Difference between SOC 2 and SOC 3

Type 1 and Type 2 Audit Report

There are two types of reports, SOC 2 and SOC 3. But there are a few key differences:

1. The type of report: SOC 2 offers both Type I and Type II reports. SOC 3 reports are always Type II reports.
2. The purpose of Type I reports describe the service organization’s system and the controls that were in place as of the specified date and exclude testing of the operating effectiveness of the controls over a period of time. But the Type II reports describe the service organization’s system and the controls that were in place during the specified period and include detailed testing of the operating effectiveness of the controls over the specified period.
3. Both SOC 2 and SOC 3 reports follow the SSAE 18 standards set by the AICPA. This means that both reports involve a AICAP registered CPA audit and a lot of testing of an organization’s security controls.

Level of details

• SOC 2 Type 1 & Type 2 reports are popular for service organizations. The SOC 2 Type 2 Reports  show how controls are in place to protect the needs of their clients.
• The SOC 3 Type 2 reports only contain the auditor’s opinion, management assertion, and system description.

Target Audience:

• SOC 2 reports are known as restricted-use reports. The SOC reports are intended for a specific audience only. User entities, service organization management, or other specifically named parties would read a SOC 2 report.
• SOC 3 Type 2 reports can be distributed publicly, and the SOC 3 audited organisations can use the SOC 3 audit report for marketing purposes.