SOC 2 vs ISO 27001: Which Compliance Framework Do You Need?
Jeff Sowell · 2026-04-09 · Compliance
Both prove you take security seriously, but they serve different audiences. Here's how to decide — and why many companies end up doing both.
Two frameworks, one question
If you're a growing SaaS company, a service provider, or any business that handles customer data, you've probably been asked: "Do you have SOC 2?" or "Are you ISO 27001 certified?" Sometimes both in the same week.
Both frameworks prove that your organization manages security effectively. But they come from different worlds, serve different audiences, and work differently. Choosing the right one (or both) depends on your customers, your market, and your growth plans.
SOC 2: The American standard
What it is: An auditing framework developed by the AICPA (American Institute of Certified Public Accountants). A SOC 2 report is issued by a licensed CPA firm after auditing your controls against the Trust Services Criteria.
Who asks for it: Primarily U.S. companies. If your customers are American enterprises, they'll ask for SOC 2. It's the de facto standard for SaaS vendors, cloud providers, and technology services in North America.
How it works:
- Type I: Auditor evaluates your control design at a point in time
- Type II: Auditor tests that controls operated effectively over 3-12 months
- Report is issued by the auditor to you; you share it with customers under NDA
- Not a certification — it's an attestation report with the auditor's opinion
Trust Services Criteria (pick what applies):
- Security (required): The common criteria — access controls, monitoring, incident response
- Availability: Uptime, disaster recovery, performance monitoring
- Processing Integrity: Data processing accuracy and completeness
- Confidentiality: Data protection and access restrictions
- Privacy: Personal information handling per privacy commitments
Timeline: 3-6 months to prepare, then 3-12 month observation period for Type II.
Cost: $15,000-$50,000 for the audit, plus preparation costs. A GRC platform significantly reduces prep time.
For a detailed preparation guide, see our SOC 2 Audit Preparation Guide.
ISO 27001: The global standard
What it is: An international standard published by ISO/IEC for information security management systems (ISMS). Certification is issued by an accredited certification body after a formal audit.
Who asks for it: International companies, European enterprises, government agencies, and organizations in regulated industries globally. If you sell outside North America, ISO 27001 is often required.
How it works:
- Stage 1 audit: Certification body reviews your ISMS documentation
- Stage 2 audit: On-site (or remote) audit verifying controls are implemented and effective
- Certification is valid for 3 years with annual surveillance audits
- It IS a certification — you can say "ISO 27001 certified" and use the badge
Structure:
- Clauses 4-10: Management system requirements (context, leadership, planning, support, operation, performance evaluation, improvement)
- Annex A: 93 controls across 4 themes (organizational, people, physical, technological)
- You must produce a Statement of Applicability (SoA) documenti