SOC 2 Type 1 VS SOC 2 Type 2
SOC 2 Type 1 evaluates your security controls at a single point in time, while Type 2 evaluates whether those controls operated effectively over a period (typically 3-12 months). Type 1 is faster and cheaper but Type 2 is what enterprise customers ultimately require.
Start with **SOC 2 Type 1** if you need to unlock sales quickly and can't wait 6+ months. Plan to upgrade to **SOC 2 Type 2** within 6-12 months, as this is what enterprise customers will ultimately require. Many companies do Type 1 while their Type 2 observation period runs in parallel.
At A Glance
| Feature | SOC 2 Type 1 | SOC 2 Type 2 |
|---|---|---|
| Assessment Type | Point-in-time snapshot | Period of time (3-12 months) |
| Timeline | 4-8 weeks | 6-12 months total |
| Cost | $15,000 - $30,000 | $25,000 - $60,000 |
| What It Proves | Controls are designed properly | Controls work effectively over time |
| Enterprise Acceptance | Sometimes accepted temporarily | Universally accepted |
| Renewal | Upgrade to Type 2 | Annual Type 2 renewal |
About SOC 2 Type 1
A point-in-time assessment that evaluates the design and implementation of your security controls. It answers: "Do you have the right controls in place?"
Pros
- Faster to achieve (4-8 weeks)
- Lower cost ($15,000 - $30,000)
- Good stepping stone to Type 2
- Demonstrates security commitment
Cons
- Less valuable to enterprise buyers
- No proof of ongoing effectiveness
- Often needs Type 2 follow-up anyway
- Some customers won't accept it
About SOC 2 Type 2
An examination of your controls over a review period (3-12 months), evaluating both design and operating effectiveness. It answers: "Are your controls actually working?"
Pros
- Industry gold standard
- Proves controls work over time
- Accepted by nearly all enterprise buyers
- Provides detailed audit evidence
Cons
- Longer timeline (6-12 months total)
- Higher cost ($25,000 - $60,000)
- Requires sustained control operation
- More resource-intensive
Frequently Asked Questions
Do I need Type 1 before Type 2?
Not strictly required, but highly recommended. Type 1 validates your control design before committing to a longer observation period. Many auditors recommend starting with Type 1, especially for first-time SOC 2 companies.
How long should my Type 2 review period be?
Most companies choose 6 or 12 months. A 3-month period is the minimum but may raise questions from reviewers. 12 months provides the strongest assurance and aligns with annual renewal cycles.
Can I skip Type 1 entirely?
Yes, you can go directly to Type 2. However, if controls aren't properly designed, you risk failing the Type 2 audit after months of observation. Type 1 acts as a "dry run" to catch issues early.
What happens if I fail Type 2?
You'll receive an audit report with exceptions noted. Significant exceptions may prevent you from sharing the report with customers. You'll need to remediate issues and restart the observation period.
Still Not Sure Which to Choose?
Our experts can help you evaluate your specific business needs and customer requirements to pick the right path.