IT administrators, compliance officers, and operations leaders.
Key Takeaways
Protecting sensitive information is a top priority for any organization capturing audio and video data. This resource breaks down the fundamentals of SOC 2 compliance and explains how rigorous security standards keep enterprise, legal, and educational workflows completely secure.
AT A GLANCE
- Strict access controls ensure only authorized personnel handle sensitive media files and transcripts.
- Continuous system monitoring proactively protects cloud infrastructure against unauthorized data access.
- Regular third-party security audits build reliable trust across enterprise and legal partnerships.
WHO SHOULD READ THIS
Estimated Reading Time
5 min read
Every time your company shares data with a vendor, you’re trusting that vendor to protect it as carefully as you would. A SOC 2 report is one of the best ways to know whether that trust is warranted – and if your business handles customer data, it’s how prospects will judge you, too.
SOC 2 compliance used to be a nice-to-have. Today it’s often the first document a procurement or security team asks for, and the bar keeps rising. Breaches are more expensive than ever – the average now tops $4.99 million globally and $11.5 million in the U.S., according to IBM’s 2026 Cost of a Data Breach Report – and third parties were involved in 48% of breaches in Verizon’s 2026 Data Breach Investigations Report. Whether you’re vetting a vendor or preparing for your own audit, this guide explains what SOC 2 is, how it works and what’s changed.
At Verbit, this is personal. Our customers trust us with some of their most sensitive content, from depositions and court proceedings to earnings calls and lectures. That’s why we maintain a SOC 2 Type II attestation and ISO 27001:2022 certification. Here’s what we’ve learned about what SOC 2 means and why it matters.
What Is SOC 2 Compliance and Why Does It Matter?
What is SOC 2 compliance? SOC 2 is a framework for showing how a service organization protects customer data. It was developed by the American Institute of Certified Public Accountants (AICPA) and is built on the Trust Services Criteria. The current criteria date from 2017, and the AICPA revised the points of focus in 2022.
SOC 2 isn’t a certification. It’s an attestation: an independent CPA firm reviews your controls and issues a report saying whether they’re designed well and, for Type 2, whether they work in practice.
Why it matters:
- It opens doors to enterprise deals. Many large buyers ask for a current SOC 2 Type 2 report before they’ll sign a contract.
- It shortens security reviews. A clean report answers many security questionnaire questions upfront, which can speed up sales cycles.
- It builds trust. Investors, partners and customers get independent proof that you take data protection seriously.
- It reduces risk. The work required to pass an audit strengthens your security day to day.
SOC 2 applies across industries. SaaS and cloud providers, financial services, healthcare technology and education technology all rely on it. So does any vendor that stores, processes or transmits customer data. It matters especially in highly regulated fields. Law firms and courts handle privileged testimony and evidence. Universities protect student records, and government agencies safeguard public data. In all of these settings, a vendor’s SOC 2 report is often one of the first things security and procurement teams check.
Understanding SOC 2: The Framework That Defines Data Security
The SOC 2 framework is built on five Trust Services Criteria. Security is required in every audit. You choose the other four based on the services you provide and the data you handle.
Security (required). Protects systems and data from unauthorized access, disclosure or damage. Typical controls include access management, encryption, network security, logging and monitoring, incident response, vulnerability management and security awareness training.
Availability. Shows that systems are up and accessible when customers need them, through uptime monitoring, disaster recovery, business continuity planning, backups and redundancy.
Processing Integrity. Confirms that data is processed completely, accurately, on time and with authorization, using validation checks, error handling and quality assurance.
Confidentiality. Protects sensitive business information through data classification, encryption, access restrictions, NDAs and secure disposal. Confidentiality is now common in reports. CBIZ’s 2024 SOC Benchmark Study found it in 64.4% of SOC 2 reports, up from 34% the year before.
Privacy. Covers how personally identifiable information (PII) is collected, used, retained, disclosed and disposed of. With more U.S. state privacy laws taking effect, more organizations that handle personal data are adding this criterion.
