Few things derail a sales cycle faster than a security questionnaire you can't answer. A prospect asks for your SOC report, you don't have one yet, and compliance jumps straight to the top of your priorities. The first question most teams hit is which SOC 2 report to pursue, a Type 1 or a Type 2.
It's a bigger decision than it looks. The two reports take different amounts of time, cost different amounts, and signal different things to your buyers, so the right choice depends on who's asking and how fast you need to move. This article covers what a SOC 2 Type 1 contains, what it costs, how long it takes, who needs one, and how to prepare for the audit.
What is a SOC 2 Type 1 report?
A SOC 2 Type 1 report attests that your security controls are suitably designed on one specific date. The auditor reviews your controls as they stand on that date, confirms they're built to meet the relevant criteria, and issues a written opinion.
SOC 2 was created by the American Institute of Certified Public Accountants, known as the AICPA. Your controls are measured against the Trust Services Criteria, a set of standards for keeping customer data safe. Only an independent, licensed CPA firm can run the examination and sign the report.
One detail matters more than the rest. A Type 1 is an attestation report, not a certification, and there's no pass or fail. The auditor delivers a professional opinion, and the result you want is an unqualified opinion, which says they agree your controls are suitably designed. Plenty of companies call SOC 2 a certification on their websites, and that's a mistake worth fixing in your own copy.
SOC 2 Type 1 vs. SOC 2 Type 2
The difference between SOC 2 Type 1 and Type 2 comes down to what the auditor tests. A Type 1 checks that your controls are designed correctly on a single date. A Type 2 checks the same controls, then also tests whether they operate as intended across a stretch of time, usually three to twelve months. The controls and the criteria are identical. Only the test changes.
A Type 2 carries more weight with most enterprise buyers because it shows your security program working over a period, not just on one day. A Type 1 is faster and cheaper because there's no observation window to sit through.
What's inside a SOC 2 Type 1 report?
A SOC 2 report follows a standard structure set by the AICPA, with up to five sections. A Type 1 contains four core sections. Knowing them helps you read a vendor's report and prepare your own.
A fifth section, called other information, is optional. Management can use it to share context the auditor doesn't test, such as future plans or a business continuity summary. The biggest difference from a Type 2 sits in the controls section. A Type 1 lists your controls and maps them to the criteria, but it doesn't include results from testing how those controls operate over time. A Type 2 adds that testing and the results.
Every SOC 2 report ties back to the five Trust Services Criteria. These are security, availability, processing integrity, confidentiality, and privacy. Security is required on every report, and you add the other four only when they apply to your products and services.
Who needs a SOC 2 Type 1 and who should skip it?
A SOC 2 Type 1 makes sense in a few specific situations. For many companies, the smarter move is to prepare once and go straight to SOC 2 Type 2. Run your situation through three questions before you commit.
- Is a deal or buyer blocked right now because you don't have a SOC report?
- Will that buyer accept a Type 1, which covers a single date, or do they require a Type 2, which covers a period of time?
- Could you instead hold your controls steady through a short three-month Type 2 window?
Here's the rule. Get a Type 1 when a deal is genuinely blocked, the buyer will accept it, and you can't wait even for a three-month Type 2. In every other case, prepare once and go straight to Type 2.
SOC 2 isn't a legal requirement, so no one will fine you for skipping it. The pressure almost always comes from buyers, since many companies won't share data with or buy from a vendor that can't show a SOC report. That's what makes a Type 1 useful when you're trying to land a larger account or move into a new market quickly.
A Type 1 fits early-stage companies trying to unblock a first enterprise deal. It also suits businesses that handle less sensitive information, such as software built around consumer habit data, analytics and business intelligence tools, and customer experience platforms, as opposed to companies trusted with health records, intellectual property, or sensitive financial data. And it works for teams that recently overhauled their controls and want a near-term checkpoint. A Type 1 works as a bridge to a Type 2 rather than a final destination.
Skip it when your buyers already expect a Type 2, when you have time for a three-month observation window, or when paying for two audits in one year is something you can avoid. Many buyers will ask for a Type 2 soon after they see your Type 1, so if there's no real urgency, you can go straight to a Type 2.
How much does a SOC 2 Type 1 cost?
A Type 1 costs less than a Type 2, mostly because the audit window is shorter and the auditor charges less for their time. The work to get ready, though, is similar for both reports, since they assess the same controls.
