Should I start with SOC 2 Type I or go straight to Type II?

March 6, 20262 min readSOC 2 Cost and Budget

Type I or Type II First?

Start with Type I unless you have a specific reason to skip it. Type I gets you a report in 4–8 weeks. Type II requires a 3–12 month observation period before you even begin the audit. If a prospect is waiting on your SOC 2 report, Type I unblocks the deal now.

Decision Framework

Your SituationRecommendationWhy
Active deal blocked on SOC 2Type I firstGets a report in weeks
No urgent deals, controls already matureGo straight to Type IIAvoid paying for two audits
First-time compliance, unsure of readinessType I firstValidates controls before committing to observation period
Buyer explicitly requires Type IIType IIMatch the buyer's requirement
Budget constrainedType I firstLower initial cost

The Type I First Strategy

Most startups follow this sequence:

  1. Get audit-ready for Type I (4–6 weeks)
  2. Complete Type I audit (2–3 weeks)
  3. Start Type II observation period immediately
  4. Complete Type II audit after 3–6 months

This gives you a report to share with prospects within 6–8 weeks while you build the Type II track record in the background.

When to Skip Type I

Skip Type I if all three conditions are true:

  • You have had controls in place for 3+ months already
  • No prospect is waiting on your report right now
  • You want to avoid paying for two separate audits

Some auditors offer a combined Type I + Type II engagement where they assess design (Type I) at the beginning of the observation period and operating effectiveness (Type II) at the end, issuing a single report.

Cost Implications

Type I typically costs $7,000–$15,000 for the auditor. Type II costs $10,000–$25,000. If you do both sequentially, you pay both fees. A combined engagement may save 15–25% versus two separate audits.

Screenata supports both paths — Type I from $299, Type II from $499/month.

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