You're probably familiar with ISO 27001 and SOC 2. You may have also heard that they are similar, but there are critical differences between the two standards. 

This post will examine these differences and help you decide which standard suits your organization.

What is SOC 2?

SOC 2 is a certification to help organizations establish and maintain a comprehensive ISMS. It's an independent audit, review, and attestation of the security controls in place at the company. The AICPA (Association of International Certified Public Accountants) maintains the standard. In other words, SOC 2 is a framework that guides how to build an effective Information Security Management System (ISMS).

The standard consists of three parts:

• Part 1: Service Organization Controls

• Part 2: Attestation Engagements

• Part 3: Communication Processes

READ MORE: What is a SOC 2 Attestation?

What is ISO 27001?

ISO 27001 is a risk management standard that specifies requirements for an Information Security Management System (ISMS). The goal of an ISO 27001 is to help organizations implement an information security policy and achieve compliance with requirements laid out in other international standards such as ISO 9001: 2000.

ISO 27001 (also known as ISO/IEC 27001:2013) is a process standard that outlines the steps needed to develop and maintain an ISMS. However, it doesn't include specific language on performing these tasks; you need to use other resources like the NIST SP 800-30 for guidance on how exactly to do them.

READ MORE: Key Differences Between ISO 27001 and 27002

Main Differences Between ISO 27001 and SOC 2

ISO 27001:

An ISO 27001 certification shows that an organization conforms to the standard's framework. A good auditor will check that your system includes all of its requirements and ensure compliance with each one.

• This certification is well-known and respected around the world.

• The controls framework is rigid and assumes that an organization will be large from its inception. This can make it difficult, but not impossible, for start-ups to comply with the framework's requirements.

• Implementation of new procedures and policies can take between nine months to three years.

• Some customers may accept a self-audit as a substitute for certification.

• You will receive one page of confirmation from the auditor, outlining their findings and conclusions.

• ISO 27001 certifications last up to 3 years. Organizations must perform recurring compliance activities such as internal and yearly surveillance audits to retain their certification.

SOC 2:

A SOC 2 is an attestation report on how well your organization has implemented various security, confidentiality, availability, and privacy standards. A SOC 2 report is well-respected in the United States and increasingly respected throughout Europe.

• You can test any controls you want—a flexibility that makes it suitable for organizations just starting with security.

• It also includes non-security measures that help make your customers feel safe.

• SOC 2 reports are typically completed within 45 days.

• Security is one area the audit covers; it also examines corporate governance and vendor management. The report may include sections on confidentiality, availability processing integrity, and privacy.

• Your SOC 2 auditor will test the design of your system and, in addition, whether or not controls are operating effectively.

• After the audit, you will receive a detailed report from the auditor that demonstrates your customers' data is secure.

How SOC 2 and ISO 27001 are similar

SOC 2 and ISO 27001 are similar in that they provide a framework to help organizations establish and maintain an ISMS.

Similarities:

• Both are auditing standards requiring an independent third-party audit to ensure your products or services conform to a set of standards preventing providers from falsely claiming compliance with a given standard when they have not met that standard's requirements. 

• Both offer guidance on how to create and implement an Information Security Management System (ISMS).

Which Is Best Suited for Your ISMS Needs?

The difference between SOC 2 and ISO 27001 is that neither one is a one-size-fits-all proposition. 

The two standards differ in their scope, focus, and compliance requirements. While both measures are designed to safeguard confidential data, they have different approaches that make them more or less suitable for various organizations.

Industries that benefit from ISO 27001 Certification:

ISO 27001 certification is used in:

• Information technology

• Finance

• Telecommunications

• Healthcare

READ: Ready to get your ISO 27001 certification? Get a quote today.

Industries that benefit from SOC 2 audits:

For any organization, regardless of size or income, this route is typically faster than ISO 27001 certification and just as respected.

Industries that benefit from SOC 2 audits are:

• Technology

•  SaaS

• Healthcare

• Financial, banking, and crypto

• Education

A risk advisory CPA can help you determine which standard best suits your ISMS needs. They will evaluate your company profile and security measures before recommending a SOC 2 audit or ISO 27001 certification.

READ MORE: Are you sure you're ready for a SOC 2 audit? Here's a SOC 2 Pre-Audit Checklist to help you prepare.

SOC 2 and ISO 27001 are similar in that they provide a framework to help organizations establish and maintain an ISMS. However, some key differences between the two may make one more suited for your organization. 

If you need help determining which one is right for you or more information on how they compare, contact Johanson Group, LLC. today!

At the end of the day, SOC 2 and ISO 27001 are similar in that they both provide a framework to help organizations establish and maintain an ISMS. However, there are some key differences between the two that may make one more suited for your organization. If you’re not sure which one is right for you or need more information on how they compare, contact our experts today!