SOC 2 Compliance Checklist

Today, SOC 2 certification remains a gold standard for demonstrating an organization’s commitment to data security and trust. This checklist breaks down the Trust Services Criteria (TSC), audit preparation steps, and expert best practices – empowering MSPs and service providers to achieve efficient, audit-ready compliance for themselves and their clients. 

What is SOC 2 and why does it matter?

SOC 2 (System and Organization Control 2) is a cybersecurity compliance framework developed by the American Institute of Certified Public Accountants (AICPA). It’s designed to help service organizations, especially those handling customer data, demonstrate they have the right systems and controls in place to protect that data.

At the core of SOC 2 are the Trust Services Criteria (TSC), which include five principles:

1. Security: Ensuring that systems and data are safeguarded from unauthorized access or compromise.
2. Availability: Making sure systems remain consistently accessible and function as expected.
3. Processing Integrity: Guaranteeing systems function as intended, completely, accurately, and in a timely and authorized manner.
4. Confidentiality: Keeping sensitive information safe from unauthorized disclosure
5. Privacy: Handling personal data responsibly and in alignment with applicable privacy laws.

Recently, SOC 2 compliance is more relevant than ever. With rising cybersecurity risks and growing pressure from clients, partners, and regulators, organizations must prove their ability to manage data responsibly. This is particularly critical for MSPs, MSSPs, SaaS providers, and cloud platforms, who are often entrusted with sensitive customer data across industries like healthcare, finance, and technology.

SOC 2 has become a standard requirement in vendor assessments and due diligence processes. Whether you’re selling to enterprise clients or scaling your compliance operations, having SOC 2 certification signals maturity, trustworthiness, and operational excellence.

Beyond risk reduction, SOC 2 also supports long-term regulatory compliance strategies. It aligns with frameworks like HIPAA, GDPR, and ISO/IEC 27001, providing a strong foundation for broader security and compliance programs.

Which companies need SOC 2 compliance?

Organizations that store, process, or transmit customer data, especially on behalf of other businesses, most likely need SOC 2 compliance.

SOC 2 is especially relevant for:

• Cloud-based SaaS companies that store or process customer information
• MSPs and MSSPs responsible for securing and managing clients’ IT infrastructure and cybersecurity posture
• Cloud hosting and infrastructure providers
• Data analytics and backup vendors
• Any B2B service company acting as a data processor or subprocessor

SOC 2 is not a legal requirement, but it is often mandated by clients during procurement and onboarding. Enterprises and regulated industries (e.g., healthcare, financial services, insurance, and fintech) frequently require SOC 2 reports before doing business with a vendor. Without it, organizations may be disqualified from deals or face lengthy security reviews that slow their sales cycle.

SOC 2 provides MSPs and MSSPs with strategic benefits, both for reducing risk and gaining a competitive edge. On one hand, it reduces liability by proving you’ve implemented essential controls. On the other hand, it differentiates your services in a crowded market by offering compliance management as a value-added feature.

SOC 2 also supports internal compliance management maturity. It creates a structured process for handling security, privacy, and vendor risk – something every growing service provider needs to scale sustainably.

SOC 2 compliance checklist: Core requirements

Having a proper SOC 2 compliance checklist can help you avoid last-minute fire drills and improve your odds of a successful audit – while also building a stronger foundation for ongoing compliance, reducing business risk, and gaining a competitive edge in 2025’s security-conscious market.

The following SOC 2 checklist outlines the key steps and documentation required to meet the Trust Services Criteria and succeed in a SOC 2 audit. Use it as your SOC 2 roadmap, from initial planning all the way to audit readiness.

1. Define audit scope

Start by identifying which of the five Trust Services Criteria apply to your organization:

• Security (mandatory): Protect systems and data from unauthorized access
  Availability: Ensure systems remain operational and accessible
• Processing Integrity: Ensure systems function correctly and deliver accurate data
• Confidentiality: Safeguard sensitive client or business information
• Privacy: Protect personal data and handle it in accordance with privacy laws

Your audit scope should reflect your clients’ needs, the types of data you handle, and any industry-specific obligations (e.g., HIPAA for healthcare or GDPR for privacy). Defining scope correctly helps avoid unnecessary audit complexity and ensures relevance.

2. Conduct a readiness (gap) assessment

Before the audit begins, conduct a comprehensive readiness (gap) assessment. This step helps you identify where your current controls fall short of SOC 2 requirements, prioritize remediation based on impact and risk, and prevents costly surprises once the formal audit starts. It also produces a clear remediation roadmap that aligns teams and budgets. Readiness work can be handled internally or with the help of CPA firms, experienced consultants, or compliance-automation platforms – such as Cynomi – that map existing controls to TSC gaps.

