SOC 2

Service Organization Control 2. An audit framework developed by the AICPA that evaluates a service organization's controls related to security, availability, processing integrity, confidentiality, and privacy (the Trust Service Criteria). A SOC 2 Type II report demonstrates that an MSP has maintained adequate controls over a defined period (typically 6-12 months), as verified by an independent auditor. SOC 2 is increasingly required by enterprise clients and finance-sector organizations.

Type I vs Type II

Type I assesses controls at a point in time. Type II assesses operating effectiveness over a 6-12 month period. Type II is the more valuable and credible of the two.

Cost range

SOC 2 Type II audits typically cost $15,000-$50,000 depending on scope, firm, and MSP complexity.

Why it matters

SOC 2 is becoming a table-stakes requirement for MSPs serving finance, legal, and enterprise clients. It is also a strong differentiator in enterprise sales conversations.