SOC 2 Type 2 vs. Type I: Critical Differences for 2026
There are two kinds of SOC 2 report, and most enterprise buyers expect the second one.
A SOC 2 Type I report looks at whether your controls are designed properly at a single point in time. It’s a useful first step, but it doesn’t show that the controls actually work.
A SOC 2 Type 2 report tests whether your controls operated effectively over an observation period, which usually runs 3 to 12 months. Six months is common for a first audit. It shows that your controls work every day, not just on paper, which is why it has become the standard for enterprise deals.
| Report Type | What It Assesses | Time Frame | How Buyers See It |
|---|---|---|---|
| Type I | Control design | A single point in time | A starting point |
| Type 2 | Control design and operating effectiveness | Usually 3-12 months | The standard for enterprise deals |
If enterprise customers are your goal, plan for Type 2 from the start. A Type I can help you validate your controls first, but buyers will usually ask when your Type 2 is coming. It’s also why Verbit chose to maintain a SOC 2 Type II attestation: our customers want proof that our controls work every day.
Critical Updates Transforming SOC 2 in 2026
The Trust Services Criteria haven’t changed, but buyers, auditors and the threat landscape have. Here’s where expectations are rising.
AI Systems Under Intense Scrutiny
The AICPA hasn’t released AI-specific criteria. Still, AI tools that touch customer data fall within the scope of your existing controls, and both auditors and buyers are asking more questions about them. The risk is real. IBM’s 2026 report found that breaches involving AI models rose to 21% of all breaches, that incidents involving unsanctioned “shadow AI” more than doubled to 43%, and that 68% of organizations still lack AI governance policies.
Strong AI governance usually includes:
- Written descriptions of how AI systems are governed
- A named owner for each system
- Change control for model updates
- Monitoring of AI outputs
- Risk assessments for AI vendors
- Policies that prevent unapproved AI tools
The NIST AI Risk Management Framework is a helpful starting point. When you assess AI vendors, including providers of AI transcription and captioning, ask how they secure your data. Verbit describes its approach on our Trust page.
Evidence Quality Standards Have Skyrocketed
Auditors increasingly prefer system-generated, timestamped evidence that shows controls working throughout the audit period. A handful of screenshots taken just before fieldwork carries less weight. Scrutiny grew in 2026 after widely reported allegations that a compliance automation startup produced templated or fabricated audit evidence. The takeaway: automation helps, but the evidence has to come from real systems and real activity.
Confidentiality Becomes the Norm
With Confidentiality now in nearly two-thirds of SOC 2 reports, buyers increasingly expect it. If you handle proprietary customer data or intellectual property, treat it as a standard part of your scope rather than an add-on.
For vendors that handle recordings and transcripts, confidentiality is central to the service. It’s why Verbit pairs strict access controls and encryption with a clear Trust and data policy that explains how customer content is handled.
Vendor Management and Supply-Chain Risk
Your security is only as strong as your vendors’. CBIZ found that 89.6% of SOC reports in its study included subservice organizations, meaning the auditee relies on third parties to deliver its service. To prepare for a SOC 2 audit, you’ll need:
- Vendor tiering by risk
- Security reviews at onboarding
- Ongoing monitoring
- Regular review of vendors’ own SOC 2 reports
- Contracts that cover data protection and audit rights
Transcription, captioning and translation vendors belong in this review, too. They often process your most sensitive conversations, including board meetings, legal proceedings and customer calls. Ask each vendor for its current SOC 2 Type 2 report and check that the criteria in scope match how you’ll use the service. If Verbit is on your list, our team is happy to walk through our security practices as part of your review.
Zero-Trust Architecture as Standard
SOC 2 doesn’t require a specific architecture, but zero-trust principles map closely to what auditors test. That means multi-factor authentication (MFA) for all system access, least-privilege permissions, network segmentation and continuous verification of users and devices. These controls are now widely seen as table stakes rather than advanced measures.
