SOC 2 Cost Comparison
SOC 2 Type I vs Type II Cost
Type II costs 40-80% more than Type I. Understand where the money goes—and when each audit type makes financial sense.
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Type I
Point-in-TimeValidates control design at a specific date. Confirms controls exist and are documented.
Auditor Fee Range
$12,000 – $35,000
Timeline
2-6 weeks
After controls are ready
Internal Effort
80-150 hours
Documentation + walkthrough prep
Total First-Year Cost
$35,000 – $90,000
Including tooling + internal effort
Best For:
- • First-time SOC 2 audits
- • Proving compliance quickly for a deal
- • Validating control design before Type II
Type II
Operating PeriodValidates control design + operating effectiveness over 3-12 months. Confirms controls work consistently.
Auditor Fee Range
$18,000 – $55,000
Timeline
3-12 months
Observation window + audit
Internal Effort
200-400 hours
Sustained evidence collection
Total First-Year Cost
$55,000 – $150,000
Including tooling + internal effort
Best For:
- • Enterprise customer requirements
- • Mature security programs
- • Long-term compliance strategy
The Real Cost Difference: It's Not Just Auditor Fees
Auditor fees for Type II are ~40-60% higher. But the total cost difference is 60-80% when you factor in:
Sustained Evidence
3-12 months of access reviews, change logs, and incident documentation
Tooling Runtime
Longer subscription period before audit completion
Team Bandwidth
Ongoing maintenance vs. one-time prep sprint
Cost Breakdown by Component
| Component | Type I | Type II | Difference |
|---|---|---|---|
| Auditor fees | $12K – $35K | $18K – $55K | +40-60% |
| GRC platform | $8K – $24K | $12K – $36K | +30-50% |
| Internal effort (hours) | 80-150 hrs | 200-400 hrs | +150-200% |
| Time to completion | 2-6 weeks | 3-12 months | +300-500% |
| Total first-year cost | $35K – $90K | $55K – $150K | +60-80% |
When to Choose Each Type
Choose Type I When:
- $Budget is constrained and you need compliance proof fast
- $Customer accepts Type I for initial deal close
- $Controls are new and untested in production
- $You want to validate design before committing to Type II
Choose Type II When:
- $Enterprise customers explicitly require Type II
- $Controls have been operating 6+ months already
- $You have dedicated compliance ownership
- $Long-term compliance program is established
Strategic Path: Type I First, Then Type II
Many teams optimize cost by doing Type I first (prove design), then starting the Type II observation window immediately after. This approach:
- •Validates controls early — Catch design issues before a long observation period
- •Unblocks deals faster — Type I report can close urgent enterprise deals
- •Reduces Type II risk — Observation window starts with validated controls
Combined cost: ~10-15% higher than skipping Type I, but significantly lower risk of failed Type II audit.
SOC 2 Type I vs Type II Cost FAQs
Why is Type II more expensive than Type I?
Type II requires operating effectiveness evidence over 3-12 months, not just point-in-time documentation. More auditor hours, longer observation, and more evidence collection drive the cost increase.
Is it cheaper to skip Type I and go straight to Type II?
Sometimes, but risky. Type I helps validate control design before committing to a long observation window. If controls are immature, you may waste the observation period fixing issues.
How much more does Type II cost vs Type I?
Typically 40-80% more. A $20K Type I audit might be $28-36K for Type II from the same firm. The longer observation window and evidence requirements drive the difference.
Can I do a 3-month Type II to save money?
Yes, but many enterprise buyers prefer 6-12 month windows. A 3-month window is better than Type I, but you may face questions about why the window is short.
Does the same auditor charge less for Type II after Type I?
Often yes. They already documented your environment during Type I. Expect 10-20% auditor efficiency on the Type II portion, though the longer observation still adds cost.
What is the hidden cost of Type II?
Internal effort. Your team must maintain evidence quality for the entire observation window—access reviews, change logs, incident responses. This sustained effort is often underestimated.
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