*(For context, this experience includes predecessor reporting frameworks such as SAS 44, SAS 70, and other SSAE examinations, along with SOC 1, SOC 2, SOC 3, and SOC for Cybersecurity engagements.)

Why It Matters

SOC reports have evolved from a “nice-to-have” credential into a business requirement for many organizations. Customers, vendors, and stakeholders increasingly expect evidence that companies have strong controls in place to protect sensitive data and manage operational risk.

I’ve seen it firsthand. A poorly planned SOC engagement can lead to delays, operational strain, lost business opportunities, and gaps in compliance readiness. Organizations that prepare early and work with experienced advisors are often better positioned to build trust, support growth, and navigate evolving security expectations.

SOC Refresher

Service Organization Controls (SOC) audits are a cornerstone of trust and transparency for organizations handling sensitive data. Whether undergoing a SOC 1, SOC 2, SOC 3, or SOC for Cybersecurity examination, a well-prepared audit can strengthen credibility, support compliance, and give clients the assurance they expect. 

However, even experienced organizations can encounter common pitfalls that compromise audit outcomes and risk reputational or financial harm.

What is the number one mistake companies make when it comes to SOC audits?

Time and time again, I see companies assume that a SOC audit is something they can just “slam in” to the schedule. Business leaders often underestimate the level of preparation, coordination, documentation and ongoing control monitoring required for a successful SOC audit. It is not a simple compliance checklist item. 

What are some other mistakes to avoid?

1. Prioritizing speed and price over audit quality

As SOC demand has grown, more organizations have entered the market offering accelerated or heavily automated approaches. While speed may sound appealing, pause before selecting providers solely based on fast timelines or low cost.

Organizations should evaluate:

• The provider’s SOC experience
• Peer review history
• Industry expertise
• Independence considerations
• Ability to guide clients through the process 

Choosing an experienced advisor can help organizations avoid costly missteps and improve long-term audit readiness.

2. Waiting too long to start

Many organizations delay SOC preparation until a customer requests a report or a sales opportunity is at risk. Waiting too long can lead to:

• Lost revenue opportunities
• Delayed customer onboarding
• Increased internal pressure
• Reactive control implementation 

SOC reports are increasingly tied to business growth and customer acquisition, not simply compliance.

3. Treating SOC as a one-time project

Another common issue is failing to maintain controls throughout the year. Organizations sometimes focus heavily on preparation leading up to the audit, then shift attention away afterward. Continuous monitoring, policy maintenance, vendor oversight, and ongoing control execution are critical for long-term success.

4. Failing to establish governance around AI

As organizations adopt technologies (especially AI), they also need to consider how those tools impact their overall control environment and SOC readiness. Many companies are implementing AI tools quickly without fully evaluating how they intersect with data security, access controls, confidentiality, vendor management, and governance practices that may fall within the scope of a SOC audit. Establishing clear internal policies, monitoring AI usage, and understanding what data may be shared with AI platforms are becoming increasingly important components of demonstrating a mature and effective control environment.

Dan Andrea has more than 40 years of experience in public accounting, IT audit, cybersecurity, and risk consulting. He has participated in over 1,000 SOC and related assurance engagements and advises organizations on SOC readiness, internal controls, cybersecurity governance, compliance, and AI-related risk management.