How to Choose Between SOC 2 Type I and Type II

If your organization is pursuing SOC 2 compliance for the first time, one of the earliest decisions you’ll face is whether to pursue a Type I or Type II report.

Both types of SOC 2 reports demonstrate trust and security to customers, but they serve different purposes and provide different levels of assurance. Understanding this distinction is crucial for building your SOC 2 project plan and preparing for a successful audit.

What is SOC 2?

SOC 2 stands for System and Organization Controls 2. It focuses on demonstrating that an organization manages customer data securely, aligning with the Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy.

For a broader introduction, see our SOC 2 framework overview.

The Core Distinction Between Type I and Type II

At the highest level, the difference comes down to timing and depth of assurance:

• Type I evaluates whether controls are designed and implemented appropriately at a single point in time.

• Type II evaluates whether those controls operate effectively over a sustained period, usually 3–12 months.

SOC 2 Type I Explained

A SOC 2 Type I report answers the question: Do the right controls exist today, and are they designed effectively to meet the Trust Services Criteria?

Key points:

• Snapshot evaluation at a moment in time

• Focus on the design of controls, not their long-term operation

• Validates whether policies, procedures, and safeguards are in place

For details on common control areas, review the key SOC 2 controls you should know.

SOC 2 Type II Explained

A SOC 2 Type II report goes further. It asks: Have these controls functioned effectively over time?

Key points:

• Covers a review period of 3–12 months

• Requires evidence of continuous operation

• Provides stronger assurance for enterprise customers

Organizations often rely on this certification to strengthen customer trust and demonstrate operational maturity.

Detailed Comparison: Type I vs. Type II

Audit Duration and Timeline

• Type I: ~4–8 weeks. Primarily documentation reviews, interviews, and control design testing.

• Type II: ~12–16 weeks. Includes operational testing, monitoring logs, exception reports, and remediation evidence.

Evidence Requirements

• Type I requires policies, procedures, and proof that controls are implemented.

• Type II additionally requires continuous monitoring logs, incident response documentation, and proof of effective control operation.

Cost Considerations

• Type I: ~$15,000–$50,000

• Type II: ~$30,000–$100,000+
  See estimating the cost of a SOC 2 audit for more detailed guidance.

When to Choose Type I

Best suited for organizations that:

• Are new to SOC 2

• Need initial customer assurance quickly

• Have limited control history (<3 months)

• Operate under budget constraints

Benefits include faster certification, lower cost, and readiness for future Type II audits. See preparing for your first SOC 2 audit for practical steps.

When to Choose Type II

Best suited for organizations that:

• Serve enterprise customers requiring higher assurance

• Have mature compliance programs in place

• Seek competitive differentiation

• Need proof of continuous control effectiveness

Benefits include stronger customer trust, premium positioning in sales, and validation of risk management practices.

The Natural Progression Path

Most organizations view SOC 2 compliance as a phased journey:

• Phase 1: Foundation (Type I) → establish controls, document policies, complete an initial assessment.

• Phase 2: Maturation → operate controls for 6–12 months, refine processes, and build evidence.

• Phase 3: Advanced Certification (Type II) → demonstrate sustained effectiveness and strengthen customer trust.

Making the Right Choice for Your Organization

• Choose Type I if you’re starting your compliance journey, need quick credentials, or are working under budget constraints.

• Choose Type II if you require maximum customer assurance, serve regulated industries, or want to stand out against competitors.