Understanding the SOC 2 Type 1 vs Type 2 Security Attestation

• 21 June 2025
• Security

In 2025, organizations across the globe are feeling the weight of growing cybersecurity threats, with the average cost of a data breach reaching a staggering $4.88 million, according to IBM. This financial burden is made even more daunting by the fact that 70% of breaches lead to significant disruptions, affecting not just the organizations , but often their customers, reputation, and operations.

While no report or certification can completely eliminate the risk of a breach, SOC 2 reports, both Type 1 and Type 2, play a critical role in reducing that risk. These reports don’t directly stop malicious attacks, but they significantly bolster an organization’s defenses by ensuring that controls are security-focused and operate effectively to mitigate potential vulnerabilities.

Why SOC 2 Matters?

SOC 2 reports offer assurance that an organization’s internal controls are up to par. Whether you’re looking to meet client audit requests or comply with industry standards, SOC 2 reports are invaluable. They evaluate the design and, in the case of Type 2 reports, the operational effectiveness of security controls, helping organizations stay ahead of potential threats.

The key advantage of SOC 2 compliance is its broad coverage. While SOC 1 focuses on the control of financial data, SOC 2 goes a step further by encompassing five key Trust Service Criteria. Each principle is designed to safeguard critical aspects of service operations. Here’s a closer look at each.

• Availability: Ensures that systems remain accessible and operational as per the terms agreed with clients. Whether it’s uptime or the ability to access vital systems, Availability ensures that services are consistently available to meet business needs and customer expectations.
• Confidentiality: Ensuring that sensitive information remains protected. It guarantees that sensitive data, such as client records or proprietary business information, is handled with the utmost care and in line with client agreements. By adhering to confidentiality standards, organizations can protect data from unauthorized access and breaches.
• Processing Integrity: Focuses on the accuracy, validity, and authorization of data. It ensures that systems not only deliver data but do so correctly and as intended, preventing errors or unauthorized data manipulation. This principle is essential for organizations handling transactions or any system that processes critical data.
• Security: Security is perhaps the most well-known of the SOC 2 principles. It ensures that systems are protected from unauthorized access, ensuring that both internal and external threats are kept at bay. Whether through firewalls, encryption, or multi-factor authentication, a robust security infrastructure underpins the reliability of any service.

  

• Privacy:

  Emphasizes the secure handling of personal information in line with regulatory requirements. In today’s data-driven world, protecting personal data is crucial. SOC 2 helps organizations demonstrate their commitment to privacy by ensuring responsible and secure handling of customer information.

  These principles ensure that systems are not only secure from external threats but are also continuously available and able to process data accurately and with respect to client confidentiality and privacy.

Also read: What Is a Written Information Security Plan (WISP) and Why Your Firm Must Have One?

Exploring the Two Types of SOC 2 Attestation Reports

SOC 2 reports are essential tools for organizations looking to demonstrate their commitment to security, confidentiality, and privacy. These reports come in two primary types: Type 1 and Type 2. Understanding the differences between the two can help businesses make the right choice based on their needs and goals.

• SOC 2 Type 1

  The Type 1 report evaluates cybersecurity controls at a specific point in time. This report focuses on the design and adequacy of the controls, ensuring they are well-structured and capable of addressing relevant risks. However, it doesn’t assess whether these controls have been effective over time. It provides a snapshot of the internal controls in place at the moment of the audit.

• SOC 2 Type 2

  SOC 2 Type 2 goes a step further by evaluating not only the design of the controls but also their performance over an extended period, usually between 3 to 12 months. This report provides a deeper insight into the effectiveness of the controls over time, offering reassurance that security measures are consistently maintained and operational.

Key Differences Between SOC 2 Type 1 and Type 2:

• SOC 2 Type 1

  The audit for Type 1 is typically completed within weeks and provides a snapshot of the internal controls in place. It is especially useful for organizations that need a quick certification to attract new clients or meet short-term compliance needs. It’s commonly used in sectors like healthcare and finance where an assurance of security at a particular point in time is sufficient.

• SOC 2 Type 2

  The Type 2 audit process takes longer, up to 12 months, and is more expensive due to the comprehensive nature of the evaluation. It assesses how well the controls function over time, providing long-term assurance that security measures remain effective. This type of report is often preferred by larger organizations and is commonly expected in industries such as SaaS, FinTech, and Healthcare, where a higher level of trust and accountability is required.

  If an organization is looking for a quicker solution to demonstrate compliance or meet immediate requirements, Type 1 may be the right choice. However, for businesses seeking to prove the sustained effectiveness of their systems and controls, or aiming to build long-term trust with clients, SOC 2 Type 2 is the more suitable option.

Choosing Between SOC 2 Type 1 and Type 2

Selecting the right SOC 2 report depends on an organization’s specific compliance goals and operational needs.

• SOC 2 Type 1: This option is ideal for businesses that need to achieve compliance quickly, especially those without established security controls or undergoing recent changes to their data security frameworks. It provides a point-in-time evaluation, offering immediate assurance to stakeholders without the complexity of long-term monitoring.
• SOC 2 Type 2: Organizations looking for a more thorough assessment should consider Type 2. Although it requires a longer commitment, it can prove to be a cost-effective solution. The Type 2 report consolidates compliance efforts into a single, comprehensive audit that eliminates the need for more frequent short-term audits.
• Short-Term Compliance Alternatives: For businesses needing a balance between speed and thoroughness, a SOC 2 Type 2 report with a 3-month review period can provide a practical solution. It allows organizations to demonstrate compliance within a shorter timeframe while still benefiting from an extended evaluation of control effectiveness.

Who Should Consider SOC 2 Reports?

SOC 2 compliance is not mandatory, but it has become a key requirement for many businesses, especially when it comes to gaining trust and ensuring robust data protection practices. While it remains a voluntary standard, it is often treated as a contractual or vendor onboarding requirement. Clients across various industries increasingly request SOC 2 reports to verify that the companies they partner with are committed to safeguarding sensitive data.

SOC 2 Compliance for Service Organizations

SOC 2 compliance is particularly crucial for service organizations that manage sensitive data or plan to establish partnerships with larger enterprises. Organizations that handle confidential client information, whether financial, personal, or proprietary, can demonstrate their commitment to data security and build customer confidence by adhering to SOC 2 standards.

Also read: Navigating Zero Trust Security: Concepts, Standards, and Applications

Choosing the Right SOC 2 Report: Making the Best Decision for Your Business

The choice between SOC 2 Type 1 and Type 2 depends on your organization’s compliance goals and client expectations. Type 1 offers quick, point-in-time validation and is ideal for businesses that need immediate assurance. Type 2 provides a more comprehensive, long-term view of control effectiveness, helping organizations build sustained trust.

Achieving SOC 2 compliance enhances your company’s credibility and signals a strong commitment to data security. Whether you need rapid assurance or deeper validation, selecting the right report depends on balancing short-term needs with long-term objectives.

Apps4Rent helps clients pursue SOC 2 and SOC 1 compliance by offering secure infrastructure hosted in SSAE 16-audited data centers and guidance through readiness assessments, audit prep, and post-certification support. Get in touch to see how Apps4Rent can support your compliance goals and help build trust with your clients.