As businesses increasingly rely on cloud-based services and digital infrastructures, data security and privacy have become fundamental requirements. In this evolving landscape, the debate around SOC 2 vs ISO 27001 has gained significant attention. Customers, regulators, and partners now demand concrete proof that organizations can effectively protect sensitive information, making these two security frameworks essential considerations for companies handling confidential or regulated data.
Two of the most respected frameworks for demonstrating security posture are:
- SOC 2 (System and Organization Controls 2) – An attestation framework focused on controls.
- ISO/IEC 27001 – A globally recognized certification for information security management systems (ISMS).
Despite sharing a common purpose — ensuring trust, confidentiality, and data protection — these frameworks are often misunderstood or used interchangeably. This article aims to explain SOC 2 vs ISO 27001 in full depth, so you can confidently decide which standard best suits your organization’s needs — or if pursuing both is the right strategy.
What Is SOC 2?
SOC 2 is an auditing framework developed by the American Institute of Certified Public Accountants (AICPA). It’s designed specifically for service providers — especially those who manage customer data in the cloud.
SOC 2 audits assess an organization’s controls in five key areas, known as the Trust Services Criteria (TSC):
The Five Trust Services Criteria:
- Security – Protection of systems and data against unauthorized access (mandatory for all SOC 2 reports).
- Availability – Ensuring systems are operational and accessible when needed.
- Processing Integrity – Ensuring system processing is complete, valid, accurate, and timely.
- Confidentiality – Protection of sensitive information.
- Privacy – Proper handling of personal information as per privacy policies and regulations.
SOC 2 Report Types:
There are two types of SOC 2 reports:
- SOC 2 Type I – Evaluates the design of controls at a specific point in time.
- SOC 2 Type II – Assesses the effectiveness of those controls over a period (typically 3–12 months).
SOC 2 is not a certificate — it’s an attestation issued by a licensed CPA firm, stating that your controls meet the required criteria.
What Is ISO/IEC 27001?
ISO/IEC 27001 is a global certifiable standard for information security management systems (ISMS). Published by the International Organization for Standardization (ISO) in collaboration with the International Electrotechnical Commission (IEC), this standard provides a risk-based framework for establishing, implementing, operating, monitoring, reviewing, maintaining, and improving information security.
The goal of ISO 27001 is to help organizations protect information — whether digital, paper-based, or spoken — through the implementation of risk management, governance, and control.
Key Elements of ISO/IEC 27001:
- Define a Security Policy.
- Conduct a Risk Assessment.
- Select controls from Annex A (114 controls across 14 categories).
- Apply a Plan-Do-Check-Act (PDCA) lifecycle.
- Maintain documentation, including:
- Statement of Applicability (SoA)
- Risk Treatment Plan
- Asset Inventory
- Access Control Matrix
- Internal Audit Reports
ISO 27001 certification is issued by accredited certification bodies and is valid for three years, with annual surveillance audits.
SOC 2 vs ISO 27001 Comparison Table
| Feature | SOC 2 | ISO/IEC 27001 |
|---|---|---|
| Origin | U.S. (AICPA) | International (ISO/IEC) |
| Primary Purpose | Demonstrate operational controls for customer trust | Build and certify a formal Information Security Management System (ISMS) |
| Applicability | Cloud providers, SaaS, tech companies | All industries: IT, finance, healthcare, manufacturing |
| Framework Type | Attestation Report | Certification Standard |
| Audit Body | Certified Public Accountant (CPA) | ISO-accredited Certification Body |
| Control Focus | Trust Service Criteria (TSC) | 114 controls in Annex A (customized via risk assessment) |
| Customization | Choose applicable Trust Criteria | Tailor controls based on your risk landscape |
| Validity | 12 months (recommended annual review) | 3 years (with yearly surveillance audits) |
| Report Type | Type I (point-in-time) / Type II (over time) | Full Certification with public/private recognition |
| Evidence Collection | Evidence over time (logs, screenshots, etc.) | Comprehensive documentation of policies, processes, and controls |
| Customer Recognition | Preferred in the U.S. | Globally recognized, especially in Europe and Asia |
| Audit Timeline | 2–6 months | 3–12 months (depending on scope and size) |
| Cost Range | $15K–$100K+ | $10K–$75K+ |
Deep Dive: Key Differences Explained
1. Framework Design
- SOC 2 is based on control objectives (you prove that your controls satisfy the five trust principles).
