When businesses choose a software partner, price, features, and technical capabilities are important—but security and data protection are equally critical.
A software provider may handle customer information, employee records, financial data, business documents, or other sensitive information. If that provider does not have appropriate security controls, the risk can extend to the business using its services.
SOC 2 is one way organizations can evaluate whether a service provider has controls relevant to security and other areas of trust. However, simply seeing a SOC 2 logo or statement is not enough. Buyers need to understand what the report covers, which systems are included, and whether the controls are relevant to their own requirements.
This practical buyer's guide explains what businesses should look for when evaluating SOC 2 compliance and software partners.
What Is SOC 2?
SOC 2 is an examination and reporting framework developed by the American Institute of Certified Public Accountants (AICPA) for service organizations.
SOC 2 reports evaluate controls related to the Trust Services Criteria, which include:
- Security
- Availability
- Processing Integrity
- Confidentiality
- Privacy
Not every SOC 2 report necessarily covers all five criteria. The scope depends on the service organization and the examination.
For software buyers, this means they should look beyond the phrase "SOC 2 compliant" and understand exactly what was examined.
1. Understand SOC 2 Type I and Type II
One of the first questions buyers should ask is whether the provider has a Type I or Type II report.
A SOC 2 Type I report evaluates whether relevant controls are suitably designed and implemented at a specific point in time.
A SOC 2 Type II report goes further by evaluating the operating effectiveness of those controls over a defined period.
For buyers, the distinction matters because Type II provides evidence about how controls operated during the examination period rather than only describing their design at a particular date.
Businesses should review the report date and examination period to understand how current the information is.
2. Review the Report Scope
A SOC 2 report is only useful to a buyer if its scope is relevant to the service being purchased.
Check which:
- Products or services are covered
- Systems and infrastructure are included
- Locations are included
- Data environments are covered
- Trust Services Criteria were evaluated
A provider may have multiple products, but the SOC 2 report may cover only specific services.
Therefore, buyers should confirm that the product they intend to use is actually within the report's scope.
3. Ask About Security Controls
Security is generally the most important consideration for software buyers.
A provider should be able to explain how it protects systems and customer information.
Areas worth reviewing include:
- Access control
- Identity management
- Authentication
- Encryption
- Vulnerability management
- Security monitoring
- Incident response
- Employee security
- Change management
- Backup and recovery
The objective is not simply to collect a list of security technologies. Buyers should understand how these controls support the protection of their data and services.
4. Check for Exceptions
A SOC 2 report may identify exceptions where a control did not operate as expected during the examination period.
An exception does not automatically mean that a provider is unsuitable. However, buyers should understand what the exception involved, how significant it was, and whether corrective action was taken.
Reviewing exceptions can provide more useful information than relying only on a provider's summary statement.
If the report is lengthy or technical, businesses can ask the provider to explain relevant findings in practical terms.
5. Understand Complementary User Entity Controls
Some security responsibilities remain with the customer.
These are often described as Complementary User Entity Controls (CUECs).
For example, a software provider may secure its infrastructure and authentication systems, while the customer remains responsible for managing its own employee accounts and permissions.
Buyers should understand these responsibilities before deployment.
A strong provider environment cannot compensate for poor security practices within the customer's own organization.
6. Review Third-Party and Subservice Organizations
Software providers often rely on cloud hosting companies, infrastructure providers, payment platforms, analytics services, and other third parties.
These organizations can become part of the overall service delivery chain.
Buyers should review which subservice organizations are relevant and understand how their involvement affects the security and availability of the service.
This is particularly important when sensitive customer information moves between multiple service providers.
7. Look Beyond SOC 2
SOC 2 can provide useful assurance, but it should not be the only factor in a software vendor assessment.
Depending on the business and industry, buyers may also need to evaluate:
- Data protection practices
- Business continuity
- Disaster recovery
- Penetration testing
- Vulnerability management
- Privacy requirements
- Regulatory obligations
- Contractual security requirements
- Incident notification procedures
A vendor assessment should consider the organization's actual risk rather than treating one compliance report as a complete security assessment.
8. Ask About Incident Response
Even organizations with strong security controls can experience incidents.
Buyers should understand how a software partner detects, investigates, and responds to security events.
Important questions include:
- How are security incidents detected?
- Who is responsible for incident response?
- How are customers notified?
- What communication channels are used?
- How are incidents documented?
- How does the provider recover affected services?
The answers can help businesses understand how prepared a provider is to respond when something goes wrong.
9. Check How Current the Evidence Is
Security environments change continuously.
A report from a previous examination period may not provide a complete picture of the provider's current environment.
Buyers should check:
- Report date
- Examination period
- Current SOC 2 status
- Recent security assessments
- Relevant changes to the service
- Whether a bridge letter is available when appropriate
The goal is to evaluate current risk rather than relying entirely on outdated documentation.
A Practical SOC 2 Vendor Checklist
Before selecting a software partner, buyers can ask:
- Is the provider's SOC 2 report available for review?
- Is it Type I or Type II?
- What services are included?
- Which Trust Services Criteria were evaluated?
- What systems and environments are in scope?
- Were any control exceptions identified?
- What customer responsibilities apply?
- Which subservice organizations are involved?
- How does the provider handle incidents?
- How current is the report?
- What additional security evidence is available?
Keeping these questions documented can make vendor assessments more consistent.
Frequently Asked Questions
Is SOC 2 the same as being SOC 2 certified?
SOC 2 is generally associated with an independent examination and report rather than a simple certification. Buyers should review the actual report and its scope instead of relying only on a provider's marketing language.
Should businesses require every software vendor to have SOC 2?
The appropriate requirement depends on the type of service, data involved, business risk, and contractual or regulatory requirements. Buyers should evaluate whether the provider's controls and assurance evidence address the risks relevant to their situation.
Is SOC 2 Type II better for evaluating a software partner?
Type I and Type II reports provide different types of information. Type I addresses control design and implementation at a point in time, while Type II also addresses operating effectiveness over a specified period. Buyers should consider which evidence is appropriate for their risk assessment.
What should buyers do if a SOC 2 report contains exceptions?
Buyers should understand what the exception was, how it affected the relevant control, whether it has been addressed, and whether additional safeguards are available. An exception should be evaluated in the context of the specific service and associated risk.
Conclusion
SOC 2 can be a valuable source of assurance when evaluating software partners, but buyers should look beyond the existence of a report.
The most useful assessment considers the report type, scope, Trust Services Criteria, control exceptions, customer responsibilities, subservice organizations, incident response practices, and the currency of the evidence.
For businesses handling sensitive information, vendor security should be part of the purchasing process—not something reviewed only after a contract has been signed.
A structured SOC 2 review helps buyers ask better questions, understand shared security responsibilities, and make software vendor decisions based on documented information and their organization's specific requirements.
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