For many companies, security compliance is a major part of winning enterprise deals and creating trust with customers, but businesses may face confusion when choosing between ISO 27001 and SOC 2 compliance programs.
With the rise of advanced technologies, information security compliance is a necessity and a key business differentiator, especially as organizations continue to strengthen their third-party risk management programs. This article covers the definitions, similarities and differences of the two compliance programs, so your business can make an informed decision when implementing new security standards.
ISO 27001 and SOC 2 Defined
While both programs help organizations strengthen security, they serve different business needs. Systems and Organization Control (SOC) 2 is often requested by North American customers, while International Organization for Standardization (ISO) 27001 is recognized globally as an international security standard.
The two programs share a significant overlap in control requirements, with some sources estimating as much as 65 – 75% overlap between requirements. This means organizations pursuing both can often streamline compliance efforts instead of managing two separate programs.
What Is ISO 27001?
ISO 27001 is a globally recognized security standard that requires companies to build, maintain and improve an information security management system (ISMS). Developed by the ISO and the International Electrotechnical Commission (IEC), ISO 27001 helps companies protect sensitive data, reduce security risks and create processes to secure sensitive information.
To achieve ISO 27001 certification, organizations must assess security risks, implement required controls, complete internal reviews and pass an independent audit by an accredited certification body. The 2022 update to ISO 27001 introduced simplified control categories and enhanced guidance for modern security needs such as cloud security and threat intelligence. Many businesses also align their efforts with broader ISO standards guidelines and formal ISO certification processes to strengthen trust and meet compliance requirements.
What Is SOC 2?
The American Institute of Certified Public Accountants (AICPA) created the SOC 2 security and compliance framework to help companies protect and manage customer data responsibly. Similar to ISO 27001, it is commonly used by software-as-a-service (SaaS) companies, cloud providers, and technology businesses that store or process sensitive information. SOC 2 is especially popular in areas where many enterprise customers require it before working with a vendor.
SOC 2 is based on five trust services criteria: security, availability, processing integrity, confidentiality and privacy. Unlike ISO 27001, SOC 2 is less prescriptive, allowing companies more flexibility to tailor the controls to fit the size and activity of the organization.
ISO 27001 and SOC 2 Similarities
Although ISO 27001 is a formal international standard and SOC 2 is an audit framework created by the AICPA, the two programs share many overlapping security principles. Some of the key similarities between ISO 27001 and SOC 2 include:
- Core Security Focus: Both ISO 27001 and SOC 2 emphasize protecting sensitive information through strong security controls centered around confidentiality, integrity and availability.
- Significant Control Overlap: The programs share a significant level of overlap, particularly in areas such as access management, incident response, monitoring and vendor security.
- Trust and Credibility: Both ISO 27001 and SOC 2 help organizations build trust with customers, partners, and stakeholders by demonstrating a strong commitment to security, compliance, and operational reliability.
- Risk-based Security Approach: Instead of relying on a fixed checklist, both programs require organizations to identify, assess, and manage risks, allowing security controls to align with the organization’s unique risk landscape.
- Third-party Verification: ISO 27001 and SOC 2 both involve independent external audits to confirm that security controls are properly designed, implemented and operating effectively.
- International Acceptance: While SOC 2 is more commonly requested in North America, both ISO 27001 and SOC 2 are recognized globally and are widely accepted across industries.
- Continuous Security Improvement: Both programs encourage ongoing monitoring, regular reviews and continuous improvement of security practices rather than treating compliance as a one-time effort.
ISO 27001 and SOC 2 Differences
While both programs help organizations strengthen information security and build customer trust, they differ in structure, scope and how compliance is evaluated.
|
Category |
SOC 2 |
ISO 27001 |
|
Overview |
Security and compliance framework based on trust services criteria |
International standard for information security management |
|
Created By |
American Institute of Certified Public Accountants |
International Organization for Standardization (ISO) and International Electrotechnical Commission (IEC) |
|
Target Market |
Primarily North America |
Globally recognized |
|
Core Requirements |
Based on trust services criteria, including security (the only mandatory criteria), availability, confidentiality, processing integrity and privacy |
Based on an information security management system with risk management and security controls |
|
Audit Approach |
Audit performed by a licensed CPA firm |
Certification audit performed by an accredited certification body |
|
Audit Output |
SOC 2 report |
ISO 27001 certification |
|
Timeline |
Usually three to 12 months, depending on readiness and report type |
Usually six to 12 months for initial certification; ongoing three-year cycle with annual surveillance audits |
|
Cost |
Varies based on audit scope and organization size |
Typically higher due to certification and implementation requirements |
|
Renewal Requirements |
New audit is typically required annually |
Certification valid for three years with surveillance audits |
|
Reporting Period |
Retrospective; a SOC 2 report covers the audit period tested and does not extend coverage for the following year
|
Forward looking; ISO 27001 certification covers a three-year period |
|
Internal Audit |
Not required; optional readiness assessments are common |
Required under clause 9.2; must be performed at planned intervals |
|
Scope |
Scoped to specific systems or services |
Covers the entire information security management system of an organization |
Compliance Criteria
SOC 2 and ISO 27001 use different approaches to evaluate information security. SOC 2 is based on the AICPA’s trust services criteria, which focus on security, availability, confidentiality, processing integrity and privacy.
ISO 27001 follows a more structured approach built around an ISMS. It includes defined requirements for risk management, security policies, access controls, monitoring and continuous improvement.
Target Geographic Market
SOC 2 is most widely used in the United States and North America, especially among SaaS providers and technology companies working with enterprise customers. Many North American organizations request SOC 2 reports from vendors as part of their third-party vendor management due diligence.
