SOC 2 Type 1 vs Type 2 Explained
✏️Introduction
If you’re trying to get SOC 2 certified, chances are you’ve run into two terms that sound almost identical: SOC 2 Type 1 audit and SOC 2 Type 2 certification.
At first glance, they look like versions of the same thing—but they’re not. And picking the wrong one can set you back months or cost you deals you didn’t expect to lose.
Here’s the thing: both reports help prove you’re serious about SOC 2 compliance and protecting customer data. But they serve different purposes. One gives a quick snapshot, the other looks at how your controls actually perform over time. Knowing which one fits your business isn’t always obvious—especially if you’re new to the world of SOC 2 certification.
Let me explain this in simple terms. No fluff, no audit jargon. Just a clear explanation of what SOC 2 Type 1 and SOC 2 Type 2 mean, how they’re different, and how to figure out which one you actually need.
🔐What is SOC 2, Really?
https://cyberguardiansglobal.com/soc-2-certification/Let’s be real—most people have heard of SOC 2 certification, but very few actually know what it means the first time they come across it. You might’ve seen it mentioned in a sales contract or heard it dropped in a call with a potential client. Everyone nods like they’re on the same page… but secretly, a lot of folks are just guessing.
So here’s the deal: SOC 2 audit is an independent check on how well your company protects customer data—especially sensitive stuff like personal info, access logs, and internal controls.
It was created by the AICPA—yes, the accounting people—but don’t let that fool you. SOC 2 has nothing to do with spreadsheets or revenue numbers. Instead, it’s become the go-to security compliance standard for tech-driven businesses: SaaS platforms, cloud service providers, startups, and anyone offering a digital product where trust matters.
👉 Learn more about the AICPA’s official SOC 2 guidelines
Unlike some certifications that hand you a fixed checklist, SOC 2 certification is more flexible. It’s based on how your business actually operates—your people, systems, and risks.
Auditors assess your setup using the Trust Services Criteria:
- ✅ Security (mandatory)
- ✅ Availability
- ✅ Confidentiality
- ✅ Processing Integrity
- ✅ Privacy
Most companies start with Security and expand based on client expectations.
Getting a SOC 2 compliance report shows that you’re not just claiming to be secure—you’ve brought in a neutral third party to verify it. The next step? Deciding between SOC 2 Type 1 and SOC 2 Type 2.
📸 SOC 2 Type 1 Explained
So, you’ve started locking down your security. Passwords are tight, encryption is running, policies are in place. Things are starting to feel solid. That’s where a SOC 2 Type 1 audit comes into play.
Type 1 is a snapshot. The auditor checks: “Do the right controls exist right now?” They look at your setup on a specific day and assess whether it’s designed correctly.
For example: If you claim multi-factor authentication is required, they check if that’s actually the case. They don’t come back in six months to see if you’re still doing it.
That’s why SOC 2 Type 1 is quicker and more affordable.It’s ideal for early-stage SaaS companies that want to show they’re on the right path.
Plus, it highlights gaps early—before a long-term SOC 2 Type 2 audit. Think of it as your security foundation check.
📊 SOC 2 Type 2 Certification Explained
If SOC 2 Type 1 is a snapshot, SOC 2 Type 2 certification is more like a time-lapse.
Instead of one date, it evaluates your controls over 3 to 12 months. The goal? To show that your systems aren’t just in place—but actually work day after day.
Say you’ve got policies for access, encryption, and incident response. A Type 2 audit checks whether you’ve consistently followed them. Not just once, but for months.
Because of this, SOC 2 Type 2 takes more time, documentation, and effort. It’s pricier—but it carries serious weight, especially for clients in healthcare, finance, or enterprise tech.
Startups often begin with Type 1 and level up to Type 2 when ready.
⚖️ SOC 2 Type 1 vs Type 2 — Key Differences
Both audits prove you take SOC 2 compliance seriously. But they tell different stories.
Category
Focus
Timeframe
Duration
Cost
Best For
Client Value
SOC 2 Type 1 Audit
Are controls in place today?
One point in time
4–8 weeks
Lower
Startups, early compliance
Shows intention
SOC 2 Type 2 Certification
Are controls working over time?
