SOC 2 (System and Organization Controls 2) is an auditing framework developed by the American Institute of Certified Public Accountants (AICPA) that evaluates how a company manages data to protect the interests of its clients and the privacy of their information. One82 is a managed service provider based in Los Gatos, California, specializing in IT, cybersecurity, compliance, and AI for professional services firms in the San Francisco Bay Area. We help boutique financial services firms, CPA practices, and law firms prepare for and achieve SOC 2 compliance when their clients, investors, or regulators require it.
How SOC 2 Works
A SOC 2 audit examines your firm’s controls across five Trust Service Criteria:
- Security — Protection of systems and data against unauthorized access (the only mandatory criterion)
- Availability — Ensuring systems are operational and accessible as committed
- Processing Integrity — Ensuring system processing is complete, valid, accurate, and timely
- Confidentiality — Protection of information designated as confidential
- Privacy — Collection, use, retention, and disposal of personal information
A qualified CPA firm (not your own) conducts the audit and issues a SOC 2 report. There are two types:
- SOC 2 Type I — Evaluates the design of your controls at a specific point in time
- SOC 2 Type II — Evaluates the design and operating effectiveness of your controls over a period of time (typically 6 to 12 months), and is the more rigorous and credible report
According to the AICPA, demand for SOC 2 reports has grown by over 50% since 2020, driven by increased cybersecurity concerns and institutional requirements for third-party security validation (AICPA SOC Suite, 2024).
Why SOC 2 Matters for Professional Services Firms
SOC 2 is increasingly relevant for professional services firms in three scenarios:
Institutional client requirements. Private equity firms, venture capital funds, and investment banks are seeing SOC 2 requests in due diligence questionnaires from limited partners, institutional investors, and enterprise counterparties. A firm that cannot produce a SOC 2 report — or demonstrate equivalent controls — may lose institutional relationships.
Competitive differentiation. According to Schellman’s 2024 SOC 2 Trends Report, 67% of B2B buyers now consider SOC 2 compliance a factor in vendor selection (Schellman, 2024). For professional services firms competing for sophisticated clients, SOC 2 signals operational maturity.
Regulatory alignment. While SOC 2 is not a regulation, the controls it requires overlap significantly with regulatory requirements from the SEC, FTC Safeguards Rule, and state data privacy laws. Firms that pursue SOC 2 often find they are simultaneously strengthening their regulatory compliance posture.
How One82 Helps Firms Prepare for SOC 2
Most boutique professional services firms do not have the internal IT infrastructure or documentation to pass a SOC 2 audit without outside help. One82 supports the SOC 2 readiness process by:
- Gap assessment — Evaluating your current controls against SOC 2 criteria and identifying what needs to change
- Control implementation — Deploying the technical controls required (access management, encryption, monitoring, incident response, backup verification)
- Policy documentation — Creating the written policies and procedures that auditors review
- Evidence collection — Maintaining logs, records, and reports that demonstrate your controls are operating effectively over time
- Audit coordination — Working alongside your chosen SOC 2 auditing firm to ensure a smooth examination
Frequently Asked Questions
Is SOC 2 required by law?
No. SOC 2 is a voluntary audit framework, not a legal requirement. However, it is increasingly required by clients, investors, and business partners as a condition of doing business. For boutique financial firms, SOC 2 is often a practical requirement even if it is not a legal one — institutional LPs and enterprise counterparties may refuse to engage with firms that lack SOC 2 certification.
How long does it take to get SOC 2 certified?
Preparation typically takes 3 to 6 months, depending on your firm’s starting point. A SOC 2 Type I audit can be completed relatively quickly once controls are in place. A SOC 2 Type II audit requires controls to be operating effectively for a period of 6 to 12 months before the auditor can issue the report. Total timeline from start to Type II report is usually 9 to 18 months.
How much does SOC 2 cost for a small firm?
Total costs depend on your firm’s size and complexity. For a boutique firm with 10 to 50 employees, expect to budget $30,000 to $80,000 for the first year, including readiness preparation, tool implementation, and the audit itself. Annual renewal audits are typically less expensive.
What is the difference between SOC 1 and SOC 2?
SOC 1 focuses on controls relevant to a client’s financial reporting. It is primarily relevant for companies that process financial transactions on behalf of clients (like payroll processors). SOC 2 focuses on data security, availability, processing integrity, confidentiality, and privacy. For professional services firms protecting client data, SOC 2 is almost always the relevant framework.
