ISO 27001 vs. SOC 2: What's the difference?

ISO 27001 vs. SOC 2: Which compliance standard is better for your organization? This question often comes up when companies need to prove they take data security seriously, especially in fast-growing or highly regulated industries.

Both SOC 2 and ISO 27001 offer trusted frameworks for protecting sensitive information, but they take different paths to get there.

SOC 2 specifies criteria for how companies should manage controls to protect customer data from unauthorized access, cybersecurity incidents, and other risks. ISO 27001 goes deeper, providing a framework for implementing an end-to-end security system that covers people, technologies, and processes.

Not sure which one fits your business best? You’re not alone. In this guide, we’ll compare ISO 27001 vs. SOC 2, how they differ, what they have in common, and how to choose the right security compliance standard for your organization.

What is ISO 27001?

ISO 27001 is a global standard for managing information security. Created by the International Organization for Standardization (ISO) and the International Electrotechnical Commission
(IEC) outlines how to build a strong information security management system (ISMS). It addresses areas such as risk assessment, access control, and incident response.

The framework categorizes its controls into four key themes: organizational, people, operational, and technological. If your business handles customer data, ISO 27001 demonstrates that you have structured, reliable systems that help keep that information safe.

To get ISO 27001 certification, an accredited third-party auditor must confirm that you meet all the compliance requirements. This certification is a good fit for companies that want to build trust, meet regulatory expectations, and protect sensitive information.

What is SOC 2?

SOC 2 stands for Systems and Organization Controls 2. It’s a security compliance standard created by the American Institute of Certified Public Accountants (AICPA) to help companies keep customer data safer from data breaches, unauthorized access, and other cyber threats.

A SOC 2 report proves your company's security measures are effective. It’s like a trust badge that shows you handle, process, and store customers’ data responsibly and securely.

Who benefits from a SOC 2 report?

• Cloud service providers
• SaaS companies
• Digital financial companies
• Healthcare organizations

If you're in one of these industries, having SOC 2 compliance will give you a competitive edge.

ISO 27001 vs. SOC 2: Key differences

One big difference between ISO 27001 and SOC 2 is how compliance is verified. ISO 27001 gives you an official certification. Pass the requirements, and you’re certified—simple as that.

SOC 2 works a bit differently. You don’t get a certificate. Instead, an independent auditor writes a SOC 2 attestation report, giving their expert opinion on whether you meet the SOC 2 compliance criteria.

So, how do ISO 27001 and SOC 2 differ? Both certification and attestation involve a deep dive by an external auditor. Certification feels more formal, but in some industries, ISO 27001 carries more weight.

Here is a summary of the main differences between SOC 2 and ISO 27001:

Let’s take a closer look at ISO 27001 vs. SOC 2 to understand them better.

Compliance requirements

SOC 2 and ISO 27001 share quite a few security controls, but they don’t ask for the same level of implementation.

Both standards say you need to apply internal controls that are relevant to your business. But ISO 27001 tends to be stricter. You’ll need to meet more criteria and cover a broader set of controls to be fully ISO 27001 compliant.

SOC 2 is a bit more flexible. It’s based on five Trust Services Criteria—but only one (Security) is required in every SOC 2 report. The other four (Availability, Confidentiality, Processing Integrity, and Privacy) are optional, depending on what your company does.

Location: Which standard do your customers expect?

Both SOC 2 attestation and ISO 27001 certification are respected in the security and technology world, but where you do business can influence which one you need.

If your clients are in North America, SOC 2 is usually the go-to. It’s the standard most U.S. and Canadian companies expect.

On the other hand, ISO 27001 is more common internationally. So if you're working with customers in Europe, Asia, or other global markets, ISO 27001 is likely the better fit.

Timeline: How long does it take to get compliant?

SOC 2 and ISO 27001 differ not only in what they ask of you but also in the amount of time it takes to complete.

So, if your organization needs to demonstrate compliance quickly, SOC 2 Type 1 offers a faster path. However, for clients who require long-term assurance of your security practices, SOC 2 Type 2 or ISO 27001 may provide the depth and credibility they expect.

Audit process: What to expect with ISO 27001 vs. SOC 2

Both ISO 27001 and SOC 2 follow a structured process. You'll need to define your security goals, run a gap analysis, implement key controls, collect documentation, and set up a system for ongoing improvement.

The difference lies in who audits you.

• ISO 27001 requires an accredited certification body to certify your compliance.
• SOC 2 must be audited by a licensed CPA firm.

Renewal timelines also differ:

• SOC 2 Type 2 reports are valid for 12 months, typically renewed every year.
• ISO 27001 certificates last for three years, with annual surveillance audits and a full recertification audit in year three.

