SOC 2 vs. SOC 3 Explained: Which Compliance Attestation Report Is Right for You?
Published: Jan 18, 2022
Last Updated: Jul 8, 2025
We’ve provided all types of SOC services since the emergence of the brand back in 2011, and over the years, we’ve often received questions specifically about the difference between SOC 2 and SOC 3 reports. Whether or not you work with us on these services, you deserve to know which option is best for your organization and why.
“Which report is better? Which one do I need? Should I get both?”
These questions probably sound familiar, and to answer them, we’re going to break down the similarities and distinctions between SOC 2 and SOC 3 so that you will be in a better position to choose the option that suits you with confidence. Essentially, what sets SOC 2 and SOC 3 apart are the contents of the reports and their intended audiences. In this article, you’ll discover why these differences matter and how understanding them can help you choose the right report to support your compliance objectives.
Key Similarities Between SOC 2 and SOC 3 Reports
Before diving into their differences, it’s important to understand why these two examinations are often misunderstood in the first place. While SOC 1 reports serve a distinct purpose by focusing on controls relevant to financial reporting, SOC 2 and SOC 3 examinations are more closely aligned in nature in the following ways:
- SOC 2 and SOC 3 examinations are performed under AT-C Section 205 of the AICPA’s attestation standards, originally issued under SSAE 18 and updated by subsequent standards such as SSAE 21.
- Both report on your system and controls relevant to the Trust Services Categories of security, availability, confidentiality, processing integrity, and/or privacy.
- Much of the work your service auditor performs to complete a SOC 2 examination can be leveraged when preparing a SOC 3 report, making the process more efficient.
- Both a SOC 2 report and a SOC 3 report serve valuable but distinct purposes.
We outlined what a SOC 2 examination is in our article comparing it to SOC 1 here, in case you’d like more detail. It’s one of the most popular reporting types out there, and from what we noted above, SOC 3 may not seem so different. After all, you will be evaluated based on the same criteria no matter which you choose.
But in fact, significant distinctions between SOC 2 and SOC 3 reports do exist, and they will impact your choice.
Notable Differences Between SOC 2 and SOC 3 Reports
All SOC examinations go through four phases that take varying amounts of time, and the key distinctions between SOC 2 and SOC 3 both stem from the last one–the reporting phase.
There’re levels to this difference too:
- SOC 2 and SOC 3 reports each contain different amounts of information.
- SOC 2 and SOC 3 reports have different restrictions regarding who is authorized to access each report.
The main difference between these reports lies in the level of detail they contain and the intended audience who receives them. Let’s take a closer look.
The Reporting Difference Between SOC 2 and SOC 3
If you proceed with a SOC 2 examination, the deliverable you’ll get from your auditor will contain several sections including (but not limited to):- Opinion Letter: A signed letter from your auditor outlining the scope of the examination, the period covered, and the auditor’s opinion on whether the controls were suitably designed and operated effectively to meet the applicable Trust Services Criteria.
- Assertion Letter: A letter from your organization (the service organization) asserting that the system description is fairly presented, and that the controls were suitably designed—and, in a Type 2 report, operated effectively—over the specified period or as of a specific date (depending on what Type of report you opted for).
- Description of the System (and its Boundaries): A narrative prepared by your organization that explains how the system is designed and intended to operate. It covers key components such as infrastructure, software, people, procedures, and data, along with the controls supporting the Trust Services Criteria. It also defines the scope of the assessment by clarifying what is included in the system and what is excluded.
- Principal Service Commitments: The key promises and obligations your organization makes to customers regarding the security, availability, processing integrity, confidentiality, and/or privacy of the system.
- Applicable Trust Services Criteria and Related Control Activities: Details the specific criteria and control activities implemented to meet the in-scope criteria. For Type 2 reports, this also includes testing those activities and the resulting outcomes.
The Accessibility Difference Between SOC 2 and SOC 3
Now that you know the difference between the deliverables, let’s clarify who each report is intended for:
- SOC 2 reports are restricted-use reports: The intended audience is specified within the report and should only include stakeholders who possess sufficient knowledge and understanding of your services, internal control limitations, and other relevant factors outlined in the report. Typically, this includes your organization’s leadership, existing customers, customers’ auditors, and in some cases, prospective customers with a legitimate need for this information - all who may be bound by a nondisclosure agreement (NDA).
- SOC 3 reports are general-use reports: These publicly facing reports can be distributed freely by you to any interested party. They’re considered formidable marketing and sales tools that can be used to attract new customers. Even without the comprehensive level of detail of a SOC 2, prospects respect this kind of approval from a credible independent auditor.