ISO 27001 is internationally recognized and commonly used across Europe, Asia-Pacific, the Middle East and other global markets. Organizations with international customers or operations often choose ISO 27001 because of its broader global recognition.
Scope and Process
SOC 2 focuses on evaluating how well an organization’s controls protect customer data at a point in time (SOC 2 Type I) or over a period of time (SOC 2 Type II). It is flexible, enabling companies to choose the trust services criteria that apply to their operations. Additionally, SOC 2 allows organizations to tailor control activities in alignment with specific trust services criteria. The audit is performed by a licensed CPA firm and results in a detailed SOC 2 report.
ISO 27001 focuses on building and maintaining a complete information security management system. It follows a more formal structure with defined requirements and documented processes. Organizations must assess risks, implement controls and complete certification audits through an accredited certification body.
Audit Timeline
SOC 2 audit timelines are often completed more quickly, especially for SOC 2 Type I reports, which review controls at a specific point in time. SOC 2 Type II reports take longer because they evaluate how controls perform over a specified reporting period.
ISO 27001 certification usually requires a longer preparation process because organizations must establish and maintain an ISMS, complete internal reviews, and undergo multiple audit stages before certification is granted.
Audit Cost
The cost of SOC 2 and ISO 27001 audits depends on factors such as company size, audit scope, security maturity and preparation requirements. SOC 2 costs are generally tied to the type of report and reporting period.
ISO 27001 certification can involve higher overall costs because organizations may need to invest more heavily in documentation, risk management processes, employee training and ongoing certification maintenance.
Audit Outputs
SOC 2 audits result in a detailed report that explains the controls reviewed, testing performed and the auditor’s findings. These reports are typically shared with customers, partners, or stakeholders under confidentiality agreements.
ISO 27001 audits result in a formal certification that confirms the organization meets the standard’s requirements. Certification is generally valid for three years, with surveillance audits conducted annually to maintain compliance.
SOC 2 vs. ISO 27001: Which Does Your Business Need?
Choosing between SOC 2 and ISO 27001 depends on your business goals, customer requirements, industry expectations and geographic market. Some organizations choose one program based on immediate compliance needs, while others pursue both to strengthen security programs and support global growth.
When To Consider SOC 2
SOC 2 may be the right choice for organizations that primarily serve customers in the United States or North America. Organizations often choose SOC 2 when they need a flexible framework that focuses on operational security controls rather than a formal international certification. SOC 2 can also be a good option for growing companies that want to meet vendor security requirements and build customer trust quickly.
When To Consider ISO 27001
ISO 27001 may be a better fit for organizations with international operations or customers across multiple regions. Because it is a globally recognized standard, many businesses use ISO 27001 to support international compliance efforts and demonstrate a structured approach to information security. It is often preferred by companies operating in regulated industries or working with global enterprise clients.
When To Consider Both SOC 2 and ISO 27001
Some organizations choose both SOC 2 and ISO 27001 to meet customer expectations across different markets. This approach is common among larger SaaS companies, cloud providers, and businesses with both North American and international customers.
Using both programs can help organizations strengthen their security posture, reduce duplicate compliance efforts and demonstrate a broader commitment to data protection. Since SOC 2 and ISO 27001 share many overlapping control requirements, companies can often align their processes to support both programs more efficiently.
SOC 2 and ISO 27001 FAQs
SOC 2 and ISO 27001 are not legal requirements for most organizations. However, many customers and enterprise buyers expect vendors to have one or both before sharing sensitive data or signing contracts. In practice, these programs often become business requirements for SaaS and technology companies.
No, ISO 27001 and SOC 2 are different programs and are not interchangeable. ISO 27001 is an international standard focused on building and maintaining an information security management system, while SOC 2 evaluates security controls against the AICPA trust services criteria. They share many overlapping control requirements, but the audit process and outputs are different.
ISO 27001 is often considered more difficult and time-consuming because it requires organizations to build a formal ISMS and follow detailed certification requirements. SOC 2 offers more flexibility, but SOC 2 Type II audits can still require significant preparation and monitoring over time. The difficulty depends on the organization’s size, security maturity and customer requirements.
Neither program is universally better. SOC 2 is commonly preferred by customers in North America, while ISO 27001 is more widely recognized internationally, especially in Europe and global markets. The right choice depends on where your customers are located and what compliance expectations they have.
Organizations can meet both requirements by building a shared security program that aligns overlapping controls. Since the two programs have significant overlap in areas such as risk management, access control, monitoring, and employee training, many companies reuse policies, evidence, and processes for both audits. This approach can reduce duplicated work, audit preparation time and compliance costs.
The best starting point depends on your customer base and business goals. Companies serving mainly North American customers often begin with SOC 2, while organizations with international customers may prioritize ISO 27001. It is also possible to prepare for both at the same time because many controls overlap between the two programs.
ISO 27001 and SOC 2 mapping is the process of aligning similar controls and requirements between the two programs. Mapping helps organizations identify overlapping security measures, reuse evidence across audits, and simplify dual compliance efforts. Many businesses use mapping to save time, reduce costs and manage compliance more efficiently.
Your Guide Forward
Cherry Bekaert’s Risk & Cybersecurity professionals help organizations navigate every stage of the process, from gap assessments and audit readiness to control implementation and ongoing compliance support. Whether your business is preparing for SOC 2, ISO 27001, or both, our professionals can help simplify the process, reduce compliance challenges, and build a stronger foundation for long-term security and growth.
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