SOC 2 vs. ISO 27001 Key Differences Explained

ISO 27001 and SOC 2 are two of the most widely recognized approaches for managing information security and demonstrating assurance to stakeholders. They both take a strategic approach to risk management, which is pivotal for preventing data breaches, but how do you know which one is right for you?

There is a common misconception that ISO 27001 and SOC 2 are the same, but this is not the case. They both cover the three pillars of information security—confidentiality, integrity, and availability—and encourage organizations to adopt applicable controls to protect their sensitive data. However, key differences exist in how the two are implemented and the benefits they provide.

Learn more about ISO 27001 vs. SOC 2 in this guide, or download our summary PDF here, to discover which suits your business needs best.

What Is ISO 27001?

ISO 27001 is an international standard for information security that sets out the requirements for establishing, implementing, maintaining, and continually improving an ISMS (Information Security Management System). It was developed by the International Organization for Standardization—more commonly known as the ISO—with its requirements built around expert advice from committee members and industry leaders.

What Is SOC 2?

SOC (System and Organization Controls) is a type of attestation report developed by the AICPA (American Institute of Certified Public Accountants) for service organizations. It is widely adopted among SaaS and cloud service providers as a way to demonstrate the effectiveness of controls related to data protection.

There are three main types of SOC reports, each serving different purposes. SOC 2 is specifically designed to assess an organization’s information systems relevant to security, availability, processing integrity, confidentiality, and privacy. These reports assess the effectiveness of controls that protect customer data.

Service organizations use these reports to demonstrate their commitment to information security and compliance to clients, regulators, and stakeholders. SOC 2 reports must be conducted by independent Certified Public Accountants (CPAs).

SOC 2 evaluates your organization’s controls across five key trust principles:

• Security: How effectively you protect systems against unauthorized access.
• Availability: How reliably you maintain system operation and availability.
• Processing integrity: Whether your systems deliver complete, accurate, and timely processing.
• Confidentiality: How well you protect confidential information.
• Privacy: How appropriately you handle personal information.

Most organizations start with Security (the most common criteria) and add other principles based on business needs and customer requirements.

Types of SOC 2 reports

• Type 1: Assesses the design of your controls at a specific point in time.
• Type 2: Evaluates both the design and operating effectiveness of controls over a period (typically 6-12 months).

Type 2 reports carry more weight with customers and partners as they demonstrate sustained compliance rather than a one-time snapshot.

SOC 2 reports offer a clear and standard way for businesses to show they are serious about information security. By completing the reporting process, organizations prove they have strong controls. This can build trust and openness with customers, partners, and stakeholders.

Interested in improving your cloud-based data security? Read our guide to cloud data protection.

SOC 2 vs. ISO 27001: Understanding the Differences

Although SOC 2 and ISO 27001 are both internationally recognized methods of demonstrating information security, they have several differences.

Scope and applicability

• ISO 27001 is a globally recognized standard for organizations of all sizes and sectors. The same guidelines apply to everyone but can be used as a structure to fit each organization’s risk profile.
• SOC 2 is a compliance framework designed for service organizations, such as cloud providers and data centers. Its framework focuses on goals relevant to this sector and risks identified in the Trust Services Criteria. While technically any company could pursue a SOC 2 report, it may not be relevant or meaningful for all organizations.

Structure and controls

• ISO 27001 contains guidelines for setting up an ISMS. Organizations create that system by performing a risk assessment and selecting controls that address identified threats.
• SOC 2 checks existing information security practices. The framework is based on audits and reports that assess security, availability, processing integrity, confidentiality, and privacy.

Certification vs. attestation

• ISO 27001 ISO 27001 involves certification by an accredited certification body, offering broad recognition.
• SOC 2 provides assurance through an attestation report, focused on control effectiveness over defined criteria and periods.

Read: ISO 27001 Checklist—10 Steps to Compliance

Industry neutrality

• ISO 27001 includes controls that should be adopted only when relevant, making it suitable for businesses of all sizes and types.
• SOC 2 focuses on service organizations, and its controls prioritize risks relevant to this sector.

Integrated approach

• ISO 27001 uses the same high-level structure as other popular ISO standards. Organizations already implementing one can use a similar approach, with the ISMS fitting neatly alongside other ISO management systems.
• SOC 2 takes a specific approach that doesn’t necessarily align with other strategies. Even SOC 1 and SOC 3, part of the SOC suite, use a different reporting approach.

