What is the difference between SOC2 Type 1 report and Type 2 report?
A SOC report helps organizations that provide a given type of service to another organization show the effectiveness of their internal controls environment. A SOC 2 audit provides both detailed information and assurance of the service organization’s controls relevant to security, availability, processing integrity, confidentiality or privacy of a given service or system.
SOC2 Type I Report
A SOC 2 Type 1 report focuses on the description of an organization’s system and its ability to meet the relevant criteria set by the TSCs at a specific point in time. This basically serves as a snapshot of an organization’s environment to determine if controls are suitably designed and in place.
A SOC 2 Type 1 report contains…
- Includes a description of the scope of services including the key components of an organization’s system
- Assesses the design of an organization’s internal controls
- Tests the internal controls environment at a specific point in time
- Does not include the actual results of the auditor’s tests
SOC2 Type II Report
A SOC 2 Type 2 report contains the same information as a SOC 2 Type 1 but also includes an assessment of the operating effectiveness of the organization’s controls over a defined period of time. Further, unlike a Type 1 report, a Type 2 report includes the detailed results of the auditor’s tests over that defined period of time and gives a historical view of an organization’s environment to determine whether the organization’s internal controls environment was both designed and operating effectively.
A SOC 2 Type 2 report contains…
- Includes a description of the scope of services including the key components of an organization’s system
- Assesses both the design of an organization’s controls as well as the operating effectiveness of an organization’s controls over a defined period of time
- Tests the internal controls environment over a defined period of time
- Detailed description of the auditor’s tests and the results of those tests