ISO 27001 VS SOC 2 - How to Decide Which to Audit First?

Updated May 1, 2021

ISO 27001 and SOC 2 share a similar goal of improving the way your organization manages information security. Deciding between these two internationally recognized standards can be done by asking a fundamental question about your company.

Which Compliance Standard Will Deliver More Value to Your Business?

ISO 27001 and SOC 2 are both prime standards, but is one better than the other? It all depends on how well you understand your organization, regulatory requirements, the market, your customers, and even your competitors, all are aspects that need serious consideration before delciding your roadmap. For example, some industries have a contractual legal requirement for certification.

Since both standards align together very well, with many similarities and shared requirements, you absolutely can manage both projects simultaneously and be on the edge of security. In fact, many organizations choose to pursue ISO 27001 and SOC 2 in tandem because they complement each other so well. ISO 27001 provides a robust framework for building out an Information Security Management System (ISMS), offering a solid foundation for your security processes and policies. Meanwhile, SOC 2 can fill in the gaps by focusing on ongoing improvement and providing flexible assessments tailored to your organization’s unique security controls.

By leveraging the strengths of both, you can streamline your path to compliance, address a broader range of customer and regulatory requirements, and demonstrate your commitment to security from multiple internationally recognized perspectives. This dual approach not only maximizes value but also prepares your organization to adapt and grow as security expectations and business needs evolve.

What is the Difference Between ISO 27001 and SOC 2?

Conceptually, both SOC 2 and ISO 27001 are information security oriented, but each standard approaches the topic differently.

SOC Standards

Service Organization Controls (SOC) are a series of accounting standards that measure the control of financial information for a service organization. SOC 1 is primarily intended to review systems affecting financial reporting whereas SOC 2 covers operational control systems following a predefined Trust Services Principles and Criteria around security, availability, process integrity, privacy, and confidentiality.

SOC 2 reporting will assure your customers that what you say your organization has implemented to safeguard their data and information, is in place.

When Should You Choose SOC 2?

SOC 2 audits are particularly well suited for organizations that already have an information security management system (ISMS) in place and want to validate or spot-check their current standards and policies. SOC 2 is also ideal for businesses looking for a customizable audit—they can target specific areas of their security systems and policies, surfacing key insights about how controls are actually working in practice.

If your organization is seeking a lighter-weight or more cost-effective assessment, or if your customer base and business operations are primarily focused in North America, SOC 2 can deliver significant value. It’s an efficient way to demonstrate your commitment to data security, especially if you need a flexible audit that can be tailored to the unique needs and risk profile of your business.

ISO Standards

ISO 27001 is an information security standard that specifies the requirements for establishing, implementing, maintaining and continually improving an information security management system (ISMS) within the context of your organization.

According to ISO's definition, an ISMS is a systematic approach to managing sensitive company information so that it remains secure. It includes people, processes, and IT systems by applying a risk management process. An ISMS policies and procedures cover all legal, physical and technical controls involved in an organization's information risk management processes.

When Should You Choose ISO 27001?

ISO 27001 is particularly advantageous for organizations that need to establish a formal Information Security Management System (ISMS) or have an international client base. As a globally recognized standard, ISO 27001 certification is accepted across all industries and regions, making it an ideal choice for companies operating in multiple countries or seeking to expand internationally.

If your organization is looking for a more rigorous assessment standard, ISO 27001 stands out. While it does require more time, resources, and investment to achieve certification, the payoff can be substantial. Certification demonstrates a strong commitment to information security, which can carry significant weight with stakeholders and enhance your organization's credibility in the marketplace.

By aligning your information security initiatives with internationally accepted standards, you not only address regulatory and contractual demands but also build trust with customers, partners, and regulators—wherever they may be.

ISO 27001 and SOC 2: Certification vs Attestation

A fundamental difference between the two audits is that an attestation is not a certification. While the ISO 27001 process, assuming you did well during the external audit, will certify your organization, a SOC report is not a certification but rather an independent attestation, confirming certain elements about the control environment of a service organization.

Additionally, a SOC 2 Type 2 audit will contain the auditors' opinion on how well the internal controls a service organization has put in place meet the criteria for security, availability, processing integrity, confidentiality and privacy trust services principles.

For each case, the result can be quite different. The final deliverable for the SOC 2 assessment is the attestation report, which as mentioned before, may contain the observations from the auditor in the form of an opinion letter. This includes a detailed description of key components of the organization's system (infrastructure, software, people, procedures, and data), organizational-level procedures, the applicable trust services criteria, related control activities, tests performed by the service auditor and their outcomes.

