Type 1 and Type 2 assurance (commonly in SOC 1, SOC 2, or ISAE 3402 reports) differ by time scope and testing rigor. Type 1 evaluates the design of controls at a single point in time, while Type 2 assesses the operational effectiveness of those controls over a period, typically 3 to 12 months.
Type 1 – focuses on the design of controls at a specific point in time, whereas Type 2 assesses the operational effectiveness over a period. Type 2 – requires more rigorous assessment, involving the testing of controls to validate their effectiveness in achieving the specified TSC.
According to the IAASB glossary, assurance engagements are designed to enhance the confidence of intended users of information. There are two types of assurance: limited and reasonable.
A Type II report offers a higher level of assurance, as it confirms that the relevant controls were not only properly designed but also operated effectively throughout the 12‑month review period. In 2025, Direct Connect Document Feeds were included within the ASAE 3402 Type II report for data feeds.
The choice between SOC 1 Type 1 and Type 2 audits depends on your organization's specific needs and the level of assurance stakeholders require. Type 1 audits provide a baseline assessment, while Type 2 audits offer ongoing validation of controls' effectiveness.
Type 1 reports are typically performed when management requires a report on the fairness of presentation of the service organization's description of internal controls and the suitability of the design of controls as of a specified date. A Type 1 report includes: A description of the system.
Three Types of Assurance: Project, Programme, and Portfolio
A PMO's assurance work doesn't just happen at one level—it's layered across everything from individual projects to your entire portfolio of work. Understanding these layers is key to delivering real value.
Types of audit
SOC 2 Type 2 is an independent audit that evaluates both the design and operating effectiveness of a company's security controls over a specific period, usually three to 12 months. It's based on the AICPA's Trust Services Criteria and assures stakeholders that data is properly protected.
The main types of auditing and assurance services are risk assessment, business performance measurement, information systems reliability, electronic commerce, and healthcare performance measurement. These assurance services have one thing in common, the ultimate goal and objective of the audits.
A level of (identity) assurance is the certainty with which a claim to a particular identity during authentication can be trusted to actually be the claimant's “true” identity.
Then, assurance refers to the assessment of the company's financial records. To put it another way, an audit examines the accounting records, and when the auditor issues the audit report, they provide assurance that the records are correct.
A Type 1 report provides coverage over management's assessment and the overall design of controls at a specific point in time, so it specifies if the right controls are in place and if the control processes are properly designed to achieve their purpose.
Types of auditors
A successful internal audit function relies on four fundamental pillars, often referred to as the “4 C's”: Competence, Confidentiality, Communication, and Collaboration. These principles guide auditors in delivering meaningful and impactful results. Let's explore each of these elements in detail.
1) Correspondence Audit
The first of the four types of tax audits are correspondence audits are the most common type of IRS audits. In fact, they comprise roughly 75% of all IRS audits.
Level Two involves an audit of your processes, procedures and controls required by the IASME Cyber Assurance standard. The audit is independent and conducted by an IASME assured Assessor.
1st, 2nd, and 3rd party audits categorize audits by who performs them and their purpose: First-party (internal) audits are self-assessments for improvement; Second-party audits are by customers or partners on suppliers to check compliance; and Third-party audits are by independent, external bodies for certification (like ISO) or validation, offering the highest objectivity.
The elements are: the three-party relationship; appropriate subject matter; suitable criteria; appropriate evidence; and a conclusion.
For a Type 1 report, the auditor examines the design of your security controls. For a Type 2 report, the auditor examines both the design of your controls and their operating effectiveness. The Type 2 audit generally needs at least three months of data history and as much as 12 months to verify effectiveness.
Third line: The principal function of the third line is to provide risk assurance. Internal audit provides assurance on the effectiveness of governance, risk management and internal controls, including first and second line controls.