Difference Between SOC2 Type I and Type II Reports

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

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