The main differences between a Type 1 and Type 2 SOC 2 audit revolve around the scope, duration and assessment level of an organization's system and controls. Here is a quick summary of the main differences.
Timeframe:
- Type 1: A specific point in time. Think of this as getting your car serviced. The mechanic will check that your car is functioning at that point in time.
- Type 2: Over a set period of time (minimum of 3 months). Think of this as upgrading the suspension in your car; this will take longer, and there will be multiple checks to ensure it is functioning correctly.
Focus:
- Type 1: Design and implementation of controls. If we look back at a car service, this is like a mechanic checking that the oil has been changed and the car is running effectively.
- Type 2: Design, implementation, and operating effectiveness of controls. Looking back at the suspension upgrade example, the added ‘operational effectiveness’ might involve the mechanic taking your car for a drive on rough roads to ensure the new suspension is working correctly.
Assessment:
- Type 1: Evaluates whether controls are appropriately designed as of the specified date. For example, has the mechanic used the right oil for your type of car?
- Type 2: Evaluates whether controls are not only appropriately designed but also consistently operating as intended over the review period. For example, is the suspension not only the correct setting BUT does it also work effectively?
We encourage all of our clients to undertake a Type 1 audit as an initial step, offering a baseline assurance that the controls are designed properly.
A Type 2 audit, covering a period ranging from 3-12 months, then follows to provide assurance that controls are not only designed effectively but are also operating effectively over a period of time, which is often most valuable to clients and stakeholders.
This of it as getting your car serviced to know that it is working effectively before completing any major upgrades!