International Organization for Standardization (ISO) 27001 and System and Organization Controls (SOC) 2 are both well-recognized frameworks for information security, but they differ significantly in purpose, scope, and applicability.
ISO 27001 is focused on establishing, implementing, maintaining, and continuously improving an Information Security Management System (ISMS). It is primarily concerned with a risk-based approach to managing security. The focus is on protecting all aspects of information security, including people, processes, and technology.
SOC 2 is a U.S.-based auditing standard, designed for organizations that handle customer data in the cloud or offer SaaS products. Its purpose is to assess the effectiveness of the organization's security controls over data protection. SOC 2 is centered around the Trust Service Criteria (Security, Availability, Processing Integrity, Confidentiality, and Privacy). Its focus is narrower, emphasizing the security controls that protect customer data.
ISO 27001 is applicable to any organization in any industry globally, not limited to technology or data service providers. It provides a comprehensive, organization-wide approach to managing information security, and requires an independent certification by an accredited body to be certified.
SOC 2 is designed primarily for service organizations, particularly those in the technology and cloud services sector. It is optional and may be driven by customer requirements. SOC 2 reports are created by Certified Public Accountants (CPAs), and an audit can result in a Type I (point-in-time) or Type II (over time) report. SOC Type 1 is suitable for organizations seeking to verify the existence and design of controls at a particular moment. SOC Type 2 is suitable for organizations wanting to demonstrate that their controls work as intended over time.
ISO 27001:2022 is structured as a management system. It requires organizations to establish an ISMS that addresses 4 categories with 93 total controls such as access control, cryptography, and information security policies. It has a strong focus on identifying and managing information security risks across the organization.
SOC 2 audits assess how well a company's systems adhere to the Trust Service Criteria, which are based on five key principles. It is more control-based, assessing the operational effectiveness of controls in place over a specified period (for Type II).
For ISO 27001, organizations receive a formal certification if they meet the ISO 27001 requirements, which is valid for three years, with surveillance audits conducted annually. The certification is a widely recognized international credential. ISO 27001 requires internal audits and an external certification audit by accredited bodies. Ongoing maintenance involves regular internal reviews of the ISMS and surveillance audits by certifying bodies. It requires continuous improvement, which means organizations must update and refine their ISMS over time.
Instead of a formal certification, organizations receive a SOC 2 report issued by a licensed CPA firm. The report assesses the organization's ability to meet the security criteria based on the audit. It’s mainly used to provide assurance to customers and stakeholders but is not a certification. SOC 2 audits are done by independent auditors, typically CPAs, who evaluate the effectiveness of controls related to the chosen Trust Service Criteria. SOC 2 Type I reports assess a system's design at a specific point in time, while SOC 2 Type II reports assess control effectiveness over a period (usually six months to a year).
Both frameworks are critical for demonstrating strong security practices, but the choice between them often depends on customer requirements, industry, and geographic focus.
