SOC 2 Type I & II

SOC 2 is an auditing standard, not a certification. Unlike ISO 27001, there is no certificate — what you receive is an audit report, prepared by a licensed CPA firm, that attests to whether your controls meet the applicable Trust Service Criteria over a defined period. This distinction matters commercially: a SOC 2 report is a point-in-time attestation from an independent auditor, not a badge you display on your website.

There are two types of SOC 2 report, and they are not equivalent:

SOC 2 Type I assesses whether your controls are suitably designed as of a specific date. It tells auditors and clients that your controls exist and are appropriately designed — but it says nothing about whether they actually operated over time.

SOC 2 Type II assesses whether your controls were both suitably designed and operating effectively over an observation period — typically six to twelve months. This is the report that US enterprise clients actually want. A Type I report is sometimes used as an interim step while the observation period accumulates, but it does not substitute for Type II in most procurement contexts.

Be cautious of vendors or consultants who emphasise Type I as an end goal. Most US enterprise procurement teams know the difference, and a Type I report in place of a Type II will often not close the deal.

SOC 2 reports are issued against one or more of five Trust Service Criteria. Security — also called the Common Criteria — is mandatory. The others are optional and selected based on what is relevant to your service:

Security: Protection of the system against unauthorised access, disclosure, and damage — the baseline that every SOC 2 report includes.

Availability: The system is available for operation and use as committed or agreed — relevant for infrastructure providers and businesses with SLA commitments.

Processing Integrity: System processing is complete, valid, accurate, timely, and authorised — relevant for transaction processing, financial data, and critical workflow services.

Confidentiality: Information designated as confidential is protected as committed or agreed — relevant for businesses handling commercially sensitive client information.

Privacy: Personal information is collected, used, retained, disclosed, and disposed of in accordance with the entity’s privacy notice — relevant for businesses processing personal data at scale.

Most technology service providers start with Security only, or Security plus Confidentiality. The right scope depends on what your clients are asking for and what risks your service presents.

SaaS companies with US enterprise customers or a US go-to-market strategy — SOC 2 Type II is typically required before procurement can approve a new vendor.

Cloud infrastructure providers, hosting companies, and managed service providers whose clients include US-regulated businesses.

Data analytics, AI, and data processing businesses handling US customer or consumer data.

Indian IT services and outsourcing companies serving US financial services, healthcare, or technology clients — SOC 2 is increasingly a vendor onboarding requirement in these sectors.

Gulf-based technology businesses seeking to expand into the US market or serve US-headquartered multinationals.

Startups preparing for Series A or later fundraising from US investors, where SOC 2 readiness is increasingly reviewed as part of technical due diligence.

Any business that has lost, delayed, or is at risk of losing a US enterprise deal because of an inability to provide a SOC 2 report.

If your customers are asking for SOC 2 and you do not have it, that is the clearest possible signal that you need it. If they have not asked yet but you are actively selling to US enterprise, it will come.

A common question for technology businesses, particularly those with both US and European or Asian clients, is whether to pursue SOC 2 or ISO 27001 — or both. The practical answer depends on your client base. US enterprise buyers generally expect SOC 2. European and Gulf buyers, regulated-sector clients, and government procurement processes more commonly reference ISO 27001. If you are selling to both, you may need both.

The good news is that there is substantial overlap between the two frameworks at the control level. A well-implemented ISO 27001 ISMS covers the majority of the SOC 2 Common Criteria controls. Businesses that implement one framework thoughtfully can achieve the other at significantly reduced incremental cost. We implement both and we design our implementations to maximise that overlap.