Vanta's own estimates put the cost of a SOC 2 attestation anywhere from $10,000 to more than $80,000, depending on your location, the scope of the audit, which criteria you include, and the type of report. A Type 1 sits at the lower end of that range.
A few factors move the number. Broader scope and more Trust Services Criteria raise the cost. Larger and more complex companies pay more. And manual preparation runs up internal hours that automated evidence collection can cut down. One long-term factor is worth weighing too. If you start with a Type 1 and a later prospect asks for a Type 2, you'll pay for a second audit. When you already know a Type 2 is coming, going straight there can cost less overall.
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How long does a SOC 2 Type 1 report take?
A first Type 1 usually takes a few months from start to finish, and the biggest variable is how ready your controls already are. The process runs through three phases.
Because a Type 1 captures a single date, there's no multi-month observation window to wait through. That's the main reason it's quicker than a Type 2, which can't be rushed because the auditor has to watch your controls operate over time. If your controls are already in good shape, the timeline shortens considerably.
Is SOC 2 Type 1 required?
SOC 2 compliance is not legally required for any organization — you won’t be fined or penalized for not having a SOC 2. However, your prospects or partners may expect to see your SOC 2 report before they can do business with you. Many organizations will not share their data or buy from vendors that don’t have a SOC 2 report. So while it’s not required, it is often worth the investment when expanding your business to larger accounts or new markets and regions.
How to prepare for a SOC 2 Type 1 audit
Good preparation is what shortens the whole process. The path runs through five steps, from scoping your criteria to scheduling fieldwork.
1. Define your scope and choose your criteria
Start by deciding which of the five Trust Services Criteria apply to your business. Security is required for every SOC 2 report. You add availability, processing integrity, confidentiality, or privacy only when they fit the products and services you sell. Scope shapes everything that follows, so settle it before you build anything.
2. Run a readiness assessment
Next, compare the controls you already have against the criteria in scope and find the gaps. A readiness assessment tells you what to fix before the auditor arrives. You can do this by hand, or you can run it through a compliance automation platform such as Vanta, which flags gaps and pulls much of your evidence automatically. That's where most of the time savings come from.
3. Assign owners
Map each control or group of controls to a named person. When everyone knows what they're responsible for, controls don't slip through the cracks while your team is heads down on the work.
4. Implement and test your controls
Stand up the controls within your scope, then check that they work as intended before fieldwork begins. This is the heart of the project, and it's worth doing a dry run so nothing surprises you during the audit.
5. Choose your auditor and schedule fieldwork
Finally, engage a licensed CPA firm to perform the audit. Fieldwork for a Type 1 usually takes a few weeks, and once it's done, the auditor issues your report. If you don't have an auditor yet, your compliance platform or your peers can point you to firms that fit your size and stack.
How long is a SOC 2 Type 1 report valid?
A Type 1 report has no formal expiration date, but it captures one moment, so it ages. Most buyers treat a report older than about twelve months as stale and will ask for something more current.
To cover a short gap between reports, your company can issue a bridge letter, sometimes called a gap letter. You write and sign it yourself, since the auditor can't speak to any period they didn't test, and it usually covers no more than three months. A bridge letter states whether anything material has changed in your controls since your last report. It buys you a little time, but it doesn't replace a current report, which is part of why buyers keep pushing for recurring Type 2 reports. You can read more about SOC 2 bridge letters if a gap is on your horizon.
Get your SOC 2 Type 1 with less manual work
A Type 1 earns its place when you need to unblock a near-term deal that a buyer will accept on a single-date report. If you have a little more runway, preparing once and going straight to Type 2 usually saves money and satisfies more buyers. Either way, the slow part is the preparation, and that's the part you can shrink.
If you need a SOC 2 Type 1 report, Vanta’s agentic trust platform can help you get started. Our platform has compliance automation capabilities that will guide you through scoping your SOC 2 Type 1 report, conducting a readiness assessment, and providing you with helpful guidance as you set up and test your controls ahead of your audit. We can even help you find an auditor and speed up your SOC 2 Type 1 timeline. See how by signing up for a demo.
