Choosing between ISO 27001 and SOC 2 can be complex—especially when client demands, regulatory requirements, and international growth are in play. Explore the essential differences between ISO 27001 certification and SOC 2 attestation, and the answers to common questions to help your business manage information security with confidence.
Download our Summary of ISO 27001 Vs SOC 2 here.
Frequently Asked Questions
What is ISO 27001?
ISO 27001 is an international standard that specifies the requirements for establishing, implementing, maintaining, and continually improving an Information Security Management System (ISMS). Developed by the International Organization for Standardization (ISO), it helps businesses build processes to effectively manage and protect sensitive information for effective security across various industries.
Read more about how to get ISO 27001 certification.
What is SOC 2?
Service Organization Control 2 (SOC 2) is an attestation report created by the American Institute of Certified Public Accountants (AICPA), which evaluates the design and effectiveness of a service organization’s controls based on the Trust Services Criteria. SOC 2 focuses on five trust service criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy, providing a structured approach to managing information security and system controls.
Are ISO 27001 and SOC 2 the same?
No, they are different. While both focus on improving information security through risk management, ISO 27001 sets out a detailed international management system standard that any organization can use, whereas SOC 2 focuses on service companies, confirming their information security efforts.
What’s the difference between ISO 27001 and SOC 2?
Here’s an overview of how ISO 27001 and SOC 2 differ:
Purpose and scope
- ISO 27001: A globally recognized standard for businesses of all sizes and sectors for establishing and maintaining an Information Security Management System (ISMS).
- SOC 2: Designed for service companies that handle customer data, such as cloud providers. It focuses on the risks specific to the service sector.
Certification vs. attestation
- ISO 27001: Offers formal certification through an accredited certification body, demonstrating conformance with international security management standards.
- SOC 2: Not a certification. Instead, it provides an attestation report from a CPA (Certified Public Accountant) firm that confirms that an organization’s security measures are effective, based on an audit.
Flexibility
- ISO 27001: Provides guidelines that can be adjusted for different industries and business sizes, allowing a tailored approach.
- SOC 2: Let’s businesses select relevant Trust Services Criteria beyond the required security criterion, offering customized assessments.
Implementation and controls
- ISO 27001: Focuses on setting up a complete ISMS with a strong focus on risk management and integration with other systems.
- SOC 2: Evaluates current security practices, giving a detailed assessment through audits.
Learn more about the key differences between SOC 2 and ISO 27001.
What are the advantages of ISO 27001 and SOC 2?
ISO 27001 is a global standard that helps any business, big or small, set up a strong security management system for protecting information. It supports alignment with international data protection expectations and customer requirements.
SOC 2 empowers service organisations by demonstrating strong controls over data protection in the cloud and IT sectors. The report provides an independent review of whether an organization’s controls meet selected criteria for security, confidentiality, and availability.
Are ISO 27001 and SOC 2 recognized worldwide?
Both are recognized, but in different ways.
ISO 27001 certification is widely recognized worldwide and is ideal for companies operating in multiple countries. SOC 2 is well-known in North America, particularly in the US and Canada.
While SOC 2 is gaining recognition globally, it is not as universally accepted as ISO 27001.
Why might a businesses need ISO 27001?
ISO 27001 helps businesses to manage sensitive or confidential information effectively. This standard offers a clear method for managing security risks, making it ideal for organizations in regulated industries like finance and healthcare.
Achieving ISO 27001 certification supports compliance with global data protection laws, builds customer trust, and provides a competitive advantage by setting businesses apart in busy markets.
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Do specific industries prefer one over the other?
ISO 27001 is often preferred in global businesses operating across multiple countries, financial services and banking, healthcare organizations outside the US, government contractors in Europe and Asia, and telecommunications companies. It’s the standard of choice when international recognition is important.
SOC 2 is typically the choice for US-based cloud service providers, Software-as-a-Service (SaaS) companies, data centers and hosting providers, financial technology (FinTech) companies in North America, and business process outsourcing services. It’s particularly valued in industries where protecting customer data is central to the business model.
Does ISO 27001 cover cybersecurity?
Yes, ISO 27001 covers cybersecurity as part of its broader focus on information security. It provides a structured risk-based approach to setting up and maintaining an ISMS.
The standard focuses on risk management, implementing controls for areas like network security and access control, and encourages ongoing improvements to stay strong against new cyber threats.
Is SOC 2 a cybersecurity audit?
SOC 2 is not strictly a cybersecurity audit but includes cybersecurity aspects. It evaluates service companies’ policies, processes, and controls, especially relating to customer data protection, covering the Trust Services Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy.
While the ‘Security’ element directly addresses cybersecurity issues, SOC 2 also evaluates areas like availability and privacy, offering a broader assessment beyond just cybersecurity.
Can small businesses use ISO 27001 and SOC 2?
Yes, both ISO 27001 and SOC 2 are adaptable for small businesses. ISO 27001’s scalability allows it to meet the security needs of small start-ups to large enterprises.
SOC 2 is applicable to service companies of any size that need to demonstrate how they protect customer data.
What makes ISO 27001 flexible?
ISO 27001 is based on a risk management approach that provides guidelines instead of strict rules. This flexibility allows it to be tailored to an organization’s specific needs, regardless of size or industry, enabling integration across different departments and alignment with other management systems.
How much does ISO 27001 cost compared to SOC 2?
