A Comparative Guide to ISO 27001 Certification vs SOC 2 Attestation

Overview of ISO 27001 Certification vs SOC 2

Aspect	ISO 27001	SOC 2
Scope	Defines protection needs within an ISMS	Evaluates services and systems based on Trust Services Criteria
Applications	Suitable for any organization handling customer data	Tailored for service organizations, especially tech and SaaS
Compliance Process	Involves appointing a team, risk assessments, and implementing controls	Involves gap analysis, internal audits, and engaging auditors
Controls	93 specific information security controls organized into four themes	Focuses on five Trust Services Criteria: Security, Availability, Processing Integrity, Confidentiality, and Privacy
Benefits	Reduces costs, maintains security oversight, ensures compliance	Enhances security, demonstrates commitment, provides market differentiation
Global Recognition	Internationally recognized	Primarily recognized in North America
Flexibility	Applicable to various organization types (public, private, nonprofit)	Primarily for tech and service organizations

ISO 27001 is an international standard developed by the International Organization for Standardization and the International Electrotechnical Commission (ISO/IEC). It sets out a framework for establishing, maintaining, and continuously improving an information security management system (ISMS). 

On the flip side, we have SOC 2, which was developed by the American Institute of Certified Public Accountants (AICPA). This voluntary framework specifically addresses how organizations should safeguard customer data against unauthorized access and other cyber threats. 

Both frameworks are widely recognized in information security and risk management processes, each offering its own set of advantages. 

Key Differences Between ISO 27001 Certification vs SOC 2

If  your business is dealing with customer data, keeping that information safe is a big deal. That’s where compliance standards come into play. They’re essential for building robust information systems and giving your customers peace of mind when considering new vendors. 

Two of the most popular standards out there are SOC 2 and ISO 27001. It’s common for potential clients to ask for proof of compliance with one or both of these standards before they decide to work with you.

Let’s break it down.

ISO 27001

Scope

The scope of ISO 27001 outlines what’s included in your certification. It defines everything your organization needs to protect through its ISMS. Here’s what it includes:

• Information assets such as data, documents, and records
• Processes that handle sensitive information
• Systems: Includes IT systems and applications that store or process data
• Geographic areas such as offices or data centers, involved in the ISMS
• Functions and services that interact with or support the information assets
• Subsidiaries and affiliates that are part of the ISMS

Applications

ISO 27001 is particularly relevant for any organization that manages customer data. You’ll find it commonly adopted by SaaS providers, data storage solutions, analytics tools, and other platforms that deal with data services. 

The great thing about ISO 27001 is that it’s suitable for organizations of all shapes and sizes—whether you’re a public or private company, a government entity, or a nonprofit.

Process of Compliance

A key aspect of the ISO 27001 certification process is the development and continuous improvement of an Information Security Management System (ISMS), which ensures ongoing risk management and adherence to strict security controls.

Here is how the compliance process works:

• Appoint an ISO 27001 Team.  Appoint staff members to lead the certification process.
• Develop the Implementation Plan. The team creates a detailed outline of information security objectives and a risk register.
• Define Your ISMS Scope. Tailor the requirements to fit your organization’s information assets, operations, and unique factors.
• Complete a Risk Assessment and Implement Controls. Document ongoing efforts to identify and mitigate potential threats.
• Implement Security Controls and Document Policies.  Address security gaps identified in your assessment and decide which controls from Annex A to implement.
• Implement a Risk Treatment Plan.  Build the security controls needed to protect your organization’s information assets.
• Contact an Auditor. Engaging a qualified auditor is crucial for validating your ISMS. The Pun Group has extensive experience with ISO 27001 and can assist you in implementing the right controls and processes in place so that you get the certification.
• Measure, Monitor, and Review.  Regularly review your ISMS to ensure it’s functioning effectively.

Controls

The ISO 27001 e framework controls emphasize the importance of identifying information security risks and selecting the right controls to address them.

The main requirements for an ISMS are laid out in Clauses 4–10 of the standard. While these clauses set the broader framework, they don’t dive into specific controls.

