What Type of SOC Audit Report Do We Need - Type 1 or Type 2? What Are these Types of SOC Audit Reports and How Do They Differ?

SOC Audit Report Variations, Type 1 vs Type 2

A SOC 1 or a SOC 2 report can be issued in two different types.  The type of report provides the user with an understanding of the scope of internal controls testing performed by the audit firm, and whether it covers the controls as of a point in time, or the operating effectiveness of the controls over an audit period.

Type 1 SOC Report (Design Focused) 

​Assesses the design of internal controls at a specific point in time, which is called a test of internal controls design.  These reports can demonstrate that your controls are properly designed and implemented, but does not provide assurance that the controls operated effectively over an audit period.

Type 2 SOC Report (Operating Effectiveness Focused)

Evaluates the operational effectiveness of internal controls over a period of time, called an audit period, and provides assurance that the controls operated effectively over the entire audit period.  The type 2 SOC audit report thus provides a higher level of assurance than a type 1 SOC audit report (which covers controls design and implementation only).