SOC 1 vs SOC 2: What’s the difference, what you need, and what it costs

SOC compliance can be complicated and time consuming for organizations. If you’re currently investigating it, we’ve compiled an extensive guide to help you understand the core aspects. In this guide we explain the difference between SOC 1 vs SOC 2, why you might need one over the other, how SOC audits work, and whether SOC 3 is worth considering. What’s the difference between Type I and Type II SOC reports? What is SOC 1, who needs it, and why? What is SOC 2, who needs it, and why? What is SOC 3, who needs it, and why? Which companies need multiple SOC reports? How do SOC audits work? Timelines, costs, and resources How much does a SOC audit cost? SOC reports may sound like tiers of the same type of report, but they’re not. They’re actually three different reports built for three different audiences. So when you’re comparing them, it’s not about which one is better, but which one is better suited to your needs. SOC 1 is for companies whose services touch a customer’s financial reporting, like payroll processors, claims administrators, or fund administrators. SOC 2 is for companies handling customer data, like SaaS, cloud, and technology vendors. SOC…