In Canada, the prevalence of is increasing each year as multiple Canadian companies are being evaluated to ensure the internal security protocol of the services to safeguard customer data. From data centers to Software-as-a-service, SOC 2 audit compliance has gained permanency in Canada.
The SOC 2 audit demonstrates adherence of the organization to customer data and service protection, fostering trust and providing a competitive edge, proving excellence in 5 Trust Services Criteria (TSCs), which are Security, Availability, Integrity, Confidentiality and Privacy.
Alongside its benefits in building trust and credibility, businesses often want clarity on the SOC 2 audit cost in Canada. Since cost vary widely depending on the audit type, scope, and organizational readiness. Understanding cost drivers is crucial for planning. In this blog, we break down the different elements that influence SOC 2 audit costs for Canadian organizations.
Understanding SOC 2 audit cost components in Canada
SOC 2 audit is a standard assessment developed by the AICPA or American Institute of CPAs, to evaluate ways through which service organizations manage and protect customer data. The range of expenses and costing variability in various components is deeply discussed.
Pre-audit readiness and consulting costs
Before enduring a SOC 2 audit, many organizations engage in a readiness assessment for identifying and addressing gaps in their security controls. These assessments range from CAD 2,000 to CAD 4,000 depending on the complexity of the organizational system (hybrid cloud setups, multiple third-party interventions or several departmental confluence) and the components of various services criteria.
SOC 2 audit fees (Type 1 and Type 2)
SOC 2 audits are categorized into type 1 and type 2 reports
Type 1 audit: It helps in the assessment of the design controls at a specific period, and it ranges from CAD 6,500 to CAD 10,000
Type 2 audit: It evaluates the operational efficiency of security controls over a time period typically within 4 to 6 months. It approximately ranges from CAD 12,000 to CAD 18,000.
Larger organizations or companies bearing complicated infrastructure may even cost more.
Tools and software
Many organizations invest in compliance to streamline the process with automation tools. These tools and software helps in continuous monitoring and evidence collection of any illegal intrusion and a safe compliance strategy against it. The subscription fees of these tools and software can range from around CAD 6,500 to CAD 12,000 annually based on the size and requirements of the organization.
Audit maintenance and certification
SO2 audit is a continuous commitment. Yearly maintenance involves ongoing monitoring, internal audits and updates to controls. The SOC 2 audit certification helps organizations to maintain its compliance status. The annual expenses for the maintenance and recertification vary from around CAD 3,500 which are apparently influenced by the size and complexity of the company.
Additional internal and remediation costs
Companies may require this allocation for internal efforts, including employee training, policy development and investment to address identified gaps. Remediation expenses can vary up to CAD 8,000 depending on the upgrade made in the security system.
Estimated SOC 2 audit cost range in Canada
The SOC 2 audit monitors companies’ controls function over a specific period of time, usually 4 to 6 months. Companies generally indulge into huge monetary investment in SOC 2 audits, so that the auditor monitors the efficiency rate of the auditory controls and the security design strategy.
SOC 2 audit costs for small and medium scale enterprises (SMEs)
For small and medium scale companies, the SOC 2 type 1 audit expenses vary from around 8,000 Canadian dollars to 12,000, and for type 2 audit costing varies from CAD 14,000 to CAD 20,000. This estimated expense range includes readiness assessment, auditory fees, tools and maintenance.
Cost breakdown
The cost breakdown of SOC2 audit for SMEs are as follows:
| SOC 2 auditory activities | Cost (approx.) |
| Readiness assessment | CAD 3,000 |
| Type 1 of SOC 2 audit | CAD 6,500 |
| Type 2 SOC 2 audit | CAD 15,000 |
| Compliance automation tools | CAD 6,000 to CAD 12,000 yearly basis |
| Yearly auditory maintenance and certification | CAD 2,000 to CAD 4,000 |
These expenses are influenced by specific factors like the organizational security framework, internal infrastructural complexities and the automation functionality.
Large-scale organizations require more varied auditory documentation with multiple evaluation stages and cooperation across several departments contributing to a high range of expenses. SOC 2 auditory investment is a strategic mechanism to improve organizational security compliance to attract new investors and partners. Canadian enterprises (both small and medium, and large-scale) are navigating the SOC 2 audit process efficiently with a proper understanding of its components and associated expenses.
Key factors influencing SOC 2 audit cost in Canada
Alongside the size and infrastructural complexities of the organization, several other factors are influencing SOC 2 audit expenses in Canadian enterprises.
Current maturity and preparedness
The security and compliance maturity level of the organization has a significant impact on the SOC 2 audit cost. High maturity organizations have strong internal protocols, documented policies and strategic security tools, so they usually spend less on pre-audit readiness because few loopholes are rectified. Their cost for consulting and remediation ranges approximately from CAD 3,000 to CAD 4,500. Low maturity organizations with limited documentation and weak internal access control need a proper documented mechanism to monitor systems that can face a wide range of expenses. These include readiness, internal employee training and implementing security controls that can exceed expenses up to around CAD 4,000 to 5,500 or more before even the actual audit begins.
Choice of auditors
The selection of the auditor plays a major role in determining both the efficiency and price level of the audit experience. Medium-sized tire organization specialized in SOC 2 audit offer audit support at lower expenses, where a type 1 audit can start within a low range from CAD 3,500 and type 2 ranges from CAD 6,500 based on Minimum 3 TSC which are Security, Availability and Confidentiality.
Scope of audit
The scope of the SOC 2 audit directly influences expenses through trust service criteria or the type and geographical, and operational complexities. Each trust service criterion adds more testing, evidence collection and auditor time that can raise audit fees by ~20%, whereas for Type 2 is much more expensive with an approximate range of CAD 6,500+ 20% with additional TSC and examines control efficiency over a period of around 4 to 6 months.
Strategies to Reduce SOC 2 Audit Cost in Canada
With adequate planning and readiness strategies, Canadian companies can flourish with proper execution of SOC 2 audit expenses without compromising quality.
Readiness assessment
In many cases, without proper preparation, auditors can highlight multiple deficiencies that require expensive remediation and even re-audit. However, investing in pre-audit review companies can resolve issues early. It can be optimized by using a structured checklist aligned with TSCs to examine internal control policies and evidence readiness. With more preparatory mechanisms, auditors will spend less on testing, which will lower the overall compliance fees.
Negotiating audit Services for better cost control
SOC 2 audit-related services often go beyond penetration testing or risk assessment, so negotiating an audit package deal with the chosen auditor of a security pattern can lead to cost savings compared to separately purchasing services. It is especially beneficial for small and medium enterprises because it negotiates fixed annual expenses for a multiple-year engagement with stability in the budget, and also explicitly focuses on reducing the risk of sudden expenses.
Know More, why SOC 2 Matters for Canadian Businesses
Conclusion
In Canada, SOC 2 audit varies based on readiness, scope, infrastructural complexities and auditor choice, whereas SMBs spend around CAD 8,000 to 20,000. For companies looking to simplify SOC 2 audit while cutting expenses, Matayo, with its innovative automation solutions, is streamlining auditory readiness, evidence collection and supervising security controls effectively.