In today’s security compliance landscape, organizations handling sensitive data must prove their commitment to information security. Two widely recognized frameworks—ISO 27001 and SOC 2—help businesses build trust and meet compliance expectations. But which one do you need? Or do you need both? Here, Boulay’s Risk Advisory Team explores their differences, use cases, and when adopting both might be the right strategy.
Understanding ISO 27001 and SOC 2
ISO 27001 is an internationally recognized standard for information security management systems (ISMS). It provides a systematic approach to managing sensitive company and customer data, emphasizing risk management, continuous improvement, and compliance. Organizations that achieve an ISO 27001 certification demonstrate a strong commitment to security best practices on a global scale.
SOC 2, developed by the American Institute of Certified Public Accountants (AICPA), focuses on service organizations managing customer data. It evaluates security controls based on the Trust Services Criteria: security, availability, processing integrity, confidentiality, and privacy. SOC 2 reports (Type I and Type II) provide assurance to customers and stakeholders that security controls are in place and effective over time.
Key Differences Between SOC 2 and ISO 27001
Feature | ISO 27001 | SOC 2 |
Scope | Organization-wide information security management system (ISMS) | Service organization’s controls over customer data |
Standard Type | International standard | U.S.-focused framework |
Certification vs. Attestation | Certification by an accredited body | Attestation report by a CPA firm |
Control Requirements | Risk-based, flexible, and includes mandatory clauses | Based on AICPA’s Trust Services Criteria |
Market Recognition | Global acceptance, commonly required in Europe and Asia | Primarily used in North America |
Do You Need Both ISO 27001 and SOC 2?
The decision to pursue ISO 27001, SOC 2, or both depends on several factors, including your industry, customer expectations and growth strategy.
When ISO 27001 alone is enough:
- Your company operates internationally and needs to meet global regulatory expectations
- You require a structured security framework for internal risk management
- Customers demand ISO 27001 certification, especially in Europe and Asia
When SOC 2 alone is enough:
- You are a U.S.-based technology or SaaS company serving enterprise customers
- Clients require SOC 2 reports as part of vendor security assessments
- Your security efforts focus primarily on customer data protection rather than a broader ISMS
When You Should Consider Both:
- You operate globally and serve both U.S. and international customers
- Your customers expect both certification (ISO 27001) and attestation (SOC 2)
- You want to establish a comprehensive, scalable security posture that satisfies various regulatory frameworks
Choosing the Right Path
For many organizations, SOC 2 provides a competitive advantage in the U.S. market, while ISO 27001 aids international credibility. Implementing one doesn’t preclude the other—many security controls overlap, making it efficient to pursue both simultaneously.
Ultimately, customer demand, market expansion plans and security objectives should drive your decision. If you’re unsure where to start, consult with an experienced auditor to determine the best fit for your business needs.
Connect with our SOC 2 and ISO 27001 Professionals
Boulay’s experienced Risk Advisory Team is here to guide you through SOC 2 audits, ISO 27001 certifications and other aspects of security compliance. To learn more, connect with us today.