SOC 2 Audit Cost Breakdown and Budget Planning for Australian Organisations

Australian organisations are increasingly expected to demonstrate strong security governance, particularly when delivering cloud services or handling sensitive customer data. SOC 2 has become the assurance standard that global buyers recognise, and Australian SaaS companies now see it as essential for entering enterprise supply chains. Despite this shift, many leaders struggle with a simple question: how much does SOC 2 actually cost in Australia? The answer depends on scope, technical maturity, internal capability and the type of report you pursue. This article explains the true cost components of SOC 2, the difference between Type 1 and Type 2, and how to create a budget that your board and sales teams can trust.

The importance of SOC 2 in Australia

SOC 2 was developed by the American Institute of Certified Public Accountants to assess controls related to security, availability, processing integrity, confidentiality and privacy. Although designed overseas, it has become highly relevant for Australian organisations. Local businesses increasingly serve global markets, and enterprise procurement teams expect formal assurance. Many Australian organisations also align SOC 2 with obligations such as the ACSC Essential Eight maturity model, ISM guidance and OAIC expectations under APP 11. When planned correctly, SOC 2 becomes part of a broader governance uplift rather than a standalone cost.

Why SOC 2 pricing varies

SOC 2 pricing depends heavily on scope. A straightforward cloud-native SaaS application is easier and cheaper to assess than a multi-environment system. The number of trust categories you include also influences complexity. Security is mandatory, but availability, confidentiality, processing integrity and privacy each add controls and evidence requirements. Your current maturity level plays a significant role. Organisations with structured identity governance, centralised logging, clear change management and documented policies are closer to readiness. Those still building these fundamentals will require more remediation. The type of report matters too. Type 1 assesses control design at a point in time and is faster to complete. Type 2 evaluates operating effectiveness over several months, which increases internal workload and external audit effort.

The five major cost components

Although SOC 2 costs differ across organisations, most Australian businesses invest their budget across five core areas: readiness, remediation, tooling, internal labour and external audit fees.

Readiness and gap assessment

Readiness work defines the system boundary, reviews current practices, maps controls to SOC 2 and identifies gaps. A structured readiness assessment prevents surprises during the audit and typically aligns SOC 2 criteria with ACSC and OAIC expectations so that the investment strengthens more than one compliance area. Costs generally fall in the low to mid five figures, depending on depth and existing documentation. Organisations with a mature ISO 27001 or Essential Eight foundation can complete readiness more quickly and with less external involvement.

Remediation and uplift

Remediation is where cost variation is greatest. Some businesses only need to formalise processes they already follow. Others must significantly uplift logging, identity governance, vulnerability management, change control, incident response and backup procedures. Smaller teams may complete these tasks relatively quickly, but larger environments may spread remediation across multiple quarters. Remediation is often the largest cost in the SOC 2 programme and should be planned early to avoid budget overruns.

Tooling and platforms

SOC 2 often highlights gaps in tooling. Organisations with reliable logging, vulnerability management, backup governance and workflow systems may only need configuration changes. Others may need new platforms to manage evidence, conduct access reviews or centralise event monitoring. These investments are rarely single-purpose. They support SOC 2, help demonstrate OAIC “reasonable steps” and contribute to Essential Eight uplift. Tooling costs vary but should be viewed as multi-year operational investments that reduce audit friction.

Internal labour

Internal workload is easy to overlook. SOC 2 touches engineering, security, product, operations and leadership teams. Evidence must be gathered, policies updated, controls reviewed and auditor questions answered. Even with advisory support, SOC 2 requires meaningful involvement from senior leaders such as CISOs or CTOs. A realistic assumption is that internal labour will match a significant portion of the external spend. For lean teams, a virtual CISO or managed compliance arrangement can reduce strain.

External audit fees

External audit fees are the most predictable cost. Type 1 audits are shorter and therefore cheaper, while Type 2 audits require evidence across the operating period. Fees depend on scope, trust categories and environment complexity. When reviewing quotes, assess the expected time commitment, the interaction model and how scope changes will affect the fee. This prevents unexpected cost increases later.

Type 1 and Type 2: cost and timing implications

Type 1 is often the first step for Australian organisations entering SOC 2. It provides a credible report for customers in a shorter timeframe and at a lower cost. It focuses on whether controls are properly designed, not whether they have been operated consistently over time. Type 2 offers stronger assurance but requires more extensive evidence and sustained control operation. It comes with higher cost and internal effort, but for many enterprise-facing organisations it becomes the required assurance level. A common and effective approach is to complete readiness and remediation, achieve a Type 1 report in the first year, then move to Type 2 once operational maturity stabilises. This spreads cost and reduces pressure on internal teams.

Building a practical SOC 2 budget

SOC 2 budgets work best when treated as ranges rather than fixed numbers. For first-year programmes, the following distribution is a useful benchmark. Readiness usually accounts for between 15 and 25 percent of the overall budget. Remediation can range from 25 to 40 percent, especially in organisations that need to uplift monitoring, identity governance or backup processes. Tooling often represents 10 to 25 percent, depending on how mature the environment is. Internal labour frequently consumes 20 to 30 percent. External audit fees generally fall between 15 and 25 percent. These ratios should be adjusted based on complexity and existing maturity. A lean startup with a strong cloud foundation may spend less on tooling and more on internal effort. A larger organisation may see remediation become its dominant cost. The most efficient budgets integrate SOC 2 with other frameworks. Investment that strengthens Essential Eight maturity, improves OAIC compliance or supports ISO 27001 can also serve SOC 2, reducing duplication and creating a clearer business case.

Keeping SOC 2 costs under control

Several strategies help control costs without weakening security assurance. The first is to keep scope tight in the first cycle and expand only when the environment is mature. The second is to align early with Australian security guidance. Improving areas like patching, logging and incident response will benefit SOC 2 and also reduce cyber risk. The third is to use managed services where appropriate. Managed detection and response, backup and recovery services and incident response support provide reliable evidence streams and reduce the internal workload that often drives hidden cost.

How CyberPulse supports efficient SOC 2 programmes

CyberPulse helps Australian organisations plan and execute SOC 2 with clarity and predictability. Our advisory and GRC services support readiness, scoping, control uplift, evidence preparation and audit coordination. We also help integrate SOC 2 with Essential Eight, OAIC privacy obligations, ISO 27001 and other frameworks so that every investment contributes to broader governance uplift. For organisations with limited internal capacity, our virtual CISO and managed compliance services help maintain control operation and evidence throughout the year, reducing audit pressure and keeping costs manageable. Contact us for further information

Useful links

GRC and Advisory Services
https://www.cyberpulse.com.au/compliance-audit-advisory-services-australia/
SOC 2 Audit Services
https://www.cyberpulse.com.au/soc-2-audit-services-australia/
Penetration Testing Services
https://www.cyberpulse.com.au/penetration-testing-services-australia/
Virtual CISO Services
https://www.cyberpulse.com.au/virtual-ciso-vciso-services-australia/
Managed Compliance Services
https://www.cyberpulse.com.au/managed-compliance-services-australia/

Imperva SOC 2 Overview
https://www.imperva.com/learn/data-security/soc-2-compliance/