SOC 1 vs SOC 2 vs SOC 3

Not all SOC reports serve the same purpose. While they may sound similar, SOC 1, SOC 2, and SOC 3 each focus on different types of risk, audiences, and use cases.

If you are unsure which one applies to your business or your customers are asking for one you are not familiar with, this breakdown will help clear things up.

In this guide, you will get a practical look at what each report covers, who it is meant for, and when to use it.

Key Takeaways

• SOC 1 focuses on financial controls and is relevant when your service affects customer financial reporting. It supports audits, SOX compliance, and financial assurance processes.
• SOC 2 centers on data protection and internal system controls tied to security, availability, processing integrity, confidentiality, and privacy. It’s a common requirement for SaaS and cloud providers.
• SOC 3 is a public summary of SOC 2 with no sensitive audit data. It helps companies demonstrate security maturity without disclosing internal details.
• You might need both SOC 1 and SOC 2 if your service impacts both financial systems and sensitive data. Start with the one your customers prioritize, then consider adding the other based on demand.

Everything About SOC 1

SOC 1 is an audit report focused on financial controls. It’s used when a company’s systems affect its customers’ financial reporting. The main goal is to show that internal controls around financial information are in place and working.

This report is not public. It’s shared with customers, auditors, and regulators under NDA.

What It Includes

• A description of the company’s systems and processes
• Details about service organization’s controls related to financial reporting
• The auditor’s opinion on whether those controls are designed and working properly
• Results of control testing
• Management’s assertion about control effectiveness

It’s detailed and often requested during SOX audits or financial reviews.

Two Types

• SOC 1 Type I: Reviews controls at a single point in time snapshot
• SOC 2 Type II: Tests how those controls perform over a set period (usually several months)

Most customers prefer Type II for more reliable assurance.

How It’s Created

• The company defines the scope, which systems and processes affect customer financials
• An independent auditor reviews the design and operation of related controls
• For Type II, the auditor tests those controls over time
• The report is shared with authorized parties

When To Use SOC 1

• You provide services that impact clients’ financial reporting
• Your customers ask for SOX compliance support
• You run payroll, billing, claims processing, or similar financial systems

Everything About SOC 2

SOC 2 is a detailed audit report that shows how a company protects customer data. It focuses on security, availability, processing integrity, confidentiality, and privacy, called the security TSC. Unlike SOC 3, SOC 2 is not public. It’s shared under NDA with customers, partners, or regulators.

SOC 2 is used in vendor reviews, risk assessments, and compliance automation programs. It proves that your internal systems and controls actually do what you claim.

What It Includes

• A full list of controls
• Details on how those controls were tested
• Results of testing, including any exceptions or gaps
• Management’s description of the system and security policies
• The auditor’s opinion on effectiveness

This report is detailed and often dozens of pages long.

Two Types

• SOC 2 Type I: Checks if controls are in place at a single point in time
• SOC 2 Type II: Tests those controls over a period (usually 3 to 12 months)

Type II is the standard for most buyers and partners.

How It’s Created

• The company defines which Trust Services Criteria apply
• An independent auditor reviews internal systems and controls
• For Type II, controls are tested over a fixed audit period
• The third party auditor delivers a report showing what passed, failed, or needs work

When To Use SOC 2

• You handle customer or partner data
• Your clients demand proof of security
• You need to pass vendor due diligence
• You want to build trust without exposing everything publicly (use SOC 3 for that)

Everything About SOC 3 

SOC 3 is a public version of a SOC 2 Type II report. It confirms that a company’s systems meet standards for security, availability, processing integrity, confidentiality, and privacy. It’s meant for anyone to read, no NDA required.

SOC 3 gives companies a way to show proof of strong information security practices without handing out a full SOC 2. It’s used in marketing, vendor reviews, and public trust pages.

What It Includes

• A short summary of the auditor’s opinion
• A statement from the company about its controls
• A high-level overview of the system
• A clear statement that it meets certified public accountants AICPA Trust Services Criteria

That’s it. No testing details, no control lists, no sensitive data.

How It’s Created

• The company completes a SOC 2 Type II audit
• If that audit is successful, the same auditor can issue a SOC 3
• The company can then publish the SOC 3 report online

When To Use SOC 3

• You need a public trust signal
• You want to show compliance without sharing internal details
• You already passed a SOC 2 Type II audit

Key Differences Between SOC 1, SOC 2, and SOC 3 Reports

Aspect	SOC 1	SOC 2	SOC 3
Purpose	Controls related to financial reporting	Controls related to data security and privacy	Public summary of SOC 2 controls
Audience	Auditors, finance teams, internal control reviewers	Customers, business partners, compliance teams	General public, prospective customers
Content Detail	Detailed control descriptions affecting financial statements	In-depth analysis of trust principles (security, availability, etc.)	High-level overview, no sensitive details
Distribution	Private, often under NDA	Restricted, often shared under NDA	Public, suitable for websites and marketing materials
Common Use Cases	Payroll processing, financial reporting, transaction handling	SaaS platforms, cloud service providers, data processors	Trust signals, transparency, public assurance

Which SOC Report Should You Choose?

The right SOC report depends on what your clients need and w your service impacts their operations.

• Choose SOC 1 if your services affect your clients’ financial reporting. This includes payroll processing, accounting platforms, and financial transaction systems. Client companies or their auditors will likely request this report during audits or financial reviews.
• Choose SOC 2 if your service handles sensitive customer data, especially in cloud-based or SaaS environments. Most technology services companies, data platforms, and IT service firms fall into this category. If your customers ask about security or compliance, SOC 2 is usually what they mean.
• Choose SOC 3 if you already have a SOC 2 and want a version you can share publicly. It is not a substitute for SOC 2 but helps you demonstrate trust and good security practices without revealing sensitive audit details.