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SOC 2 reporting and documentation
What is SOC 2 Type 1? A complete guide to the report and audit
SOC 2 reporting and documentation
What is SOC 2 Type 1? A complete guide to the report and audit
Download the checklist
SOC 2 reporting and documentation
Looking to automate SOC 2 audit prep?
Few things derail a sales cycle faster than a security questionnaire you can't answer. A prospect asks for your SOC report, you don't have one yet, and compliance jumps straight to the top of your priorities. The first question most teams hit is which SOC 2 report to pursue, a Type 1 or a Type 2.
It's a bigger decision than it looks. The two reports take different amounts of time, cost different amounts, and signal different things to your buyers, so the right choice depends on who's asking and how fast you need to move. This article covers what a SOC 2 Type 1 contains, what it costs, how long it takes, who needs one, and how to prepare for the audit.
What is a SOC 2 Type 1 report?
A SOC 2 Type 1 report attests that your security controls are suitably designed on one specific date. The auditor reviews your controls as they stand on that date, confirms they're built to meet the relevant criteria, and issues a written opinion.
SOC 2 was created by the American Institute of Certified Public Accountants, known as the AICPA. Your controls are measured against the Trust Services Criteria, a set of standards for keeping customer data safe. Only an independent, licensed CPA firm can run the examination and sign the report.
One detail matters more than the rest. A Type 1 is an attestation report, not a certification, and there's no pass or fail. The auditor delivers a professional opinion, and the result you want is an unqualified opinion, which says they agree your controls are suitably designed. Plenty of companies call SOC 2 a certification on their websites, and that's a mistake worth fixing in your own copy.
SOC 2 Type 1 vs. SOC 2 Type 2
The difference between SOC 2 Type 1 and Type 2 comes down to what the auditor tests. A Type 1 checks that your controls are designed correctly on a single date. A Type 2 checks the same controls, then also tests whether they operate as intended across a stretch of time, usually three to twelve months. The controls and the criteria are identical. Only the test changes.
A Type 2 carries more weight with most enterprise buyers because it shows your security program working over a period, not just on one day. A Type 1 is faster and cheaper because there's no observation window to sit through.
What's inside a SOC 2 Type 1 report?
A SOC 2 report follows a standard structure set by the AICPA, with up to five sections. A Type 1 contains four core sections. Knowing them helps you read a vendor's report and prepare your own.
A fifth section, called other information, is optional. Management can use it to share context the auditor doesn't test, such as future plans or a business continuity summary. The biggest difference from a Type 2 sits in the controls section. A Type 1 lists your controls and maps them to the criteria, but it doesn't include results from testing how those controls operate over time. A Type 2 adds that testing and the results.
Every SOC 2 report ties back to the five Trust Services Criteria. These are security, availability, processing integrity, confidentiality, and privacy. Security is required on every report, and you add the other four only when they apply to your products and services.
Who needs a SOC 2 Type 1 and who should skip it?
A SOC 2 Type 1 makes sense in a few specific situations. For many companies, the smarter move is to prepare once and go straight to SOC 2 Type 2. Run your situation through three questions before you commit.
- Is a deal or buyer blocked right now because you don't have a SOC report?
- Will that buyer accept a Type 1, which covers a single date, or do they require a Type 2, which covers a period of time?
- Could you instead hold your controls steady through a short three-month Type 2 window?
Here's the rule. Get a Type 1 when a deal is genuinely blocked, the buyer will accept it, and you can't wait even for a three-month Type 2. In every other case, prepare once and go straight to Type 2.
SOC 2 isn't a legal requirement, so no one will fine you for skipping it. The pressure almost always comes from buyers, since many companies won't share data with or buy from a vendor that can't show a SOC report. That's what makes a Type 1 useful when you're trying to land a larger account or move into a new market quickly.
A Type 1 fits early-stage companies trying to unblock a first enterprise deal. It also suits businesses that handle less sensitive information, such as software built around consumer habit data, analytics and business intelligence tools, and customer experience platforms, as opposed to companies trusted with health records, intellectual property, or sensitive financial data. And it works for teams that recently overhauled their controls and want a near-term checkpoint. A Type 1 works as a bridge to a Type 2 rather than a final destination.
Skip it when your buyers already expect a Type 2, when you have time for a three-month observation window, or when paying for two audits in one year is something you can avoid. Many buyers will ask for a Type 2 soon after they see your Type 1, so if there's no real urgency, you can go straight to a Type 2.
