A SOC 2 Type I and SOC 2 Type II both report on the non-financial reporting controls and processes at a service organization as they relate to the Trust Services Criteria. There are many other similarities between SOC 2 Type I and SOC 2 Type II reports, but the key difference is that a SOC 2 Type I report is an attestation of controls at a service organization at a specific point in time, whereas a SOC 2 Type II report is an attestation of controls at a service organization over a minimum six-month period.
A SOC 2 audit evaluates controls that directly relate to the AICPA’s Trust Services Criteria. This means that a SOC 2 audit report focuses on a service organization’s internal controls as they relate to security, availability, processing integrity, confidentiality, and privacy of a system.
Understanding the difference between a SOC 1 Type I and SOC 1 Type II is simple; it comes down to the audit period. While both a SOC 1 Type I and SOC 1 Type II report on the controls and processes at a service organization that may impact their user entities’ internal control over financial reporting, the main difference between the two types of audits is the period in which the auditor verifies the effectiveness of internal controls. SOC 1 Type I audits will assess controls and processes that could impact entities’ ICFR for a specific point in time. On the other hand, a SOC 1 Type II audit will assess controls and processes that could impact entities’ ICFR over a period of time.
A SOC 1 engagement is an audit of the internal controls which a service organization has implemented to protect client data, specifically internal controls over financial reporting. SOC 1 is the standard used by CPAs during a SOC 1 engagement to evaluate, test, and report on the effectiveness of the service organization’s internal controls.