Should You Get a SOC 2 Examination or a SOC 3 Examination?
By now, you can probably see the clear advantages of each report: a SOC 2 provides detailed insight into your system and controls, while a SOC 3 is designed for broad distribution, meaning you can share it publicly with anyone. So, which one should you choose?
A better question might be: should you add a SOC 3 report to your compliance roadmap? Since a SOC 3 is based entirely on an existing SOC 2 examination, it can’t be issued on its own. However, if you're already undergoing a SOC 2 audit, adding a SOC 3 report can be an effective and low-effort strategy to extend assurance to a wider audience without exposing sensitive control details.
Why Choose a SOC 2 Report: Benefits and Strategic Compliance Advantages
We’ve written about how your organization can benefit from investing in a SOC 2 in this article: 3 Benefits to Getting a SOC 2 Report. However, we’ll reiterate here the benefits of investing in this examination.
SOC 2 is one of the most recognized and widely accepted attestation reports in the world of audit and compliance. While it is a restricted-use report intended only for specified parties, this limitation doesn’t diminish its value. In fact, if you're looking to provide meaningful assurance to existing customers or targeted prospective clients about the effectiveness of your internal controls, a completed SOC 2 examination is a powerful asset in your compliance toolkit.
Not only are many organizations specifically requesting SOC 2 reports as part of their vendor risk management processes, but implementing a system of internal control to meet SOC 2 criteria can also serve as a strategic steppingstone. It helps lay the foundation for adopting other security and compliance frameworks in the future—such as ISO 27001, HIPAA, HITRUST, or FedRAMP—by reinforcing a strong internal control environment and aligning with industry expectations.
Why Choose a SOC 3 Report: Benefits and Marketing Advantages
On the other hand, you may be thinking the following: yes, a SOC 3 report can be shared publicly, but how valuable can it actually be considering it contains significantly less detail than a SOC 2 report?
While SOC 2 reports are restricted to certain organizations and entities due to the comprehensive levels of detail they contain, SOC 3 reports are not and therefore, you can more easily market them to your prospective customers.
SOC 3 reports are effective in publicly showcasing your dependable security posture on your website or in sales materials, allowing you to better stand out from competition who may only have SOC 2 reports and therefore can’t disclose as much information. They also bring a level of transparency that can help speed up vendor assessments and procurement cycles, removing unnecessary barriers.
Key Considerations for Choosing SOC 2 Alone or Pairing it with SOC 3
Investing in compliance initiatives is a significant decision, so it's important to understand the differences between your options before you make a commitment. We've helped many organizations evaluate their approaches, and we want to share the same guidance with you, so you feel confident you're making the right choice for your business.
As mentioned above, it is important to note that a SOC 3 report cannot stand alone because it is based on the same examination performed for a SOC 2 report. Essentially, the SOC 3 is a simplified, public-friendly version of the SOC 2, summarizing the auditor’s opinion without the detailed descriptions and test results included in a SOC 2 report. Therefore, a SOC 2 audit must be completed first before a SOC 3 report can be issued.
Accordingly, you are presented with two primary options:
- A standalone SOC 2
- Both a SOC 2 and SOC 3 Report
That being said, because a SOC 3 requires the same planning, preparation, and testing as the SOC 2 examination, many organizations decide to add it on, at a minimal cost, as a way to satisfy both their existing client base and marketing strategy to appeal to new customers.
The choice is entirely up to you, but as you progress towards a final decision, you may find that you have more questions, and we’d love to speak with you to address any concerns you may have. Contact us to set up an introductory call, and we will help get you on the path to a completed SOC examination–whichever one(s) may suit you best.
In the meantime, discover additional SOC Report insights in these helpful resources:
About Chad Goubeaux
Chad Goubeaux is a Manager at Schellman based in Columbus, Ohio with nearly 10 years of experience serving clients in auditing and IT compliance. He is a leader of the firm's SOC methodology group and contributes to the AICPA SOC 2 working group, helping to shape industry standards. At Schellman, Chad specializes in SOC 1, SOC 2, SOC 3, and HIPAA attestations. With previous experience in financial statement audits from a Big 4 firm, he brings a strong foundation in risk management and regulatory compliance. A graduate of The Ohio State University, Chad holds multiple certifications, including CPA, CISSP, CISA, CITP, CCSK, and the AICPA Advanced SOC certificate.