The final deliverable for the ISO 27001 certification is a good looking certificate of registration from your certification body, which contains a certificate number, and scope statement which includes the statement of applicability and version number.

How Can an Organization Obtain ISO 27001 Certification?

Achieving ISO 27001 certification is a structured process that involves partnering with an accredited external auditor—often certified by bodies such as the ANSI National Accreditation Board in the U.S. The certification journey typically unfolds in two key stages:

• Stage 1: Review of Documentation

  Initially, the auditor conducts a preliminary assessment of your organization's Information Security Management System (ISMS) documentation. During this phase, they will examine your policies, procedures, and records to verify they align with ISO 27001 requirements. The auditor will highlight any gaps or areas needing improvement, allowing your team to address shortcomings before moving forward.
  
  

• Stage 2: Certification Audit

  Once any gaps identified in the documentation review have been addressed, the auditor carries out a more in-depth evaluation. This phase focuses on practical implementation—whether your organization is following its documented controls and processes effectively, in line with the ISO 27001 standard. The auditor will interview staff, review evidence, and assess internal procedures to confirm that the ISMS is operating as intended.

The entire certification process can span anywhere from 6 to 12 months, depending largely on the size and complexity of your organization. Earning ISO 27001 certification demonstrates a commitment to best practices in information security, reassuring clients, partners, and stakeholders that your organization manages data with care and diligence.

Achieving SOC 2 Compliance

So, what does it actually take to achieve SOC 2 compliance? Getting there requires more than simply saying “we take security seriously” on your website. You’ll need to prove it—through an organized, well-documented process that culminates in an independent audit.

Here’s what the journey typically looks like:

1. Select Your Audit Type and Scope:
   Start by deciding whether you need a SOC 2 Type 1 (a report on controls at a specific point in time) or a Type 2 (covering operational effectiveness over a defined period, usually several months). Next, identify which Trust Services Criteria—security, availability, processing integrity, confidentiality, or privacy—should be included based on your services and customer requirements.
   
   

2. Document Your Policies and Procedures:
   Lay all your cards on the table: create or fine-tune policies covering how your organization secures, manages, and monitors information. Everything from employee onboarding to incident response to change management should be addressed.
   
   

3. Engage an Independent Auditor:
   Partner with an external CPA firm that specializes in SOC audits. This step is key, as only licensed CPAs are authorized to issue SOC 2 reports.

   
   

4. Support the Auditor’s Assessment:
   Be prepared for a thorough review. The auditor will:

   • Confirm the agreed-upon scope

   • Build an audit plan

   • Test the policies, procedures, and controls you have documented

   • Gather evidence and evaluate whether these controls function as designed

     
     

5. Review the Findings:
   The audit concludes with a detailed report, which outlines their findings and expresses an opinion about whether your controls meet SOC 2’s standards. Rather than being a certificate to hang on the wall, it acts as reliable evidence for your board, clients, and partners that you’re upholding industry-leading security practices.

Ultimately, achieving SOC 2 compliance is about transparency and consistency: putting your security promises into action, and then inviting an outside expert to check your work. When done right, it’s a solid step toward building trust and confidence with your stakeholders.

What's the Similarities Between ISO 27001 and SOC 2 Standards?

Compliance with each of the standards will require your organization to systematically address information security issues, using a risk-based approach to select proper controls for your company's context and the desired scope.

Another similarity is the fact that both ISO 27001 and SOC 2 need an independent third party during the evaluation process. For ISO 27001, an external auditor will evaluate if you met the standard requirements, while in a SOC 2 report, an independent assessor is required to provide assurance on the controls in place to meet the trust services principle (TSP) criteria.

Since ISO 27001 certification and SOC 2 reports are internationally accepted, both appeal to companies with multiple country presences or trying to reach an international customer base. Being compliant with any of these standards means your organization's top management committed to a higher level of information security, and this has been independently accessed or certified by an independent and competent third party.

How to Streamline the ISO 27001 and SOC 2 Compliance Journey

Let’s be honest—achieving compliance for either ISO 27001 or SOC 2 can be more marathon than sprint. With so many moving parts, it’s all too common to lose sight of the big picture. However, tackling the process methodically can help you avoid many headaches (and an excessive spreadsheet habit).

