Sooner or later, an enterprise prospect asks a growing software company for its SOC 2 report. The next question is usually: which one? SOC 2 comes in two types, and choosing the wrong starting point can cost months.
What SOC 2 is
SOC 2 is an attestation report issued by an independent CPA firm under the AICPA’s Trust Services Criteria. Security is always in scope; availability, confidentiality, processing integrity and privacy are added when they matter to your customers. It is not a certificate: it is an auditor’s opinion on your controls, which your customers read under NDA.
Type I: designed correctly, at a point in time
A Type I report says your controls are suitably designed and in place on a specific date. It is faster to obtain because there is no observation period, which makes it useful when a deal is waiting and you need credible evidence quickly.
Type II: operating effectively, over time
A Type II report says your controls actually worked throughout an observation period, commonly three to twelve months. Most enterprise buyers ultimately expect Type II, because it shows discipline rather than intention.
How to choose
- A deal is blocked now: start with Type I, then move straight into a Type II observation period.
- No immediate deadline: go directly to Type II with a short first observation window to save one audit fee.
- Either way: ask your key customers which report and which criteria they expect before you scope anything.
What readiness involves
Before any audit: a gap assessment against the criteria, written policies, access reviews, change management, vendor management, logging, an incident response plan and, above all, evidence that these happen routinely. Compliance automation platforms help collect evidence, but they do not design controls that fit how your team really works.
Need a second opinion on your situation? Book a free 30-minute consultation.