SOC2 Free Resources Center
SOC 1 vs SOC 2 : What’s the Difference and Which Do You Need?
Whether you’re starting your SOC2 project or enhancing an existing compliance, STANDARD ONE provides essential templates, tools, and guides to empower your success — all at no cost.
🔍 SOC 1 vs SOC 2: What’s the Difference and Which Do You Need?
Choosing between SOC 1 and SOC 2 can be confusing — but it’s one of the most important steps in your compliance journey. These reports serve very different purposes, and selecting the right one depends on the type of service your organization provides and what your clients expect.
🧾 What Is a SOC 1 Report?
A SOC 1 report is focused on financial controls — specifically, how your services affect your clients’ internal controls over financial reporting (ICFR).
If you process payroll, manage financial transactions, or impact accounting systems, a SOC 1 is likely the correct audit.
✅ Common Use Cases:
- 💰 Payroll service providers
- 🏦 Loan and mortgage processors
- 📄 Claims and benefits platforms
- 📊 Outsourced billing/accounting systems
📌 SOC 1 Breakdown:
- 🎯 Purpose: Evaluate the design and/or effectiveness of controls relevant to ICFR
- 📅 Types: Type I (point-in-time), Type II (over time)
- 👥 Audience: Auditors, controllers, CFOs of client organizations
🔒 What Is a SOC 2 Report?
A SOC 2 report focuses on information security and system trustworthiness. It evaluates how well your internal controls align with the Trust Services Criteria (TSC) defined by the AICPA.
SOC 2 is designed for modern digital and cloud service providers — including SaaS companies, managed service providers, and data processors.
✅ Common Use Cases:
- ☁️ SaaS and cloud platforms
- 🛠️ Managed IT/security providers
- 📦 Data hosting and analytics companies
- ⚖️ Legal tech, CRM, and martech vendors
📌 SOC 2 Breakdown:
- 🔐 Purpose: Prove operational security, data protection, and reliability
- 🧩 Criteria: Security (required), plus Availability, Confidentiality, Processing Integrity, Privacy
- 📅 Types: Type I and Type II
- 👥 Audience: Customers, procurement teams, legal, and compliance stakeholders
📊 SOC 1 vs SOC 2 — Key Differences
- 📈 SOC 1 focuses on financial reporting (ICFR)
- 🔐 SOC 2 focuses on security, privacy, and system trust
- 🧾 SOC 1 uses custom control objectives
- 🛡️ SOC 2 uses AICPA Trust Services Criteria (TSC)
- 🏦 SOC 1 is ideal for payroll, claims, and financial platforms
- ☁️ SOC 2 is ideal for SaaS, cloud, and data-driven services
- 📅 Both SOC 1 and SOC 2 offer Type I and Type II reports
🤔 Which One Does Your Business Need?
If your service can impact your clients’ financial statements, you likely need a SOC 1 report. If your service involves handling sensitive data, platform access, or operational systems, a SOC 2 report is more appropriate.
Some organizations require both — especially if they provide financially relevant services and host those services on modern, cloud-based infrastructure.
🚀 Standard One Makes It Easy
At Standard One , we help you make the right choice between SOC 1 and SOC 2 — and streamline the entire audit readiness process.
- 📋 Pre-built readiness checklists
- ⚙️ Automated evidence collection
- 🧭 Control mapping to TSCs or ICFR objectives
- 📊 Policy templates, alerts, and dashboards
📅 Book a free SOC report readiness assessment
📞 Need Help Deciding?
If you’re unsure which audit your organization needs, our compliance advisors can guide you through the decision — and help you plan a cost-effective, audit-ready path forward.
