What Is SOC I Type 2

A SOC I Type 2 report verifies that:
Controls relevant to a customer's financial reporting are not only properly designed, but have also operated effectively over an extended period of time (typically 6 to 12 months).

This is especially important for organizations whose services could impact a customer's financial statements, such as data centers, hosting providers, and managed infrastructure platforms.

What SOC I Type 2 Specifically Verifies

1. Controls That Impact Financial Reporting

SOC I focuses on controls that could affect a customer's:

• Revenue recognition
• Billing accuracy
• Expense allocation
• Asset safeguarding
• Financial data integrity

For a data center or hosting provider, this often includes:

• Customer provisioning and de-provisioning
• Access controls to billing systems
• Change management for systems affecting usage or metering
• Logical and physical access to financial systems

2. Consistent Operation Over Time

The Type 2 designation means controls are not evaluated at a single point in time but are tested over a defined review period.

Auditors verify that controls:

• Operated as designed day-to-day
• Were consistently followed by staff
• Produced reliable, repeatable results
• Included monitoring and exception handling

This confirms that compliance is embedded into regular operations, not applied only for audit purposes.

3. Independent Third-Party Validation

SOC I Type 2 certification is:

• Conducted by an independent CPA firm
• Based on direct evidence, sampling, and testing
• Recognized by external auditors, investors, and regulators

This allows customers to rely on OneColo's controls during their own financial audits without duplicating reviews of underlying infrastructure processes.