SOC 2 vs. ISO 27001: Which Compliance Framework Best Fits Your Business?

SOC 2 and ISO 27001 are two of the most widely recognized cybersecurity compliance frameworks. While neither is legally required in most cases, businesses often pursue compliance against one or both to meet customer and vendor expectations, differentiate themselves in the market, and demonstrate a strong commitment to data security. 

Here’s everything you need to know about the differences between a SOC 2 report and an ISO 27001 certification so you can decide which standard is best fit for your organization:

SOC 2 Reports

A System and Organization Controls (SOC) 2 report is a widely recognized independent assessment of how well an organization protects customer data based on specific criteria defined by the American Institute of Certified Public Accountants (AICPA).

SOC 2 reports provide a CPA’s opinion on the design and effectiveness of an organization’s operational controls covering one or more of the AICPA’s five trust services criteria (TSC): security, which is required; availability; confidentiality; processing integrity; and privacy. While a SOC 2 audit does not result in any certification, the resulting report provides an avenue for organizations to demonstrate their commitment to data security best practices.

A SOC 2 report is a smart choice for any organization that wants to gain a competitive advantage, differentiate themselves against competitors, and build trust and transparency with internal and external stakeholders. This includes enterprise systems housing third-party data, IT systems management and data center colocation facilities, and cloud service providers, including SaaS, PaaS, and IaaS firms in a broad range of industries.

During a SOC 2 examination, your auditors will schedule a walkthrough, or series of meetings, to assess your organization’s controls either at a single point in time—for a SOC 2 Type 1—or over a period of time—for a SOC 2 Type 2. During these walkthroughs, your auditors will ask questions concerning how the controls are designed and how they operate, providing them with a deeper understanding of your control environment to support their assessment. Once you receive the auditors’ final report, it’s ready to share with current and potential customers and vendors.

While SOC 2 reports have been widely adopted across North America as a baseline report for communicating about your cybersecurity posture with internal and external stakeholders, organizations with more complex systems or who operate outside of North America may need to achieve certification against a more rigorous compliance standard, such as ISO 27001.

ISO 27001 Certification

Considered the gold standard in information security, ISO/IEC 27001 is an internationally accepted compliance standard that mandates numerous controls for the establishment, operation, monitoring, maintenance, and continual improvement of an Information Security Management System (ISMS).

ISO 27001 was designed to provide a systematic approach to managing sensitive information for a wide range of organizations across all sizes and industries, including finance and insurance, telecommunications, healthcare, utilities, retail and manufacturing sectors, transportation sectors, government, and various service industries. Undergoing an ISO 27001 audit demonstrates an organization’s commitment to cybersecurity best practices, enhancing trust among stakeholders and customers.

Once you’ve committed to pursuing ISO 27001 certification, you can expect to work with your chosen certification body to complete a two-stage auditing process:

• Stage 1 typically takes a few days to complete and includes an assessment process of ISO clauses 4-10 and your organization’s readiness for stage 2. Stage 1 is referred to as the “documentation review,” because your auditor will assess the documentation process of your information security management system (ISMS).
• Stage 2, often defined as the “certification audit,” is the part of your audit when certification is considered, and can usually be completed within one to two weeks. Stage 2 walkthroughs cover ISO 27001 Annex A controls and any areas of concern noted in stage 1. This includes evaluating the implementation and effectiveness of your ISMS and confirming your organization adheres to its own policies, objectives, and procedures. Additionally, your audit team will ensure any areas of concern have been remediated. If not, these areas will be classified as nonconformities. 

At the end of your engagement, BARR will issue an internal report and public-facing certification, which is valid for three years, with annual surveillance audits in the interim.

While both SOC 2 and ISO 27001 are designed to help organizations demonstrate accountability surrounding data security and governance, there are several major differences between the two: 

• Certification: Specific standards can be certified under the ISO 27001 series, meaning the end result for your organization is a formal ISO 27001 certification. SOC 2 audits result in an attestation report, rather than a certification.
• Scope: ISO 27001 includes specific requirements surrounding documentation and policy, and contains 93 Annex A control recommendations. SOC 2 reports are more flexible and cover one or a combination of the five TSC.
• Audience: As an internationally accepted standard, ISO 27001 is perfect for organizations serving clients outside of the U.S., Mexico, and Canada. 

Do You Need Both? 

For some organizations, obtaining either a SOC 2 report or ISO 27001 certification may be enough to satisfy customer requirements. However, achieving both can enhance your credibility, streamline compliance efforts, and ensure you’re prepared to expand into new markets with confidence.

For instance, organizations that operate in multiple regions or serve a diverse client base may find that SOC 2 aligns well with North American customers, while ISO 27001 provides the international recognition needed to scale globally. Similarly, businesses that want to increase customer trust by demonstrating a comprehensive and transparent approach to security and compliance can leverage both attestations to reinforce credibility and remove potential barriers in sales and partnership discussions. For organizations in situations like these, completing both a SOC 2 report and ISO 27001 certification can give you a huge leg up over the competition. 

BARR Advisory is proud to say we’re one of a handful of firms in the nation that meet the requirements of the AICPA and the ANSI National Accreditation Board (ANAB) to issue both SOC 2 reports and ISO 27001 certifications, respectively.* To simplify and streamline the process of completing both of these attestations, BARR offers a coordinated audit approach that empowers organizations to work with one team to achieve total assurance across multiple cybersecurity frameworks.

This was the path taken by JourneyTrack, a leading customer journey management SaaS platform that partnered with BARR to achieve both SOC 2 attestation and ISO 27001 certification. With team members spread across multiple time zones, JourneyTrack faced the practical challenges of navigating compliance against a new framework and coordinating the audits across a global team. They needed a partner who could provide flexibility and adaptability to work with their unique operational dynamics. 

To avoid potential misalignments caused by working with multiple auditors and minimize the impact on the firm’s day-to-day operations, JourneyTrack teamed up with BARR, ultimately reducing redundancies and saving JourneyTrack valuable time and resources.

“The BARR team’s expertise in both SOC Type 2 and ISO was incredibly valuable in guiding us through the requirements of both standards, clarifying where they aligned and where they diverged,” said Ania Rodriguez, CEO and founder of JourneyTrack.

The Bottom Line

Whether your organization pursues SOC 2 attestation, ISO 27001 certification, or both, prioritizing security and compliance is essential for success in the modern business world. Each framework offers unique advantages, and choosing the right path depends on your business needs, customer expectations, and long-term goals for growth and expansion

If you’re ready to take the next step in strengthening your organization’s security posture, our team is here to help. Get in touch with our experts today to learn how we can support you throughout your compliance journey.

*ISO 27001 certifications are issued by BARR Certifications, the certification body of BARR Advisory.