The Hidden Risks of Low-Cost SOC Audits: What You Need to Know

Many organizations select SOC audit providers based on the lowest upfront price. It’s tempting to go with a budget firm that promises a “clean report” for a fraction of the cost of a professional services provider.

However, here’s the catch: That upfront price often doesn’t reflect what you’ll actually pay.

Low-cost providers may bury hidden fees in the fine print or charge extra for services that should be standard. Once those surprise costs surface, the total price can rival – or even exceed – what a more experienced firm would have charged from the start.

The lowest advertised price rarely tells the full story. Here’s a breakdown of some hidden costs SOC audit providers often leave out:

The Problem With Template-Based SOC Providers

These providers often require you to adopt their standard, one-size-fits-all controls – without considering your specific business needs, industry, or goals. They don’t tailor controls to your environment or support efficient implementation. As your company grows, these rigid frameworks are unlikely to meet the evolving vendor requirements of larger clients.

The hidden costs of these providers often include:

• Customization comes at a price: Want controls tailored to your business? Expect additional fees or plan on using internal resources to make changes yourself.
• Stray from their template, and the guarantees disappear: If your environment doesn’t align with their predefined structure, they may no longer stand behind the guarantee of a clean audit report.

The Better Approach

Avoid providers who prioritize their templated processes over your business’s actual requirements. SOC frameworks are meant to be flexible and industry-specific – not rigid, standardized checklists. A true SOC expert will collaborate with you and adapt to your needs, typically at no extra cost. That level of partnership delivers far more value than a one-size-fits-all approach.

Low-Cost Providers’ Automation Trap

Low-cost providers often rely heavily on proprietary automation tools to keep prices down – but this approach comes with trade-offs:

• You’re expected to implement their tools exactly as designed, with little room for deviation
• Their tools may not integrate with your existing systems
• You may be asked to change effective internal processes just to fit their workflow

These requirements can lead to inefficiencies, added frustration, and long-term costs that outweigh the initial savings.

While professional firms also use automation to improve efficiency, their approach is flexible and client-focused. They:

• Support the use of tools that work best for your business.
• Offer recommendations without pushing specific platforms.
• Adapt to your existing systems rather than requiring you to change them.

The Better Approach

Low-cost providers cut costs by forcing you to conform to their rigid tool requirements. In contrast, professional firms work with your preferred technology stack to support what already works for your business.

Loss of Control Over Your Audit Partner

Low-cost providers often require you to use their network of CPA firms once you sign up, limiting your choice in selecting your auditor. This can lead to several risks:

• Poor fit: You may be assigned an inefficient firm that doesn’t understand your business
• Reputation concerns: The assigned firm might lack credibility, causing customers and prospects to question your audit report
• Increased burden: Auditors unfamiliar with your industry can create more work and frustration for your team

Want to use your preferred, reputable audit firm instead? Many low-cost providers charge extra fees to go “out of network.”

The acceptance of your audit report depends largely on the reputation of the auditing firm with your customers. Retaining control over this crucial choice and working with a firm your clients trust is key to maximizing the report’s value.

The Better Approach

Don’t compromise on auditor quality or risk losing customer trust.

The Rising Stakes of SOC Reports

Vendor management requirements are becoming more rigorous. Customers no longer simply “check the box” – they closely scrutinize SOC reports to confirm vendors properly protect data and comply with regulations. Specifically, customers are now examining:

• Audit firm credibility: Verifying the CPA firm’s licensing, peer reviews, and quality controls
• Control relevance: Ensuring controls are tailored to your business – not generic templates
• Report authenticity: Identifying and rejecting generic, templated reports

Using low-cost providers with cookie-cutter controls introduces significant risks:

• Generic controls that don’t align with your business
• Audit firms that forgo peer reviews and quality assessments
• “Guaranteed clean report” promises (a major red flag)
• Customers demanding new reports from reputable providers
• Costly, unplanned audits that drain your team’s time
• Worst case: Losing customers or prospects to competitors with stronger control commitments

The Better Approach

In today’s highly scrutinized environment, a cheap, generic SOC report can end up costing you far more than investing in a quality, customized audit from the start.

Finding the Right SOC Audit Partner for Your Organization

Overall, thoroughly researching SOC audit providers is essential to help you select the right partner – not just the cheapest option. Price alone doesn’t reflect the quality, expertise, or value a provider brings, and choosing based solely on cost can lead to hidden risks and greater expenses down the line. To help you navigate this important decision, we encourage you to read our article, How to Choose the Right SOC Audit Provider for Your Organization. It offers practical guidance on what to look for and key factors to consider.

If you’d like to learn more about Wolf’s approach to SOC audits and how our experienced team can support your organization’s unique needs, please contact a member of our SOC team today.