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RiscLens

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-Time

Validates 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 Period

Validates 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

ComponentType IType IIDifference
Auditor fees$12K – $35K$18K – $55K+40-60%
GRC platform$8K – $24K$12K – $36K+30-50%
Internal effort (hours)80-150 hrs200-400 hrs+150-200%
Time to completion2-6 weeks3-12 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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