3. Implement and validate required controls

Close the identified gaps with documented, repeatable controls. These controls are the operational core of SOC 2 compliance: they must be aligned with your scoped TSC categories, proportional to the risks and systems you manage, and be both designed appropriately (Type I) and operating effectively over time (Type II). Typical control areas include:

• Access controls (MFA, role-based permissions)
• Data encryption applied during storage and transmission
• Network and endpoint monitoring
• Incident detection and response plans
• Employee background checks and onboarding processes

Remember, SOC 2 security controls are not just about technology; they also encompass policies, processes, and culture. 

4. Create and document policies and procedures

SOC 2 demands robust documentation. Your policies and procedures must align with the Trust Services Criteria (TSC) and demonstrate consistent implementation across the organization. All documents should be current, relevant, and accessible to employees and auditors, including: 

• Information Security Policy
• Incident Response Plan
• Data Retention and Disposal Policy
• Acceptable Use Policy
• Vendor Management Policy
• Business Continuity and Disaster Recovery Plan

To maintain consistency and save time, use templatess or automated compliance software solutions to accelerate documentation efforts.

5. Provide security awareness training

Employees are an organization’s first line of defense. SOC 2 requires that all staff receive regular training on:

• Cyber-hygiene best practices
• Proper data-handling procedures
• Identifying phishing and social-engineering attacks
• Internal compliance responsibilities

Auditors will request training records, so be sure to log dates, attendance, and topics covered. 

6. Perform regular risk assessments

SOC 2 requires a documented, repeatable risk assessment process. Auditors will review your most recent assessment, which should include an inventory of systems and data, threat identification, likelihood and impact analysis, and mitigation steps and timelines.

Regular assessments – ideally facilitated by compliance automation tools – help you stay ahead of threats and demonstrate a mature compliance posture.

7. Maintain detailed audit logs and evidence

SOC 2 requires verifiable evidence. Make sure you retain access logs, security alerts and their resolution records, change management documentation, system uptime and availability metrics, and control performance evidence. Use centralized dashboards to make audit evidence collection fast and defensible.

8. Establish and maintain a vendor risk-management process

Your overall compliance strength depends on the security of your third-party vendors. SOC 2 calls for evaluating and documenting the risks introduced by vendors and partners:

• Maintain an inventory of all vendors who access, store, or process data
• Assess the security posture of critical vendors (via SOC reports or questionnaires)
• Track remediation efforts and risk acceptance decisions
• Include vendor management in your internal policies and training

This structured vendor oversight should be an integral part of your compliance risk management program.

9. Engage a licensed SOC 2 audit firm

Your final step is undergoing a formal audit conducted by an independent, licensed CPA firm qualified to perform SOC 2 assessments. Choose an audit firm that specializes in SOC 2, understands your industry (e.g., SaaS, MSPs, healthcare), and offers clear guidance on evidence expectations, and even readiness assessments or pre-audit support. This can streamline your timeline and minimize revision cycles.

Practical steps for preparing for a SOC 2 audit

Let’s dive a bit deeper and discuss the specific steps to go through when preparing for the actual audit. By the way, the general cybersecurity best practice is applicable here too – audit readiness should be treated as an ongoing process, not a one-time project. The most successful teams operationalize their audit prep into monthly or quarterly check-ins.
Follow these practical steps to prepare effectively for your audit:

Conduct a mock audit or readiness review

Before the formal audit begins, simulate the process internally or with a third-party advisor. This critical step validates that your controls are not only implemented but also functioning effectively, helps identify missing artifacts or incomplete evidence, and confirms your timeline, especially if you’re pursuing a Type II report, which requires evaluating control performance over a multi-month review period. A mock audit reduces surprises and builds confidence before engaging your auditor.

Organize audit evidence effectively 

Create a centralized evidence repository with clearly labeled folders, version-controlled policies, time-stamped logs, vendor reports, and training confirmations. Auditors expect clarity and traceability, not chaos. Ideally, your evidence collection should be centralized in a system that supports traceability and permissions. Compliance automation can greatly simplify evidence collection and tracking.

Resolve gaps before the audit starts

Don’t wait for your auditor to flag issues. Use the preparation phase to remediate any incomplete or inconsistent control implementations, ensure documentation is aligned with current processes, and update stale or outdated policies. This step not only reduces audit delays but also demonstrates operational maturity.

Maintain audit readiness through continuous monitoring

To go beyond the ‘snapshot audit’ and build trust over time, establish ongoing monitoring and alerting mechanisms to quickly identify control failures or anomalies, shifting risks, vendor changes, and internal transitions, such as new systems, staffing changes, or infrastructure updates. This continuous oversight eases future audits and supports long-term SOC 2 compliance maintenance and recertification.

Understanding SOC 2 Type I vs. Type II Reports

One of the most common sources of confusion in the SOC 2 journey is the distinction between Type I and Type II reports. While both follow the same Trust Services Criteria (TSC), they evaluate your controls in very different ways. The right choice depends on your business’s stage, goals, and client or regulatory expectations.

SOC 2 Type I: Snapshot of design

SOC 2 Type I assesses whether your controls are appropriately designed and implemented as of a specific point in time – essentially offering a “snapshot” of your compliance posture on the audit date. It focuses on whether the right policies, procedures, and tools are in place at that moment.

