ISO 27001 vs SOC 2: Understanding the Difference

Simply put, being compliant with ISO 27001 and SOC 2 = getting the entry ticket to work with larger clients or move upmarket. And that's why more and more tech teams tend to invest in adhering to security standards.

Still, picking the right framework isn't simple. SOC 2 and ISO 27001 may seem similar. But they do different things. They serve different audiences. And they follow different paths to compliance.

This guide breaks it down. What each standard covers. How they compare. Where they overlap. And how to choose what's right for your team or when both might make sense.

If you're under pressure to get compliant or preparing to scale, this is your roadmap.

Let's start!

Key Takeaways

• SOC 2 is commonly required by U.S.-based clients, especially in SaaS and tech.
• ISO 27001 is often required by international enterprises, governments, and regulated industries.
• SOC 2 focuses on specific systems and trust criteria; ISO 27001 covers the entire organization.
• SOC 2 Type I can be completed in weeks; Type II typically takes 3-12 months.
• ISO 27001 implementation typically takes 6-12 months.
• SOC 2 reports are issued by licensed CPAs; ISO 27001 certificates are issued by accredited certification bodies.
• SOC 2 allows scope and criteria flexibility; ISO 27001 requires adherence to all mandatory clauses and Annex A controls.
• SOC 2 is not a formal certification; ISO 27001 provides a recognized international certificate.
• SOC 2 reports are confidential; ISO 27001 results in a public-facing certificate.
• Both standards require risk assessments, control documentation, monitoring, and third-party audits.
• SOC 2 Type II and ISO 27001 both measure control effectiveness over time.

What Is SOC 2?

SOC 2, also known as System and Organization Controls 2, is a widely adopted security and privacy framework built by the American Institute of Certified Public Accountants (AICPA). It’s designed for any service organization that handles sensitive customer information, including SaaS providers, infrastructure platforms, and data processors.

Put simply, it helps you show customers:
“We take your data seriously and here’s how we prove it.”

SOC 2 isn’t a checklist or a generic certification. It’s a flexible, auditor-issued attestation that evaluates how well your company protects sensitive information.

It’s based on five trust service criteria:

• Security (required). The foundation: firewalls, access controls, monitoring, etc.
• Availability. Uptime, disaster recovery, and system reliability.
• Processing integrity. Data accuracy, completeness, and timeliness.
• Confidentiality. Encryption, access restrictions, and data classification.
• Privacy. How you collect, retain, and dispose of personal information.

You choose the criteria that align with your services and customer risks. This makes SOC 2 highly adaptable, which is great for companies with complex, evolving tech stacks.

There are two types of SOC 2 reports:

• Type I. Verifies the design of your controls at a specific point in time.
• Type II. Tests how well the same security controls work over time (typically 3-12 months).

Most companies aim for Type II, since it gives customers stronger proof that their security controls don’t just look good on paper, but actually work.

Why companies pursue SOC 2

SOC 2 has become a default ask in North America. It’s often one of the first security requirements your sales or partnerships team will hear from procurement.

It’s about:

• Accelerating enterprise deals
• Building buyer confidence early
• Shortening security reviews
• Standing out from less mature competitors
• Showing investors you’re serious about risk management

What Is ISO 27001?

ISO/IEC 27001 is an international standard for managing information security. It's published by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC).

ISO/IEC 27001 outlines how to design, implement, and maintain a company-wide Information Security Management System (ISMS).

It's not only about IT controls. It's about how your whole organization handles risk.

Perceive ISO 27001 as a framework for building a culture of security. It defines the comprehensive requirements for setting up an ISMS that aligns people, processes, and technology under one goal: protecting your organization’s information assets.

Key elements include:

• Security objectives aligned with business risks
• Defined roles and responsibilities for ownership and accountability
• Ongoing risk assessments and treatment plans
• Documentation and evidence for decision-making and audits
• Continuous monitoring, internal audits, and improvement cycles

Unlike SOC 2, which is more focused on specific systems or services, ISO 27001 takes a top-down approach. It looks at the full picture, including HR practices, procurement, remote work policies, vendor management, and more.

To become certified, you'll go through a multi-stage audit process with an accredited certification body. The certificate is valid for three years, with annual surveillance audits required to maintain it. This ensures that your organization's ISMS is still working and improving. After three years, you'll need to go through the full certification process again.

Why companies pursue ISO 27001

ISO 27001 is especially valuable for companies that:

• Sell internationally, particularly in Europe, Asia, or regulated markets
• Want to bid on public sector projects or global RFPs
• Handle highly sensitive customer data
• Need a consistent, repeatable data security approach as they scale

ISO 27001 helps you embed security into your operations, show leadership commitment, and prove that you take long-term risk management seriously. For many organizations, it’s the compliance standard that helps earn global growth and enterprise trust.

