SOC 2 Type 1 vs Type 2

With so much focus on data security and privacy these days, companies need a way to show they’re handling sensitive information the right way. That’s where SOC 2 reports come in.

What is SOC 2?

SOC 2 (Service Organization Control 2) is a framework for managing customer data based on five key Trust Service Criteria:

• Security
• Availability
• Processing integrity
• Confidentiality
• Privacy

Developed by the American Institute of CPAs (AICPA), SOC 2 reports help service organizations prove to customers that they have the necessary controls in place to protect data.

SOC 2 Type 1 vs. SOC 2 Type 2

Both SOC 2 Type 1 and Type 2 reports assess an organization’s information systems to ensure they are designed to keep data secure. The key difference is the duration and depth of the evaluation.

SOC 2 Type 1

A SOC 2 Type 1 report evaluates the design of an organization’s security controls at a specific point in time. It answers the question:

"Are the controls properly designed to meet the Trust Service Criteria as of a particular date?"

Key Characteristics:

• Point-in-Time Snapshot – The report assesses security controls at a single moment.
• Design Effectiveness – It evaluates whether controls are well-designed to achieve security and compliance objectives.
• Faster Process – Since it’s a one-time assessment, the process is relatively quick compared to a Type 2 report.

When to Choose SOC 2 Type 1:

• First-time SOC 2 Audit – If your organization is new to SOC 2, a Type 1 report can demonstrate that you have the right controls in place.

SOC 2 Type 2

A SOC 2 Type 2 report goes beyond just the design of controls. It also evaluates their operational effectiveness over time. This report answers the question:

"Are the controls not only well-designed but also working effectively over an extended period?"

Generally we recommend that your first Type 2 cover a look-back period of 3 months, with subsequent iterations covering 12 months.

Key Characteristics:

• Assessment Over Time – Examines whether controls are consistently effective over a set period.
• Operational Effectiveness – Verifies that security controls are functioning as intended.
• Comprehensive Evaluation – Since it covers months of data, it provides a more thorough assessment of your security posture.

When to Choose SOC 2 Type 2:

• Ongoing Security Assurance – If your organization needs to demonstrate continuous security compliance to clients and stakeholders, a Type 2 report is the better choice.

For companies starting their SOC 2 journey there is no requirement to start with a Type 1, but it’s what we recommend. It gives you a chance to work through the audit process, get feedback from auditors, and address any compliance gaps without the risk of a formal deviation on your report.

On average, our clients go from initiating their infosec program buildout to having a Type 1 report in hand in 2–3 months. Type 2 reports take much longer, as they include a required lookback period plus any necessary compliance prep time. For real-world timelines, check out our case studies to see how our clients have navigated the process.