Here are practical strategies to keep your compliance initiative on track:

Start With Clear Objectives

First things first: define what you want out of your compliance journey. Are you prioritizing a globally recognized certification for your information security management system, or is your focus on providing assurance to potential clients through an attestation report? Knowing this from the outset will ensure your team focuses energy where it counts and avoids unnecessary detours.

Select the Appropriate Standard

Once your goals are set, decide which path fits your organization best. For instance, organizations lacking a formal ISMS often turn to ISO 27001 as a framework to establish and improve one. Conversely, for those tasked with demonstrating control effectiveness over time, a SOC 2 Type 2 report may provide the detail and reassurance partners are looking for. Remember: “one-size-fits-all” rarely applies here.

Assess and Allocate Resources

A robust compliance project calls for adequate resources—not just in personnel but also in expertise, technology, and time. Taking stock of internal capabilities and where additional support may be required can prevent delays down the line. Consider forming a dedicated project team and tapping trusted external advisors to fill gaps, ensuring thorough preparation before the auditors arrive.

Secure Leadership and Stakeholder Support

A successful compliance initiative doesn’t happen in a vacuum. Prioritize getting organizational buy-in from leadership and key stakeholders before you begin. Visible support from the top, along with clear roles and responsibilities, can smooth the path, accelerate decision-making, and ensure everyone is moving in the same direction.

By breaking the compliance journey into these manageable steps, your organization can transform what can feel like an overwhelming process into one that’s structured, achievable, and ultimately beneficial for both your security posture and market credibility.

When is ISO 27001 Not Enough for Compliance?

While ISO 27001 offers a robust framework for managing information security, there are situations where holding this certification alone may not satisfy all stakeholders. For example, if your clients or business partners are based in the United States, you may encounter organizations—especially those in regulated industries—who specifically require a SOC 2 attestation as part of their vendor due diligence.

In such cases, relying solely on ISO 27001 could limit your opportunities or even exclude you from certain contracts where SOC 2 is listed as a non-negotiable requirement. Additionally, SOC 2’s focus on the five Trust Services Criteria—security, availability, processing integrity, confidentiality, and privacy—may address concerns that ISO 27001 does not emphasize in the same way.

By pursuing both ISO 27001 certification and SOC 2 attestation, you not only demonstrate a comprehensive approach to information security management, but also reassure a wider range of stakeholders that your organization meets the diverse compliance expectations present in today’s global market.

Security vs. Compliance: Unpacking the Key Differences

Both security and compliance play significant roles in shaping your organization’s approach to managing sensitive information, but their focus and intent are distinct.

Security is about actively protecting your business from threats—think of it as the set of policies, controls, technologies, and practices you implement to safeguard data, systems, and networks. It’s proactive and always evolving to keep pace with threats, whether from hackers, viruses, or even insider mistakes.

Compliance, on the other hand, is all about adherence. It’s ensuring your organization meets established regulations and frameworks, like ISO 27001 or SOC 2, often to satisfy legal, contractual, or customer-driven requirements. Compliance demonstrates that your controls and processes meet an accepted baseline or standard; it may not always cover every security risk, but it assures outside parties that you have systems in place.

Key Differences to Keep in Mind:

• Purpose:

  • Security aims to reduce risk and prevent breaches.

  • Compliance demonstrates that you meet a third party’s requirements (regulators, partners, industry bodies).

• Scope:

  • Security strategies adapt to new threats as they emerge.

  • Compliance is measured against static or periodically updated benchmarks.

• Drivers:

  • Security is business-driven, guided by risk assessments and emerging issues.

  • Compliance is often externally driven by mandates or audits.

Aligning Security and Compliance for Maximum Value

The most forward-thinking organizations find ways to align these two disciplines, using compliance requirements as a baseline, and then building robust, adaptable security frameworks on top.

Consider the following best practices:

• Start with a comprehensive risk assessment to inform your security strategy.

• Use recognized standards (such as ISO 27001 or SOC 2) to provide structure and evidence of your efforts.

• Regularly review and update policies—not just to tick compliance boxes, but to ensure they remain relevant as threats evolve.

• Foster a company culture where meeting compliance is simply a milestone on the path to real, proactive security.

By understanding both the overlaps and the boundaries between security and compliance, you can design an information management program that keeps your regulators, customers, and—most importantly—your data, safer.

Which Standard is Better For My Company?

Many organizations have chosen to focus their strategy towards compliance with data security best practices. The benefits are obvious: having adherence to regulatory requirements and while using it as a competitive edge, is a sound way to develop new contracts with customers that demand a higher level of the controls that could impact the integrity, availability, and confidentiality of their data.