Want to improve your cyber security and/or data security practices but can’t decide between ISO 27001 and SOC 2? You’re not alone.
They’re two of the most popular information security and risk management frameworks in the world and each one has its benefits.
But what is the difference between SOC 2 and ISO 27001? Let’s look at which one is right for you by reviewing five key compliance aspects.
Scope
Both SOC 2 and ISO 27001 have security controls that involve processes, policies and technologies to safeguard sensitive information, and agree that organisations should only use controls when needed, but their approaches are slightly different.
ISO 27001 focuses on the development and maintenance of an ISMS (information security management system) – a systematic approach for managing an organisation’s information security. To achieve compliance, you must conduct a risk assessment, identify and implement security controls, and regularly review their effectiveness.
SOC 2, by contrast, assesses service organisations’ security, availability, processing integrity, confidentiality and privacy controls against the AICPA’s (American Institute of Certified Public Accountants’) TSC (Trust Services Criteria), in accordance with SSAE 18. A SOC 2 report is generally used for existing or prospective clients.
There are two types of SOC 2 audit:
- Type 1 – an audit carried out on a specified date.
- Type 2 – an audit carried out over a specified period, usually a minimum of six months.
Market applicability
Both frameworks are recognised globally, but SOC 2 is more closely associated with North America.
If you’re based in that region, you’ll find that both SOC 2 and ISO 27001 are common. Outside North America, ISO 27001 is much more popular.
Certification process
You must complete an external audit to certify to either framework.
The only difference in this process is who conducts the audit. A recognised ISO 27001-accredited certification body must complete ISO 27001 certification.
In contrast, a SOC 2 attestation report can only be performed by a licensed CPA (Certified Public Accountant) in the US or, in the UK, by a qualified member of the ICAEW (Institute of Chartered Accountants in England and Wales) or an equivalent organisation.
There’s also a slight difference in what certification looks like. Organisations that pass the ISO 27001 audit receive a certificate of compliance, whereas SOC 2 compliance is documented with a formal attestation.
Project timeline
The certification process is similar for ISO 27001 and SOC 2, with three stages you must complete.
- Conduct a gap analysis to determine which areas of the framework you’re already compliant with and where you need to make improvements. As part of this process, you should also define your security objectives and which areas of your organisation will be covered.
- Identify which security controls are appropriate for your organisation and take the necessary steps to implement them. This includes documenting your practices and establishing a method to review and improve your processes.
- The final step is the audit. Organisations often audit themselves before seeking accreditation, so they can fix any mistakes they find.
Once you’re confident in your compliance practices, you can contact a certification body and arrange an ISO 27001 or SOC 2 audit.
The length of time this will take depends on the amount of work needed to meet the standards.
It generally takes about two or three months to implement SOC 2 and three to six months to implement ISO 27001, although this obviously varies depending on the organisation and scope.
Which framework should you use?
ISO 27001 certification audits evaluate an organisation’s information security controls as they operate over a short, defined audit window – typically, a few days.
SOC 2 Type 2 audits, by contrast, cover a period of several months and produce a formal attestation rather than a certificate. On that basis, it could be said that a SOC 2 Type 2 report offers stronger and more detailed assurance than ISO 27001 certification.
That said, a SOC 2 audit report is an auditor’s opinion. It is not issued under a certification scheme or compliance framework. With ISO 27001 certification, an accredited certification body verifies that the organisation has implemented an information security management system (ISMS) that conforms to the Standard’s best practice.
As with ISO 27001 and SOC 2 more broadly, each has distinct advantages. There is also enough common ground between SOC 2 and ISO 27001 to support tackling them in parallel and embedding SOC 2 requirements within an ISO 27001-compliant ISMS.
For example, you can design your risk assessment and risk treatment plan to reflect the five SOC 2 and SOC 3 trust services categories: security, availability, processing integrity, confidentiality and privacy.
Our experts are happy to discuss which option is right for your organisation.
We specialise in IT governance, risk management and compliance services, focusing on cyber resilience, data protection, cyber security and business continuity.