What Are the Differences Between ISO 27001 and SOC 2?

Both ISO 27001 and SOC 2 are trusted frameworks that show your company takes information security seriously. Both aim to demonstrate your commitment to data protection and security measures. But dig deeper, and you’ll find the real difference between SOC 2 and ISO 27001.

They come from different origins, solve different problems, and are recognized in different ways across global markets.

Here’s how they compare at a glance:

Aspect	SOC 2	ISO 27001
Origin	Developed by AICPA (U.S.)	Developed by ISO/IEC (International)
Primary purpose	Demonstrate how a company protects customer data through defined controls	Establish a company-wide information security management system (ISMS)
Focus area	Specific systems and processes tied to trust service criteria	Holistic, organization-wide risk management and security governance
Framework type	Audited attestation (no formal certification)	Accredited certification standard
Report type	Type I (point-in-time) and Type II (over-time) audit reports	ISO 27001 certificate plus optional audit summary
Audit body	Licensed CPA firm	Accredited ISO certification body
Certification validity	Not a formal certification; report valid for 12 months (commonly renewed)	3 years with annual surveillance audits
Customization	High, companies choose relevant trust criteria	Low, must meet all required clauses and Annex A controls
Geographic fit	Common in U.S. and Canada	Globally recognized, especially in Europe and Asia
Customer expectation	Typical for U.S. SaaS and cloud buyers	Often required by international clients, enterprises, and governments
Implementation time	Faster (Type I in weeks; Type II often 3-12 months, depending on readiness)	Typically longer (6-12 months) due to organization-wide scope
Internal effort	Light to moderate, focused on systems and IT	Moderate to high, involves HR, legal, operations, procurement, leadership
Use case fit	SaaS companies, service providers, cloud platforms	Global companies, regulated industries, mature orgs building long-term programs

Now, let's take a closer look at the key differences that matter most.

Scope

SOC 2 applies to specific systems or services, usually those that touch customer data. You define the audit scope: it could be a single product, a backend platform, or your entire infrastructure. This makes it ideal for companies with modular or evolving cloud environments.

ISO 27001, in contrast, has a broader organizational reach. It covers every part of your business that handles, processes, or supports information, including your developers, IT teams, HR, legal, procurement, and executive leadership. It forces a company-wide commitment to security, not just a technical one.

Quick answer: SOC 2 is ideal if you're looking to certify a system. ISO 27001 is best when you need to certify an entire organization.

Focus

As mentioned above, SOC 2 audits are built around five trust service criteria:

• Security (mandatory)
• Availability
• Processing integrity
• Confidentiality
• Privacy

You only need to implement the ones that are relevant to your business. It’s modular by design, which means you can scale the framework around your risk profile and customer expectations.

ISO 27001, however, is built around a single, unifying principle: risk management. It requires you to identify, assess, and treat information security risks across the entire organization, and it pushes for a strong internal culture of ownership and accountability. This includes leadership buy-in, employee training, third-party reviews, and ongoing assessments.

Quick answer: SOC 2 is criteria-driven. ISO 27001 is risk- and process-driven.

Audit process

SOC 2 requires an external audit from a licensed CPA. You’ll define your scope and controls, then go through one of two reporting paths:

• Type I. Checks the design of your internal controls at a single moment in time
• Type II. Reviews operational effectiveness of your controls over a period (usually 3-12 months)

There’s no pass/fail. The result is an attestation report detailing how your systems and policies meet the criteria.

ISO 27001 takes a multi-phase certification path with an accredited ISO audit body:

1. Stage 1 audit. Reviews documentation, scope, and readiness.
2. Stage 2 audit. Tests the ISMS in practice through interviews, control testing, and real-world evidence.
3. Surveillance audits. Conducted annually to confirm ongoing compliance.
4. Recertification. Required every 3 years.

You must meet all mandatory clauses in the ISO 27001 standard, and the audit results in a formal certificate.

Quick answer: SOC 2 audits result in an independent attestation report from a CPA. ISO 27001 audits result in a formal certification from an accredited body. SOC 2 is more flexible, ISO 27001 is more formalized.

Report type

SOC 2 delivers a detailed, private audit report, often 50+ pages, that describes how your controls meet the selected trust criteria. These reports are confidential and usually shared only with customers or prospects under NDA.

ISO 27001, on the other hand, issues a public-facing certificate upon successful completion. While audit details may remain internal, the certificate itself is a marketable signal that you’ve met an internationally recognized benchmark.

Quick answer: SOC 2 reports are long, narrative-style documents. ISO 27001 results in a visible badge of compliance.

Flexibility

SOC 2 gives you room to move. You can:

• Choose your trust service criteria
• Define your own scope
• Design your own controls, as long as they meet the intent of the standard

This makes SOC 2 ideal for fast-moving teams that need to adjust security to fit changing products or infrastructures.

