What is SOC 2 Type 1 and What is SOC 2 Type 2 and how do they differ?

SOC 2 (Service Organization Control) is a set of standards that organizations can use to assess and report on their controls related to security, availability, processing integrity, confidentiality, and privacy of the systems and services that they provide to their customers. These standards, developed by the American Institute of Certified Public Accountants (AICPA), are widely recognized in the industry and provide assurance to customers that the organization has implemented effective controls to protect their data and systems.

SOC 2 Type 1 and Type 2 are two different types of SOC 2 reports that organizations can use to demonstrate their compliance with the SOC 2 standards.

SOC 2 Type 1 report focuses on the design of the controls at a specific point in time. The organization is required to provide a description of the controls in place, as well as evidence to support the design of those controls. The report also includes an opinion from a qualified independent auditor (such as a CPA firm) on whether the controls are suitably designed to meet the relevant SOC 2 standards. This report provides customers with assurance that the organization has implemented controls to protect their data and systems, but it does not provide any information on the effectiveness of those controls over time.

SOC 2 Type 2 report, on the other hand, focuses on the design of the controls and their operating effectiveness over a period of time, usually 6 months. In addition to providing a description of the controls and evidence of their design, as in a Type 1 report, the organization also needs to provide evidence of the effectiveness of the controls over a period of time. This includes testing the controls and documenting any issues that were identified and how they were addressed. The report also includes an opinion from the independent auditor on whether the controls were operating effectively over the specified period of time.

In simple terms, SOC 2 Type 1 report is a snapshot of the controls in place at the time of the assessment, while SOC 2 Type 2 report is an evaluation of the controls over a period of time, usually 6 months.

SOC 2 Type 1 report is the first step in the SOC 2 process, which establishes the baseline for the control environment. Type 2 report is the next step and provides a more detailed analysis of the controls and their effectiveness over a period of time.

To sum it up, SOC 2 Type 1 report is a point-in-time report that provides information about the design of the controls in place, while SOC 2 Type 2 report is a report that provides information about the design and operating effectiveness of the controls over a period of time. Both reports are useful for organizations that want to demonstrate their compliance with the SOC 2 standards to their customers, but Type 2 report provides a more comprehensive assessment of the organization’s controls and is generally considered to be more valuable for customers who want to ensure that the organization’s controls are effective over time.

Why 360 SOC?

At 360 SOC, we understand that no two organizations have the same security needs and requirements. That’s why we offer both Managed Detection and Response (MDR) and Security Operations Center as a Service (SOC as a Service), tailored to meet your unique security requirements. Our team of experts will work with you to understand your organization’s specific security needs and goals, and design a customized solution that delivers the protection and support you need to stay safe from cyber threats. With 360 SOC, you can feel confident that your organization’s networks and systems are in good hands, and that you have the tools and resources you need to effectively detect and respond to any security incidents.