SOC 2 and ISO 27001 both provide companies with strategic frameworks and standards for measuring their security controls and systems. ISO 27001, also known as ISO/IEC 27001, is a set of standards and requirements for an information security management system (ISMS). These standards represent best practices for information security management, enabling organizations that apply them to apply security consistently across a number of assets, including:
ISO 27001 focuses on three key aspects of data protection:
The framework was published jointly by the International Electrotechnical Commission and the International Organization for Standardization (ISO), an independent, non-governmental organization that develops international standards covering technology and manufacturing.
SOC 2, or Service Organization Control 2, outlines organizational controls for five main service principles created by the American Institute of Certified Public Accountants (AICPA): security, availability, processing integrity, confidentiality, and privacy of customer data.
Together, these controls provide a framework for safeguarding data. Organizations use SOC 2 to measure their current security posture and identify opportunities to improve cybersecurity through the best practices outlined by the SOC 2 report.
ISO 27001 and SOC 2 differ in several key ways, but the main difference is scope. The goal of ISO 27001 is to provide a framework for how organizations should manage their data and to demonstrate that they have a fully functioning ISMS in place. In contrast, SOC 2 focuses more narrowly on proving that an organization has implemented essential data security controls.
In other words, ISO 27001 is all about developing and maintaining an ISMS, while SOC 2 simply audits the current security controls in place. As a result, ISO 27001 requires more extensive compliance measures in order to achieve certification.
ISO 27001 is also a formal international security certification standard, and SOC 2 is a set of audit reports performed by an independent Certified Public Accountant (CPA) or accountancy organization. Unlike SOC 2, ISO 27001 is a prescriptive certification that uses universal standards for every industry and geographic location. But SOC 2 is more flexible and customizable for each organization, based on industry-specific standards and needs.
SOC 2
SOC 2 offers flexibility for organizations looking to upgrade their security compliance. Out of the five Trust Services Criteria, Security is the only mandatory category. This means organizations can decide which criteria to focus on (in addition to Security) to build out their program and prepare for the audit.
There are also two SOC 2 audits: type 1 and type 2.
ISO 27001 vs. SOC 2 type 1: SOC 2 type 1 evaluates an organization’s security program at a single point in time—providing a snapshot view into your current security posture.
ISO 27001 vs. SOC 2 type 2: SOC 2 type 2 evaluates an organization's security program over a longer period of time, usually six to 12 months. This audit is a valuable report because it provides a more comprehensive look at your security landscape.
The result of either SOC 2 audit is an attestation report confirming an organization meets SOC 2 standards.
Note: SOC 2 is not a certification.
ISO 27001
In contrast, ISO 27001 reviews the whole design and operating effectiveness of an organization’s ISMS at a point in time. Certification is assessed against seven mandatory requirement categories in clauses 4 through 10, plus the annex A controls you select based on your risk assessment. The current revision lists 93 Annex A controls grouped into four themes: organizational, people, physical and technological. The seven requirements are:
Annex A is a reference set rather than a mandate. You justify which controls you include and exclude in your statement of applicability, and that is what an auditor works from. Unlike SOC 2, these requirements are prescriptive, meaning the standards apply uniformly across industries and locations, regardless of the business.
As a result, detailed and robust documentation is essential to demonstrating the full system in place to auditors. Because the scope and depth of an ISO 27001 audit are greater than those of a SOC 2 audit, it typically costs more. ISO 27001 can be 1.5 to 2 times more expensive than SOC 2 on average, but this ratio depends on the specifics of each organization's needs and level of preparation.
Despite some key differences between the two, both ISO 27001 and SOC 2 are important resources for organizations to evaluate and improve their security posture in line with best practices and industry standards. Completing certifications in one or both can reassure clients and investors that your systems are well-managed and your data is secure.
Both cover key areas of information security, including confidentiality, availability and integrity. Because there is significant overlap between the two frameworks, obtaining certification in one means you are already on your way to meeting standards for the other.
Neither standard is mandatory, but getting certified in ISO 27001 or attestation of SOC 2 helps organizations:
Both standards are recognized globally, but SOC 2 is most prevalent in the U.S. and ISO 20071 is popular internationally.
Both ISO 27001 and SOC 2 require an external auditing body to certify compliance. Here’s how it works:
To get ISO 27001 certification, an accredited registrar must audit your organization. In the U.S., auditors are typically affiliated with the ANSI National Accreditation Board.
The audit is divided into two stages:
Stage 1: Documentation assessment – This is an informal review of the current ISMS and existing documentation. During this stage, the auditor will assess whether the documentation meets the ISO 27001 requirements and identify any gaps or areas for improvement in the management system.
