SOC 2 Type 1 vs Type 2: Understanding the Difference

In today’s world, data security is not just a technical matter—it’s a business necessity.
Every company that handles customer data must prove it can protect that data. This is where SOC 2 compliance comes in.

For many European businesses, SOC 2 certification has become a gold standard for earning client trust and demonstrating strong internal controls.
But one common question remains: What’s the difference between SOC 2 Type 1 vs Type 2 reports, and which one should your company pursue?

This guide breaks down both types in simple terms and explains why they matter, especially for organizations operating under European data protection expectations.

What Is SOC 2 Compliance?

SOC 2 (Service Organization Control 2) is an auditing framework created by the American Institute of Certified Public Accountants (AICPA). It helps organizations prove that they manage customer data securely and responsibly.

SOC 2 audits are based on five Trust Service Criteria:

•  Security
•  Availability
•  Processing Integrity
• Confidentiality
• Privacy

For European companies, SOC 2 goes hand in hand with GDPR principles. While SOC 2 is not a legal requirement in the EU, it demonstrates a company’s commitment to maintaining strong data protection standards and global credibility.

At Atoro, we help organizations achieve SOC 2 compliance by guiding them through readiness assessments, control implementation, and independent audit preparation.
Whether you are a small tech startup or an established enterprise, SOC 2 compliance helps your customers trust you with their data.

What Is a SOC 2 Type 1 Report?

A SOC 2 Type 1 report evaluates the design of your data protection controls at a specific point in time.
It answers the question: Are your systems and policies designed properly to protect data?

Think of it as a snapshot of your readiness.
For example, a software company may undergo a Type 1 audit to demonstrate that its controls—like password policies, access restrictions, and encryption—are well-designed and documented.

A Type 1 report is ideal when:

• You’re just starting your compliance journey
• You need proof of your security setup for a new client or investor
• You want to identify and fix potential control gaps early

Atoro often recommends conducting an ISO 27001 internal audit before pursuing SOC 2 Type 1.
This ensures that your company’s control design is already aligned with international standards and reduces surprises during the SOC 2 audit.

What Is a SOC 2 Type 2 Report?

A SOC 2 Type 2 report goes beyond design—it tests how effective your controls are over time.
It typically covers a period of six to twelve months and provides stronger assurance to clients and regulators.

In simple terms, if Type 1 proves you have security systems in place, Type 2 proves those systems actually work over time.

For example, if you claim to monitor network access logs, a Type 2 audit will review those logs for several months to confirm consistent monitoring.

Type 2 audits are ideal for mature companies that already have strong internal processes and need long-term validation of compliance.

Atoro supports businesses through this process by aligning ISO 27001 implementation with SOC 2 requirements.
This combined approach ensures that your policies, risk assessments, and evidence collection meet both AICPA and ISO standards—making it easier to maintain compliance across multiple frameworks.

SOC 2 Type 1 vs Type 2 — Key Differences

In short:

•  Type 1 = “Are your controls designed properly?”
•  Type 2 = “Do your controls actually work in real life?”

For many European businesses, the path often starts with Type 1 and progresses to Type 2 once systems and processes mature.

Which SOC 2 Report Should You Choose?

Choosing between Type 1 vs Type 2 depends on your company’s maturity, resources, and client needs.

Choose Type 1 if:

• You’re a startup or scaling company
• You need quick proof of compliance for investors or partners
• You’re building a foundation for future audits

Choose Type 2 if:

• You have established systems and a mature security program
• Your clients demand long-term assurance
• You want to stand out as a trusted, compliant provider

Atoro’s experts help clients choose the right path by conducting readiness assessments, mapping security gaps, and guiding implementation.
If your organization needs leadership to maintain compliance and risk management, our virtual CISO services provide ongoing oversight without the cost of a full-time executive.

Case Study: Facilitating Silktide’s SOC 2 Compliance

A great example of successful SOC 2 implementation is Atoro’s collaboration with Silktide, a UK-based software company.
Silktide partnered with Atoro to perform penetration testing services, which became a key element of their SOC 2 compliance process.

The engagement allowed Silktide to:

• Identify vulnerabilities early
• Strengthen their security posture
• Accelerate SOC 2 audit readiness

This case highlights how combining penetration testing with compliance preparation leads to a faster and smoother audit process.

📊 Table/Data Point:

🔗 Read full case study here

How SOC 2 Benefits European Companies

Even though SOC 2 originated in the United States, it’s increasingly recognized across Europe as a mark of trust.
Here’s how it benefits EU-based organizations:

• Global credibility: SOC 2 certification reassures international clients that you meet world-class security standards.
• GDPR alignment: SOC 2 controls overlap with GDPR’s key principles—like confidentiality, integrity, and privacy.
• Vendor trust: Businesses prefer working with vendors that have completed a SOC 2 audit.
• Operational improvement: The process helps you identify and fix weaknesses in your security system.
• Competitive advantage: Demonstrating SOC 2 compliance gives you an edge in contract negotiations and RFPs.

