A SOC 2 Type 1 report tests whether your controls are suitably designed at a single point in time; a SOC 2 Type 2 report tests whether those controls actually operated effectively over an observation window of 3 to 12 months. Most companies do a Type 1 first to unblock deals, then roll straight into the Type 2 window.
The core difference in one sentence
Type 1 answers "do the right controls exist today?" while Type 2 answers "did the controls work, every time, for months?" Both are attestation reports issued by a licensed CPA firm against the AICPA Trust Services Criteria, and both cover the same control set. The only variable is time: a Type 1 is a snapshot, a Type 2 is a film.
SOC 2 Type 1 vs Type 2 comparison table
| Dimension | SOC 2 Type 1 | SOC 2 Type 2 |
|---|---|---|
| What it tests | Control design at a point in time | Control design and operating effectiveness over a period |
| Time covered | One date (the "as of" date) | Observation window, 3-12 months (6 is common for a first report) |
| Evidence required | Policies, configurations, screenshots as of the audit date | Samples across the whole window: access reviews, change tickets, onboarding records |
| Auditor fees | Typically $5,000-$20,000 | Typically $12,000-$40,000+ |
| Time to get it | Commonly 2-4 months from a decent baseline | Commonly 4-9 months end to end, because the window itself takes months |
| What buyers think of it | A credible starting signal | The standard ask; many enterprise security reviews require Type 2 |
| Renewal | Usually replaced by a Type 2, not renewed | Annual, with back-to-back 12-month windows |
Which should you do first?
For most 5-200 person companies the answer is: Type 1 first, then Type 2 immediately after. Here is the reasoning.
- Type 1 unblocks sales fast. If a prospect is asking for "your SOC 2," a Type 1 report plus a committed Type 2 window date satisfies most mid-market security reviews. You can have it in a couple of months instead of most of a year.
- Type 1 de-risks the Type 2. The Type 1 audit surfaces design gaps before the clock starts. Finding out during a Type 2 window that a control was designed wrong can mean an exception in the report, or restarting the window.
- The control work is identical. Nothing you build for Type 1 is thrown away. The same controls simply keep running, and you start collecting period evidence the day the window opens.
The main case for skipping straight to Type 2: your buyers are large enterprises that explicitly refuse Type 1 reports, and you can afford to wait. Even then, many teams run a short 3-month first window to get a Type 2 on the table sooner, then move to 12-month windows.
What each one costs
Auditor fees for a Type 1 typically run $5,000-$20,000 for a small SaaS company; Type 2 fees typically run $12,000-$40,000 or more, scaling with scope, headcount, and the number of Trust Services Criteria categories you include. Those figures cover the CPA firm only. Readiness work, compliance tooling, and a penetration test (commonly $4,000-$15,000 if a customer requires one) are separate line items; see the full breakdown in our SOC 2 audit cost guide.
What the Type 2 window actually feels like
During the observation window, auditors will later sample real operational artifacts: quarterly access reviews that happened on schedule, change management records for a sample of production deploys, onboarding and offboarding checklists for every hire and departure, incident records, and backup restore tests. The failure mode is not "we do not have a control." It is "we have the control but nobody ran it in March." Missed runs become exceptions in your report, and exceptions are what buyers' security teams read first.
That is why the practical work of Type 2 is scheduling and evidence discipline: every recurring control needs an owner, a due date, and a record that it ran. This is exactly the problem an evidence collection workflow with owners and due dates exists to solve.
Common questions
- Is Type 2 "harder" than Type 1? The controls are the same; the discipline is harder. Type 2 punishes gaps in execution, not gaps in paperwork.
- Can a Type 2 report have failures in it? Yes. Auditors note exceptions and may still issue an unqualified opinion if the exceptions are limited. Serious or widespread failures lead to a qualified opinion.
- How long is a report "valid"? There is no formal expiry, but buyers generally expect a Type 2 covering a window that ended within the last 12 months, which is why companies re-audit annually.
- Do both cover all five Trust Services Criteria? No. Security (the common criteria, CC1-CC9) is mandatory; availability, confidentiality, processing integrity, and privacy are optional add-ons in either report type.
One honest note: no software and no consultant can guarantee the outcome of either report. Your CPA firm forms its own opinion based on what it observes; preparation determines how comfortable that observation is.
The practical path
- Scope Security (CC1-CC9) plus whatever categories your customers actually ask for.
- Close design gaps and stand up recurring controls with owners.
- Take the Type 1 audit to unblock deals now.
- Open the Type 2 window the same week, run a 3-6 month first window, then settle into annual 12-month windows.
If you want the tracking side handled without a sales call, Complies gives you the control set, the compliance calendar, and evidence collection with a live readiness score, at published prices from $79 per month. See how SOC 2 compliance software handles the Type 1 to Type 2 handoff, and get started when your window date is on the calendar.
RUN IT, NOT JUST READ IT
Turn this into tracked rows with owners
Everything in this guide becomes obligations, controls, and evidence with owners and due dates inside Complies, with a live readiness score on top. Plans from $79 a month, prices published.