A Type I report describes controls and assesses their design at a specific date. A Type II report additionally tests operating effectiveness across an observation period, usually six to twelve months.
Type II is substantially more demanding because it requires evidence that controls functioned continuously rather than existing on paper.
Alternative Names:
Type II Report, SOC 2 Type 2
Why it Matters?
The distinction is the one buyers most often miss. A Type I report shows a vendor designed controls, which a company can do in a week before an audit. Type II shows they actually operated. For any vendor handling privileged client material, Type II with a full twelve-month period is the reasonable expectation, and a Type I from a mature vendor warrants a question about why.
Frequently Confused with
Related terms
Frequently asked questions
What is the difference between Type I and Type II?
How long should the observation period be?
