Steps to Prepare Your SOC 2 Compliance Documentation

When it comes to vetting critical third-party service providers to work with, organizations need assurance that these companies have appropriate controls in place to securely execute the services they were contracted to perform. This is where the SOC 2 audit comes in. Few certifications and audits carry as much weight with customers and partners as a SOC 2 report. Developed by the American Institute of Certified Public Accountants (AICPA), SOC 2 reports evaluate whether a company has the right systems and controls in place to protect sensitive data. For organizations providing technology-driven services—particularly SaaS companies—SOC 2 is often not just a competitive advantage, but a customer requirement.

But achieving SOC 2 compliance is about more than implementing strong security practices. It requires demonstrating those practices through clear, consistent, and well-organized documentation. In many ways, your documentation is the backbone of the audit: it tells your story, provides evidence of compliance, and gives auditors a roadmap for assessing your environment.

This article breaks down the steps to prepare your SOC 2 compliance documentation, covering everything from scoping your audit to creating essential artifacts like system descriptions, control matrices, and diagrams.

Why SOC 2 Documentation Matters

It’s tempting to think of documentation as a compliance checkbox—tedious but necessary. The reality is more strategic. Proper SOC 2 documentation:

• Simplifies the audit process. When auditors can easily understand your systems and controls, they can move more quickly through testing and validation.
• Reduces risk. Documentation forces teams to evaluate whether policies and processes align with commitments and security standards. Gaps surface faster.
• Supports scalability. Standardized, repeatable processes captured in writing allow organizations to grow without sacrificing security.
• Builds trust. Customers and partners take comfort in knowing that security isn’t just a practice in theory, but one that is formally documented, validated, and audited.

Think of documentation as both an internal safeguard and an external credibility tool. Without it, even strong security controls lack the proof necessary for SOC 2 attestation.

Step 1: Establish Your Objectives

Before diving into policies, diagrams, or evidence collection, step back and define why you’re pursuing SOC 2.

• Are customers requesting it in RFPs or contracts?
• Do you want to differentiate your business in a crowded market?
• Is it part of a broader governance, risk, and compliance (GRC) initiative?

Clarity of purpose shapes everything that follows. If customer demand is the driver, you may prioritize speed and choose a Type 1 report (design of controls).

Objectives guide scope decisions, which is really the foundation and will help you avoid unnecessary effort documenting systems or processes outside the audit’s relevance.

Step 2: Define the Scope of Your Audit

Scope determines what you’ll need to document. SOC 2 reports focus on five Trust Services Criteria (TSC):

• Security (mandatory)
• Availability
• Processing Integrity
• Confidentiality
• Privacy

Every organization must include Security, while the others are optional depending on your services. For example, a SaaS platform processing sensitive client transactions may include Availability and Processing Integrity, while a healthcare provider may add Confidentiality and Privacy.

Defining scope means identifying:

• Which products, services, or systems are covered.
• Where customer data is stored, processed, or transmitted.
• Which criteria apply and which do not.

Clear scope prevents wasted time documenting irrelevant systems and ensures auditors focus on the areas that matter most.

Step 3: Choose the Right SOC 2 Report

Your documentation requirements differ depending on whether you pursue a Type 1 or Type 2 audit.

• SOC 2 Type 1: A snapshot of your controls at a single point in time. Documentation focuses on design—showing that controls are in place.
• SOC 2 Type 2: Evaluates how those controls operate over a defined period (usually 6–12 months). Documentation must demonstrate consistent execution, backed by logs, records, and historical evidence over the entire defined testing period.

Most organizations ultimately pursue Type 2, but even if you start with Type 1, the documents you prepare should be built with ongoing use in mind.

Step 4: Build Your Documentation Foundation

There are three key elements required to be provided by the client being audited:

1. Management Assertion

A formal statement from leadership affirming that your system is designed and operated to meet the selected Trust Services Criteria. It introduces your auditor to your environment and sets the tone for the engagement.

2. System Description

A detailed overview of your infrastructure, processes, commitments, and controls. It should include:

• Company overview and services provided
• Components of the system (infrastructure, software, people, processes, data)
• Service commitments and system requirements
• Incident history and disclosures
• Applicable Trust Services Criteria
• Complementary user entity controls (what customers are responsible for)
• Subservice organization controls (what third parties are responsible for)

The system description should be comprehensive but not overwhelming—enough detail to show how you meet obligations without exposing unnecessary vulnerabilities. The system description must clearly define the boundaries of what is in scope and what is not.

3. Control Matrix

A spreadsheet-style mapping of controls to the relevant TSC criteria. It typically includes:

• Control reference numbers
• Descriptions of control activities
• Control owners
• Risk levels (low, moderate, high)
• Evidence references (logs, reports, policies)

The control matrix is one of the most scrutinized artifacts, serving as the backbone of audit testing.

