What’s in a number? SOC 2 vs. SOC 2 Type 2

The SOC 2 (System and Organization Controls 2) framework, developed by the American Institute of Certified Public Accountants (AICPA), is the gold standard for service organizations like MSPs. It sets criteria for securely managing customer data based on five "Trust Services Criteria": Security (mandatory), Availability, Processing Integrity, Confidentiality, and Privacy.

However, the certification comes in two types, and the difference is all about the element of time.

SOC 2 Type 1 aka The "Snapshot" 📸

A SOC 2 Type 1 report is essentially a snapshot of an MSP's systems and controls at a single point in time.

• What it does: It assesses the design of the MSP's security controls. It answers the question: "Are the policies and procedures designed correctly to meet the SOC 2 requirements as of this specific date?"
• What it misses: It does not confirm whether those controls are actually being followed day-to-day. It’s like checking that a company has a well-designed vault but not checking if they actually lock the door every night.

A Type 1 report is a good start, showing an MSP has thought about security, but for your critical business data, it doesn't provide the long-term assurance you need.

SOC 2 Type 2 aka The "Video Recording" 📹

A SOC 2 Type 2 report is the comprehensive, long-term assurance you should demand. It's not a snapshot; it's a video recording of an MSP's security performance over time.

• What it does: It assesses both the design and the operating effectiveness of the security controls over a sustained period, typically 3 to 12 months. It answers the question: "Are the policies and procedures designed correctly and have they been consistently, effectively, and rigorously followed over the past several months?"
• What it confirms: This report proves that the MSP's security practices are not a one-time effort but are deeply ingrained in their daily operations. It shows that their monitoring, incident response, access controls, and backups actually work as intended, every single day.

Why SOC 2 Type 2 for your business?

For Canadian business navigating a challenging cybersecurity landscape, choosing a SOC 2 Type 2-certified partner offers superior protection and peace of mind.

1. Proven, Consistent Security 🛡️

Cyber threats don't take a day off, and your security shouldn't either. The Type 2 audit ensures that your chosen partner maintains vigilance for months, not just on the day of an audit. This continuous accountability is vital for protecting your customer data and proprietary information from the ongoing, sophisticated threats targeting business like yours.

2. Enhanced Due Diligence for Your Business Partners 🤝

More and more Canadian enterprise clients, vendors, and partners are asking to see your vendors' SOC reports as part of their own risk management. A SOC 2 Type 2 report is globally recognized as the highest form of assurance, simplifying your own vendor risk management process and helping you win larger contracts.

3. Peace of Mind 🧘

Partnering with an experienced MSP that has undergone the rigorous, months-long SOC 2 Type 2 audit demonstrates a profound organizational commitment to security, availability, and privacy. It means your data is being managed by a mature, trustworthy organization that has made continuous security a priority, not just a promise.

When you evaluate potential MSPs, always ask for their latest SOC 2 Type 2 report. If they can only provide a Type 1, you're looking at a partner who has only proven their intent—not their ability to execute over the long haul. Your business deserves a partner with proven, day-to-day security effectiveness.