No. A SOC 2 Type 1 report is not a required first step before Type 2. You can go straight to Type 2 if your controls and evidence are ready for the agreed reporting period.
The better question is whether a Type 1 report solves a real need along the way. Do not buy both just because the numbers sound like a sequence.
What is the difference?
- Type 1: Addresses the system description and whether controls are suitably designed at a specified date. It does not test their operating effectiveness over time.
- Type 2: Also addresses whether those controls operated effectively over a stated period.
When can Type 1 be useful?
A customer may want an independent report before you have enough operating history for Type 2. Type 1 may help if that customer agrees it meets their immediate need.
For example, a buyer might accept Type 1 for an initial contract and require Type 2 later. Confirm that arrangement before paying for the extra report. Do not assume a buyer asking for Type 2 will accept Type 1 instead.
When might we skip it?
Consider going straight to Type 2 when the controls are already operating and the necessary records exist. Discuss that evidence with the auditor. Also check that the proposed period and delivery date meet your customers’ needs.
Skipping Type 1 does not skip preparation. A policy written today does not prove a control worked last quarter.
What if we only want to find gaps?
A readiness assessment may be a better fit. It helps identify work to do before the examination. It does not provide the same auditor’s opinion as a SOC report.
Ask the audit firm to explain the purpose and cost of each proposed stage. You should be able to say what each one delivers and who needs it.
Next: check whether you are ready to start the Type 2 period.
Sources
Schneider Downs confirms that Type 1 is not a prerequisite. Schellman explains the report types and what a readiness assessment provides.