How much does a SOC 2 Type 1 cost?
A Type 1 costs less than a Type 2, mostly because the audit window is shorter and the auditor charges less for their time. The work to get ready, though, is similar for both reports, since they assess the same controls.
Vanta's own estimates put the cost of a SOC 2 attestation anywhere from $10,000 to more than $80,000, depending on your location, the scope of the audit, which criteria you include, and the type of report. A Type 1 sits at the lower end of that range.
A few factors move the number. Broader scope and more Trust Services Criteria raise the cost. Larger and more complex companies pay more. And manual preparation runs up internal hours that automated evidence collection can cut down. One long-term factor is worth weighing too. If you start with a Type 1 and a later prospect asks for a Type 2, you'll pay for a second audit. When you already know a Type 2 is coming, going straight there can cost less overall.
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How long does a SOC 2 Type 1 report take?
A first Type 1 usually takes a few months from start to finish, and the biggest variable is how ready your controls already are. The process runs through three phases.
Because a Type 1 captures a single date, there's no multi-month observation window to wait through. That's the main reason it's quicker than a Type 2, which can't be rushed because the auditor has to watch your controls operate over time. If your controls are already in good shape, the timeline shortens considerably.
Is SOC 2 Type 1 required?
SOC 2 compliance is not legally required for any organization — you won’t be fined or penalized for not having a SOC 2. However, your prospects or partners may expect to see your SOC 2 report before they can do business with you. Many organizations will not share their data or buy from vendors that don’t have a SOC 2 report. So while it’s not required, it is often worth the investment when expanding your business to larger accounts or new markets and regions.
How to prepare for a SOC 2 Type 1 audit
Good preparation is what shortens the whole process. The path runs through five steps, from scoping your criteria to scheduling fieldwork.
1. Define your scope and choose your criteria
Start by deciding which of the five Trust Services Criteria apply to your business. Security is required for every SOC 2 report. You add availability, processing integrity, confidentiality, or privacy only when they fit the products and services you sell. Scope shapes everything that follows, so settle it before you build anything.
2. Run a readiness assessment
Next, compare the controls you already have against the criteria in scope and find the gaps. A readiness assessment tells you what to fix before the auditor arrives. You can do this by hand, or you can run it through a compliance automation platform such as Vanta, which flags gaps and pulls much of your evidence automatically. That's where most of the time savings come from.
3. Assign owners
Map each control or group of controls to a named person. When everyone knows what they're responsible for, controls don't slip through the cracks while your team is heads down on the work.
4. Implement and test your controls
Stand up the controls within your scope, then check that they work as intended before fieldwork begins. This is the heart of the project, and it's worth doing a dry run so nothing surprises you during the audit.
5. Choose your auditor and schedule fieldwork
Finally, engage a licensed CPA firm to perform the audit. Fieldwork for a Type 1 usually takes a few weeks, and once it's done, the auditor issues your report. If you don't have an auditor yet, your compliance platform or your peers can point you to firms that fit your size and stack.
How long is a SOC 2 Type 1 report valid?
A Type 1 report has no formal expiration date, but it captures one moment, so it ages. Most buyers treat a report older than about twelve months as stale and will ask for something more current.
To cover a short gap between reports, your company can issue a bridge letter, sometimes called a gap letter. You write and sign it yourself, since the auditor can't speak to any period they didn't test, and it usually covers no more than three months. A bridge letter states whether anything material has changed in your controls since your last report. It buys you a little time, but it doesn't replace a current report, which is part of why buyers keep pushing for recurring Type 2 reports. You can read more about SOC 2 bridge letters if a gap is on your horizon.
Get your SOC 2 Type 1 with less manual work
A Type 1 earns its place when you need to unblock a near-term deal that a buyer will accept on a single-date report. If you have a little more runway, preparing once and going straight to Type 2 usually saves money and satisfies more buyers. Either way, the slow part is the preparation, and that's the part you can shrink.
If you need a SOC 2 Type 1 report, Vanta’s agentic trust platform can help you get started. Our platform has compliance automation capabilities that will guide you through scoping your SOC 2 Type 1 report, conducting a readiness assessment, and providing you with helpful guidance as you set up and test your controls ahead of your audit. We can even help you find an auditor and speed up your SOC 2 Type 1 timeline. See how by signing up for a demo.
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