That’s where Annex A comes in. It includes a list of 93 security controls, organized into four key themes:

1. Organizational
2. People
3. Physical
4. Technological

It’s worth noting that this is a change from the 2013 version of the standard, which had 114 controls split across 14 domains. So, if you’re familiar with the old version, there’s a major shift in how controls are structured now.

Benefits of ISO 27001

ISO 27001 certification demonstrates a company’s commitment to data security, boosting customer trust and giving the organization a competitive edge in the market. 

Below, we list more benefits of ISO 27001:

• Risk-Based Approach. ISO 27001 offers a structured, risk-based approach to managing information security. This way, you can identify and prioritize your vulnerabilities hassle free.
• Reduces Costs. ISO 27001 helps minimize financial losses from data breaches, which can include lost revenue and reputational damage.
• Maintains Security Oversight. Certification keeps your organization’s security posture in check as you grow.
• Demonstrates Commitment. ISO 27001 certification clearly shows your dedication to protecting data, which is great for business.
• Ensures Compliance. It requires a thorough risk assessment, helping you meet various compliance requirements.
• Focuses on Improvement. ISO 27001 helps identify essential security measures, enabling you to prioritize overall enhancements beyond just security.

SOC 2

Scope

SOC 2 focuses on the services, systems, policies, processes, and people that need to be evaluated for effectiveness and security. This evaluation is based on five Trust Services Criteria (TSCs), which help ensure that you’re meeting the necessary security protocols.

The TSCs for SOC 2 requirements include:

1. Security (Mandatory) – Protecting information and systems against unauthorized access.
2. Availability – Ensuring that services are available as committed or agreed upon.
3. Processing Integrity – Ensuring that system processing is complete, valid, accurate, and authorized.
4. Confidentiality – Protecting information designated as confidential.
5. Privacy – Protecting personal information according to applicable data privacy regulations.

Applications

If you’re a service organization that stores, processes, or transmits customer data, SOC 2 is probably on your radar. It’s specifically tailored for technology service providers and SaaS companies, ensuring they meet the necessary standards to protect that sensitive information. So, if data is part of your business, both standards have you covered in different ways!

Process of Compliance

To get SOC 2 compliant, follow these key steps:

• Understand SOC 2 Requirements. Familiarize yourself with the relevant Trust Services Principles.
• Perform a Gap Analysis. Assess your current internal controls against SOC 2 requirements to spot areas for improvement.
• Implement and Document Controls. Develop and document necessary controls thoroughly.
• Conduct Internal Audits. Regularly test your controls to ensure effectiveness.
• Prepare Required Documentation. Draft a system description and gather evidence of operating effectiveness.
• Train Employees. Ensure staff understand their compliance roles.
• Engage a Qualified Auditor. Choose a reputable CPA firm experienced in certification audits. Our team at The Pun Group has extensive experience across various industries.
• Perform a Readiness Assessment. Consider a pre-audit review to identify any last-minute issues. Our consulting services can help evaluate your controls and address any gaps.
• Address Identified Weaknesses. Work with auditors to rectify any discovered gaps.
• Maintain Ongoing Compliance. Implement processes for continuous monitoring and improvement.

As a finalist for the AICPA Innovative Practitioner Award, The Pun Group combines industry expertise with innovative solutions to help you achieve compliance efficiently. Ready to elevate your security posture? Contact us to know more!

Controls

SOC 2 controls are designed to ensure robust safeguards around data, focusing on rigorous access restrictions, system monitoring, incident response, and encryption measures to protect information from unauthorized access and breaches.

Let’s dive into the security requirements:

Security Controls – At the core of SOC 2, security controls protect against cyber threats and security breaches. Auditors check for two-factor authentication, web firewalls, and security hiring policies.

Privacy Controls – Privacy involves handling sensitive data responsibly. 

Confidentiality Controls – Confidential information, like health data, must be shared securely. Organizations need processes to protect this data and ensure it’s destroyed after a set period.