Atoro specializes in helping European companies bridge the gap between SOC 2 compliance and regional privacy laws through virtual DPO services.
This ensures your organization meets both the technical and legal sides of data protection.

Common Mistakes Companies Make During SOC 2 Audits

Achieving SOC 2 compliance requires preparation, patience, and consistent follow-up.
Here are some common pitfalls organizations face:

• Starting the audit without performing a readiness assessment
• Failing to collect enough documentation or evidence
• Neglecting continuous monitoring of systems
• Assuming one audit equals permanent compliance
• Forgetting to align SOC 2 controls with other frameworks like ISO 27001 internal audit

By integrating SOC 2 efforts with ISO 27001 internal audit and virtual CISO services, Atoro helps you maintain a long-term compliance program that improves both efficiency and reliability.

How to Prepare for a SOC 2 Audit

Preparation is key to a successful audit. Follow these steps to make your SOC 2 journey smoother:

• Define your scope: Identify the systems, data, and services covered in the audit.
• Conduct a readiness assessment: Detect gaps early to avoid delays.
• Implement strong controls: Align policies and systems with SOC 2 and ISO 27001 implementation standards.
• Document everything: Maintain records of all procedures, risk assessments, and security activities.
• Train your team: Ensure every employee understands data protection practices.
• Monitor continuously: Regularly review system logs and reports for compliance.
• Engage expert support: A virtual CISO or virtual DPO can oversee ongoing compliance, ensuring nothing is missed between audits.

Atoro’s team assists clients through every stage—from control design to final reporting—so that compliance becomes a smooth and repeatable process.

Final Thoughts

Both SOC 2 Type 1 and Type 2 reports play an essential role in building customer trust and demonstrating strong data governance.
Type 1 helps companies prove their control design is solid, while Type 2 shows those controls consistently perform as intended.

For European organizations, SOC 2 compliance offers a bridge between global standards and local expectations under GDPR.
Combining it with frameworks like ISO 27001 internal audit and ISO 27001 implementation ensures a comprehensive security posture that meets both technical and regulatory benchmarks.

Atoro’s team supports businesses through SOC 2 compliance, virtual CISO services, and virtual DPO services, empowering you to build, maintain, and prove your security maturity—without the heavy cost or complexity of managing it alone.

Frequently Asked Questions

What is SOC 2 compliance?
SOC 2 compliance verifies that a company securely manages customer data based on trust service principles such as security, availability, and confidentiality.

What is the difference between SOC 2 Type 1 and Type 2?
SOC 2 Type 1 evaluates the design of security controls at a specific point in time, while Type 2 tests their operational effectiveness over a longer period.

What does a SOC 2 Type 1 report cover?
A SOC 2 Type 1 report assesses whether your organization’s internal controls are suitably designed as of a specific date but does not test long-term effectiveness.

What does a SOC 2 Type 2 report include?
SOC 2 Type 2 reports review how well your organization’s security controls operate over a defined period—typically 3 to 12 months—providing deeper assurance.

Which is better: SOC 2 Type 1 or Type 2?
Neither is “better,” but Type 2 provides greater credibility since it measures real-world performance of controls, making it more valuable to clients.

When should a company pursue SOC 2 Type 1?
Startups or first-time audit participants often choose SOC 2 Type 1 as an initial certification step before undergoing the more rigorous Type 2 audit.

When is SOC 2 Type 2 recommended?
Established organizations handling ongoing customer data should pursue SOC 2 Type 2 to demonstrate consistent control performance over time.

How long does a SOC 2 Type 1 vs Type 2 audit take?
Type 1 audits usually take 1–2 months to complete, while Type 2 audits can take 6–12 months, depending on the observation period and scope.

Why is SOC 2 important for businesses?
SOC 2 compliance builds client trust, strengthens data security, and can be a competitive advantage in industries like SaaS, finance, and healthcare.

Who performs SOC 2 audits?
Certified public accounting (CPA) firms licensed by the AICPA conduct SOC 2 audits following the Trust Services Criteria and official audit standards.

Author: Thomas McNamara

Thomas McNamara is a Senior Security and Compliance Consultant at Atoro, specializing in SOC 2, ISO 27001, and data protection frameworks. With over 11 years of experience in cybersecurity and risk management, he has guided organizations across multiple industries to achieve compliance excellence and operational security.

Thomas has played a key role in projects like Silktide, K15t, GoCertify, Firemelon, and Heartpace, helping each company streamline audits and strengthen information security posture. His approach combines technical precision with practical business insight, ensuring clients meet regulatory standards efficiently and confidently.

His insights are grounded in real-world experience supporting global enterprises through complex compliance journeys.
👉 Connect with Thomas on LinkedIn to explore more about SOC 2 and ISO 27001 success strategies.