Step 5: Create Clear and Effective Diagrams

Visuals bring your documentation to life. Auditors appreciate diagrams that clearly illustrate how systems and data flows operate. The goal is clarity, not complexity.

• Executive View: High-level overview of business functions, integrations, and key systems. Include “last updated” metadata for accountability.
• Engineering View: More detail for internal use, covering components, APIs, protocols, and containers.
• Audit/Security View: Highlight controls such as authentication, encryption, boundaries, and monitoring.

Avoid overloading diagrams with unnecessary technical minutiae. As one auditor put it: sometimes less really is more. A cluttered diagram creates confusion and slows down the review process. Update diagrams annually or whenever major changes occur.

Step 6: Develop Supporting Documentation

Beyond the core documents, SOC 2 requires a broad set of supporting materials (evidence). Think of these as proof points that reinforce your management assertion, system description, and control matrix. Categories include:

• Operational Documentation: Governance manuals, business continuity plans, risk management plans, vendor agreements.
• IT & Technical Documentation: Device inventory, data retention policies, access logs, encryption standards, backup records, patch management.
• HR Documentation: Organizational charts, employee handbooks, onboarding/offboarding procedures, training records, disciplinary guidelines.
• Privacy Documentation: Privacy notices, confidentiality policies, data use agreements, opt-out procedures.
• Compliance Documentation: Prior audit reports, penetration testing results, risk assessments, self-assessments.

Collecting these in advance smooths the audit, prevents frantic last-minute scrambles, and demonstrates organizational maturity.

Step 7: Perform a Gap Assessment

Before inviting an auditor, compare your current documentation against SOC 2 requirements. A gap assessment helps you identify missing or outdated documents, unclear policies, or incomplete evidence.

Common documentation gaps include:

• Inconsistent version control across policies
• Missing logs or monitoring evidence
• Outdated system diagrams
• Lack of clarity around roles and responsibilities

Catching these early saves time and avoids findings that could delay or derail your SOC 2 report.

Step 8: Remediate and Strengthen Controls

Once gaps are identified, address them systematically. This often requires:

• Updating or drafting new policies
• Implementing missing controls (e.g., access reviews, vulnerability scans)
• Training staff on new procedures
• Documenting remediation steps and approvals

This phase can be resource-intensive, but it’s where compliance and security maturity truly advance. Strong documentation doesn’t just reflect your current state—it helps you actively improve it.

Step 9: Organize and Standardize

Disorganized documentation creates friction for everyone. To streamline:

• Centralize documents. Store them in a secure, accessible system with clear permissions.
• Standardize templates. Use consistent formatting for policies, reports, and logs.
• Track version history. Keep records of updates and approvals.
• Assign ownership. Designate who is responsible for each document to ensure accountability.

A polished documentation set not only helps with SOC 2 but also strengthens your overall compliance posture.

Step 10: Maintain and Update Continuously

SOC 2 isn’t a one-time event. Reports are valid for 12 months, after which organizations typically pursue renewal. To avoid reinventing the wheel each year:

• Update policies and diagrams annually or after significant changes.
• Maintain continuous logs and evidence collection.
• Perform internal audits to ensure controls are operating effectively.
• Train staff regularly and document participation.
• Self-assess to ensure staff are still adhering to the company’s policies.

Proactive maintenance keeps documentation current and minimizes surprises when audit season arrives.

Step 11: Foster a Documentation Culture

Ultimately, SOC 2 documentation is most effective when it’s not a last-minute scramble but part of your everyday security culture. Encourage teams to:

• Document as they go rather than retroactively.
• Treat policies and processes as living documents.
• View documentation as a safeguard for both compliance and business continuity.

The more ingrained documentation becomes in daily operations, the smoother future audits will be.

Final Thoughts

Preparing SOC 2 compliance documentation is no small task. It requires coordination across leadership, IT, security, HR, and legal teams. It demands clarity, accuracy, and consistency. But when done right, documentation transforms compliance from a burden into a value-add.

It tells auditors the story of your systems and controls, demonstrates accountability to customers, and establishes a foundation for secure, scalable operations.

Start with clear objectives, scope thoughtfully, and build strong foundational documents. Support them with well-organized policies, evidence, and diagrams. Review, remediate, and update continuously. With these steps, SOC 2 documentation becomes more than an audit requirement—it becomes a cornerstone of trust in your business.

How Compass Can Help

Preparing SOC 2 documentation can feel overwhelming, especially for organizations balancing compliance with day-to-day business demands. That’s where Compass can help. Our team of experienced auditors and security professionals has guided hundreds of organizations through SOC 2 readiness, documentation, and attestation. In addition to readiness and preparation services, we can also perform SOC 2 audits in partnership with an independent CPA firm, ensuring you receive a complete and trusted attestation. From scoping and policy development to evidence collection and control mapping, we provide the expertise and tools needed to streamline the process and reduce the burden on your internal teams. If you’re ready to strengthen your compliance posture and prepare for a successful SOC 2 audit, contact us today to get started.