Skip to main content

ISO 27001 and SOC 2 (Service Organization Control 2) serve fundamentally different compliance objectives: ISO 27001 is an international certification standard for organizational Information Security Management Systems (ISMS), while SOC 2 is a North American attestation framework specifically for service organizations handling customer data

The key difference lies in their outputs and scope: ISO 27001 provides a publicly displayable three-year certificate with enterprise-wide application, whereas SOC 2 produces confidential reports shared only under NDAs, focusing specifically on service delivery controls.

Understanding these distinctions is crucial for audit and advisory professionals guiding clients through compliance decisions. This article clarifies how each framework addresses information security through different methodologies, requirements, and geographic recognition patterns.

What is ISO 27001?

ISO/IEC 27001:2022 is an international certification standard that validates an organization's Information Security Management System (ISMS). With approximately 71,550 certified organizations globally (as of the latest 2022 ISO Survey), it represents the world's leading framework for demonstrating robust security practices.

The standard requires implementing an ISMS with two essential components:

  1. Management system requirements (Clauses 4-10) covering organizational context, leadership, planning, support, operations, evaluation, and improvement
  2. Risk-based security controls from Annex A, organized into four categories: organizational, people, physical, and technological controls

Certification results in a publicly displayable three-year certificate with annual surveillance audits. ISO 27001 is universally recognized but particularly valued in European and Asia-Pacific markets, where it often serves as a prerequisite for business relationships.

What is SOC 2?

SOC 2 (Service Organization Control 2) is an attestation framework developed by the AICPA that evaluates how service organizations protect customer data. It produces confidential reports (not public certifications) based on one mandatory and four optional Trust Services Criteria:

  • Security (mandatory): System protection against unauthorized access
  • Availability, Processing Integrity, Confidentiality, and Privacy (optional): Selected based on specific service commitments

SOC 2 comes in two types: Type 1 evaluates control design at a point in time, while Type 2 (preferred) examines operating effectiveness over 6-12 months. Only licensed CPAs with SOC training can conduct these examinations, and reports are shared under NDAs. The framework aligns with COSO internal control principles, creating natural connection to financial audits.

What are the key differences between ISO 27001 and SOC 2?

While both frameworks address information security, they differ fundamentally in scope, output, geographic recognition, and intended use. Understanding these distinctions helps clients align framework selection with their specific business circumstances.

Dimension

ISO 27001

SOC 2

Framework Type

International certification standard

North American attestation framework

Governance

ISO/IEC Joint Technical Committee 1, Subcommittee 27

AICPA professional standards

Scope

Enterprise-wide organizational ISMS

Service organizations and customer data handling

Output

Public certificate (3-year validity)

Confidential attestation report

Auditor Requirements

Accredited certification bodies

Licensed CPAs with SOC training

Geographic Recognition

Universal, especially Europe/Asia-Pacific

Primarily North America

Flexibility

Risk-based control selection from Annex A (4 thematic categories: organizational, people, physical, technological controls)

Select from 5 Trust Services Criteria (Security mandatory; Availability, Processing Integrity, Confidentiality, Privacy optional)

Public Visibility

Certificates publicly displayable and verifiable

Reports shared under NDA only

Audit Structure

Two-stage audit (Stage 1: documentation/readiness; Stage 2: implementation/effectiveness) with annual surveillance and 3-year recertification

Type 1 (point-in-time design) or Type 2 (6-12 month operating effectiveness) attestation engagements

 

These geographic patterns significantly impact framework selection decisions. ISO 27001 enjoys broader international recognition, particularly in Europe and Asia-Pacific regions, while SOC 2 maintains strongest adoption in North American markets, especially among technology service providers. This regional preference directly influences how organizations use each framework: ISO 27001 certificates function as public trust signals that organizations can display openly, while SOC 2 reports facilitate confidential B2B due diligence with detailed control findings.

The frameworks differ in scope: ISO 27001 requires enterprise-wide ISMS implementation across all information assets, while SOC 2 allows more targeted attestations specific to customer data handling systems and services.

Choosing between ISO 27001 and SOC 2

Framework selection between ISO 27001 and SOC 2 isn't a one-size-fits-all decision. Organizations must evaluate several critical factors that directly impact which framework best aligns with their security objectives, customer expectations, and operational realities.

Understanding these variables helps practitioners guide clients toward the most appropriate compliance strategy:

1. Customer Geography

North American clients, especially in technology sectors, typically expect SOC 2, while international customers (particularly in Europe and Asia-Pacific) often require ISO 27001 in RFPs and contracts. According to Roots Analysis, North America holds about 38% of cybersecurity certifications, with Asia-Pacific growing fastest at 15.7% CAGR.

Organizations should map their current and target customer base by region to identify which framework carries more weight in their primary markets. Companies expanding internationally often find ISO 27001 opens doors that SOC 2 alone cannot, while those focused on US enterprise sales may find SOC 2 sufficient.