If your company impacts both financial reporting and data protection, you may need both SOC 1 and SOC 2. Start with the one your customers ask for most, then expand based on future needs.

Will You Need Both a SOC 1 and SOC 2 Report?

The right SOC report depends on the kind of services you offer and the type of data you handle for your customers.

If your service impacts financial reporting, for example payroll, billing, or accounting platforms, you will likely need a SOC 1 report.

If you host applications, manage infrastructure, or process sensitive customer data, then a SOC 2 report will be the right fit. SOC 3 reports are public summaries based on SOC 2 and are typically used to support marketing and trust communications.

Some companies end up needing both SOC 1 and SOC 2.

This happens when different clients have different priorities. One might focus on financial accuracy, while another wants proof of information security practices.

The good news is that the audit prep and readiness assessment can often overlap, which makes it easier to go through both at the same time. Many cloud service providers and firms working with enterprise customers face this situation.

What Are the SOC 2 Trust Services Criteria?

SOC 2 reports are built around five key Trust Services Criteria developed by the AICPA. These criteria define the areas a service organization’s controls must address to show strong internal controls for protecting customer data. Depending on the scope of the audit, a company may cover all five or focus on only a few.

Here are the five criteria:

1. Security

This is the core requirement in every SOC 2 report. It addresses how a company protects systems and data from unauthorized access, breaches, and other risks. Continuous monitoring plays a key role in maintaining this control over time.

2. Availability

This evaluates whether systems are accessible and usable as agreed with customers. It covers uptime, performance monitoring, and disaster recovery practices.

3. Processing Integrity

This ensures systems process data accurately, completely, and in a timely manner. It applies when the business handles transactions or automated processing.

4. Confidentiality

This focuses on protecting same information such as business secrets, internal documents, or customer agreements from unauthorized disclosure.

5. Privacy

This covers how personal information is collected, used, stored, and deleted. It applies to companies that handle customer or user data tied to an individual.

Each criterion includes specific control objectives and SOC compliance audit considerations. Most SOC 2 reports include Security by default and then add others based on the company’s services and customer expectations.

What is SOC 2 type 1 and SOC 2 type 2? 

There are some key differences between SOC 2 Type I and SOC 2 Type II. Let’s look at what sets them apart and how each might apply to your organization.

SOC 2 Type I

• Evaluates the design and implementation of controls at a specific point in time
• Confirms that controls exist and are properly configured
• Covers only one date (e.g., March 31, 2025)
• Used by early-stage companies or those needing to show SOC audit readiness quickly
• Requires fewer artifacts and takes less time to complete

SOC 2 Type II

• Evaluates whether controls are functioning over a defined period (e.g., January 1 to June 30, 2025)
• Verifies ongoing performance and enforcement of controls
• Requires operational evidence like logs, access reviews, and support tickets
• Often requested by customers and regulators for higher assurance
• Takes longer to complete but carries greater credibility

Aspect	SOC 2 Type I	SOC 2 Type II
Scope	Controls are reviewed at a single point in time	Controls are reviewed over a period (usually 3–12 months)
Focus	Confirms controls are designed and implemented correctly	Confirms controls are consistently operating as intended
Duration Covered	One specific date (e.g., March 31, 2025)	A defined range (e.g., January 1 to June 30, 2025)
Effort	Shorter process, less evidence required	Longer process, requires operational logs, reviews, and documentation
When to Use	Early-stage audits, fast procurement needs, or first-time certification	Ongoing vendor assurance, customer trust, and mature compliance requirements
Evidence Required	Control listings, policies, screenshots	Logs, audit trails, tickets, access reviews, and proof of operational activity

How to Get SOC 2 Certified With Bright Defense

Getting a SOC 2 certification can be time consuming and expensive if you go in unprepared. Many teams spend months pulling together policies, chasing evidence, and figuring out what auditors expect. Bright Defense helps cut through that with a setup built for security focused, cloud native teams.

Our platform simplifies SOC 2 from the start. No bloated checklists. No generic playbooks. Just a clear path from setup to audit.

Step 1: Connect Your Stack

Bright Defense integrates with your cloud tools in minutes. We pull evidence automatically from AWS, GCP, GitHub, Okta, and more. No need to dig for screenshots or chase IT tickets.

Step 2: Map to SOC 2 Criteria

Once connected, the platform tracks required controls for security, availability, confidentiality, processing integrity, and privacy. You see what’s already in place and what still needs work. Control mapping follows standard SOC 2 trust service criteria and highlights where your controls meet or differ from the same controls used in similar audits.

Step 3: Fix Gaps with Help from Our Team

If anything is missing like a password policy, audit log, or vendor risk review, we flag it. You get clear and direct steps to close the gaps. Our team is available throughout the process, so you know exactly what service organization management and auditors expect regarding documented security controls.

Step 4: Get Audited

When you’re ready, we connect you with a SOC 2 auditor from our network. They know how Bright Defense works, which helps the process move quickly. Your evidence is already organized. We stay involved and help with responses during the audit to support your organization’s ability to meet SOC 2 standards.

Want to see how this works for your team

Talk to us before you start chasing policies or pulling data. Bright Defense gives you a direct path to SOC 2 compliance that’s fast, clear, and built for security teams who already have enough on their plate.