SOC 2 Type 1 vs Type 2: The Difference, Cost and Timeline

The fee ranges come from compliance software vendors, not from audit firms, so read them as vendor estimates. Drata and Secureframe publish different ranges, and we show both.

What a SOC 2 Type 1 report covers

A SOC 2 Type 1 report gives the auditor’s opinion on whether your controls are suitably designed as of one specific date. The AICPA puts it simply: for a type 1, the auditor evaluates “controls as of a specific date.”

A Type 1 doesn’t test whether the controls worked over time. Vanta says a Type 1 “won’t cover how effective your controls are.” That makes it quicker and cheaper, and a weaker proof.

What a SOC 2 Type 2 report covers

A SOC 2 Type 2 report covers both the design of your controls and their operating effectiveness over an observation period, with the auditor’s tests and any exceptions listed in the report.

Vanta says Type 2 windows run three, six, nine or twelve months, with three months the minimum. Drata describes three months as the minimum for most auditors, six months as a common first window and twelve months as the standard for renewals. Those are market practice; we found no AICPA rule that sets a minimum period. Buyers can see the window length on the report, so a three-month window is a smaller proof than a twelve-month one.

SOC 2 Type 1 vs Type 2 cost

A SOC 2 Type 2 audit costs more than a Type 1: Drata puts the premium at 30%–50%, because the auditor tests controls across months instead of on one date.

Few audit firms publish a price. One that does, the UK firm Tempo, lists £4,000 for a Type 1 and £10,000 for a Type 2 for companies of 1–50 staff, Security criterion only. Tempo’s terms say the reports are issued with partner CPA firms; our SOC 2 auditors comparison lists US firms by peer review.

The audit is only one line. Software, readiness work and a penetration test come on top; our SOC 2 compliance cost breakdown adds them up.

How long each takes

A first SOC 2 Type 1 report typically takes three to six months from the start of preparation, and a first Type 2 takes six to fifteen months, according to Drata.

The difference is the observation window. A Type 1 needs your controls in place on one date. A Type 2 needs them running, with evidence, for the whole window, and the auditor writes the report after it closes.

Which should you get first?

Get a SOC 2 Type 1 first if a customer needs a report within a few months; go straight to Type 2 if you can wait for a three-month window. Drata says most organizations start with Type 1 for speed, then move to Type 2 for customer requirements, and Vanta notes that you can skip Type 1 entirely.

• Type 1 first: a signed deal or a security review depends on a report this quarter.
• Straight to Type 2: no deadline, and you’d rather not pay for two audits in a year. Vanta warns that prospects given a Type 1 may later ask for a Type 2 anyway.
• Either way: ask your biggest prospect which report they accept before you book the auditor.

Bridge letters and renewals

A bridge letter covers the gap between the end of your last SOC 2 report period and today. Secureframe says bridge letters are issued and signed by your management, not the auditor, and typically cover no more than three months.

Renewal is a new Type 2 audit each year. Secureframe says a report is typically treated as valid for 12 months after it’s issued, so most companies run back-to-back twelve-month windows once the first report is out.

The five Trust Services Criteria

Both Type 1 and Type 2 reports are measured against the AICPA’s Trust Services Criteria: Security, Availability, Processing Integrity, Confidentiality and Privacy. Security is the only one every SOC 2 audit requires, according to Secureframe; add the others when customers ask. Our walkthrough of the full SOC 2 certification process explains each criterion and the full process. If you’re unsure whether you need SOC 2 or SOC 1 at all, see how SOC 1 and SOC 2 differ.