What distinguishes a Type 2 SOC report from a Type 1 SOC report?

A Type 2 SOC (System and Organization Controls) report is distinguished from a Type 1 report primarily by its focus on the assessment of controls over a specified period of time, rather than at a single point in time. A Type 2 report evaluates not only the design of the controls but also their operational effectiveness during that period, typically ranging from six months to a year. This means the Type 2 report provides a more comprehensive view of how well the controls are functioning in practice, demonstrating that they have been actively monitored and maintained over the reporting period.

In contrast, a Type 1 report only assesses whether the controls are suitably designed as of a specific date, without evaluating their ongoing effectiveness. This makes the Type 2 report particularly valuable for clients looking to understand not just what controls exist, but how well they perform over time.

Other options, such as those suggesting Type 2 reports are always public or measure only the suitability of design, do not accurately reflect the key characteristics of a Type 2 SOC report. Additionally, while management descriptions are an important component of both types of SOC reports, the presence or absence of management descriptions does not serve to differentiate between the two report types.