ISO 27001 vs. SOC 2: which one fits you?

As a SaaS company, tech startup or IT service provider, sooner or later you will hear the question: “Are you SOC 2  or ISO 27001  certified?” ISO 27001 is the international standard published by ISO . SOC 2 comes from the AICPA . Both frameworks show that you take security seriously, but they work in very different ways.

ISO 27001 vs SOC 2: the short answer

ISO 27001 is an international certification for an Information Security Management System (ISMS). You receive a certificate that is valid for 3 years.

SOC 2 is an American attestation that shows your security controls are operating effectively. You receive a report from an accountant, not a certificate.

What is SOC 2?

SOC 2 stands for Service Organization Control 2. It was developed by the American Institute of Certified Public Accountants (AICPA) . The framework is designed for service organisations that process or store customer data.

The Trust Services Criteria

SOC 2 assesses your organisation against five criteria. Security is mandatory and the other four are optional:

1. Security (mandatory): Protection against unauthorised access
2. Availability: Availability of your service
3. Processing Integrity: Correct processing of data
4. Confidentiality: Protection of confidential information
5. Privacy: Protection of personal data

You choose which criteria to have assessed. That depends on what is relevant to your services and what your customers ask for.

Type I vs. Type II

SOC 2 has two variants:

Type I assesses whether your controls are well designed at a specific moment (point-in-time). It is a snapshot.

Type II assesses whether your controls also actually operate over a period, usually 6-12 months. This is the more valuable variant because it shows that you not only have policies, but also carry them out.

The main differences between ISO 27001 and SOC 2

1. Management system vs. controls

ISO 27001 requires a complete Information Security Management System (ISMS). This includes more than technical measures. It also covers:

• Risk assessment and treatment
• Policies and procedures
• Management involvement
• Continual improvement
• Internal audits

SOC 2 focuses on the effectiveness of your controls. It assesses whether your measures work, but it does not prescribe how you organise security. There is no requirement for a management system, a risk methodology or an improvement cycle.

2. Certificate vs. report

ISO 27001 results in a certificate that you can share publicly. Anyone can check whether your certificate is valid.

SOC 2 results in a detailed report that you usually do not publish. You share the report with customers under an NDA. It contains specific information about your controls and any findings.

3. Prescribed vs. flexible

ISO 27001 has a fixed structure. The standard describes what you must do, and Annex A contains 93 controls that you need to address.

SOC 2 is more flexible. The Trust Services Criteria are high-level. You decide which controls you implement to meet them.

4. Geographic preference

ISO 27001 is the standard in Europe, Asia and many other regions. European customers almost always ask for ISO 27001.

SOC 2 is dominant in the United States. American customers often expect SOC 2, and sometimes do not know ISO 27001.

Costs and lead time: ISO 27001 vs SOC 2

ISO 27001

Lead time: 4-12 months

SOC 2

SOC 2 is often cheaper in the first year. The costs are comparable if you want Type II and repeat it every year.

When do you choose what?

Choose ISO 27001 if:

• You have or want European customers
• You already hold other ISO certifications (ISO 9001, etc.)
• You want a management system that improves your security in a structured way
• Your organisation is growing and you need a scalable framework
• You fall under EU legislation such as NIS2 or the AVG (the Dutch name for GDPR)

Choose SOC 2 if:

• You mainly have American customers
• You deliver a SaaS product and customers specifically ask for SOC 2
• You need security evidence quickly (Type I can be faster)
• Your customers want detailed reports on your controls

Choose both if:

• You have international customers (Europe and the US)
• You are an enterprise SaaS with large customers worldwide
• Customers ask for both, and you do not want to lose deals
• You want the best coverage for due diligence and tenders

Combining both frameworks

The good news: ISO 27001 and SOC 2 overlap by about 70-80%. If you have one, you have a big head start on the other.

From ISO 27001 to SOC 2

If you have ISO 27001:

• You already have most of the controls that SOC 2 asks for
• You may need to add extra controls for specific Trust Services Criteria
• The SOC 2 audit focuses on operational effectiveness, not on the system behind it

From SOC 2 to ISO 27001

If you have SOC 2:

• You already have many technical measures in place
• You need to set up an ISMS with risk assessment, policies and an improvement cycle
• The ISO 27001 audit looks more broadly at your management system

Combined audit

Some parties offer combined audits. This saves time and money:

• One preparation process
• One audit visit (or visits shortly after each other)
• Shared documentation

Ask your certification body whether they can do both. Or work with a party that knows both frameworks.

Practical tips

For startups

Start with what your customers ask for. Do you mainly have American customers? Start with SOC 2 Type I and upgrade to Type II. Do you have European customers? Start with ISO 27001.

For scale-ups

As you grow and expand internationally, consider both. The investment pays off in deals you would otherwise lose.

For enterprise

At enterprise level, having both frameworks is often standard. You cannot afford to say “no” to security questions from potential customers.

Frequently asked questions about ISO 27001 vs SOC 2

Can I use SOC 2 instead of ISO 27001 in Europe?

Technically yes. But many European customers do not know SOC 2, or do not accept it as equivalent. ISO 27001 is the expectation in Europe.

Is SOC 2 easier than ISO 27001?

Not necessarily. SOC 2 Type II requires your controls to operate effectively over a longer period. ISO 27001 requires a management system. They are different efforts.

How long is a SOC 2 report valid?

By default, 12 months. Customers want a recent report, so you need a new audit every year.

Can I choose which controls I have for SOC 2?

Yes, within the Trust Services Criteria. You decide which specific controls you implement. The auditor assesses whether those controls are effective in meeting the criteria.

What is SOC 1?

SOC 1 focuses on controls that are relevant to customers’ financial reporting. It is meant for service organisations that perform financial processes, such as payroll or bookkeeping. SOC 2 is broader and covers security, availability and more.

Summary

More information

• What is ISO 27001?: Introduction to the standard
• The ISMS: The management system explained
• Costs and timeline: ISO 27001 costs in detail
• Compliance tooling: Vanta, Drata and other platforms that support both frameworks at once
• AICPA SOC 2 : Official SOC 2 information
• Frequently asked questions: More answers