From SOC 2 Type 1 to Type 2: Transition Smoothly Without Starting Over

For SaaS companies pursuing SOC 2, completing a Type 1 audit is a major milestone. It demonstrates that you’ve put the right security controls in place, a strong signal to prospects, customers, and investors. But here’s the truth: a Type 1 audit only takes you halfway.

The real prize is SOC 2 Type 2 certification. That’s where you prove your controls aren’t just documented, but that they work reliably over time. Enterprise buyers, procurement teams, and vendor security reviewers increasingly view Type 2 as the true benchmark of trust.

The good news? If you’ve already completed Type 1, you don’t need to start over. In fact, you can typically reuse 60–80% of your Type 1 work as you prepare for Type 2. The key is knowing what carries over, what needs to change, and how to avoid the common pitfalls that slow companies down.

This guide will walk you through the Type 1 → Type 2 transition, including:

• Why Type 2 matters for SaaS companies
• A 12-month transition timeline
• Monthly evidence collection habits
• Common mistakes to avoid
• Tools and templates to accelerate readiness

Why SOC 2 Type 2 Matters

At a glance, Type 1 says: “We have the right security controls on paper.”
Type 2 says: “We can prove these controls work in practice.”

That difference matters because:

• Enterprise vendor reviews demand it. More procurement teams will ask for a Type 2 before they sign contracts, especially if you’re handling sensitive customer data.
• It reduces friction in the sales process. A Type 2 report helps your security questionnaire answers carry more weight. Instead of debating screenshots and one-off policies, you’ve got independent validation.
• It’s the foundation for continuous trust. Type 2 forces you to establish operational security practices that scale as your company grows.

For growing SaaS companies, achieving Type 2 can be the difference between stalling in mid-market deals and confidently moving upmarket.

The SOC 2 Type 2 Timeline at a Glance

Transitioning to Type 2 typically takes 12 months because you need to show evidence of operating effectiveness across time. Here’s what the roadmap looks like:

Months 1–2: Kickoff and Gap Analysis

• Review your Type 1 report and evidence.
• Identify gaps where processes aren’t fully operationalized.
• Assign control owners and clarify responsibilities.

Months 2–4: Closing Gaps and Training Teams

• Implement missing controls.
• Standardize recurring processes (e.g., access reviews, vendor checks).
• Deliver targeted security awareness training.
  

Months 4–11: Continuous Evidence Collection

• Collect and document evidence monthly.
• Monitor control performance.
• Address vendor risk management early to avoid surprises during audit.

Month 12: Readiness Check and Audit Prep

• Conduct an internal audit or pre-assessment.
• Confirm evidence coverage across the full audit window.
• Schedule your audit with a licensed CPA firm.

💡 Pro Tip: Start collecting evidence monthly as soon as your Type 1 audit wraps. Waiting until month 10 or 11 creates a scramble that derails teams and delays certification.

Building a Monthly Evidence Collection Habit

SOC 2 Type 2 readiness lives or dies by your ability to collect, organize, and retain proof consistently over time. Think of it less as “audit prep” and more as building a muscle.

Here’s a checklist of activities that should happen every month:

• Access control logs reviewed and documented
• Security awareness training tracked (especially for new hires)
• Vendor risk reviews updated for any third-party tools
• Vulnerability scans run and results recorded
• System configuration backups verified
• Incident response plan tested (tabletop or live exercise, if applicable)

The key is linking evidence directly to each control. Whether you use a spreadsheet, ticketing system, or compliance platform, avoid scattershot evidence that requires heroic efforts to piece together later.

Common Pitfalls That Delay Type 2

Even companies that succeed at Type 1 stumble when shifting into Type 2. Here are the traps to avoid:

1. Waiting too long after Type 1. The audit window is limited. If you let a year slip by, you may need to redo Type 1 before starting Type 2.
2. Not tracking evidence monthly. This is the #1 mistake. Auditors expect consistent proof, not backfilled screenshots.
3. Overlooking vendor controls. Your security posture depends on AWS, Google Workspace, or other SaaS providers. Auditors will check that you’re managing third-party risk too.
4. Relying on ad hoc processes. Without defined owners and recurring workflows, evidence falls through the cracks.

Avoiding these pitfalls saves time, reduces stress, and prevents the dreaded “audit crunch.”

Quick Win Tools & Templates

You don’t have to reinvent the wheel for SOC 2 Type 2 readiness. At Security Ideals, we’ve built a set of tools and templates that accelerate the process:

• SOC 2 Evidence Tracker (Spreadsheet): Columns for control, frequency, owner, and proof link.
• Audit Prep Timeline Template: A Gantt chart or Google Sheet that keeps the whole team aligned.
• Vendor Risk Checklist: A plug-and-play list of items to review for each third-party provider.
• SOC 2 Readiness Kit: Guidance on rolling from Type 1 to Type 2 without losing momentum.

These lightweight resources keep engineers focused on building the product while ensuring compliance stays on track.

What to Do Next

If you’ve recently completed Type 1, you’re in the perfect position to transition into Type 2. Here’s how to frame your next steps:

• If your Type 1 was less than 12 months ago: Roll straight into Type 2. Begin collecting evidence now and lock in your audit timeline.
• If your Type 1 was 12–24 months ago: You may need a refresh, but you can still reuse much of your prior work.
• If your Type 1 was more than 24 months ago: You’ll likely need to start fresh with a new Type 1, but you can apply lessons learned to accelerate the process.

The key is not to let the momentum die. Every month you wait makes the transition harder.

Conclusion: Keep Your SOC 2 Journey Continuous

SOC 2 isn’t a one-time project; it’s an ongoing commitment to security and trust. Moving from Type 1 to Type 2 is where your organization proves it can walk the walk, not just talk the talk.

By following a structured timeline, establishing monthly evidence habits, and avoiding common pitfalls, you can make the transition smooth and efficient. And with the right tools and guidance, you’ll shorten prep time, keep your team focused, and sail through your audit.

At Security Ideals, we’ve helped SaaS companies cut Type 2 preparation time in half, win more enterprise deals, and pass audits with confidence.

📞 Ready to make the jump from Type 1 to Type 2? Book your free 30-minute readiness review today.