The SOC 2 Audit Process: What to Expect in 2026-2027
A SOC 2 audit follows five stages:
- Readiness assessment. A pre-audit review finds the gaps between your current practices and SOC 2 requirements.
- Audit planning. You and your auditor agree on scope: which Trust Services Criteria, which systems and, for Type 2, the observation period.
- Fieldwork. The auditor tests controls, reviews evidence and interviews staff, usually over several weeks. For Type 2, they check that controls worked throughout the observation period.
- Management review. You discuss findings, add context to any exceptions and share remediation plans.
- Report issuance. The auditor delivers the final SOC 2 report, usually a few weeks after fieldwork ends.
What Makes a Strong SOC 2 Report
A SOC 2 report includes:
- The auditor’s opinion
- Management’s description of the system
- The Trust Services Criteria in scope
- The tests the auditor performed
- Any exceptions found
The strongest reports go beyond the minimum. They have a clear system description, few or well-explained exceptions and credible management responses. Together, these show a security program that keeps improving, not one that switches on once a year.
How to Get SOC 2 Compliant: Step-by-Step Implementation
How do you get SOC 2 compliant? Start with the right team and an honest gap assessment. For a first-time organization, the whole process often takes six months to a year, depending on how mature your security program already is.
Phase 1: Preparation and Scoping
- Form a cross-functional team from IT, security, HR, legal, finance and operations.
- Choose an executive sponsor who can secure resources.
- Define your scope: the systems, processes and Trust Services Criteria to include.
- Run a gap assessment.
- Select a licensed CPA firm with experience in your industry.
Phase 2: Policy and Control Development
Write policies that match the Trust Services Criteria and your own risk profile. Most organizations need these eight:
- Information security
- Access control
- Incident response
- Risk assessment
- Change management
- Vendor management
- Data protection
- Business continuity
Phase 3: Control Implementation
Put the controls in place.
- Technical controls: MFA, encryption at rest and in transit, logging and monitoring, network segmentation and firewalls, intrusion detection, automated backups, and vulnerability scanning and patching.
- Operational controls: access reviews, security awareness training, incident response playbooks, vendor assessments, change management workflows and regular risk assessments.
Phase 4: Evidence Collection and Documentation
Collect evidence continuously, ideally through a governance, risk and compliance (GRC) platform connected to your systems. Keep:
- Timestamped monitoring exports
- Configuration records
- Access logs
- Policy acknowledgments
- Training records
- Vendor SOC 2 reports
- Incident records
- Approved change tickets
Phase 5: Audit Execution
For Type 2, the observation period runs while your controls operate as designed. Then come fieldwork and report delivery.
Essential SOC 2 Compliance Checklist for Organizations
Use this SOC 2 compliance checklist to make sure you’ve covered the essentials.
Governance and Risk Management
- Executive sponsor and leadership commitment
- Cross-functional compliance team
- Documented risk assessment process
- Regular risk reviews (at least quarterly)
- Documented risk mitigation decisions
Security Controls
- MFA for all system access
- Least-privilege access controls
- Encryption for data at rest and in transit
- Network segmentation and firewall rules
- Intrusion detection and prevention
- Security monitoring and logging
- Incident response procedures and playbooks
- Vulnerability management and patching
- Security awareness training
Vendor Management
- Vendor risk assessment and tiering
- Security reviews during onboarding
- Ongoing monitoring of third-party risk
- Regular review of vendor SOC 2 reports, including for transcription, captioning and other services that handle sensitive content
- Contract terms for data protection
Evidence and Documentation
- Automated evidence collection
- Timestamped monitoring exports
- Logs showing that controls are working
- Policy acknowledgment tracking
- Training completion records
- Incident response documentation
- Change management approvals
AI Governance (New for 2026)
- Documented AI governance approach
- Named owners for AI systems
- Change control for AI model updates
- Monitoring of AI outputs
- AI vendor risk assessments
- Shadow AI policies and detection
Understanding SOC 2 Costs and Business Value
SOC 2 costs depend on your size, scope and how mature your security program is. Industry estimates from compliance firms such as Bright Defense give these typical ranges:
| Cost Category | Typical Range | Key Factors |
|---|---|---|
| Type I audit fee | ~$5,000-$50,000 | Company size, scope |
| Type 2 audit fee | ~$12,000-$100,000+ | Company size, scope, observation period |
| Readiness assessment | ~$5,000-$25,000 | Gap assessment, consulting support |
| Compliance software | Varies (annual subscription) | GRC platform, evidence automation |
| Internal resources and remediation | Varies widely | Staff time, new tools, infrastructure upgrades |
Get quotes from several auditors before you budget. SOC 2 Type 2 reports are usually renewed every year, so plan for ongoing audit fees, software subscriptions and staff time.
