Understanding the Expenses of a SOC 2 Audit in 2024

Understanding the Expenses of a SOC 2 Audit in 2024 — Cyber Suraksa

In today’s digital landscape, the importance of cybersecurity cannot be overstated. With the risk of data breaches looming large, ensuring proper security measures is vital to safeguarding your company’s revenue and reputation.

Enter SOC 2, a security framework developed by AICPA to evaluate an organization’s security posture. If you’re considering a SOC 2 audit but concerned about the associated costs, this article is here to provide clarity on SOC 2 audit expenses, factors influencing pricing, and tools to aid your compliance journey.

Understanding SOC 2 Audit Costs: The cost of a SOC 2 audit typically ranges from $5,000 to $100,000, dependent on several factors such as company size, audit type, and tools utilized. Specifically, SOC 2 Type 1 audits may cost between $5,000 and $20,000, while Type 2 audits can reach approximately $100,000.

Factors Influencing SOC 2 Audit Costs:

1. Company Size: Larger companies with more complex systems can expect higher audit costs due to the increased time and resources required for examination.
2. Audit Type: SOC 2 Type 1 audits offer a snapshot of security posture at a moment in time, while Type 2 audits assess controls over a specified period, leading to differences in pricing.
3. Audit Scope: The breadth of audit scope, including the number of Trust Services Criteria (TSCs) evaluated and additional customer applications, impacts overall costs.
4. Security Tools: Necessary tools such as antivirus software, password managers, and vulnerability scanners contribute to audit expenses.
5. Penetration Testing: Identifying security gaps through penetration tests is essential, with costs starting at $5,999 per year for comprehensive assessments.
6. Choice of Auditor: Auditor selection influences pricing, with considerations such as expertise and reputation playing a significant role.

Differentiating SOC 2 Type 1 and Type 2 Audits

SOC 2 Type 1 audits focus on control design and typically cost between $5,000 and $20,000, while Type 2 audits, which assess control effectiveness over time, range from $12,000 to $100,000.

Additional SOC 2 Compliance Costs

1. Employee Training: Investing in employee training ensures a security-first mindset and incurs associated costs for programs and time allocation.
2. Company Resources: Budgeting for unforeseen expenditures and accounting for decreased productivity during audits is essential.
3. Compliance Automation Tools: Automation tools streamline evidence collection and monitoring, saving time and potentially reducing costs.
4. Remediation: Addressing identified vulnerabilities incurs expenses, whether through in-house teams or external assistance.

Conclusion

Achieving SOC 2 compliance demonstrates a commitment to security and can yield numerous benefits, including enhanced cybersecurity and customer trust. While costs vary based on audit type, scope, and additional factors, thorough planning and the use of appropriate tools can facilitate a smoother compliance journey.

Cyber Suraksa offers comprehensive solutions for penetration testing, vulnerability scanning, and evidence collection, aiding in SOC 2 compliance readiness. Invest in your company’s security today to secure a resilient future.