SOC 2 Type I is often a good fit for organizations new to SOC 2 – such as startups, early-stage MSPs, or service providers preparing for enterprise sales. It helps demonstrate initial compliance readiness to prospective clients or investors. SOC 2 Type I audits can often be completed in a matter of weeks, depending on your level of preparedness.

SOC 2 Type II: Proof of operational maturity

SOC 2 Type II goes further. It evaluates whether your controls are not only designed and implemented, but also operating effectively over time. Auditors review actual execution, such as logs, reports, tickets, and procedural outcomes, across a defined observation period (typically 3 to 12 months). 

This level of certification is typically required by enterprise buyers, regulatory environments, or partner programs where operational maturity and sustained control effectiveness matter. Type II is also preferred by MSPs and MSSPs offering compliance-as-a-service. SOC 2 Type II requires sustained evidence collection during the review period, plus time for the audit itself.

Key documentation required for SOC 2 compliance

Documentation is at the core of a successful SOC 2 audit. Auditors expect proof that your controls are not only in place but also clearly defined, consistently applied, and well-maintained.

Ensure your documents are version-controlled, well-organized, and aligned with the Points of Focus, which are the practical implementation guidelines that support each of SOC 2’s Trust Services Criterion (TSC). The following are key documents to prepare:

• Core security policies: Access control, encryption and data handling, incident response, acceptable use, change management, and business continuity and disaster recovery.
• Risk and vendor management: Risk assessment reports, vendor inventory and evaluations, and third-party assurance documentation (e.g., SOC reports, certifications).
• People and processes: Employee onboarding/offboarding procedures, security awareness training records, and clearly defined roles and responsibilities.
• System monitoring and audit trails: Log collection and retention practices, monitoring dashboards and alerts, and evidence of control performance over time.

Common SOC 2 compliance mistakes to avoid

Even well-prepared organizations can stumble during the SOC 2 process. Avoiding some common mistakes can save time, reduce audit stress, and improve your long-term compliance posture.

1. Treating SOC 2 as a one-time project

SOC 2 Type II requires evidence over months, not just point-in-time documentation. Organizations that stop tracking compliance after the audit quickly fall behind. This is why continuous monitoring and automation are essential components of a sustainable compliance strategy.

2. Overlooking vendor risk management

SOC 2 auditors expect structured oversight of third-party vendors. Failing to assess, document, or track vendor compliance is a red flag. Maintain a current vendor inventory and request attestation report (e.g., SOC 2, ISO 27001) or security questionnaires from critical suppliers.

3. Poor evidence organization

Auditors won’t chase down files or screenshots. Disorganized, outdated, or missing audit evidence can delay or jeopardize certification. Use compliance software solutions to centralize and manage evidence collection, tracking, and access control.

4. Incomplete or outdated training records

Security awareness training is a requirement, but many companies fail to properly log attendance or update the content. Here too, technology can help: Automate training reminders, record attendance, and ensure materials reflect evolving threats and compliance requirements.

How Cynomi supports SOC 2 compliance for MSPs and organizations

For MSPs, MSSPs, and service providers managing security and compliance, often across multiple clients, manual SOC 2 preparation can be time-consuming and prone to error. Cynomi streamlines the process by offering automation, structure, and expert-aligned guidance tailored to SOC 2 readiness.

Here’s how Cynomi supports SOC 2 compliance:

Automated gap analysis aligned to the Trust Services Criteria

Cynomi’s platform performs an automated gap analysis against the Trust Services Criteria, pinpointing where your organization falls short and identifying exactly what’s needed to close those gaps. This ensures you focus on the controls that matter most for your chosen SOC 2 scope, saving time and reducing audit friction.

Auto-generated policies and control procedures

Instead of drafting dozens of documents from scratch, Cynomi automatically generates customized policy templates and security procedures mapped to SOC 2 requirements.  These include access control, incident response, change and configuration management, risk management, and more. You can adapt the policies as needed, then easily share with auditors or internal stakeholders.

Evidence and task tracking dashboards

Cynomi provides centralized dashboards to track SOC 2-related tasks, control implementation status, and evidence collection. Each task is mapped to the Points of Focus, the AICPA’s implementation guidelines that support the Trust Services Criteria, making it easier for teams to understand, execute, and demonstrate compliance in a structured, audit-ready way. This makes SOC 2 preparation far more manageable, especially for teams juggling multiple responsibilities or supporting multiple environments.

Continuous posture monitoring and readiness reports

The platform supports ongoing compliance management by tracking progress toward SOC 2 goals over time. When it’s time for the audit, Cynomi generates tailored readiness reports that align with auditor expectations, helping reduce surprises and rework.

By eliminating guesswork, automating documentation, and maintaining real-time visibility into compliance posture, Cynomi empowers MSPs and service providers to deliver faster, more efficient SOC 2 readiness with fewer resources and improve client outcomes.