December 13, 2023

How to Choose an Auditor for Your SOC 2 Audit

Devon Lane
Content writer
at Flowbase

For new and growing businesses that provide cloud-based services, a SOC 2 audit is an important part of solidifying your presence in the market and building credibility with enterprise customers. Part of the SOC 2 audit process is hiring an auditor to assess your security controls and ensure you meet all the requirements. 

In this article, we’re sharing tips for how to choose the right audit partner as well as questions to ask potential auditors.

What Do SOC 2 Auditors Do?

Before we get into the details of how to identify the right SOC 2 auditor for your business, let’s first explore what it is they do. 

Some of the core tasks your auditor will conduct as part of the SOC audit include: 

  • Collecting data about how your systems and operations are set up, as well as reviewing any documentation you have prepared ahead of the audit. 
  • Understanding the scope of your SOC 2 audit, including which of the five Trust Services Criteria are relevant to your organization.
  • Finding proof of the controls needed to meet each of the criteria, including digital protections like firewalls and encryption, staff policies, and identity and access management.
  • Collecting evidence to document your security posture.
  • Collaborating with you and your team as needed, asking additional questions, or requesting additional documentation.
  • Testing your SOC 2 controls and collecting evidence on how effective they are (this is only the case for a SOC 2 Type 2 — not a Type 1 report).
  • Preparing a report of their findings, including a full inventory of your SOC 2 controls.
  • Determining if you’ve passed the audit and met the requirements for SOC 2 compliance.

As you review your auditor choices, ask them about their process and ensure that it covers all of these bases. 

How to Choose the Right SOC 2 Auditor in 2024

Finding the right SOC 2 auditor can feel like a daunting task, especially if you haven’t done it before, but it doesn’t have to be. For starters, you’re going to want to find an auditor that is willing to act as a partner alongside your SOC 2 journey. Auditors have a wealth of experience under their belts, and the best ones are open to sharing this knowledge with companies as they tackle this new world of security controls and compliance. 

Other useful criteria to keep in mind include the following.

AICPA Certification

The American Institute of Certified Public Accountants (AICPA) is the governing body that regulates the SOC audit process. As such, whether you choose to work with a licensed CPA firm or independent auditors, they should be AICPA approved and certified. 

Budget-friendliness

The cost for a SOC 2 auditor can vary greatly depending on who you choose to work with. Independent auditors and CPAs are likely to have a more reasonable rate than an audit team from the likes of Deloitte or KPMG, even though they’re delivering the same quality of work. That said, if you’re serving mostly enterprise clients, they may prefer to see a report from a big-name auditor.

Breadth of Experience 

Working with an auditor that has experience in SOC 2 audits will be key. Not only will this help ensure that you have a seamless experience with your audit, it will also help ensure that there are no gaps as part of the audit process. Make sure the auditor has worked with companies that are similar to yours. 

Communication Style

Pay close attention to how the auditor communicates with you. Are they prompt with providing answers and do they go into enough detail? Are they proactive in giving you information? Does it feel like they would make good partners?

Questions to Ask a Prospective Auditor

As you evaluate potential auditors for your SOC 2 audit, ask them the following questions. Some of these may feel a bit uncomfortable, but it will save you time and energy in the long run.

  • What industry do you typically work with? This will help you identify whether they are familiar with your sector and how your business operates. 
  • How familiar are you with the tools in our tech stack? An auditor that knows your tools will be better able to test controls and help you gather the right evidence.
  • What does your audit process look like? Do they have a template? Are they flexible to different types of companies and operations?
  • Who, specifically, will conduct the audit? Make sure you have insight into who you will be working with and their level of expertise.
  • What do you need from us to conduct the audit? Get a sense of the time burden there might be on your compliance team.

These, and other questions that your compliance team will come up with, are important to help set the tone for your audit relationship. 

What’s Next?

As you get ready to find the right auditor for your SOC 2 audit, don’t be too hasty. Take the time to find the right partner, one that will support you as you take this important step in your business’s development.

‍At Marana, we take a comprehensive approach to helping companies achieve SOC 2 compliance. Keen to learn more about how we do it? Let’s chat.

We’re here to help.

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Frequently Asked
Questions

What type of compliance standard can you help with?

We help our clients based on their needs. The majority of our contracts involve SOC-2, HIPAA, and most recently GDPR. Feel free to ask us if we can help with your particular case. If we aren't able to, we can most likely recommend you to someone who can.

How long does a SOC 2 engagement usually take?

We move as fast as our clients are able to make progress. Our fastest client to date got their SOC-2 Type I four months after signing our engagement letter. That record is up for grab if you are up for it.

In our experience however, it takes 6-9 months to achieve a SOC-2 Type I,  and 3-6 additional months to obtain a SOC-2 Type II report.

Which standard do you follow for your security policies?

All of our security policies follow the ISO-27001 standard. The Confidentiality, Integrity, and Availability standards cover the range of standards we like to work with for SOC 2.

Why do we have to become SOC 2 compliant if we are relying on AWS which is already compliant?

SOC 2 stands for Service Organization Control, meaning your clients are interested in understanding your controls, not your hosting provider’s control. As part of your vendor assessment we recommend reviewing AWS’ SOC 2 report, but relying on their report is not enough to become SOC 2 compliant.

Who is behind SOC 2?

The American Institute of CPAs. The AICPA is an established and respected organization that provides two forms of audits to companies that demonstrate evidence of a secure data-protection infrastructure. A Type I is a point in time audit that addresses the company’s description of its system, the suitability of the system’s design, and the effectiveness of its internal data controls. A Type II report happens over a period of time and emphasizes design and also focuses on the validity of the company’s controls.

Are SOC 2 reports a legal obligation?

No, but most enterprise level organizations that engage with sensitive data (again, almost all of them) have an obligation to their stakeholders to prove due diligence regarding data security, which means they’ll want to vet their service providers using this tool. SOC 2 can help these prospective service providers set themselves apart from the competition. Just as important, a SOC 2 report represents a meaningful and respected signifier of trust.

What can happen to a company without a SOC 2 report?

A lack of a SOC 2 report won’t result in legal problems, but it can and will limit outside assessments of the company’s commitment to data security. When large-scale clients look for providers, or large-scale backers look for a likely return on their investment, they don’t want concerns about security to stand in the way. Trust is a chain made of links that have each been put the test and have proven their ability to withstand pressure and scrutiny. Company leaders are wise to let SOC 2 auditors apply this pressure so their clients and backers don’t have to.

When is it too late for a SOC 2 audit?

Never. Even companies that have been in business for years but have never obtained a SOC 2 report can—and should—take steps in this direction now. Being compliant with SOC 2 can open the door to a broader base of more significant clients and larger contract opportunities. That being said, startups in the threshold of the marketplace, and new business owners who hope for an eventual public offering, should obtain a SOC 2 report during the development and financing process. By the time the company approaches Series B and C fundraising rounds, a report should be in hand.

How complicated is the auditing process?

The auditing process can be easy, or complicated depending on your level of preparation.

Preparing for the audit can take some time, attention, and the guidance of reliable data security experts. Don’t leave any part of this process to chance. Approach SOC 2 compliance one step at a time, and start by contacting a consulting firm with track record of experience in your area of the marketplace.

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