ISO 27001 vs. SOC 2: Choosing the Right Compliance Framework

When building a compliance roadmap, organizations often ask: Should we pursue ISO 27001 or SOC 2?
Both frameworks help strengthen your security posture and build trust with customers, but they differ in scope, purpose, and approach.

This guide will help you understand how each framework works, when to choose one over the other, and why many companies pursue both.

What is ISO 27001?

ISO 27001 is a globally recognized standard for managing an Information Security Management System (ISMS).
It offers a structured method for protecting sensitive data through continuous risk assessments, security controls, and policy management.

Certification under ISO 27001 is especially beneficial for businesses that operate internationally or in highly regulated industries. It shows a long-term commitment to information security and compliance.

What is SOC 2?

SOC 2 is a U.S.-based attestation report created by the American Institute of CPAs (AICPA).
It focuses on evaluating how effectively a company applies controls in five key areas known as the Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy.

SOC 2 compliance is often expected by US-based customers, especially in sectors like SaaS, cloud platforms, and enterprise technology.

Key Differences Between ISO 27001 and SOC 2

While both frameworks enhance data security and compliance readiness, they differ in several core areas:

• Origin:
  ISO 27001 is an international standard developed by ISO and IEC. In contrast, SOC 2 is a U.S. attestation framework governed by the AICPA.

• Scope:
  ISO 27001 covers your entire Information Security Management System (ISMS). SOC 2 focuses more narrowly on how well you apply specific security controls across systems and processes.

• Audit Type:
  ISO 27001 requires a formal certification audit conducted by an accredited third-party certification body. SOC 2 results in an attestation report issued by a certified public accountant (CPA) firm.

• Use Cases:
  ISO 27001 is ideal for organizations operating across multiple countries, especially those in finance, healthcare, and government sectors. SOC 2 is best suited for U.S.-based customers, including SaaS and cloud service providers.

• Purpose:
  ISO 27001 helps establish long-term security governance and drive continuous improvement. SOC 2 demonstrates that your security controls are operating effectively and meet industry expectations.

When to Choose ISO 27001

ISO 27001 may be the right fit if your organization:

• Works in international or regulated environments

• Handles confidential information across borders

• Needs to show a mature, formal security management system

• Wants to align with other frameworks like GDPR or ISO 9001

When to Choose SOC 2

SOC 2 might be a better fit if your company:

• Primarily serves U.S.-based enterprise clients

• Operates a cloud-based, SaaS, or tech-driven product

• Needs an attestation report to meet vendor security requirements

• Wants to showcase operational control effectiveness

Why Many Organizations Pursue Both

Many growing companies decide to pursue both ISO 27001 and SOC 2.
ISO 27001 creates a strong foundation for long-term data protection, while SOC 2 helps meet market-specific expectations and provides clear visibility into how your security controls perform.

Together, these standards help reduce the risk of security breaches, support regulatory compliance, and build lasting trust with customers.