SOC2 vs ISO 27001: What’s Right for Your Business?
- Author
- Jun 27
- 2 min read
Introduction
SOC 2 and ISO 27001 are two of the most widely adopted cybersecurity frameworks, but they serve different purposes, audiences, and regulatory needs. If you’re deciding which one your organization should pursue, understanding their unique strengths and alignment with your goals is critical.
This guide compares SOC 2 and ISO 27001 in practical terms to help you choose the best fit for your security, compliance, and business needs.
What is SOC 2?
SOC 2 (System and Organization Controls 2) is an auditing standard developed by the American Institute of Certified Public Accountants (AICPA). It evaluates an organization’s controls related to security, availability, processing integrity, confidentiality, and privacy (Trust Services Criteria).
Ideal for: SaaS companies and service providers operating in North America who need to demonstrate strong internal security controls to clients.
Key Highlights:
Not a certification, it’s an attestation
Performed by a CPA firm
Flexible implementation: choose which Trust Service Criteria apply
Types I (point-in-time) and II (historical effectiveness over 3–12 months)
What is ISO/IEC 27001?
ISO 27001 is an international standard for establishing, implementing, maintaining, and improving an information security management system (ISMS).
Ideal for: Global organizations looking for a structured, ongoing process to secure data assets and demonstrate maturity to regulators, customers, and partners.
Key Highlights:
Globally recognized certification
Risk-based approach with mandatory policies and procedures
Requires internal audits and continual improvement
Valid for 3 years with annual surveillance audits
Key Differences
Feature | SOC 2 | ISO 27001 |
Type | Attestation | Certification |
Region | Primarily U.S./Canada | Global |
Basis | Trust Services Criteria | ISMS Clauses + Annex A Controls |
Auditor | CPA Firm | Accredited ISO Certification Body |
Flexibility | Choose which TSCs apply | Must meet all core ISMS requirements |
Maintenance | Annual report (Type II) | 3-year cycle with annual audits |
Which Should You Choose?
Choose SOC 2 if:
You’re a SaaS or managed service provider selling into North America
Your clients specifically request SOC 2 reports
You want a flexible framework with quicker ROI
Choose ISO 27001 if:
You operate globally or in regulated sectors
You want a robust, repeatable, and process-driven ISMS
You are pursuing other ISO standards (e.g., ISO 27701, 22301)
Many companies eventually pursue both. Start with one, build muscle, then expand.
Final Thoughts
SOC 2 and ISO 27001 are both powerful tools for building trust, reducing risk, and creating competitive advantage. The best choice depends on your clients, your market, and your readiness.
Phoenix Infosec can help you assess readiness, implement controls, and prepare for either framework with expert guidance tailored to your business.
