A SOC 2 Type 1 report attests that your controls are suitably designed at a single point in time; a Type 2 report attests that those controls operated effectively over a period, commonly three to twelve months. Most buyers eventually want Type 2, but a Type 1 is a faster first step that proves your design while the observation window runs.
What does a SOC 2 report actually cover?
SOC 2 is an attestation performed by a licensed CPA firm under standards set by the American Institute of Certified Public Accountants (AICPA). It is not a certification, and there is no pass or fail certificate at the end. The auditor issues a report expressing an opinion on your controls against the Trust Services Criteria, and you share that report with customers who ask for it.
The criteria cover five areas: Security (the common criteria, always in scope), Availability, Processing Integrity, Confidentiality and Privacy. You choose which of the other four apply based on what you promise customers. Both Type 1 and Type 2 reports assess the same controls against the same criteria. The difference is what the auditor is testing: how the controls are designed, or how they have performed.
Type 1 vs Type 2: point in time vs period of time
A SOC 2 Type 1 report assesses the suitability of your control design as at a specific date. It answers one question: are the controls you have described in place and designed appropriately to meet the criteria? It is a snapshot. The auditor does not test whether those controls have been working over time, only that they exist and are built correctly on the date examined.
A SOC 2 Type 2 report goes further. It assesses the operating effectiveness of the same controls across a defined observation period, commonly three to twelve months. The auditor samples evidence from across that window to confirm the controls did not just exist on paper but were operated consistently. That is why a Type 2 carries more weight with buyers: it shows the system held up in practice, not just in design.
| SOC 2 Type 1 | SOC 2 Type 2 |
|---|---|
| Suitability of control design | Operating effectiveness of controls |
| A single point in time | A period, commonly three to twelve months |
| Confirms controls are in place and well designed | Confirms controls operated consistently over the period |
| Faster to obtain | Requires an observation window of evidence |
| Often a first step or interim proof | The report most enterprise buyers ultimately want |
When do buyers accept a Type 1?
Buyers accept a Type 1 most often when they need evidence quickly and the relationship is early. A prospect who wants to start a procurement process, an investor doing diligence, or a partner who needs proof that your controls are designed properly will frequently take a Type 1 while you work towards Type 2. It signals that the foundations are real and documented.
Where it tends not to be enough is with security-mature enterprise buyers who specifically ask for assurance that controls have operated over time. For those deals a Type 1 is an interim step, not the destination. The practical pattern is to offer a Type 1 to unblock an immediate requirement, then follow with a Type 2 covering the period that begins once your controls are live. Our SOC 2 implementation service is built around exactly this sequencing.
How do the timeline and cost differ?
A Type 1 is faster because there is no observation period to wait out. Once your controls are designed and documented, the auditor can assess them as at a point in time. A Type 2 takes longer by definition: after the controls are in place, an observation window of commonly three to twelve months has to elapse before the auditor can test how they operated across it.
There is no single price for either report, and any fixed figure quoted online is misleading. Cost is driven by a handful of factors: the number of Trust Services Criteria in scope, the size and complexity of your systems, how mature your existing controls are, the length of the Type 2 observation period, and the CPA firm’s own audit fees. The largest variable is usually internal effort, which is what a fixed-scope engagement is designed to reduce.
What does the Type 1 to Type 2 path look like?
The common route is to build your control environment once, attest a Type 1 against its design, then keep operating those controls through an observation period and attest a Type 2 against their effectiveness. Because both reports test the same controls against the same criteria, the work you do for Type 1 is not throwaway: it is the design half of the Type 2.
Not every company needs the Type 1 stage. If no buyer is pressing for evidence right now, some teams skip straight to a Type 2 and avoid paying for two attestations. The Type 1 earns its place when you have a near-term deal, raise or partnership that needs proof before a full observation period can realistically complete. The decision is commercial as much as technical: what does the buyer in front of you actually require, and when?
How does SOC 2 fit alongside ISO 27001 in Europe?
SOC 2 originated in the United States and is most often requested by US-based or US-facing customers. In Europe, ISO 27001 is the more widely recognised information security standard, and many buyers ask for that instead. Plenty of scaling companies end up needing both: ISO 27001 for European and international procurement, SOC 2 for North American deals.
The good news is that the two overlap heavily at the control level, so a single well-designed control environment can support both with far less duplicated effort than running two separate programmes. We compare the two frameworks, and how to run them together, in ISO 27001 vs SOC 2. Atoro is Europe’s first ISO 42001 certified consultancy, with more than 200 certifications delivered, and we routinely build one control set that serves both SOC 2 and ISO 27001.
SOC 2 Type 1 vs Type 2 FAQs
What is the difference between SOC 2 Type 1 and Type 2?
A SOC 2 Type 1 report attests to the suitability of your control design at a single point in time. A Type 2 report attests to the operating effectiveness of those same controls over a period, commonly three to twelve months. Both test the same controls against the same Trust Services Criteria.
Is SOC 2 a certification?
No. SOC 2 is an attestation, not a certification. A licensed CPA firm examines your controls against the AICPA Trust Services Criteria and issues a report expressing an opinion. There is no pass or fail certificate; you share the report itself with customers who request it.
Who performs a SOC 2 audit?
A SOC 2 audit is performed by a licensed CPA firm under standards set by the American Institute of Certified Public Accountants (AICPA). Only a CPA firm can issue the attestation report. Consultancies like Atoro prepare you for the audit but do not perform it themselves, which keeps the auditor independent.
When should a company choose a Type 1 report?
Choose a Type 1 when you need evidence quickly and cannot wait out a full observation period, for example to unblock an early procurement process, an investor diligence request or a new partnership. It proves your controls are designed properly while you work towards a Type 2.
How long is the SOC 2 Type 2 observation period?
The observation period for a Type 2 is commonly three to twelve months. The auditor samples evidence from across that window to confirm the controls operated consistently, so the report cannot be issued until the period has elapsed and the controls have been running throughout it.
Do you need a Type 1 before a Type 2?
No. A Type 1 is optional. Because both reports assess the same controls, some companies skip the Type 1 and go straight to a Type 2 to avoid paying for two attestations. A Type 1 is worth it mainly when a near-term deal or raise needs proof before a full observation period can complete.
Which SOC 2 report do enterprise buyers prefer?
Security-mature enterprise buyers usually want a Type 2, because it shows controls operated effectively over time rather than just being well designed on one date. A Type 1 is often accepted as an interim step, but for most enterprise relationships a Type 2 is the eventual requirement.
Do European companies need SOC 2 or ISO 27001?
It depends on who is buying. ISO 27001 is more widely recognised across Europe, while SOC 2 is most often requested by US-based or US-facing customers. Many scaling companies need both, and because the frameworks overlap, a single control set can support each with less duplicated effort.