Processing Integrity Controls – These controls ensure systems work properly and deliver accurate outputs. Quick detection and correction of errors are essential.

Availability Controls – Focused on minimizing downtime, these controls require secure backups and disaster recovery plans. Key tasks include predicting capacity and identifying threats.

The SOC 2 Common Criteria list (CC-series) includes nine subcategories:

• CC1 — Control environment
• CC2 — Communication and Information
• CC3 — Risk Assessment
• CC4 — Monitoring Controls
• CC5 — Control Activities
• CC6 – Logical and Physical Access Controls
• CC7 – System Operations
• CC8 – Change Management
• CC9 – Risk Mitigation

Benefits of SOC 2

SOC 2 ensures that a company has the necessary controls in place to securely manage customer data, protecting it from potential risks. Achieving SOC 2 compliance not only enhances trust but also provides a competitive advantage by demonstrating the organization’s commitment to security and data integrity.

• Enhances Security. SOC 2 audits, whether SOC 2 Type 1 or SOC 2 Type 2 improve your overall security posture.
• Cost Considerations. SOC 2 Type 2 audit costs range from $20,000 to $80,000, depending on company size and complexity.
• Additional costs for staffing and software can significantly increase the total expense.
• Demonstrates Commitment. SOC 2 attestation shows you’ve taken necessary measures to prevent data breaches.
• Framework Overlap. SOC 2 requirements often align with other security frameworks like ISO certifications, PCI DSS and HIPAA, allowing you to map an efficient pathway simultaneously.
• Market Differentiator. Holding a SOC 2 attestation report from a licensed CPA firm sets your organization apart, showcasing your commitment to cybersecurity compared to competitors without it.

What Are the Similarities Between ISO 27001 Vs SOC 2?

While ISO 27001 and SOC 2 have distinct differences, their shared focus on robust information security practices and building trust with clients makes them valuable assets for organizations.

A SOC 2 audit report and an ISO 27001 certification have the following similarities.

• Independent Assurance. Both provide independent assurance of the organization’s controls, verifying they are designed and implemented to meet specific security requirements or criteria.
• International Recognition. Both are internationally recognized and accepted worldwide, enhancing an organization’s reputation and building trust in the global market.
• Focus on Information Security. Both frameworks prioritize protecting sensitive information and ensuring data security, integrity, availability, and confidentiality.
• Control Overlap. With an estimated 80-90% control overlap between ISO 27001 and SOC 2, organizations can more easily comply with both standards.
• Third-Party Validation. Both require external audits or assessments by certified third parties, ensuring security controls are up-to-date and effective.
• Continuous Improvement. Each framework emphasizes continuous improvement and periodic reviews, ensuring that security measures evolve with best practices.
• Voluntary Standards. Although voluntary, both standards are highly valued for demonstrating a commitment to information security, unlike mandatory regulations such as GDPR or HIPAA.
• Building Trust. Holding either certification builds trust with clients and acts as a market differentiator, especially for organizations pursuing enterprise-level deals.
• Risk Management. Both require continuous assessment, identification, and management of security risks, ensuring a robust Information Security Management System (ISMS).

Get ISO 27001 Certification and SOC 2 Attestation With The Pun Group 

Curious about ISO 27001 and SOC 2? You might find that your clients require one of these certifications. ISO 27001 is great for businesses that need a comprehensive, internationally recognized information security management system. On the other hand, SOC 2 is mainly adopted in North America and is suitable for organizations that handle client data.

Keep in mind that getting certified or attested takes time, so it’s best not to wait until a prospect asks for one to decide which path to take. So, how do you know whether to go for ISO 27001 compliance or SOC 2?

At The Pun Group, we’re here to help you achieve security compliance for either ISO 27001 certification or SOC 2 attestation. Our approach supports both, and we focus on risks, controls, and guidance with an ISO 27001 perspective. We tailor our services to meet each client’s unique needs, and we’re proud to be a finalist for the AICPA Innovative Practitioner Award.

Interested? Let’s chat! Give us a call to learn more.

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