post-audit maintenance: Controls should be managed, policies updated, access reviewed, and the audit prepared.
Not every company needs every service; confirm which expenses apply to your scope.
SOC 2 Type 1 vs. Type 2 Audit Cost
Type 1 SOC 2 vs. Type 2 audit cost will largely depend on the scope of the audit evaluation that needs to be done. A Type 1 report evaluates controls for suitability and existence as of a particular date. A Type 2 report, on the other hand, evaluates controls in terms of design and operational effectiveness for a defined time period, which is usually a few months.
Type 1 Audit
A Type 1 audit may fit a company that requires an early report or assessment on control design. Even then, preparation can still be laborious depending on whether policies, ownership, access control, or evidence gathering are weak.
Type 2 Audit
Type 2 audits are more time-consuming since auditors need to assess the effectiveness of the controls during the audit period. Organizations need to provide access control documentation, onboarding documentation, incident and change logs, among others, adding up to the work.
Type 1 should not be the first option simply due to being cheaper. It may happen that a customer agreement or procurement policy will require you to conduct Type 2. Consult future clients about their needs, and clarify the scope of the report with your auditor.
What Factors Affect SOC 2 Audit Cost?
Many SOC 2 audit cost factors affect the quote. Understanding these lets you compare proposals on an apples-to-apples basis rather than just picking the one with the lowest headline price.
Company Size and the Audit Scope
A bigger company would have more people, applications, data flows, and control owners to assess. However, a smaller company with a complex infrastructure or with many third-party dependencies would need more testing than a larger, more documented one.
Scope is important, too. The systems, services, locations, and Trust Services Criteria are just some of the factors that could influence the auditing process. Ensure that your scope remains relevant without ignoring critical systems.
Security Readiness and Evidence Quality
These things can help to minimize requirements for preparation. Missing evidence or a lack of consistency can increase the effort of preparation and slow down the process of auditing. Readiness assessment can reveal the gaps prior to the test, although it is not free.
Infrastructure and Third Party Tools
Cloud technologies, integrations, deployments, and third-party services can increase the amount of evidence required. Automation will minimize the efforts for repetitive evidence gathering, but the platform cannot magically make a weak control strong by itself. Budget accordingly for configuration, assigning ownership, and handling exceptions.
Auditor Skills and Engagement Letter
The firm differs in its skills and experience, availability, methodologies, and rates. Review the scope, timeline, deliverables, meetings, and any additional fees. A low rate does not necessarily include readiness and assumes mature controls.
Also Check: GDPR Compliance Checklist for Better Business Data Security
SOC 2 Audit Cost Breakdown: How to Build a Realistic Budget?
A practical SOC 2 cost breakdown divides costs into independent audit, readiness, and operations costs. Never accept a cost quote in a lump sum. Instead, ask for a detailed estimate from vendors, and make sure to distinguish non-recurring costs from subscription costs.
| Cost Category | What to Confirm |
| Independent audit | Audit scope, audit report type, audit testing period, and included follow-up |
| Readiness and consulting | Gap analysis, policy development support, and remediation help |
| Compliance platform | Setup fees, yearly subscription, integration, and users allowed |
| Security tools and testing | Current tools, new licenses, and testing needed |
| Internal effort | Staff time for documentation, evidence collection, meetings, and remediation |
| Ongoing compliance | Renewals, monitoring, access review, and future audits |
Treat online estimates as planning guides, not guaranteed quotes. Request itemized proposals from firms that audit similar businesses, and ask whether evidence gaps are included.
How to Reduce SOC 2 Audit Costs?
Do not save unnecessary money at the cost of reducing security or misrepresenting your controls.
- Be clear about the scope from the beginning. Determine the services and systems that are involved in the report and get the scope confirmed by the auditor.
- Analyze current controls. Take stock of existing policies, access, backup, incident response procedures, and vendor management procedures before acquiring new controls.
- Have ownership. Assign an owner to each of the controls along with a time frame so as to avoid scrambling for evidence at the last moment.
- Use automation of the repeatable process of gathering evidence as and when needed. Choose the right tool based on your requirements and not because of unnecessary features.
- Prepare for the audit. Get the gaps sorted and test the process yourself before the auditor comes so that avoidable rework is minimized.
- Compare proposals itemized against each other. Compare scope, experience, support, and additional fees rather than selecting based on the price only.
- Keep using what works for you. Don’t change your policy, risk register, vendor list, and evidence gathering so that next time around, you won’t have to start from scratch.
Don’t do things like narrowing your scope unnecessarily, skipping out on remediation, and thinking software alone will make you compliant.
Try This: SOC 2 Compliance Checklist for Stronger Data Security Today
Bottom Line
SOC 2 audits cannot be completed in one go through paperwork alone. Controls should continue to operate, and some systems or services might need reassessment. Budget for access review, training, vendor reassessment, incident exercise, and policy management.
In terms of budgeting SOC 2 auditing costs, one needs to consider what internal capacity can be leveraged and what requires specialized help. Perhaps a less complex software package might fit a business with competent security staff, whereas an expanding team might require more automation. Redo the budget when introducing new products, modifying cloud architecture, entering into new markets, or handling additional data from clients. Check out platforms like Attestpath.ai to know, manage, and reevaluate your pricing and gain a holistic perspective on SOC2 audits and more.
Frequently Asked Questions
How much does a SOC 2 audit cost?
It doesn’t have one fixed price that applies to all businesses. The price varies based on whether you want Type 1 or Type 2, the extent of the exam, who the auditor is, and the level of readiness of your controls. The costs include audits, preparations, software, security upgrades, employee labor, and maintenance.
What is typically not a part of an auditor’s quote?
It could exclude readiness consulting, compliance software, penetration testing, remediation efforts, and time from internal employees. Get the quote in writing, specifying services provided and additional hourly rates.
Does a small company pay less for SOC 2?
Even if an organization is small, it may have fewer controls to review; however, size does not necessarily define the cost. Complicated infrastructure, poor documentation, many vendors, and lack of expertise can complicate the process and add to the cost. Well-defined services and evidence can facilitate the process.
How to lower SOC 2 audit cost?
Clearly define the scope of the audit, evaluate current controls, designate control owners, and gather evidence before testing. Automate processes if it is possible and compare detailed auditor offers. Do not neglect important security changes and do not purchase unnecessary products.
Is compliance software required for a SOC 2 audit?
A compliance platform is not universally required. Teams can collect and organize evidence manually, but software may help automate recurring tasks and track controls as complexity grows. Choose based on your systems, staff capacity, and budget; using a platform does not replace effective controls or an independent audit.