Stage 2: Certification audit – This is the formal review. Once you’ve made any necessary changes that arose during Stage 1, the auditor will review your compliance with the ISO 27001 standard.
The certification process usually takes 6-12 months, depending on the size and complexity of your organization. Companies that earn ISO 27001 certification show consumers, clients, and investors that they have implemented best practices for protecting and securing their data.
To demonstrate compliance with SOC 2 standards, you’ll need to complete an audit. In preparation for a SOC 2 audit, first decide on which type of audit you’ll be conducting: Type 1 or Type 2. Then, determine the scope of the audit, including which Trust Services Principles will be included, and document your policies.
Once your policies are in place, hire an external auditor through a licensed CPA firm to complete the review. The auditor will complete the following steps:
This report will detail the evaluation of your security controls and issue an opinion on whether the organization adequately meets SOC 2 standards. This is called an attestation report (not to be confused with official certification). The report attests to the organization’s compliance and provides evidence for leaders and stakeholders of the organization’s adherence to best security practices.
Choosing a compliance standard will largely depend on your needs, resources, and goals.
ISO 27001 is a good choice if you need to create an ISMS or have international clients. Because ISO 27001 is a universal standard, certification is recognized across industries and regions.
ISO 27001 is also good for companies that want to implement a more rigorous assessment standard. While it requires more effort and investment, ISO 27001 certification can carry greater weight with stakeholders and enhance the organization’s security credibility.
SOC 2 audits are great for organizations that already have an ISMS in place and just want to spot-check their current standards and policies. They are especially useful for organizations that want a customizable audit to target their assessments and surface key insights about their security systems and policies.
Consider using SOC 2 audits when you need a lighter-weight, cheaper assessment or if you conduct business solely in North America.
ISO 27001 is a good certification to pursue to establish a fully compliant ISMS. This will give you a documented, auditable foundation for security management. From there, you can conduct regular SOC 2 audits to continuously improve standards and identify weak points that need addressing. Consider using both audits for a security program that holds up across borders.
Absolutely. ISO 27001 and SOC 2 have overlapping standards with complementary requirements. ISO 27001 can help organizations build out a complete ISMS while SOC 2 can fill in the gaps and support ongoing improvement and flexible assessments targeted to your unique security framework.
No. ISO 27001 is a universal set of standards with comprehensive requirements for an ISMS. SOC 2 is a lighter-weight audit, customizable to the needs and goals of the organization being assessed and is primarily used in North America.
Having only ISO 27001 certification can put you at a competitive disadvantage when working with prospective partners and vendors that require SOC 2. By complying with both, you can expand your business reach while improving your security posture.
No. SOC 2 and ISO 27001 have significant overlap, but the two standards are distinct and serve different goals.
No. ISO 27001 compliance is not mandatory. However, it provides a structured way to manage information security and can help your organization maintain regulatory compliance in other areas.
Yes. ISO 27001 helps organizations design and implement information security management systems that support stronger cybersecurity compliance.
Yes. In fact, getting ISO 27001 certification and SOC 2 attestation is a great way to improve your management systems and controls, expand your business opportunities, and meet regulatory requirements across industries.
Achieving compliance for ISO 27001 and SOC 2 is a large undertaking that takes months. Because of the scope of the project, it’s easy to get stuck in the weeds.
Here are a few tips for streamlining the process so you can get the best results quicker:
Identify your goals early on
What are you trying to achieve in your security organization? Do you have an information security management system in place? Different clients or industries may require specific standards and certifications. Determine what your goals are early to clarify the scope and direction of your compliance project.
Choose the right certification or report
Once you have your goals in mind, you can choose the certification or report that best aligns with those objectives. For instance, if you don’t have an ISMS, ISO 27001 can help you create a compliant framework for building one. Or, if you’re considering a SOC 2 report, decide whether you want a Type 1 or Type 2 report based on the goals, scope, and timeline.
Estimate the required resources
Assess what resources and support you’ll need to get the job done. Both ISO 27001 and SOC 2 reports take months to complete. Do you have the staff, skills, technology and leadership support you need? Identifying these resources in advance will make it easier to plan the project and prevent roadblocks along the way.
Get buy-in
Securing buy-in from leadership and stakeholders is essential. Before starting your compliance project, make sure you have the necessary buy-in, so you get the resources and support you need to complete it. Having the right support backing your project will streamline the entire process.
Thirty percent of organizations reported an increase in attacks on their IT systems during the pandemic. As cybersecurity threats continue to rise, security compliance is more important than ever.
Whether you’re building a full ISMS or tightening security policies you already have, Delinea helps you produce the access control evidence for both frameworks.
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