For most organizations, the return is clear. You’ll have faster security reviews, access to larger enterprise deals, more credibility with investors and partners, and a stronger defense against breaches that now average millions of dollars.
Adopting Continuous Compliance Practices
The organizations that find SOC 2 easiest treat it as an everyday practice rather than a yearly project. That means:
- Automated evidence collection
- Real-time control monitoring
- Quarterly risk reviews
- Documentation that stays current
- Regular internal audits
GRC platforms make this easier by centralizing policies, linking to your security tools and collecting evidence automatically – as long as that evidence comes from real activity in your systems.
Going Forward: Strategic Recommendations for 2026-2027
SOC 2 has grown from a yearly checkpoint into a continuous program. Buyers expect more around AI governance, evidence quality, vendor oversight and zero-trust security.
The same standard applies to the vendors you choose. Before you share sensitive recordings, documents or customer data, ask each vendor for a current SOC 2 Type 2 report. At Verbit, security is built into how we deliver transcription, captioning and translation. We maintain a SOC 2 Type II attestation and ISO 27001:2022 certification, and we back them with annual independent penetration testing and secure development practices built against the OWASP Top 10. Learn more about how Verbit protects your data or visit our Trust page.
Building compliance into daily operations does more than get you through an audit. It strengthens your security and earns lasting trust from customers and partners. If you’re evaluating secure transcription, captioning or translation for your organization, connect with our team.
FAQs on SOC 2 Compliance
What is SOC 2?
SOC 2 is an AICPA framework for showing how a service organization protects customer data. It’s based on five Trust Services Criteria: Security, Availability, Processing Integrity, Confidentiality and Privacy.
Is SOC 2 a certification?
No. SOC 2 is an attestation. An independent CPA firm reviews your controls and issues a report with its opinion.
Can an organization fail a SOC 2 audit?
There’s no simple pass or fail. If controls don’t meet the criteria, the auditor can issue a qualified or adverse opinion, which signals significant problems to anyone reading the report. Most organizations avoid this by doing a readiness assessment and fixing gaps before fieldwork.
How long does it take to get SOC 2 compliant?
For a first audit, plan on roughly six months to a year, including preparation, a Type 2 observation period of at least three months, and the audit itself.
How often must SOC 2 audits be performed?
Most organizations renew their SOC 2 Type 2 report every year so customers always have a current one.
Is SOC 2 compliance mandatory?
No law requires it, but many enterprise customers do, which makes it a requirement in practice for selling to them.
What’s the difference between SOC 2 and ISO 27001?
SOC 2 is an attestation report widely used in North America. ISO 27001 is an international certification for an information security management system. Many vendors hold both to meet global customer expectations. Verbit, for example, maintains a SOC 2 Type II attestation and ISO 27001:2022 certification.
Is Verbit SOC 2 compliant?
Yes. Verbit maintains a SOC 2 Type II attestation and ISO 27001:2022 certification, along with annual independent penetration testing. Learn more about how Verbit protects your data.
Are third-party vendor reviews required?
Yes. Vendor management is a core part of SOC 2, including risk assessments and regular review of your vendors’ own compliance reports.
