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SOC 2 Audit Process in 5 Stages, From Scope to Report

  Ray Watts  ·  4 minute read

Summary

The SOC 2 audit process is predictable when scope is clear and evidence is organized. Auditors follow a structured approach: define scope, collect evidence, test controls, document findings, and issue the report. Key takeaways:

  • The SOC 2 audit process moves through five stages: scoping and planning, evidence collection, auditor testing and sampling, findings and management responses, and report issuance
  • Auditors test control design for Type 1 and operating effectiveness over time for Type 2
  • Most audit stress comes from unowned controls, missing evidence, and scope confusion
  • Year‑round evidence collection and internal audit validation eliminate surprises before external testing starts

Audits do not fail because controls are weak. They fail because evidence is missing, inconsistent, or proves controls did not operate as documented.

Stage 1: Scoping and Planning

The audit starts with a scoping call between your team and the auditor. You define what is in scope, which Trust Services Criteria apply, and what the observation period will cover.

Auditor outputs:

  • Scope confirmation document listing systems, applications, and boundaries
  • PBC request list (Provided By Client) with evidence items organized by control
  • Timeline with key milestones, testing windows, and report delivery date
  • Sampling approach explaining how the auditor will select items to test

Your best inputs:

  • System description with architecture diagrams, data flows, and service commitments
  • List of in‑scope tools, infrastructure, and third‑party vendors
  • Control inventory with owners, cadence, and evidence types
  • Access to relevant systems for auditor review

Scope confusion creates audit delays. Lock down boundaries before testing starts.

Stage 2: Evidence Collection

Once scoping is complete, the auditor sends the PBC request list. Your job is to gather and submit evidence for every control in scope.

What "good" evidence looks like:

  • Evidence is stored by control and organized by month or quarter
  • Screenshots include timestamps, context, and what action was taken
  • Tickets show approvals, completion dates, and assignee names
  • Access review records list who reviewed, what was reviewed, exceptions identified, and remediation actions
  • Logs are exported with date ranges, filtering criteria, and relevant entries highlighted

Organizations that collect evidence year‑round respond to PBC requests in hours. Organizations that start during the audit spend weeks searching for proof.

Stage 3: Auditor Testing and Sampling

The auditor tests whether controls operate as documented. For Type 2 audits, testing focuses on consistency over the observation period.

Auditors sample items across control families:

  • Access reviews: Did you complete reviews on schedule? Did you document exceptions and remediate them?
  • Change tickets: Did you approve changes before deployment? Did emergency changes follow the documented exception process?
  • Security events: Did you investigate alerts? Did you escalate incidents using your runbook?
  • Onboarding and offboarding: Did you grant access based on role? Did you revoke access on termination date?
  • Vendor reviews: Did you assess third‑party risk annually? Did you collect SOC 2 reports or security questionnaires?
  • Training: Did employees complete security awareness training within the required timeframe?

Type 2 testing is not about a single event. It is about proving controls operated consistently across the full observation period.

Stage 4: Findings and Management Responses

If the auditor identifies gaps, they document findings and request management responses. How you respond determines whether findings escalate or close quickly.

How to respond well:

  1. Confirm the auditor's understanding: Make sure the finding accurately describes what happened
  2. Provide missing evidence if it exists: Sometimes evidence exists but was not submitted in the original PBC response
  3. If it is a real gap, document remediation: Open a ticket with a clear fix, assign an owner, and set a due date
  4. Update control descriptions if needed: If the control changed mid‑period, update documentation to reflect current state
  5. Provide proof of remediation: Show the auditor that the gap is closed and the control now operates correctly

Auditors expect honest, evidence‑backed responses. Defensive answers without proof create more findings.

Stage 5: Report Issuance and Distribution

After testing, management responses, and quality review, the auditor issues the final SOC 2 report. The report includes the system description, control descriptions, auditor opinion, and any exceptions or findings.

Your job after report issuance:

  • Store the report securely: SOC 2 reports contain sensitive information about your controls and should be treated as confidential
  • Define distribution rules: Decide who can receive the report and whether an NDA is required
  • Plan for the next cycle: Start the next observation period immediately so you do not lose momentum or "start over" next year
  • Remediate any findings: Address exceptions documented in the report before the next audit

Organizations that treat SOC 2 as a recurring process instead of a one‑time project stay audit‑ready year‑round.

How to Reduce Audit Stress

Most audit stress comes from three issues:

  • Unowned controls: No one is responsible for executing or documenting the control
  • Missing evidence: Controls run, but no one saves proof
  • Scope confusion: What is in scope changes mid‑audit

Neutral Partners emphasizes readiness first. We validate controls with internal audit testing before the external audit starts. You get a clear picture of what will pass, what will fail, and how long remediation will take. Since 2017, we have kept a 100% audit pass rate across every client engagement.

An internal audit removes surprises, fixes evidence gaps, and keeps your team productive while the external audit moves forward.

Common Questions About the SOC 2 Audit Process

How is Type 1 different from Type 2?

Type 1 tests control design at a point in time. The auditor confirms controls exist and are documented appropriately. Type 2 tests operating effectiveness over a defined period (typically 3, 6, or 12 months). The auditor samples evidence across the period to prove controls operated consistently.

Why do audits stall?

Scope confusion and missing evidence. Scope changes mid‑audit force auditors to revise testing plans and request additional evidence. Missing evidence delays testing while your team searches for proof. Both issues are fixable with readiness planning and year‑round evidence collection.

What is a PBC list?

PBC stands for "Provided By Client." It is the list of evidence items the auditor requests to test controls. Clean organization and consistent naming conventions turn PBC responses into hours of work, not weeks.

Can we keep engineers focused during the audit?

Yes. If evidence is collected year‑round and one owner manages audit traffic, engineers spend minimal time responding to auditor questions. Without that structure, engineers lose days chasing screenshots, logs, and approvals.

Where does Neutral Partners help?

We organize evidence, prep control owners, run internal audits before external testing, and manage the audit traffic so your team keeps building. You get audit‑ready controls without losing productivity. Learn more about our compliance services or explore our full SOC 2 certification service.

Key SOC 2 Audit Process Resources

Next step: If you want to test your readiness before the auditor arrives, talk to us about an internal audit. We will validate your controls, organize your evidence, and give you a clear remediation plan so the external audit stays on track.