ISO 27001 and SOC 2: More in common than you think

SOC 2 and ISO 27001 focus on core principles like data security, confidentiality, integrity, and availability.

Both require organizations to implement strong security measures and undergo independent audits to prove it. In fact, there's up to 80% overlap between the two frameworks, so working toward one puts you well on the way to meeting the other.

While neither is mandatory, getting certified or attested shows clients and partners that your data protection practices are trustworthy.

ISO 27001 and SOC 2: Which one is right for you?

Choosing between ISO 27001 and SOC 2 depends on your goals, clients, and the maturity of your current information security setup. Both standards help service organizations demonstrate strong, reliable security practices, and each is designed to meet different business needs.

When to choose ISO 27001

Go with ISO 27001 if you're building an information security management system (ISMS) from the ground up. This standard is globally recognized, making it ideal if you work with international clients or want to show that your data protection measures meet global expectations.

• It’s a great fit for organizations looking for a structured, long-term approach to security.
• Stakeholders and partners often view ISO 27001 certification as a strong signal of trust.
• It’s more rigorous and requires more resources, but it builds a robust foundation.

When to choose SOC 2

SOC 2 is a better option if your organization already has an ISMS and wants to validate its controls. It’s especially relevant for service organizations that operate primarily in North America.

• SOC 2 offers more flexibility, letting you focus audits on specific Trust Services Criteria.
• It’s a lighter, faster, and often more cost-effective route for companies that want tailored insights into their information security practices.
• It’s a strong choice if you need to meet client demands without committing to global certification yet.

When to choose both

For some organizations, the best answer is both.

Use ISO 27001 to establish a robust, globally recognized information security management system. Once that’s in place, conduct regular SOC 2 audits to keep improving and get detailed feedback on how well your controls work.

Together, ISO 27001 and SOC 2 give you full-spectrum credibility, offering both the structured foundation and ongoing validation your clients expect, no matter where they are. It’s a smart move for growing companies that take data protection seriously and want to stay competitive in multiple markets.

Choosing between ISO 27001 and SOC 2 isn’t a one-size-fits-all decision. It really depends on your goals, resources, and where your clients are.

How NordLayer helps you stay ISO 27001 and SOC 2 compliant

Whether you're building an ISMS from scratch or fine-tuning existing controls, NordLayer supports your compliance journey. We have security solutions to meet both compliance standards.

• Access controls: Network Access Control (NAC) solutions like Cloud Firewall and Device Posture Security help manage access to sensitive data, ensuring that only authorized users and devices can access your network.
• Encryption: NordLayer encrypts traffic in transit using the AES-256 and ChaCha20 algorithms to help you meet the data security standards required by both frameworks.
• Secure access to data in the cloud: Whether you're using AWS, Google Cloud, or Microsoft Entra ID, we help secure your cloud environments with Site-to-Site network connectors and SaaS security solutions.
• Network visibility: With event logging, real-time monitoring, and device posture monitoring, NordLayer helps you monitor network access and maintain audit logs for up to 60 days.
• Threat prevention: NordLayer’s Threat prevention features help restrict access to untrusted websites and users, detect and stop malicious downloads, and prevent potentially harmful malware or other cyber threats from infecting your devices.

NordLayer is designed for modern, fast-growing organizations that want flexibility without sacrificing control. Whether you're pursuing ISO 27001, SOC 2, or both, we support your compliance journey.

Contact our sales team to find out how NordLayer can help you achieve your goals.

ISO 2700 vs. SOC 2: Frequently Asked Questions

SOC 2 vs. ISO 27001: Which makes more sense for your business?

SOC 2 is great if you work mostly with U.S. clients and want a flexible audit. ISO 27001 is better for global businesses needing a structured security system. Pick the one that fits your goals, or go for both.

Can a company become ISO 27001 and SOC 2 compliant at the same time?

Yes, it can. These two security standards share a lot, especially when it comes to information security controls and data protection. Combining the processes can save time, reduce duplicated effort, and give your business a stronger, more unified approach to service organization security.

When might ISO 27001 not be enough?

ISO 27001 may fall short if clients specifically require a SOC 2 report, or if you need detailed, customer-facing proof of control performance over time. In U.S. markets, SOC 2 often holds greater practical relevance.

How to achieve SOC 2 and ISO 27001 compliance?

Start by defining your security goals, conducting a gap analysis, and implementing required controls. For ISO 27001, work with an accredited certification body; for SOC 2, use a licensed CPA firm. Maintain continuous monitoring and documentation.

Disclaimer: This article is for informational purposes only and not legal advice. Use it at your own risk and consult a licensed professional for legal matters. Content may not be up-to-date or applicable to your jurisdiction and is subject to change without notice.