Industry

Research Tier 1 Throughput-Constrained Producer

SOC 2 & Compliance Audit

Compliance platforms already collect the evidence by API — the audit firm is now the last manual node in an automated chain, and the license it holds is the moat everyone else is building toward.

The purest automation economics in professional services: the inputs arrive structured, the output is standardized, and the scarce asset — the signing credential — cannot be automated at all.

Industry research

The economics

70–90% of audit labor automatable Evidence review, testing, and documentation against structured inputs — the work between the API and the signature is overwhelmingly structure-shaped.
API-fed evidence collection, already standard Vanta- and Drata-class platforms deliver audit evidence programmatically; the upstream automation is done and waiting on the audit firm.
The signature is the legal moat A CPA’s attestation is required by the standard itself — capacity released by systems accrues to whoever holds the credential.

FIGURES FROM THE FIRM’S PUBLISHED RESEARCH · SOURCES ON REQUEST · THE 2× PLAYBOOK

Growth opportunities

Where the 2× lives

  1. Evidence-pipeline automation

    Intake, testing, and workpaper assembly carried by systems against the platforms’ structured exports — auditors reviewing exceptions, not collecting screenshots.

  2. Fixed-fee productization

    Standardized scope sold at standardized price, with delivery cost falling underneath it — the margin expansion the hourly model would have refunded to clients.

  3. Capacity release as growth

    The constraint is credentialed reviewers; each hour released is sellable at full rate in a market with a structural auditor shortage.

Our perspective

What most firms get wrong

The wrong competitor

Audit firms read the compliance platforms as a threat. They are the opposite: an industry that standardized its own inputs is an industry that pre-paid for the audit firm’s automation — the last manual node captures the spread.

Where we’d start

One engagement decomposed against its platform exports: every audit hour mapped to evidence type, the automatable share priced, and reviewer leverage modeled — audits per credential, before and after.

Put it to us