ISO 27001 vs. SOC 2: Discover the Differences

ISO 27001 and SOC 2 are both essential frameworks for ensuring information security, but they are designed for different purposes and cater to several types of organizations. Understanding the answer to the question, “what is the difference between SOC 2 and ISO 27001?” is crucial for companies that need to choose the right one based on their specific needs, regulatory environment, and client expectations.

Purpose and Focus

ISO 27001 is an international standard for information security management systems (ISMS). It is a comprehensive framework designed to protect all types of sensitive information within an organization. The primary goal of ISO 27001 is to provide a systematic approach to managing information security risks, including policies, processes, and controls that cover physical, technical, and legal aspects of information security. ISO 27001 is applicable to any organization, regardless of its size, industry, or geographic location.

SOC 2, on the other hand, is a U.S.-based standard developed by the American Institute of CPAs (AICPA). It focuses specifically on the controls related to the security, availability, processing integrity, confidentiality, and privacy of data within service organizations. SOC 2 is particularly relevant for companies that manage customer data and is required by clients who want assurance that their data is being managed securely. Unlike ISO 27001, SOC 2 is more tailored for organizations that provide technology-based services, such as cloud computing, SaaS providers, and data centers.

Scope

The scope of ISO 27001 is broader and more flexible compared to SOC 2. ISO 27001 applies to the entire organization and covers all aspects of information security management, including asset management, human resources security, physical security, access control, and incident management. Organizations can define the scope of their ISMS based on their specific needs, allowing them to tailor the standard to their context. This flexibility makes ISO 27001 suitable for organizations of all sizes and industries.

SOC 2 is more focused on the specific controls that protect data and ensure service reliability. The scope of a SOC 2 audit is determined by the organization's selection of Trust Services Criteria (TSC), which can include security, availability, processing integrity, confidentiality, and privacy. While SOC 2 provides flexibility in choosing the applicable criteria, its focus is narrower compared to ISO 27001, and it is used by service organizations that need to demonstrate their ability to protect customer data and ensure the reliability of their services. For companies evaluating ISO 27001 vs. SOC 2 mapping, it is essential to understand how the scope and criteria differ.

Certification vs. Attestation

ISO 27001 certification vs. SOC 2 is an important consideration for many organizations. ISO 27001 offers formal certification issued by an accredited certification body. This certification process involves an extensive audit to confirm that the organization's ISMS meets the standard's requirements. Once certified, organizations can publicly display their ISO 27001 certification, which is recognized globally. The certification process typically includes an initial audit, followed by surveillance audits at least annually and a full re-certification audit every three years.

SOC 2, in contrast, results in an attestation report rather than a certification. An independent auditor assesses the effectiveness of the organization's controls based on the AICPA's Trust Services Criteria. The SOC 2 report provides detailed information about the organization’s controls and their effectiveness over a specified period (for SOC 2 Type II). Unlike ISO 27001, SOC 2 does not offer a formal certification, and the report is usually shared with clients and stakeholders as evidence of the organization's security practices.

International vs. U.S. Standards

ISO 27001 is an internationally recognized standard that is used across the globe. Its universal acceptance makes it a preferred choice for organizations with an international presence or those that deal with global clients. ISO 27001 certification can help organizations demonstrate their commitment to information security to clients and partners worldwide.

SOC 2, however, is recognized in the United States, although its adoption is growing globally, especially among technology companies serving U.S.-based clients. SOC 2 compliance is required by U.S. clients as part of their vendor management processes, particularly in industries like finance, healthcare, and technology. When evaluating ISO vs SOC, the international scope of ISO 27001 compared to the U.S.-based focus of SOC 2 can be a deciding factor.

Flexibility vs. Prescriptiveness

ISO 27001 is a flexible framework that allows organizations to define the scope of their ISMS based on their unique requirements. It provides a broad set of controls that organizations can implement based on their specific risk environment. This flexibility allows ISO 27001 to be customized to fit different industries, sizes, and regulatory contexts.

SOC 2 is more prescriptive, focusing on specific criteria related to data protection and service reliability. While organizations can choose which Trust Services Criteria to include in the audit, SOC 2 is focused compared to ISO 27001. The prescriptive nature of SOC 2 ensures that the controls implemented by the organization align with the expectations of clients and stakeholders in terms of data security and availability.

Reporting and Transparency

ISO 27001 certification results in a certificate that can be displayed, but the detailed audit reports are typically not shared with external parties. The certificate serves as evidence that the organization has met the requirements of the standard, but the specific details of the audit findings are confidential.

SOC 2 produces a detailed report (SOC 2 Type I or Type II) that can be shared with clients and stakeholders. The SOC 2 report provides transparency into the effectiveness of the organization’s controls, offering clients assurance that their data is being managed securely. This level of detail in the SOC 2 report is particularly valuable for clients who need to verify the security practices of their service providers.

Audit Frequency

ISO 27001 requires ongoing surveillance audits, typically conducted annually, to ensure that the organization’s ISMS continues to meet the standard’s requirements. A full re-certification audit is conducted every three years. This ongoing audit process helps organizations maintain a strong focus on information security over time.

SOC 2 audits can be conducted annually, with SOC 2 Type I reports assessing controls at a specific point in time and SOC 2 Type II reports evaluating controls over a period, usually 6-12 months. Annual SOC 2 audits are common to maintain compliance and demonstrate ongoing commitment to data security.

Market Perception and Use Cases

ISO 27001 is often seen as the gold standard for information security management, particularly in industries like finance, healthcare, and government. Organizations that achieve ISO 27001 certification are recognized as having a robust and comprehensive approach to information security, which can be a significant competitive advantage, especially in regulated industries.

SOC 2 is more commonly used by U.S.-based service organizations, particularly those in the SaaS, cloud computing, and technology sectors. SOC 2 compliance is often a requirement for service providers that manage sensitive customer data, and it is viewed as a critical differentiator in industries where data security and service reliability are top priorities.

Closing Thoughts

In summary, SOC 2 and ISO 27001 serve different purposes and are suited for diverse types of organizations. ISO 27001 offers a comprehensive, flexible, and internationally recognized framework for managing information security across the entire organization. It is ideal for organizations that need a broad and systematic approach to information security management.

SOC 2, on the other hand, focused on the specific controls related to data security and service reliability. It is particularly relevant for service organizations that manage customer data and need to demonstrate their commitment to protecting that data and ensuring the availability and integrity of their services.

The choice between ISO 27001 and SOC 2 depends on the organization’s specific needs, client requirements, and geographic focus. In some cases, organizations may choose to pursue both standards to meet the diverse expectations of their clients and stakeholders, particularly if they operate in multiple markets or industries.

For organizations that require a global, comprehensive approach to information security, ISO 27001 may be the preferred option. For those that need to demonstrate specific security controls to clients in the U.S. or technology sectors, SOC 2 might be more appropriate. Both frameworks offer valuable benefits and can help organizations strengthen their information security posture and build trust with clients and stakeholders.

Compass helps organizations bridge the trust gap in data protection with comprehensive SOC 2 reporting services. As third-party data sharing increases, stakeholders demand reassurance about your security practices, making SOC reporting essential. More than just compliance, SOC reports from Compass demonstrate that robust controls safeguard both business processes and sensitive data. Our tailored approach, from selecting Trust Services Criteria (TSC) to final reporting with our independent CPA firm, ensures accuracy and reliability, fostering trust with your stakeholders. Contact us today to see how Compass can simplify your SOC reporting and strengthen your security posture.