ISO 27001 is more structured. It requires conformance with all its core clauses and a set of controls (Annex A). While you can tailor some controls based on risk, the overall compliance process is strict and deeply documented.

Quick answer: SOC 2 is adaptable. ISO 27001 is rigorous and consistent.

Market recognition

SOC 2 is a North American staple, especially in SaaS, fintech, healthtech, and other cloud-heavy industries. It's often the first compliance framework companies pursue to speed up enterprise sales or meet vendor security requirements.

ISO 27001 is more recognized in Europe, Asia, and global public-sector environments. It's often a prerequisite for international procurement processes and carries significant weight in regulated industries like banking, insurance, and healthcare.

Quick answer: U.S. clients ask for SOC 2. Global clients ask for ISO 27001. Choosing the right one depends on where and who you're selling to.

Time and cost

SOC 2 is often quicker to implement, especially if you're starting with Type I. You can achieve compliance in weeks. Type II, while more thorough, can still be completed in under a year (3-12 months), depending on readiness.

Want a clearer picture of what that might run? Here's a breakdown of the SOC 2 audit cost.

ISO 27001 takes more time and coordination. It typically requires:

• 6-12 months to build and implement the ISMS
• Internal audits and training
• Documentation updates
• Alignment across multiple teams

It's a larger upfront lift, but delivers deeper, longer-term value for organizations aiming for mature security governance. To see what goes into the budget, check out our full guide to ISO 27001 certification cost.

Quick answer: SOC 2 is faster to start and typically more affordable in the short term. ISO 27001 takes more prep, more spend, and delivers broader, lasting impact.

What Are the Similarities Between SOC 2 vs ISO 27001?

After reading the previous section, ISO 27001 and SOC 2 may seem like different worlds.

One is international. The other is U.S.-centric. One is a formal certification. The other is an attestation.

But if you zoom out, you'll see something else:

They share a foundation of good security hygiene, a commitment to protecting information, and a roadmap that helps organizations reduce risk, earn trust, and grow.

Let’s look at what they have in common and why those similarities matter.

Both protect customer data – in practice, not just theory

If you're aiming for ISO 27001 or SOC 2, your endgame is the same: build a system that keeps your customers' data safe, available, and trustworthy.

Both security standards require you to:

• Understand what sensitive data you collect or process
• Identify potential threats and vulnerabilities
• Define clear, actionable controls to mitigate risks
• Continuously monitor how those controls perform

The language might differ (SOC 2 speaks in "trust service criteria," ISO in "risk treatment plans"), but the mission aligns: safeguard data and show you take it seriously.

At the end of the day, your customers don't care about your framework. They care about your security.

Both are trusted signals in sales and procurement

Compliance isn't only about reducing risk. It's about growing faster and closing bigger deals.

SOC 2 and ISO 27001 are both well-known, respected standards. Many large enterprises and public-sector buyers will expect to see at least one on your security checklist.

• SOC 2 is often non-negotiable for tech vendors selling in the U.S. market
• ISO 27001 unlocks doors to global enterprise clients and public tenders
• Having both? That's a green light for any market you want to enter

They're not just shields. They're keys.

Both require a strong foundation of documentation

Security isn't just tools and tech. It's clear expectations, repeatable processes, and shared responsibility. And that all starts with documentation.

Both SOC 2 and ISO 27001 require you to have:

• Written policies that govern behavior (like access control, acceptable use, and data classification)
• Procedures that describe how things actually get done (incident handling, user onboarding, vendor reviews)
• Evidence logs that show what happened and when (audit trails, system logs, training records)

That means building a repeatable, auditable, trainable system. One that doesn't depend on a few experts remembering what to do.

Good documentation is good security.

Both rely on independent, third-party validation

Self-assessments don't cut it here.

To comply with either SOC 2 or ISO 27001, you need an outside expert to check your work:

• SOC 2 requires a licensed CPA firm (authorized under AICPA)
• ISO 27001 requires an accredited certification body (recognized by ISO)

That external review includes:

• Testing your controls against the standard
• Interviewing your team
• Reviewing documentation
• Looking at real-world evidence of how your systems run

This external lens adds credibility and impartiality, which is exactly what your customers want to see.

It’s not just about saying you’re secure. It's proving it, from someone who knows.

Both emphasize continuous improvement – not one-time wins

The best security programs aren’t static. They evolve. And so do SOC 2 and ISO 27001.

• SOC 2 Type II looks at how controls perform over a period of time, often 3-12 months
• ISO 27001 includes annual surveillance audits and a mandatory cycle of improvement across the 3-year certification window

In both cases, you’re expected to:

• Monitor how your controls perform
• Review incidents and lessons learned
• Adjust your approach as your business, systems, and risks change
• Keep your people trained and engaged

Security isn’t a project. It's a program.