ISO 27001 may include costs related to setting up an ISMS, possible consultancy support, and certification audit fees by a third party, typically ranging from a few thousand to tens of thousands of dollars. Additional expenses come from yearly audits and ongoing ISMS maintenance, especially in larger or more complex organizations.
Read more about the cost of ISO 27001 certification.
SOC 2 may include preparation costs, such as internal assessments and possible consultancy. Audit fees by a CPA firm range similarly from several thousand to tens of thousands of dollars. Costs vary by scope, specifically whether the audit is Type 1 or Type 2.
- Type 1 evaluates if controls are properly designed and implemented at a specific date.
- Type 2 assesses if controls are designed and function effectively over a set period.
Type 2 requires ongoing evaluations over a period, increasing the overall expense.
How long does it typically take to implement ISO 27001 vs. SOC 2?
ISO 27001 usually takes 6-12 months to implement. Smaller organizations might complete it in 4-6 months. The timeline depends on your organization’s size, complexity, and existing security controls.
SOC 2 typically takes 3-6 months to prepare and implement before the audit. A Type 1 audit (point-in-time) can be completed faster than a Type 2 audit, requiring 3-12 months of observation to demonstrate that controls are working effectively over time.
What are the ongoing maintenance and renewal requirements for ISO 27001 and SOC 2?
ISO 27001 requires annual surveillance audits to check whether you follow the requirements, with a complete recertification audit every three years. You’ll also need to conduct regular internal audits and management reviews while continuously monitoring and updating your security controls to address new risks and threats.
SOC 2 reports are valid for 12 months and require annual renewal with a new audit. Type 2 reports need ongoing evidence collection throughout the observation period. To maintain compliance, you’ll need to regularly monitor your controls and address any issues that arise. Unlike ISO 27001, there’s no formal surveillance audit between full assessments.
What internal resources are typically needed to implement and maintain ISO 27001 vs. SOC 2?
Implementing ISO 27001 typically requires a dedicated project manager or security officer, strong support from senior management, IT staff for technical controls, department representatives for various security aspects, internal auditors, and ongoing resources for monitoring and improvement. The standard takes a whole-organization approach, so you’ll need involvement from across your business.
SOC 2 usually needs a compliance manager or security officer, IT personnel to implement controls, process owners for different audited areas, staff time for evidence collection and documentation, support from management, and resources to prepare for annual audits. The focus is more on specific service delivery aspects, so resource requirements may be more concentrated in specific departments.
How do ISO 27001 and SOC 2 handle existing security practices?
ISO 27001 helps businesses create a comprehensive ISMS, focusing on identifying and reducing information security risks through a structured, standards-based approach.
SOC 2, on the other hand, evaluates and audits existing security practices against the Trust Services Criteria, giving a snapshot of the current state of data security.
How do ISO 27001 and SOC 2 integrate with other compliance approaches?
ISO 27001 works well with GDPR for data protection in Europe and can be aligned with the NIST Cybersecurity Framework. It complements ISO 9001 for quality management and has specific extensions for healthcare (ISO 27799). Many organizations use ISO 27001 as their foundation and then add other frameworks as needed, since it provides a comprehensive security management system that can help satisfy parts of industry regulations like PCI DSS.
SOC 2 is often paired with HIPAA for healthcare data in the US and can address some GDPR requirements, though it isn’t fully aligned with European privacy laws. It works alongside NIST guidelines and can be mapped to portions of PCI DSS requirements. Many service organizations use SOC 2 alongside SOC 1 (for financial controls) to provide comprehensive assurance to their customers.
Do I need SOC 2 if I have ISO 27001?
Having ISO 27001 certification doesn’t automatically remove the need for SOC 2, as they serve different purposes and may be needed in various contexts:
- Different focus: ISO 27001 provides a structured, risk-based approach for managing information security through the implementation of an Information Security Management System (ISMS), suitable for organizations of any size or sector.. SOC 2 specifically evaluates the effectiveness of controls related to data protection in service companies, especially for cloud services.
- Client and market requirements: Some clients, especially in North America, may require SOC 2 reports for their supplier risk management processes. Having SOC 2 can be very important if your organization serves these markets.
- Complementary roles: While ISO 27001 covers broad information security management, SOC 2 can provide extra assurance on specific data protection controls, offering a more detailed view on how your business handles customer data.
How can ISO 27001 and SOC 2 complement each other?
ISO 27001 and SOC 2 can work together. ISO 27001 provides a base for strong security practices that can be assessed through SOC 2’s auditing process.
Businesses may develop their security controls using ISO 27001’s guidelines and, if desired, consider getting SOC 2 attestation in addition to this.
What is the typical ROI for implementing ISO 27001 vs. SOC 2?
- ISO 27001 can typically provide returns through new business opportunities (especially in international markets), reduced security incidents, lower insurance premiums, improved operational efficiency, and competitive advantage in specific markets. Many companies can see positive ROI within 2-3 years, though this varies based on organization size and industry. Read more about the benefits of ISO 27001.
- SOC 2 often delivers ROI through faster sales cycles with security-conscious customers, reduced time spent on security questionnaires, fewer custom audits requested by clients, better risk management leading to fewer incidents, and a competitive advantage in US markets. Service providers can typically see positive ROI within 1-2 years, especially if they serve enterprise clients with strict vendor security requirements.
- Organizations may see stronger value when their chosen security standard or assurance method aligns with business objectives and customer expectations rather than being implemented solely for compliance purposes.
Contact Amtivo—as an accredited certification body, we can support your certification journey and provide the information you need to decide between ISO 27001 vs. SOC 2.
