Compliance Glossary

What is SOC 2 Type I?

Definition

SOC 2 Type I is an auditing standard developed by the AICPA that evaluates the design and implementation of an organization's controls at a specific point in time. Unlike Type II which assesses operating effectiveness over a period, Type I provides a snapshot confirming that controls are suitably designed and in place on the assessment date.

In Depth

SOC 2 Type I reports serve as an important entry point for organizations beginning their compliance journey. The audit examines the same Trust Services Criteria as Type II — Security (mandatory), plus optional Availability, Processing Integrity, Confidentiality, and Privacy — but evaluates whether controls are properly designed and implemented rather than whether they operate effectively over time. For example, a Type I auditor verifies that multi-factor authentication is configured and active on the assessment date, but does not test whether it was consistently enforced over a six-month period. This makes Type I significantly faster to achieve (4-8 weeks versus 8-14 months for Type II) and less expensive ($20,000-$50,000 versus $30,000-$100,000+ for Type II). Type I is particularly valuable for startups and early-stage companies that need to demonstrate security posture to close enterprise deals but have not yet built the track record needed for Type II. Most organizations use Type I as a stepping stone, achieving it quickly to satisfy immediate customer requirements and then transitioning to Type II with a subsequent observation period. Enterprise procurement teams increasingly prefer Type II, but many still accept Type I from early-stage vendors. The Type I report is a restricted-use document shared under NDA, and organizations typically create a public trust page referencing the report for marketing purposes. There is no official expiration, but industry convention treats SOC 2 reports as current for 12 months from the report date.

Related Frameworks

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