Sample Page - SOC2 Compliance

The Bridge Strategy Type I → Type II

The two-stage approach that works for many growth-stage SaaS companies.

This is the right strategy for most growth-stage SaaS companies that have immediate sales pressure AND long-term Type II requirements.

Month 0–3:

Readiness + Type I audit Month 3: Type I report issued, Type II observation period begins Month 9–12: Type II observation ends, Type II audit begins Month 12–14: Type II report issued

Why this works

Type I gives you something to show customers in month 3 The work for Type I IS the readiness work for Type II no waste Observation period runs while you’re closing deals with the Type I report - Type II is a continuation, not a restart

Cost:

$60K–$160K total for both reports — usually less than 1.5x the cost of a Type II alone.

Time:

12–14 months from kickoff to Type II report, with a Type I report in hand by month 3.

When to Skip Type I Entirely

Most mature security organizations should skip Type I and go directly to Type II.

Skip Type I if

Your controls are already operating (you just need them audited) - You have no immediate sales pressure - You’d rather save $20K–$40K - Your customers are willing to wait 8–14 months for Type II

Going directly to Type II

Saves $20K–$40K - Saves 2–3 months of audit prep time - Eliminates one audit cycle of organizational disruption - Produces a single, stronger report

Don’t skip Type I if

You’d genuinely lose deals without an interim report - Your team needs the forcing function of an early audit milestone - Your security program is still being built

Common Mistakes

SOC 2 is expensive. The cost of not having SOC 2 is often higher.

Need help deciding?

Cyber Security Services helps every client make the Type I vs Type II call as part of free scoping. We’re auditor-agnostic and have no incentive to push one over the other.

Getting Type I and stopping

Some companies get a Type I report, hand it to a few customers, and then never pursue Type II. By year two, the Type I report is outdated and customers are asking for current Type II. You’re back at square one.

Choosing Type II to “save money” by skipping Type I — but not being ready

Going directly to Type II with weak controls produces a Type II report with exceptions. That’s worse than a clean Type I followed by a clean Type II.

Picking a 6-month observation window when 12 makes sense

A 12-month observation window produces a stronger report and aligns better with enterprise annual cycles. The extra 6 months of operation is usually worth more than the speed of issuing 6 months sooner

Doing readiness for Type I, then a different consultant for Type II

Switching consultants between Type I and Type II loses context, forces re-discovery, and inflates cost. Pick a consultant who can do both.

Not planning for annual Type II renewal

Type II is annual. The cost shows up year after year. Plan for ongoing compliance from day one — don’t treat the first report as the finish line.

Frequently Asked Questions

Can I do Type II without first doing Type I?

Yes. Most mature security organizations do exactly this. Type I is not a prerequisite for Type II.

Does my Type I report count toward my Type II?

The readiness work does. The Type I report itself is a separate deliverable and doesn’t replace any part of the Type II audit.

Can the same auditor do both my Type I and Type II?

Yes, and most do. Continuity of auditor saves time on the Type II because they already understand your environment.

How long is a Type I report valid?

Until the date covered (it’s a point-in-time report). Most enterprise buyers consider Type I reports stale after 12 months.

How long is a Type II report valid?

The report covers a specific observation period. After 12 months, you need a new Type II covering the next period. Bridge letters cover short gaps between reports.

Can I use a 3-month observation period for Type II?

No. The AICPA requires a minimum of 6 months for Type II observation.

Will customers accept a Type I if I commit to Type II?

Often yes. A Type I report plus a documented Type II plan (with target date) satisfies many enterprise procurement teams as an interim measure.

What if I have controls in place but no formal SOC 2 yet?

You can usually go directly to Type II if your controls have been operating for 6+ months with evidence. The challenge is proving the operation — that’s where readiness work focuses.

What does “qualified” Type II mean?

A qualified report has exceptions — the auditor found controls that didn’t operate as designed. It’s still a valid report but is weaker than an unqualified (“clean”) report.

Should I do SOC 1 if I’m doing SOC 2?

Only if your services are relevant to your customers’ financial reporting. Most SaaS and cloud companies need SOC 2 only.

Get the Right SOC 2 for Your Situation

The Type I vs Type II decision affects $40K–$80K of spend and 6–10 months of timeline. Getting it right matters.

Cyber Security Services helps every client make this call as part of free scoping — based on your actual customer requirements, sales timeline, and security maturity. We have no incentive to push one over the other.