ISO 27001 vs SOC 2: Which Compliance Framework Do You Need?
ISO 27001 and SOC 2 are the two most commonly requested security compliance frameworks for technology companies. While both demonstrate that an organization takes information security seriously, they differ significantly in their approach, regional recognition, scope, and certification process. ISO 27001 is an international standard published by the International Organization for Standardization, recognized globally but particularly valued in Europe and Asia. SOC 2 is a reporting framework developed by the American Institute of Certified Public Accountants (AICPA), primarily recognized in North America. Understanding the differences between these frameworks is essential for choosing the right compliance path for your business — or determining whether you need both.
Geographic Recognition
ISO 27001 is an internationally recognized standard with strong adoption in Europe, Asia-Pacific, the Middle East, and increasingly in North America. European enterprise customers, government agencies, and regulated industries frequently require ISO 27001 certification from their vendors. It is the de facto security standard for doing business internationally. SOC 2 is primarily recognized and requested in North America, particularly in the United States and Canada. American enterprise customers, especially in financial services, healthcare, and SaaS, routinely require SOC 2 reports from their vendors. Outside North America, SOC 2 has limited recognition — a European customer is far more likely to ask for ISO 27001 than SOC 2. If your customers are primarily in Europe, ISO 27001 is almost certainly the right choice. If you sell primarily to US companies, SOC 2 is likely required. If you serve both markets, you may eventually need both.
Certification vs Attestation
ISO 27001 results in a formal certification issued by an accredited certification body. This certification is valid for three years, with annual surveillance audits to ensure ongoing compliance. The certification is a binary outcome — you either achieve it or you do not. SOC 2 results in an attestation report (not a certification) issued by a licensed CPA firm. The report describes your controls and the auditor's opinion on their effectiveness. There is no pass/fail — instead, the auditor issues an opinion that can be unqualified (clean), qualified (some issues), adverse (significant issues), or a disclaimer. Most customers expect an unqualified opinion. This distinction matters: ISO 27001 certification can be referenced in marketing materials and proposals as a clear credential. SOC 2 reports are typically shared under NDA with specific customers who request them.
Scope & Requirements
ISO 27001 requires organizations to implement an Information Security Management System (ISMS) covering 93 controls across 4 categories (as of the 2022 revision): Organizational, People, Physical, and Technological controls. The standard prescribes both the management system requirements (clauses 4-10) and the control objectives (Annex A). Organizations must conduct a formal risk assessment and select controls based on identified risks. SOC 2 is built around five Trust Services Criteria: Security (required), Availability, Processing Integrity, Confidentiality, and Privacy (optional). Organizations choose which criteria to include in their audit scope based on customer requirements. The Security criterion is always required; others are added as needed. SOC 2 is generally more flexible in how controls are implemented — it focuses on whether your controls achieve the stated criteria rather than prescribing specific controls.
Cost
ISO 27001 certification costs vary significantly based on company size and complexity. For a small company (under 50 employees), expect to invest approximately $15,000-$40,000 for the initial certification audit, plus $5,000-$15,000 annually for surveillance audits. Implementation costs (consultants, tools, process changes) can add another $20,000-$50,000. Total first-year cost for a small company: roughly $35,000-$90,000. SOC 2 audit costs are comparable: $20,000-$60,000 for the audit itself, depending on scope and auditor. Implementation costs are similar. Total first-year cost for a small company: roughly $30,000-$80,000. Both frameworks can be significantly more expensive for larger organizations. Using a compliance platform like AuditFront to prepare and identify gaps before engaging auditors can reduce overall costs by ensuring you are audit-ready before the clock starts.
Timeline to Certification
ISO 27001 certification typically takes 6-12 months from the start of implementation to certification, depending on the organization's starting maturity level. The process includes establishing the ISMS, conducting risk assessments, implementing controls, running internal audits, and then the formal certification audit (Stage 1 and Stage 2). SOC 2 Type 1 reports can be achieved in 3-6 months since they assess controls at a point in time. SOC 2 Type 2 reports require a minimum observation period (typically 3-12 months) during which the auditor evaluates whether controls operate effectively over time, making the total timeline 6-18 months. For companies that need to demonstrate compliance quickly, a SOC 2 Type 1 report offers the fastest path to a formal audit report.
Ongoing Maintenance
ISO 27001 certification requires annual surveillance audits (smaller in scope than the initial certification) and a full recertification audit every three years. The ISMS must be continuously maintained, with regular management reviews, internal audits, and corrective actions documented. SOC 2 reports are typically issued annually. Each year requires a new audit, and the report covers a specific period (for Type 2) or point in time (for Type 1). There is no multi-year certification — if you stop auditing, you simply no longer have a current report. Both frameworks require ongoing effort, but ISO 27001's three-year certification cycle provides a slightly longer window of recognized compliance between major audits.
The verdict
Neither ISO 27001 nor SOC 2 is inherently better — the right choice depends on your market, customers, and business goals. If you sell primarily to European or international customers, ISO 27001 should be your priority. If your market is primarily North American, SOC 2 is likely what your customers will ask for. Many growing companies eventually pursue both frameworks, leveraging significant overlap in controls to reduce the incremental effort for the second framework. Regardless of which you choose, starting with a compliance self-assessment helps you understand your current posture and build a realistic roadmap. AuditFront supports both ISO 27001 and SOC 2 assessments, helping you evaluate readiness and plan your certification journey from day one.
Frequently Asked Questions
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