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

ISO 27001 versus SOC 2 and what is the difference

Summary: ISO 27001 or SOC 2? Discover which fits your business best, compare key differences, and see how NordLayer supports both compliance standards.

ISO 27001 and SOC 2 differ in framework type, geographic use, and scope ISO 27001 is an international certification standard for an information security management system (ISMS) operating within a defined scope. SOC 2 is a flexible, US-originated attestation report based on selected data security controls.

What’s important is that neither framework replaces the other. The right choice depends on your customers, markets, and security goals. Here is how ISO 27001 and SOC 2 compare.

ISO 27001

SOC 2

Global standard for managing information security

Flexible, US-focused attestation report

Focuses on building an information security management system (ISMS)

Defines how businesses should protect customer data

Covers risk assessment, access control and incident response

Based on the Trust Services Criteria

Certificate issued by an accredited certification body

Attestation report issued by a licensed certified public accountant (CPA) firm

Used by international and regulated businesses

Often used by SaaS, cloud, finance, and healthcare companies

What is ISO 27001?

ISO 27001 is an international standard for managing information security, published jointly by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC).

This standard sets requirements for building, maintaining, and improving a strong information security management system (ISMS) ISO 27001 addresses areas such as risk assessment access control, and incident response, but it is not compulsory. However, as it is recognized globally, it is treated as a valuable organizational asset.

The 2022 ISO 27001 edition groups its Annex A reference controls into 4 themes:

  • Organizational
  • People
  • Physical
  • Technological

Based on the risk assessment, the company selects appropriate risk treatment options and necessary controls, documents control applicability in the Statement of Applicability, and maintains a risk treatment plan. If your business handles customer data, an ISO 27001 certification proves that you have structured security systems in place to protect it.

ISO 27001 certifications are issued by an accredited certification body that audits the organization’s ISMS, and the certifications are valid for 3 years. Based on the audit, the body then decides whether the ISMS meets the ISO 27001 requirements.

This certification fits companies that want to build trust, meet regulatory requirements, and protect sensitive information.

ISO 27001 can also support an organization’s broader GDPR or HIPAA compliance program by providing a structured approach to managing information security. However, certification alone doesn’t establish compliance with either framework

What is SOC 2?

SOC 2 stands for System and Organization Controls 2 and is a security framework that helps companies protect customer data from breaches, unauthorized access, and other cyber threats

One thing is worth clarifying: while people often talk about SOC 2 certification, it’s technically not a certification but an attestation report. A licensed CPA firm issues the report after assessing an organization’s controls against the American Institute of Certified Public Accountants’ (AICPA) Trust Services Criteria. The report provides the CPA firm’s opinion on whether the in-scope controls were suitably designed. A Type 2 report also addresses whether those controls operated effectively throughout the specified period. It demonstrates that you handle, process, and store customer 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 a SOC 2 compliance will give you a competitive edge.

SOC 2 Type 1 vs. Type 2

There are 2 types of SOC 2 attestation reports: Type 1 and Type 2:

  • The SOC 2 Type 1 report evaluates whether security controls are suitably designed at a specific point in time. A Type 1 report can be a useful first step when a company has not yet completed an observation period.
  • The SOC 2 Type 2 report assesses both the design and operating effectiveness of controls over a defined period, usually 3–12 months. Because it shows how controls worked over time, Type 2 is often the report customers request.

ISO 27001 vs. SOC 2: key differences

A key difference between ISO 27001 and SOC 2 is the outcome An accredited certification body audits an organization and issues an ISO 27001 certificate when it meets the requirements. Accreditation bodies, such as ANAB, accredited certification bodies.

SOC 2 is based on criteria developed by the AICPA, and the examination is performed by a licensed CPA firm. It results in an attestation report, not a certificate

The table below compares the main differences. Audit prices vary by scope, organization size, and audit firm. The figures below cover the cost of the audit itself, not implementation, consulting, or readiness work.

SOC 2

ISO 27001

Issuing/standard body

AICPA (standard); licensed CPA firm (report)

Standard: ISO and IEC Certificate: an accredited certification body

Proof of compliance

An attestation report

A formal certification

Market

United States

International

Core requirements

Trust Services Criteria:

  • Security
  • Availability
  • Confidentiality
  • Processing integrity
  • Privacy

Clauses 4–10 of the standard that include:

  • The ISMS scope
  • Statement of Applicability
  • Risk management
  • Continual improvement

Audit results

SOC 2 attestation report, shared confidentially with customers and business partners

ISO report plus a 1-page certificate that can be made public

Renewal

Customers commonly request a recent report, often covering the previous 12 months

Recertification is required after 3 years

Timeline

  • 1–4 months for the Type 1 report
  • 6–12 months for the Type 2 report

Implementation commonly takes 6–12 months; larger programs can take 1–3 years

Audit prices (the actual assessment costs)

SOC 2 Type 1: ~$5,000–15,000 SOC 2 Type 2: ~$10,000–40,000

$10,000–25,000

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 frameworks require an organization to apply internal controls relevant to its sector. 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 more flexible. It’s based on 5 Trust Services Criteria—but only one (Security) is required in every SOC 2 report The other 4 (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 industries, but where you do business can influence which one your customers expect.