Both lay the groundwork for the other

Maybe you’re starting with SOC 2. Maybe ISO 27001 is your first move. Either way, there’s good news: the work you do for one will absolutely help with the other.

For example:

• Risk assessments done for ISO 27001 can support SOC 2 security criteria
• Your SOC 2 audit logs and technical documentation align well with ISO 27001 Annex A controls
• Two frameworks require the same core building blocks: access management, encryption, change control, monitoring, response

Many companies start with one, then layer in the second as they scale.

You’re not doubling the work. You're building on what’s already there.

What Standard Do You Need – or Maybe Both of Them?

Choosing between SOC 2 certification vs ISO 27001 isn’t about which one is better. It's about what fits your customers, markets, and growth strategy.

Let’s break it down by scenario so you can find the best path forward.

You need SOC 2 if you’re selling to U.S.-based companies

If your customers are in the U.S., especially if you're in tech, SaaS, cloud services, or data processing, SOC 2 is the standard they expect.

• You’re being asked for a “SOC 2 report” in security questionnaires
• You want to reduce procurement friction with enterprise buyers
• You're trying to close deals faster and avoid long security reviews
• You need to prove your organization's security posture without going through a formal ISO certification

SOC 2, especially Type II, gives buyers confidence that you’re running a secure and reliable operation.

You need ISO 27001 if you’re expanding globally

If your company operates or plans to operate in Europe, Asia, or other international markets, ISO 27001 is often a requirement.

• You’re bidding on public-sector projects in the EU or UK
• You’re working with global banks or healthcare providers
• Your clients are asking for ISO 27001 certification specifically
• You’re scaling operations across borders and want to unify your security practices

ISO 27001 gives you credibility on a global stage and demonstrates long-term security maturity.

You need both if you’re scaling fast and going international

If your business is growing quickly and you’re serving both U.S. and global clients, there’s a good chance you’ll eventually need both SOC 2 and ISO 27001.

That’s not as overwhelming as it sounds, especially if you plan ahead.

Here’s when both make sense:

• You already have SOC 2 but are expanding into regulated global markets
• You have ISO 27001 but want to reduce friction with U.S. tech buyers
• You need to meet varying customer expectations across different geographies
• You want to stand out from competitors and show next-level commitment to security

Many companies tackle one standard first, then reuse the controls, processes, and documentation they’ve built to get the other.

Not sure where to start? Follow the clients

When in doubt while choosing SOC 2 compliance vs ISO 27001, follow the ask.

Look at your customer base:

• What are your buyers requesting in security reviews?
• Which certifications or reports are slowing down your sales process?
• What standards appear in contracts, RFPs, or vendor assessments?

Then match your regulatory compliance strategy to what will move the needle for trust, deals, and scale.

Need Help with ISO 27001 or SOC 2? Let’s Make It Simple

Getting security compliance right takes time, focus, and experience. But it shouldn’t slow you down or pull your team away from building.

At TechMagic, we help growing tech companies get compliant. Fast and without the stress.

We offer full-service support for both SOC 2 and ISO 27001:

• SOC 2 consulting to help you define your scope, build controls, and prep for audits
• ISO 27001 consulting services to guide your ISMS from planning through certification

TechMagic is ISO 27001 certified, so we know the process inside out. Be sure you'll get real-world guidance, not theory. We keep things practical. No jargon. No checklists without context. Just the right support at the right time. And a clear path forward.

Let's talk.

Wrapping Up

Getting ISO 27001 or SOC 2 is a smart move to earn trust, stay ahead of risk, and open bigger opportunities. The right choice between ISO 27001 certification vs SOC 2 depends on who you’re working with, what they expect, and where your business is headed.

ISO 27001 vs SOC 2 differences are noticeable. SOC 2 makes sense if you’re focused on the U.S. market and need to show your cloud and data controls are solid. ISO 27001 is a better fit if you’re scaling globally or need a more structured, long-term, and comprehensive approach to security.

Plenty of companies start with one and add the other later, especially as they grow.

No matter the path, it pays to be prepared. Clear policies, strong processes, and a team that knows the “why” behind every control make all the difference.

If you’re planning your next move and want a partner who can guide you through it, TechMagic is here to help. We’ve done it before, and we’ll make sure you’re ready.

FAQs

1. Why is ISO 27001 not enough?

   ISO 27001 is widely respected, but many U.S. companies expect a SOC 2 report during procurement. Without it, you may still face blockers in North American sales cycles.

2. Which SOC 2 report is closest to an ISO 27001 report?

   SOC 2 Type II. Like ISO 27001, it reviews how well your controls work over time and provides detailed audit evidence.

3. What is the difference between ISO 27001 vs SOC 2?

   ISO 27001 certifies your entire organization’s security management system. SOC 2 audits specific systems and controls, and is more common in the U.S. market. That’s how SOC2 and ISO 27001 are different.