If you’re just beginning your SOC 2® compliance journey, you’ve probably encountered two terms that seem similar but have major implications: SOC 2® Type I and SOC 2® Type II. Understanding the difference between these two report types helps you to understand where you can start and set a realistic timeline.
Let’s break down what each type means, how they differ, and when to use one over the other. Whether you’re a startup preparing for your first audit or a CTO looking to expand customer trust, this guide will give you clarity.
TL;DR: Type I is a snapshot of your controls today. Type II is proof they work over time.
What is SOC 2 Compliance, Again?
SOC 2 (System and Organization Controls 2) is a voluntary compliance framework developed by the AICPA to assess how well a service provider safeguards customer data. It revolves around five Trust Services Criteria:
Security (see how the Security criterion works) (required)
SOC 2® reports are issued by an external auditor, but it’s up to the organization to implement controls that meet these criteria.
For a full beginner-friendly breakdown, check out our SOC 2® guide for founders.
SOC 2® Type I: A Snapshot in Time
Imagine taking a high-quality photo of your organization’s security posture, right here, right now. That’s what SOC 2® Type I is. It captures a moment in time when you can say, “Yes, we have controls in place, and here’s the evidence.”
But just like a photo, it doesn’t show what happens after the shutter clicks. It doesn’t tell you whether those controls are being used, followed, or maintained over time.
What does it really mean?
SOC 2® Type I is focused on design, specifically, whether you’ve put the right policies, procedures, and systems in place to protect customer data. An auditor will examine your documentation, ask your team questions, and verify that the building blocks of compliance exist.
It’s often the first milestone on the compliance journey, and for good reason. It signals to customers, investors, and partners that you’re taking data security seriously, even if you’re early in the process.
When is Type I the right move?
You’re new to SOC 2® and want to show you’re on the right path.
You’re working against a tight deadline, maybe a live sales deal or funding round.
You need to demonstrate security maturity without waiting 6+ months.
What to expect from the process:
📄 The audit focuses on policies, documentation, and light testing.
⚡ It’s relatively quick, usually wrapped up in 4 to 8 weeks.
❗ It doesn’t verify whether controls are being used day-to-day — only that they’re in place at a specific point.
A real-world example:
Imagine a small SaaS team building developer tools for fintech startups. They’ve implemented strong access controls, formalized their onboarding process, and published a clear security policy. To reassure potential clients, they undergo a Type I audit. A month later, they have a polished SOC 2® Type I report in hand, and it helps them close their first enterprise deal.
SOC 2® Type II: Proof Over Time
SOC 2® Type II is a whole different story. Think of it less like a photo and more like a documentary. It’s not about what your controls look like it’s about how they perform over time.
To pass a Type II audit, you’ll need to prove that your security practices are actively and consistently followed for 3, 6, or even 12 months.
What’s being assessed?
Are your controls not only implemented but also working in practice?
Is your team following the procedures consistently?
Do your logs, tickets, and audit trails support that story?
In short: auditors will ask for receipts.
You’ll need to provide real operational evidence, like access logs, issue tracker histories, incident reports, and backup logs, that prove the controls are part of your everyday workflow, not just theoretical documents.
Why do companies pursue Type II?
It builds deeper trust with enterprise clients and security-conscious partners.
It often satisfies vendor security reviews and due diligence processes.
It validates that your organization doesn’t just know what to do — it actually does it.
What makes it different?
The audit covers a longer period, usually at least 3 months of continuous operation.
It’s more intensive and requires systems for tracking behavior, like SIEM tools, ticketing systems, or audit logs.
It assumes your org has already matured past “startup security hygiene” into something sustainable.
A real-world example:
A scale-up SaaS company serving healthcare clients has been following security processes for over a year: quarterly access reviews, regular incident response drills, automated backups, and audit-ready documentation. When they go through a SOC 2® Type II audit, the auditor reviews logs, tests samples of activity, and validates that controls were used as intended, not just once, but every time. The resulting Type II report becomes a key asset in their RFP responses and enterprise sales conversations.
Key Differences Between Type I and Type II
| Feature | Type I | Type II |
|---|---|---|
| Scope | Design of controls | Design + operational effectiveness |
| Timeframe | Specific point in time | Observation over a time period |
| Audit Duration | ~1–2 months | ~3–12 months |
| Evidence Required | Policies and documentation | Logs, systems data, process proof |
| Perceived Value by Clients | Moderate | High |
Which One Should You Start With?
The answer depends on your business maturity, timeline, and client demands.
Type I is ideal if:
You’re preparing for SOC 2® for the first time
You want to show early progress to prospects or investors
You need a report quickly for a deal in progress
Type II is ideal if:
You already have controls in place and operating
You want to stand out in vendor security reviews
You’re aiming for enterprise customers
Many companies start with Type I as a credibility step and follow with Type II within 6–12 months.
How Do Clients View These Reports?
Clients often view Type II as the “real” proof of trustworthiness. While Type I can demonstrate intent and preparedness, Type II shows discipline and maturity.
For startups, this perception can impact deal velocity, especially in industries like fintech, healthcare, or enterprise SaaS.
Curious how customers perceive the difference? Our article [How clients view Type I vs Type II reports] covers common buyer reactions.
SOC 2® compliance isn’t a checkbox; it’s a journey. Type I gets you started, but Type II shows you’re serious. Understanding the difference is essential for communicating with stakeholders and setting up your internal compliance roadmap.
Whichever path you choose, the most important thing is this: start with intent, and build with consistency.
Also considering ISO 27001? See our comparison of SOC 2® vs ISO 27001 to evaluate which fits your roadmap.