3–12 months
3–6 months (or more)
Higher
Mature teams, enterprise-focused companies
Shows reliability and trust
Category
Focus
Timeframe
Duration
Cost
Best For
Client Value
SOC 2 Type 1 Audit
Are controls in place today?
One point in time
4–8 weeks
Lower
Startups, early compliance
Shows intention
SOC 2 Type 2 Certification
Are controls working over time?
3–12 months
3–6 months (or more)
Higher
Mature teams, enterprise-focused companies
Shows reliability and trust
💰 Focus
-
SOC 2 Type 1: Are controls in place today?
-
SOC 2 Type 2: Are controls working over time?
🕒 Timeframe
SOC 2 Type 1: One point in time
SOC 2 Type 2: 3–12 months
⏳ Duration
-
SOC 2 Type 1: 4–8 weeks
-
SOC 2 Type 2: 3–6 months (or more)
💸 Cost
-
SOC 2 Type 1: Lower
-
SOC 2 Type 2: Higher
🚀 Best For
-
SOC 2 Type 1: Startups, early compliance
-
SOC 2 Type 2: Mature teams, enterprise-focused companies
🤝 Client Value
-
SOC 2 Type 1: Shows intention
-
SOC 2 Type 2: Shows reliability and trust
SOC 2 Type 1 says, “Here’s what we’ve built.”
SOC 2 Type 2 says, “Here’s how we’ve been running it.”
Many companies do both—start with Type 1, then follow up with Type 2 as they grow.
🎯 Which One Do You Need?
Now you’re probably asking, “Okay, which one makes sense for us?”
If you’re still building—tightening up internal processes, hiring security folks, or documenting controls—SOC 2 Type 1 is a smart first step. It’s quicker, more affordable, and builds trust early.
If you’re already working with enterprise clients or managing sensitive data, SOC 2 Type 2 certification is usually expected. It’s more effort, but offers stronger proof.
Quick guide:
- 🚀 Just getting started? Go with Type 1.
- 🏢 Selling to large, regulated clients? Type 2 is the way.
- 🔁 Somewhere in between? Start with Type 1, and transition to Type 2.
💸 How Much Does SOC 2 Really Cost — and Is It Worth It?
Let’s face it—before you commit to a SOC 2 audit, the two big questions on your mind are:
“How much is this going to cost us?” and “How long is it really going to take?”
Totally fair. Let’s break it down without the fluff.
🕒 First Off — How Long Does This Whole Thing Take?
If you’re going for SOC 2 Type 1, good news—it’s relatively quick. Since it’s just a snapshot of your setup at one point in time, you can usually wrap it up in 4 to 8 weeks, assuming your systems are already in decent shape.
Now, SOC 2 Type 2 certification? That’s a different story. Because it measures performance over time, you’ll need to run your controls for at least 3 months, sometimes up to a year, before the audit is even complete. That doesn’t include prep work, by the way—things like tightening up access controls, documenting processes, or fixing gaps.
So yeah, it’s a commitment.
💰 So... What’s It Gonna Cost?
Here’s where most teams lean in. And the answer is: it depends.
Audit fees typically fall in these ranges:
- SOC 2 Type 1: Around $5,000 to $20,000
- SOC 2 Type 2: Typically $15,000 to $50,000+, especially if your systems are more complex
But don’t stop at those numbers. Because that’s just the auditor’s cut.
The real cost of SOC 2 compliance includes:
- Internal team time — pulling evidence, prepping docs, answering questions, chasing logs.
- Platforms or consultants — Whether it’s a guided software tool or a third-party expert, having someone (or something) to help you stay organized and prep for your SOC 2 audit can save you time, stress, and costly mistakes.
- Fixes and upgrades — maybe you’ll need to rewrite policies, clean up permissions, or tighten your backup process.
It adds up. But it also adds value.
⚡ Is It Actually Worth It?
If you’re aiming to land bigger clients, working in a regulated industry, or tired of losing deals because you don’t have a SOC 2 compliance report, the answer is: absolutely.