Effective duration

• ISO 27001 certification is valid for three years, but organizations must complete annual surveillance audits. They should book a new external assessment as the expiration date nears.
• SOC 2 has two separate sets of conformances. Type 1 reports are completed on a set date each year, whereas Type 2 audits are carried out over at least six months.

This table highlights the main differences between ISO 27001 and SOC 2:

What Do ISO 27001 and SOC 2 Have in Common?

Although ISO 27001 and SOC 2 differ, they both prioritize robust security controls built around a risk-based structured approach.

While ISO 27001 is more adaptable, SOC 2 is not entirely inflexible. It gives the option to choose relevant Trust Services Criteria (apart from the mandatory security criteria) in the same way that ISO 27001 offers businesses a list of controls to choose from.

The result is often similar, with some businesses using many of the same controls.

Another similarity is that both encourage organizations to identify and assess information security risks. The emphasis on risk aligns with the broader goal of safeguarding against cyber attacks, data breaches, and unauthorized access.

Transparency is also a critical component of both. ISO 27001 certification and SOC 2 attestation give customers and suppliers confidence in an organization’s commitment to information security and data protection.

Common Misconceptions About ISO 27001 and SOC 2

1. SOC 2 is recognized globally

Reality: SOC 2 is primarily recognized in North America, particularly for cloud services and SaaS sectors. While its adoption is growing internationally, it may not fully address the requirements of global regulatory environments or client expectations outside the US and Canada.

ISO 27001, on the other hand, is a widely recognized international standard for information security.

Many companies choose both standards if they operate globally.

2. ISO 27001 is for big companies and SOC 2 is for small companies

Reality: Both ISO 27001 and SOC 2 work for businesses of any size.

ISO 27001 is flexible and can be adjusted to fit your organization’s specific risks and needs, whether you’re a small startup or a large corporation.

SOC 2 is designed for service companies that handle customer data, such as those offering cloud services, regardless of their size.

3. SOC 2 is a certification like ISO 27001

Reality: SOC 2 doesn’t actually give you a certification. Instead, you receive an attestation report from a Certified Public Accountant (CPA) firm after they have audited your security practices.

ISO 27001 is an actual certification issued by an accredited certification body, following a formal certification process. It confirms that your company follows international standards for information security management.

ISO 27001 vs. SOC 2—Which One Is Right For You?

The stakes for effective information security couldn’t be higher, with IBM’s 2023 Cost of a Data Breach Report estimating that organizations spend almost $4.5 million responding to data breaches.

An information security standard like ISO 27001 or SOC 2 is an excellent way to manage those risks, but you must pick the right one for your needs. Some of the key things to consider include the following:

SOC 2 is certainly a choice for organizations in the service sector because it is relevant to the industry. The reporting process is also comparatively easy to complete, with a narrower scope and a less demanding assessment.

ISO 27001, on the other hand, is industry-neutral, making it appropriate for organizations in all sectors, including service providers. The implementation process is longer and can be more complex, however achieving ISO 27001 certification comes with unique benefits.

You must also remember that SOC 2 only checks existing practices, whereas ISO 27001 is a management system standard for implementing security controls.

You might not pass a SOC 2 audit if you don’t already have strong information security practices in place. It might not be a question of ISO 27001 vs. SOC 2, but how they can work together.

ISO 27001 offers a more in-depth approach to security and includes the essential components covered in SOC 2’s Trust Services Criteria. Organizations wanting to improve their information security practices before a SOC 2 assessment can use ISO 27001’s guidelines to plan their project.

For most businesses, ISO 27001 certification is a strong, globally recognized solution that’s flexible and suitable for any size or type of business. In comparison, the service sector may reap the benefits of conformity and decide whether to support these efforts with a SOC 2 report.

To learn more about ISO 27001 Controls, read our guide.

Contact Us

Contact Amtivo—as an ANAB-accredited certification body, we can support your certification project and provide the information you need to decide between ISO 27001 vs. SOC 2.

Find out more about how to get ISO 27001 certification and read our SOC 2 vs. ISO 27001 FAQs for more insights.