Choosing a SOC 2 Audit Firm

According to the Identity Theft Resource Center, there were 5,864 reported data breaches in 2023, up by more than 250% from 2022. With the large loss of company revenue and customer trust caused by breaches, the need to meet SOC 2 compliance standards is more important than ever.

This is why the expertise of a SOC 2 audit firm is invaluable. Assessing a company’s information security, availability, processing integrity, confidentiality, and privacy requires an audit firm that takes the time to understand service commitments, system requirements, data infrastructure, and support teams. The right audit firm delivers a comprehensive SOC 2 report, as well as actionable suggestions for process improvement and vulnerability reduction.

What to Look for When Hiring a SOC 2 Audit Firm

A great SOC 2 audit firm should be a partner on your data compliance journey, helping you get credit for controls you have and making suggestions on the wording to use for system descriptions and controls that need improvement.

Per the American Institute of Certified Public Accountants (AICPA), an audit firm must never perform or design a control, nor can they tell you exactly what to do. A strong audit firm may drop hints to point you in the right direction, but any audit firm that promises to do the work for you should be viewed as suspect.

What else should you look for? The following are aspects that a good SOC 2 audit firm must have.

• Expertise in SOC 2 audits
• Clear quote process and timeline
• Defined scope of examination
• Transparent deliverables, including reporting deadlines during the process
• Availability of the firm to assist with questions or concerns

For more helpful tips and guidance, check out our article on choosing an auditor.

Expertise in SOC 2 Audits

When considering a SOC 2 audit firm, the number one priority is experience. SOC 2 compliance is a rigorous and challenging process, demanding a deep knowledge of technology and regulation. These audits can only be conducted by a licensed CPA firm or agency accredited by the AICPA.

Although that ensures an understanding of specific data security compliance requirements, you’ll still want to ask about the audit firm’s experience with a company of approximately your size and maturity, in terms of data security, privacy, or processing integrity.

An additional sign of a great audit firm is the level of partner involvement with the examination. The more heavily involved a partner is, the more thorough and accurate the SOC 2 audit is likely to be.

Quote Process & Timeline

The right SOC 2 audit firm should have an established process to gain and document the information they need to create a quote for the examination, as well as how long it will take.

They should be able to determine which Trust Services Criteria (TSC) are needed for a thorough SOC 2 examination, from minimally disruptive interviews with management. The firm should also be able to determine at this point whether you need a Type I or Type II SOC 2 Audit.

Although the presented timeline will be different for every company, a good audit firm won’t shy away from committing it and a fee estimate to paper. A SOC 2 audit may take anywhere from 5 weeks to 12 months, depending on the firm’s approach and the complexity of your infrastructure.

Scope of Examination

The quote should include the scope of work to be provided, at a reasonable level of detail. This includes action items such as onsite or virtual interviews to understand your service commitments, system requirements, infrastructure, software, and data.

A great audit firm will also deliver a to-do list and a risk and controls matrix (RCM), to expedite the auditing process. This level of accountability can help you minimize and plan around any related disruptions to business.

Deliverables & Deadlines

Look for a SOC 2 audit firm that offers not just a professional report, preferably with expedited electronic delivery, but also improves processes and internal controls based on the results of the audit to solidify data security compliance.

Be clear when speaking with potential audit firms on when you need the final report. Good audit firms must be thorough and accurate, but also nimble enough to meet the deadlines that work best for your company and industry threat level.

SOC 2 Audit Firm Availability

Your SOC 2 audit firm should have a partner available to address questions or concerns, whether that person is onsite or reachable by phone and email. They should be able to confidently and efficiently provide clarification, both during the information-gathering phase and after the report is delivered to you.

 

The Advantage of Hiring a Small SOC 2 Audit Firm

Although there are plenty of large SOC 2 audit firms to choose from, a smaller firm might offer better client benefits. These include:

• Low or no overhead. No fancy office buildings, sponsorships, and so on means that these savings get passed on to clients. Small firms like Linford & Company only charge a fraction of the fees required by big firms.
• Input from the top. With a larger firm, you may never meet or work directly with the partner whose bio is on the website. In a smaller firm, however, the majority of the work is completed by a partner, and that partner may be onsite working with the client.
• Transparency with expectations and deliverables. If you hire a small SOC 2 audit firm, you’ll likely be working with the same person who made the sales pitch, so you’ll have a good idea of what you’re getting, before the first day of fieldwork.
• Smaller firms can work with smaller budgets. Small audit firms are more than happy to accommodate a small project and budget, resulting in an ongoing, positive relationship with an audit firm that’s readily available to you.
• Personal investment. A smaller audit firm is more likely to be invested in the success of your audit, as they’ll want to grow their business alongside yours. This often results in the firm going above and beyond for you, providing an even greater value.

While large firms generally have brand equity, access to more capital, and fancy marketing material, smaller firms can provide a better value at a better price point, without compromising on quality.

Your Partner in SOC 2 Audits

At Linford & Company, we provide an experienced and responsive team with strong SOC 2 audit and compliance experience. No matter your size or industry, we know exactly how to get you from engagement to SOC 2 compliant both quickly and accurately, improving your internal controls along the way. Request your complimentary SOC 2 consultation today.

This article was originally published on 2/17/2016 and was updated on May 14, 2024.