- ISO 27001 is based on risk management (you show you’ve identified security risks and implemented controls to mitigate them).
2. Documentation Requirements
- SOC 2 focuses on control evidence, such as audit trails, screenshots, and access logs.
- ISO 27001 requires comprehensive documentation (ISMS scope, security policies, asset inventory, risk treatment plans, etc.).
3. Audit Process
| SOC 2 Audit Steps | ISO 27001 Certification Process |
|---|---|
| Select audit type (Type I or II) | Define ISMS scope |
| Choose Trust Services Criteria | Conduct risk assessment |
| Prepare system documentation | Create SoA and security policies |
| Perform readiness assessment | Undergo Stage 1 audit (documentation) |
| An external CPA performs an audit | Stage 2 audit (implementation audit) |
| Receive attestation report | Get certified if compliant |
4. Use Case
- SOC 2 is typically used to win U.S.-based customers who want assurance about your data protection practices.
- ISO 27001 is used to establish credibility internationally, especially in Europe, Asia, and regulated industries.
Why Choose SOC 2?
SOC 2 is ideal for companies that:
- Provide cloud-based services.
- Are in the United States or Canada.
- Want a customizable and fast security audit.
- Need evidence of controls for customers or partners.
- Prefer not to implement a full ISMS.
Example: A startup SaaS company wants to partner with U.S. banks. The SOC 2 Type II report provides confidence to the bank’s compliance teams. Read more: SOC 2 Type I and SOC 2 Type II
Why Choose ISO/IEC 27001?
ISO 27001 is suited for companies that:
- Operate internationally.
- Need to meet global security standards.
- Have complex regulatory obligations (e.g., GDPR).
- Want to build a long-term security governance system.
- Intend to scale operations globally.
Example: A healthcare SaaS company expanding to the EU implements ISO 27001 to comply with GDPR and meet public-sector client requirements.
Can You Pursue Both?
Absolutely.
Many organizations start with one and later adopt the other to enhance trust and compliance.
- Startups: Begin with SOC 2 Type I for fast market entry.
- Scaling companies: Move to SOC 2 Type II and ISO 27001 for enterprise-grade maturity.
Mapping controls between both standards can reduce effort:
| SOC 2 Criteria | Overlapping ISO 27001 Controls |
|---|---|
| Security | A.9 Access Control, A.12 Operations |
| Availability | A.17 Business Continuity |
| Confidentiality | A.13 Cryptography, A.8 Asset Mgmt |
| Privacy | A.18 Compliance |
Required Policies and Procedures
| Policy / Document | SOC 2 Requirement | ISO 27001 Requirement |
|---|---|---|
| Security Policy | ✅ Yes | ✅ Yes |
| Risk Assessment | Optional | Mandatory |
| Access Control Policy | ✅ Yes | ✅ Yes |
| Business Continuity / DRP | Optional | Strongly recommended |
| Asset Inventory | Optional | Mandatory |
| Vendor Management Policy | ✅ Recommended | ✅ Required (A.15) |
| Incident Response Policy | ✅ Yes | ✅ Yes |
| Internal Audit Schedule | Not Required | Mandatory |
| Statement of Applicability (SoA) | ❌ Not used | ✅ Mandatory |
Cost & Timeline (Expanded)
| Company Size | SOC 2 Cost | ISO 27001 Cost | Notes |
|---|---|---|---|
| Small (1–50) | $15K–$25K | $10K–$20K | SOC 2 is often faster |
| Medium (50–200) | $25K–$50K | $20K–$40K | Depends on readiness |
| Large (200+) | $50K–$100K+ | $40K–$75K+ | Can be combined effort |
Which One Is Better?
| Business Goal | Recommended Standard |
|---|---|
| Quick market entry (U.S.) | SOC 2 Type I |
| Enterprise SaaS (U.S.) | SOC 2 Type II |
| Selling to global companies | ISO 27001 |
| Public sector / healthcare / EU | ISO 27001 |
| Full compliance strategy | Both (SOC 2 + ISO) |
Final Thoughts
Choosing between SOC 2 and ISO 27001 isn’t about which is better — it’s about what your customers expect, what regulations apply, and how mature your security program is. Read more: Best Compliance automation tools
- If your priority is trust and transparency for cloud customers, start with SOC 2.
- If you need governance and risk management with global recognition, go with ISO 27001.
- For long-term scalability, consider both frameworks, mapped strategically.
Organizations that invest in security earn trust — and trust builds business.