The most common question compliance teams ask is: "Should we get a SOC 2 Type I or Type II report first?" The answer depends on your customer requirements, your timeline, and your budget. Here is a clear breakdown.
What Is a SOC 2 Type I Report?
A Type I report provides an auditor's opinion on whether your system description is fairly presented and whether your controls are suitably designed as of a specific point in time. It does not test whether those controls operated effectivelyover a period.
- Observation period: None — single point in time.
- Fastest to obtain: 4–12 weeks from engagement start.
- Cost: Generally lower than Type II ($5k–$25k depending on scope).
- What it demonstrates: Controls exist and are designed correctly.
- Customer value: Useful as an interim milestone; some prospects accept it; enterprise buyers generally require Type II.
What Is a SOC 2 Type II Report?
A Type II report covers the same design opinion as Type I, but also includes testing of whether controls operated effectively over a review period (minimum 6 months, typically 12 months).
- Observation period: 6–12 months (most enterprise buyers require 12).
- Timeline: 9–15 months from readiness assessment to report issuance.
- Cost: $15k–$60k+ depending on scope and firm.
- What it demonstrates: Controls exist, are designed correctly, and operated consistently throughout the period.
- Customer value: Required by virtually all enterprise and mid-market buyers, many regulated customers, and SaaS security reviews.
Which One Should You Get First?
| Situation | Recommendation |
|---|---|
| Prospect asking for "any SOC 2 report" urgently | Type I now, Type II in 12 months |
| No current compliance programme | Start controls now; target Type II in 12–18 months |
| Enterprise deals blocked on SOC 2 | Type I as a bridge; Type II as the requirement |
| Budget constrained | Skip Type I; invest directly in Type II |
| Regulated industry (fintech, healthcare) | Type II immediately — regulators typically don't accept Type I |
The Trust Service Criteria
Both Type I and Type II reports are scoped to specific Trust Service Criteria (TSC). Security (CC) is required. Availability, Processing Integrity, Confidentiality, and Privacy are optional — include them only if your service commitments require it. Each additional TSC adds audit scope, time, and cost.
Most SaaS companies start with Security + Availability. Adding Privacy or Confidentiality is common in healthcare and financial services.