SOC 1 Type I and Type II

by Hannah Grace Holladay / May 16th, 2023

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.