Contractual Requirements

Survey existing customers and analyze recent RFPs to identify explicit framework requirements. Many organizations discover their choice is predetermined by customer contractual language rather than representing a strategic decision.

Review master service agreements, vendor questionnaires, and procurement requirements from your largest accounts. If multiple enterprise customers already specify one framework in their security addenda, that requirement effectively makes the decision. Starting this analysis early prevents investing in a framework that won't satisfy actual customer demands.

Business Model

Service organizations handling customer data (SaaS providers, cloud infrastructure companies, managed service providers) naturally align with SOC 2's service-focused scope. Organizations seeking enterprise-wide security validation typically find ISO 27001 more appropriate.

Consider how your organization delivers value: if customer data processing is central to your service offering, SOC 2's Trust Services Criteria directly address the controls customers care about most. If security governance extends across manufacturing, physical operations, or non-service functions, ISO 27001's enterprise-wide ISMS approach provides more comprehensive coverage.

Resource Considerations

ISO 27001 produces a three-year certificate with annual surveillance audits, while SOC 2 Type 2 requires 6-12 month operating effectiveness evaluations with annual re-attestation. Budget accordingly for implementation, audit fees, and ongoing compliance management.

Initial implementation timelines typically range from 6-12 months for either framework, though ISO 27001's two-stage audit process may extend overall certification timelines. Organizations should also account for internal resource allocation: maintaining continuous compliance requires dedicated personnel for evidence collection, control monitoring, and audit coordination regardless of which framework they pursue.

How can organizations leverage the overlap between ISO 27001 and SOC 2?

While ISO 27001 and SOC 2 differ in their approach and structure, they share significant overlapping security objectives and control requirements. Organizations pursuing both frameworks can leverage these commonalities to implement unified controls and streamline compliance efforts, effectively addressing multiple requirements with the same security measures. 

Areas where unified implementation delivers efficiency:

  • Access control and identity management: Both frameworks require robust user authentication, authorization controls, and privilege management to protect sensitive information.
  • Risk management processes: Each standard mandates formal risk assessment methodologies, including identification, analysis, and treatment of security threats.
  • Incident response and business continuity: Both frameworks require documented procedures for security incident handling, breach notification, and recovery planning.
  • Change management protocols: Each requires controlled processes for system modifications, testing requirements, and approval workflows before implementation.
  • Continuous monitoring requirements: Both standards mandate ongoing security surveillance, regular control testing, and documented evidence of effectiveness.
  • Control framework alignment: SOC 2 Trust Services Criteria conceptually align with COSO principles, creating natural connections to ISO 27001's structured approach familiar to audit professionals.

From a practitioner perspective, the evidence requirements also overlap substantially, with both frameworks requiring similar documentation: policies and procedures, risk assessment outputs, control testing results, incident logs, access reviews, and change management records. This common foundation enables organizations to develop unified security capabilities that efficiently satisfy both compliance objectives while avoiding duplicative efforts.

Can you pursue both ISO 27001 and SOC 2?

It's possible for organizations to successfully pursue both ISO 27001 and SOC 2 simultaneously, an increasingly common approach for companies serving diverse markets with different compliance expectations. The frameworks share substantial overlapping control requirements in security, availability, and confidentiality, creating efficiency opportunities.

Organizations can implement unified controls that satisfy both frameworks through:

  • Designing security programs to meet both standards from inception
  • Creating consolidated documentation and testing processes
  • Coordinating audit timing to leverage shared evidence collection

Dual-accredited audit and advisory firms that can issue both SOC 2 reports and ISO 27001 certifications are limited, making early identification important for streamlined assessments. A "SOC 2+" approach offers one integration strategy, particularly valuable for organizations serving both North American and international customers.

Rather than maintaining separate compliance programs, successful organizations treat both frameworks as integrated components of a comprehensive security management system, reducing duplication while meeting all requirements.

Taking the Next Step in Framework Selection

Understanding the strategic differences between ISO 27001 and SOC 2 equips audit and advisory professionals with essential knowledge for guiding clients through compliance decisions that align with their specific business requirements. By recognizing that framework selection depends on customer geography, contractual needs, and business model (rather than universal superiority), practitioners can develop more effective compliance strategies that maximize security posture while optimizing resource utilization.

For firms conducting both ISO 27001 and SOC 2 engagements, Fieldguide's unified platform enables practitioners to leverage overlapping control requirements through consolidated documentation and testing processes, while AI-assisted workflows reduce the manual effort of managing dual compliance programs. Visit the Fieldguide website to learn how we streamline compliance work.

Deirdre Dolan

Deirdre Dolan

Sr. Director of Product Marketing

Increasing trust with AI for audit and advisory firms.

fg-gradient-light