If your clients are in North America SOC 2 is usually the expected security standard.

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

Timeline: how long does it take to get SOC 2 and ISO 27001 compliant?

SOC 2 and ISO 27001 differ in what they ask of you to do and in the amount of time required to complete each.

ISO 27001

SOC 2 Type 1

SOC 2 Type 2

Timeline

6–12 months (implementation); larger programs 1–3 years

Often 1–4 months

Often 3–12 months

What it involves

Auditors review documentation and check whether the ISMS meets ISO 27001 requirements

Auditors assess to determine if security controls are suitably designed and in place on a specific date

Auditors review the control design and operation over an observation period

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 certification requires an accredited certification body to certify your compliance.
  • SOC 2 examinations are performed by licensed CPA firms.

Renewal timelines also differ:

  • SOC 2 reports don’t formally expire but customers usually request a recent Type II report, so examinations are often performed every year
  • ISO 27001 certificates last for 3 years with annual surveillance audits and a full recertification audit in the third year.

Stay compliant, stay secure

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Demystifying security compliance management

ISO 27001 and SOC 2: similarities

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

Both require organizations to implement security measures and undergo an independent assessment. The 2 frameworks overlap, so working toward one puts you well on the way to meeting the other. Mapping ISO 27001’s Annex A controls to the SOC 2 Trust Services Criteria is a common practice It lets you identify shared controls, reuse audit evidence across both assessments, and make pursuing both frameworks less time-consuming.

While neither is mandatory getting ISO 27001 certified or SOC 2 attested shows clients and partners that your data protection practices are trustworthy.

Feature

ISO 27001 & SOC 2 similarities

Focus

Protecting data security, confidentiality, integrity, and availability

Framework type

Risk-based approach to managing information security

Security controls

Require the implementation of internal controls and policies

Audit requirement

Independent third-party audit or assessment

Outcome

Demonstrates trust and security posture to clients

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 right answer is both

ISO 27001 helps establish a strong, 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 customer trust and a strong security foundation.

Pursuing both standards is a smart move for growing companies that take data protection seriously and want to stay competitive in multiple markets. The right decision depends on your customers, resources, and the markets you serve.

How NordLayer helps with ISO 27001 and SOC 2

Whether you're building an ISMS from scratch or fine-tuning existing controls, NordLayer offers security solutions that support work toward both frameworks.

  • Access controls Network access control (NAC) solutions, such as cloud firewall and device posture security help manage access to sensitive data, so only authorized users and devices can access your network.
  • Encryption NordLayer encrypts traffic in transit using AES-256 and ChaCha20 algorithms which may support relevant cryptographic and communications-security controls as part of a broader ISO 27001 or SOC 2 compliance program.
  • Secure access to data in the cloud Whether you're using AWS, Google Cloud, or Microsoft Entra ID, NordLayer secures your cloud environments with site-to-site network connectors and SaaS security solutions
  • Network visibility Event logging, real-time monitoring, and device posture monitoring help you monitor network access and maintain audit logs for up to 60 days.
  • Threat prevention NordLayer’s threat prevention features restrict access to untrusted websites, detect malicious downloads and reduce the risk of malware 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 meet your compliance goals.

ISO 27001 vs. SOC 2: FAQ

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

SOC 2 fits organizations whose customers request an AICPA-based report, especially in the United States. ISO 27001 is better for global businesses that need an internationally recognized standard for managing information security. You can choose 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, an organization can pursue ISO 27001 certification and undergo a SOC 2 examination in parallel. The frameworks share some controls, but each has its own requirements and assessment process.

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 security control performance over time. In US markets, SOC 2 is often more relevant.

How do you pursue SOC 2 and ISO 27001?

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

Is SOC 2 a certification or attestation?

SOC 2 is an attestation report, not a certification. A licensed CPA firm examines the organization’s controls against the selected AICPA Trust Services Criteria and issues the report.

Is SOC 2 mandatory?

No, SOC 2 is not a legal requirement. Businesses usually need a SOC 2 report because of customer or business partner expectations, a specific contract, or sector-specific requirements.

Is ISO 27001 a legal requirement?

ISO 27001 certification is not required by law. Specific regulations, contracts, or procurement rules may demand certification or comparable security controls. Check the requirements that apply to your organization and location.

Is ISO 27001 equivalent to SOC 2?

No. ISO 27001 certification confirms that an organization’s ISMS meets the standard’s requirements, while a SOC 2 attestation report gives an auditor’s opinion on selected security controls under the AICPA Trust Services Criteria. ISO 27001 and SOC 2 overlap in some areas, but one doesn’t replace the other.

Is SOC 2 recognized internationally?

Organizations around the world use SOC 2, especially if they serve US customers. It is an AICPA framework rather than an international standard, so recognition and customer expectations vary by market. ISO 27001, on the other hand, has broader international recognition as a global standard.

Disclaimer: This article is for informational purposes only and not legal advice. Consult a licensed professional for legal matters. Content may not be up to date or applicable to your jurisdiction and is subject to change.

Senior Cybersecurity Copywriter

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