Because here’s the deal—SOC 2 certification isn’t just a sticker you slap on your website. It’s evidence that a third-party expert reviewed your systems and said, “Yep, these folks take data protection seriously.”
In a world where trust is currency, that matters. A lot.
And for many clients, especially in enterprise or B2B SaaS, it’s no longer a “nice to have.” It’s the price of entry.
🙋♂️ Frequently Asked Questions about SOC 2
→ Do I need to do Type 1 before jumping into Type 2?
Not necessarily. If you’ve already built a solid foundation—documented your controls, collected logs, and followed security best practices—you can head straight to SOC 2 Type 2. But if you’re still firming up your policies, SOC 2 Type 1 is a great way to signal that your company is committed to SOC 2 compliance, even if you’re early in the process.
→ Is it required to complete both audits?
Not at all. Many businesses choose Type 1 as a starting point to validate their setup. Then, once they’ve operated those controls over time, they move on to SOC 2 Type 2. Others, especially those working with enterprise clients, may go straight to Type 2 based on demand. It’s all about what suits your growth stage and client expectations.
→ How long is a SOC 2 report good for?
Technically, there’s no firm expiration date, but most companies refresh their SOC 2 audit report annually. After a year, clients typically expect an updated version to confirm your controls are still running effectively. Outdated reports can erode trust—even if your systems haven’t changed.
→ Is SOC 2 certification legally required?
No federal law mandates SOC 2 certification, but in real-world business scenarios—especially in SaaS, healthcare, and fintech—it’s often a dealbreaker. Many potential clients won’t even consider your platform without proof of strong data protection controls in place.
→ What happens if something goes wrong during the audit?
No need to panic. A SOC 2 audit isn’t a strict pass/fail test. If the auditor finds issues, they’ll document them in the report as exceptions. You’ll still receive a SOC 2 report, and it actually shows maturity when you’re transparent about what’s being improved.
→ What’s the actual difference between Type 1 and Type 2?
SOC 2 Type 1 is a one-time review of your system design—it’s about whether your policies and procedures are in place on a specific date. Type 2, on the other hand, is a longer review that measures how reliably your controls have performed over time. One shows preparedness, the other shows ongoing performance.
→ Why do enterprise clients ask for Type 2?
Because they want more than promises—they want evidence. A SOC 2 Type 2 certification reassures clients that your security practices don’t just exist on paper; they’re functioning in the real world, consistently. It’s how you turn trust into signed contracts.
→ What are the Trust Services Criteria?
The Trust Services Criteria are the backbone of every SOC 2 audit. Security is always required. Depending on your service model, you can add others like:
- Availability – your system is dependable and uptime is consistent
- Confidentiality – sensitive data is protected from unauthorized access
- Processing Integrity – transactions are accurate and authorized
- Privacy – customer data is collected, stored, and used appropriately.
You select the criteria that align with what your clients care about.
→ How does SOC 2 compare to ISO 27001?
Both are respected security frameworks, but they serve different audiences. SOC 2 is widely used in the U.S. and focuses on operational security—how you manage client data day to day. ISO 27001 is a global standard centered around building a structured security management system (ISMS). Depending on your industry and market, you may need one or both for full credibility.
🧭 So… What Now?
Let’s be honest—trying to wrap your head around the difference between SOC 2 Type 1 and Type 2 can feel like diving into a world of confusing acronyms, audit lingo, and checklists you never asked for. But if you’ve made it this far, you’re doing more than most.
You’re not just skimming the surface of SOC 2 compliance—you’re actually digging in to understand what it *means* for your business. That puts you ahead of the game.
Here’s the truth:
You don’t need to have every answer, every tool, or every policy nailed down from day one.
What you do need is direction. A place to start. And the willingness to make consistent, real progress.
✅ If you’re early in the journey, SOC 2 Type 1 might be your low-pressure way to show clients you’re serious.
🚀 If your business is scaling fast or handling sensitive data daily, SOC 2 Type 2 might be the trust signal you need to land bigger deals.
Whichever route you take, don’t let perfection slow you down. SOC 2 isn’t about being flawless—it’s about being intentional and transparent.
