Do You Actually Need SOC 2?
Most startups are confused about SOC 2. Some rush into audits they do not need. Others delay until a deal falls through. This guide helps you figure out where you stand.
Answer 10 Questions - Know What You Actually NeedFree. No email required. Takes 5 minutes.
Why SOC 2 Confusion is So Common
The Problem
- -SOC 2 is not one thing. It is a framework with multiple trust service criteria.
- -Type I and Type II audits serve different purposes at different stages.
- -Readiness, preparation, and audit are three separate phases that get conflated.
- -AI products add complexity that traditional SOC 2 guidance does not address.
What You Need
- -Clarity on whether SOC 2 is actually required for your situation.
- -Understanding of which controls apply to your specific tech stack.
- -A realistic timeline and scope before talking to auditors.
- -Knowledge of how AI governance intersects with SOC 2.
SOC 2 Explained in Plain Language
What SOC 2 Actually Is
SOC 2 is an auditing standard developed by the AICPA. It evaluates how well an organization protects customer data based on five Trust Service Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy.
A CPA firm examines your controls and issues a report. That report is what enterprise customers and security teams ask for during vendor due diligence.
Readiness
Internal assessment of where you stand. Identifies gaps before you engage an auditor. No formal report produced.
Preparation
Implementing controls, documenting policies, collecting evidence. This is where most of the work happens.
Audit
CPA firm examines your controls and evidence. Produces the official SOC 2 report you share with customers.
What SOC 2 Does NOT Cover
- - Product quality or functionality
- - AI model accuracy or fairness
- - Compliance with AI-specific regulations (EU AI Act, Colorado AI Act)
- - Data privacy beyond the Privacy trust service criteria
Do You Actually Need SOC 2?
SOC 2 is Likely Required If
- -Enterprise customers are asking for it in RFPs or security questionnaires
- -You handle sensitive customer data (PII, financial, health)
- -You are a B2B SaaS selling to mid-market or enterprise
- -Your product integrates with customer systems or data
SOC 2 May Be Premature If
- -You are pre-revenue or pre-product-market fit
- -Your customers are SMBs who do not require it
- -You do not handle customer data directly
- -A security questionnaire would suffice for now
How AI Products Change the Answer
If your product uses AI/ML, SOC 2 alone may not be sufficient. Enterprise buyers increasingly ask about AI governance, model risk, and algorithmic accountability.
SOC 2 covers your infrastructure and data handling. It does not cover whether your AI models are fair, explainable, or compliant with emerging AI regulations.
SOC 2 Controls: What Engineering Teams Need to Know
SOC 2 controls are the specific policies, procedures, and technical measures that demonstrate you meet the Trust Service Criteria. For engineering teams, this means documenting and evidencing how you build, deploy, and operate your systems.
GitHub and Version Control
- - Branch protection rules and code review requirements
- - Access controls and permission management
- - Audit logs for repository changes
- - Secrets management and credential handling
Infrastructure and Cloud
- - Network security and firewall configurations
- - Encryption at rest and in transit
- - Backup and disaster recovery procedures
- - Monitoring and alerting systems
Access and Identity
- - User provisioning and deprovisioning
- - Multi-factor authentication enforcement
- - Role-based access control
- - Regular access reviews
Change Management
- - Documented change approval process
- - Testing before production deployment
- - Rollback procedures
- - Change logs and audit trails
Why Engineering Teams Struggle
Most SOC 2 guidance is written for compliance professionals, not engineers. Controls are described in audit language, not technical terms. The gap between "what auditors want" and "what engineers do" causes confusion and wasted effort.
AI Governance is Not SOC 2
Where They Overlap
- Data security and access controls
- Change management for model deployments
- Logging and monitoring of AI systems
- Incident response for AI failures
Where They Differ
- Model fairness and bias testing (not in SOC 2)
- Explainability requirements (not in SOC 2)
- AI-specific regulations like EU AI Act, Colorado AI Act
- Human oversight and appeal mechanisms
Why Startups Confuse Them
When enterprise buyers ask about "AI compliance," they often mean different things. Some want SOC 2. Some want AI governance documentation. Some want both. Without clarity, startups either over-prepare or miss critical requirements.
HAIEC helps you understand which frameworks apply to your specific situation, so you can prioritize the right work.
What Happens When You Answer 10 Questions
Answer Questions
10 questions about your business, customers, data handling, and tech stack. Takes about 5 minutes.
Get Your Results
See which frameworks likely apply, which controls are relevant, and where your gaps are.
Know Your Next Steps
Get a prioritized list of what to work on, whether that is SOC 2, AI governance, or something else.
What You Get
- Readiness signal for SOC 2 and AI governance
- Gap analysis highlighting missing controls
- Prioritized next steps based on your situation
- Exportable report for your team or auditor
What You Do NOT Get
- - This is not a certification or audit
- - Results are based on your self-reported answers
- - You should verify findings with qualified professionals
- - This tool helps identify gaps, it does not guarantee compliance
Stop Guessing. Start With Clarity.
Answer 10 questions. Know what compliance you actually need. Get a report you can share with your team or auditor.
Answer 10 Questions - Know What You Actually NeedFrequently Asked Questions
How long does SOC 2 preparation take?
For most startups, SOC 2 preparation takes 3-6 months depending on your starting point. If you already have good security practices, it may be faster. If you are starting from scratch, expect closer to 6 months before you are ready for an audit.
What is the difference between SOC 2 Type I and Type II?
Type I examines your controls at a single point in time. Type II examines your controls over a period (usually 6-12 months). Most enterprise customers want Type II because it demonstrates sustained compliance, not just a snapshot.
How much does SOC 2 cost?
Audit costs typically range from $20,000 to $100,000+ depending on scope and auditor. Preparation costs (tools, consultants, internal time) can add another $20,000-$50,000. Total first-year cost for a startup is often $50,000-$150,000.
Do I need SOC 2 if I use AI in my product?
SOC 2 covers your infrastructure and data handling, which applies regardless of whether you use AI. However, AI products may also need additional governance for model risk, fairness, and emerging AI regulations. SOC 2 alone may not satisfy all buyer requirements.
Can I use GitHub to help with SOC 2 compliance?
Yes. GitHub provides evidence for several SOC 2 controls including code review (branch protection), access management (team permissions), and change management (commit history). Many startups use GitHub audit logs as primary evidence for development-related controls.
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