SSAE 18 type 2 vs SOC 2 Type 2 – What’s the Difference?

If you’re comparing SSAE 18 SOC 2 Type 2, you’re not alone. These terms are often used interchangeably, but they are not the same thing.

Here’s the short answer:

• SSAE 18 is an auditing standard issued by the AICPA.

• SOC 2 Type 2 is a specific report performed under SSAE 18 that evaluates how controls operate over time.

Understanding the difference is critical for service organizations that handle customer data and need to demonstrate trust.

Let’s break it down clearly.

What Is SSAE 18?

Statement on Standards for Attestation Engagements No. 18 (SSAE 18) was issued by the American Institute of Certified Public Accountants (AICPA) in 2017. It replaced SSAE 16 and strengthened reporting requirements across SOC audits.

SSAE 18 is not a certification or report.
It is the standard that governs how auditors perform SOC examinations.

Under SSAE 18, auditors evaluate internal controls at service organizations, particularly those impacting:

• Data security

• Subservice organizations (vendors)

• Risk management processes

• Internal control monitoring

In short, SSAE 18 sets the rules. SOC reports are performed under those rules.

What Is SOC 2 Type 2?

SOC 2 is a report framework based on the AICPA’s Trust Services Criteria (TSC).

A SOC 2 Type 2 report evaluates:

• The design of security controls

• The operational effectiveness of those controls

• Over a defined monitoring period (typically 6–12 months)

Unlike a snapshot report, Type 2 demonstrates that controls work consistently over time.

SOC 2 Type 2 reports focus on five Trust Services Criteria:

• Security

• Availability

• Processing Integrity

• Confidentiality

• Privacy

Security is mandatory. The others are included based on business relevance.

SSAE 18 vs SOC 2 Type 2: Key Differences

Here is the core comparison:

You cannot get “SSAE 18 certified.”
You receive a SOC 2 Type 2 report conducted under SSAE 18 standards.

This is where confusion typically happens.

Who Needs SOC 2 Type 2?

Most service organizations that store, process, or transmit customer data will eventually need a SOC 2 Type 2 report.

Common examples include:

• SaaS providers

• Cloud infrastructure companies

• Managed IT and cybersecurity firms

• Data analytics companies

• Fintech platforms

SOC 2 compliance is typically required by:

• Enterprise customers

• Vendor risk assessments

• Contractual obligations

• Procurement security reviews

It is rarely legally mandated, but often commercially required.

Understanding the Trust Services Criteria (TSC)

SOC 2 reports are built around the five Trust Services Criteria.

Let’s simplify each.

1. Security

Security ensures systems are protected against unauthorized access.

Controls typically include:

• Firewalls and endpoint protection

• Multi-factor authentication (MFA)

• Role-based access controls

• Encryption (e.g., AES-256)

• Incident response planning

Security is the foundation of every SOC 2 report.

2. Availability

Availability ensures systems operate as promised.

This includes:

• Uptime monitoring

• Redundancy planning

• Disaster recovery

• DDoS protection

• Threat detection and response

For cloud and SaaS providers, availability is critical.

3. Processing Integrity

Processing Integrity confirms that systems:

• Process data accurately

• Deliver outputs completely

• Function in a timely manner

This is especially important for fintech and transactional systems.

4. Confidentiality

Confidentiality focuses on protecting sensitive business data from unauthorized disclosure.

Controls include:

• Data classification

• Access restrictions

• Secure storage

• Encryption

5. Privacy

Privacy applies specifically to personal data (PII).

Organizations must demonstrate:

• Proper collection practices

• Data retention limits

• Consent handling

• Secure disposal

Privacy controls often intersect with regulations like GDPR and HIPAA.

SOC 2 Type 1 vs SOC 2 Type 2

Understanding Type 1 helps clarify Type 2.

Many organizations complete Type 1 first, then transition to Type 2.

Broader SSAE 18 SOC Reporting

Beyond SOC 2, SSAE 18 also governs:

• SOC 1 (financial reporting controls)

• SOC 3 (public-facing summary report)

• SOC for Cybersecurity

• SOC for Supply Chain

Each serves a different purpose, but all follow SSAE 18 auditing standards.

Why SOC 2 Type 2 Matters

In competitive industries, SOC 2 Type 2 can be the deciding factor in vendor selection.

It demonstrates:

• Mature security posture

• Risk management discipline

• Operational consistency

• Enterprise readiness

For many organizations, it’s not optional, it’s expected.

Final Takeaway: SSAE 18 vs SOC 2 Type 2

If you’re still comparing SSAE 18 vs SOC 2 Type 2, remember:

• SSAE 18 = The auditing standard

• SOC 2 Type 2 = The report performed under that standard

You don’t choose one or the other.
SOC 2 Type 2 exists because of SSAE 18.

Ready to Achieve SOC 2 Type 2 Compliance?

RSI Security helps service organizations design, implement, and audit-ready their controls for successful SOC 2 Type 2 reporting.

Contact our RSI Security  compliance specialists today to begin your journey.

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