ISO 27001 vs. SOC 2: Which Should You Get ?

Both SOC 2 and ISO 27001 serve as frameworks to enhance information security, but they differ significantly in scope, certification processes, and geographic reach.

SOC 2 is a U.S.-based, service-specific framework created by the American Institute of Certified Public Accountants (AICPA) that focuses on protecting customer data in cloud-based services or SaaS environments.

ISO 27001 is an internationally recognized standard designed to help organizations develop a comprehensive Information Security Management System (ISMS), ensuring data security across all organizational operations.

SOC 2: Service Organization Control 2

SOC 2 is a standard developed by the American Institute of Certified Public Accountants (AICPA) specifically for service providers handling client data. Its focus is on ensuring that organizations handle data in a way that protects the privacy, security, availability, processing integrity, and confidentiality of customer information. SOC 2 is particularly popular in the U.S., though many companies internationally also seek it.

1. Who it’s for: Primarily for organizations that provide services to other companies (SaaS providers, cloud hosting services, etc.).
2. Framework: SOC 2 is based on the Trust Services Criteria, which are principles covering security, availability, processing integrity, confidentiality, and privacy.
3. Audit focus: SOC 2 offers two types of reports:
   • Type I: Evaluates the design of controls at a single point in time.
   • Type II: Assesses the operational effectiveness of controls over a specified period, usually six months to a year.
4. Key Outcomes: SOC 2 is largely used to assure clients that an organization has rigorous controls in place to protect data. It’s not a certification in the same sense as ISO 27001 but rather a report that companies can share to build trust with customers.

ISO 27001: International Standard for Information Security Management Systems

ISO 27001 is a global standard developed by the International Organization for Standardization (ISO) to manage information security risk comprehensively. Unlike SOC 2, ISO 27001 is a certification that applies to all types of organizations, and it focuses on establishing, implementing, maintaining, and continually improving an Information Security Management System (ISMS).

1. Who it’s for: Applicable to any organization, regardless of size, industry, or geography.
2. Framework: ISO 27001 includes specific controls in Annex A and follows a structured approach for managing information security risks, implementing an ISMS based on risk assessments, policies, objectives, and continuous improvement.
3. Audit focus: ISO 27001 certification involves a two-stage external audit:
   • Stage 1: Examines documentation and readiness for certification.
   • Stage 2: Involves a comprehensive audit of the ISMS, testing its effectiveness and the implementation of Annex A controls.
4. Key Outcomes: ISO 27001 certification shows that an organization has a systematic approach to managing and mitigating information security risks. It’s especially relevant for organizations needing a globally recognized standard of security, often required by global enterprises and some regulatory bodies.

ISO 27001:2022: The 9 Critical Updates You Need to Know

All organizations that hold a current ISO 27001:2013 certification are required to undergo a transition audit to be certified to the 2022 version. Certification and recertification against ISO 27001:2013 were allowed until April 30, 2024.

However, companies should begin to update their ISMS to comply with the requirements in this new revision as soon as possible. Any company currently certified against ISO 27001:2013 must transition no later than October 31, 2025.

Here are checklists for updating policies, addressing new security threats, and managing changes in organizational structure. This source is ideal for understanding how to align risk assessment and information security management with ISO 27001’s latest requirements

Key Differences Between SOC 2 and ISO 27001

Aspect	SOC 2	ISO 27001
Scope of Focus	Client data protection (mainly for U.S. service providers)	Comprehensive ISMS (risk-based)
Standard Structure	Trust Services Criteria (Security, Availability, Confidentiality, Processing Integrity, Privacy)	ISMS with controls outlined in Annex A
Certification vs. Reporting	Audit report (Type I or II)	Formal certification
Industry	Primarily technology and SaaS providers	Applicable to any industry
Audit Frequency	Annually or as agreed with clients	Recertification every 3 years with surveillance audits in between
Compliance Driver	Customer assurance	Compliance with global standards and regulatory requirements

Example Use Cases

• A SaaS company in the U.S. might pursue SOC 2 because its customers specifically want assurance around security controls for protecting their data.
• A multinational company seeking recognition as a secure organization on a global scale, especially in regions like Europe and Asia, may pursue ISO 27001 certification due to its global recognition and applicability across different regulatory requirements.

Quick Recap

SOC 2 is typically used to reassure clients, particularly in the tech sector, about the data protection capabilities of their service providers. ISO 27001 offers a more comprehensive certification, demonstrating an organization’s commitment to managing security risks broadly.

Many organizations, especially those with an international presence, often choose to pursue both, as each serves unique aspects of compliance and client expectations.