TL;DR: Quick Takeaways
- •SOC 2 is US-focused (64+ controls); ISO 27001 is an international standard (93 controls)
- •SOC 2 is attestation report ($15K-$100K); ISO 27001 requires certification audit ($15K-$50K)
- •Both take 3-6 months to implement, with 65-75% control overlap
- •SOC 2 best for US enterprise customers; ISO 27001 for EU/global markets
- •Many companies pursue both for maximum market coverage
SOC 2 and ISO 27001 are the two most sought-after security compliance certifications in the world. Both validate that your organization follows information security best practices, but they differ significantly in origin, structure, recognition, and requirements.
SOC 2, created by the American Institute of CPAs (AICPA), is primarily recognized in North America and focuses on five Trust Service Criteria with 64+ common controls. ISO 27001, developed by the International Organization for Standardization, is a globally recognized standard with 93 controls covering information security management systems (ISMS).
This comprehensive guide compares SOC 2 and ISO 27001 across 10+ dimensions to help you choose the right certification (or both) based on your target market, customer requirements, budget, and compliance goals.
| Aspect | SOC 2 | ISO 27001 |
|---|---|---|
| Origin | United States (AICPA) | International (ISO/IEC) |
| Number of Controls | 64+ common controls | 93 controls (Annex A) |
| Audit Type | Attestation report | Certification audit |
| Report Types | Type I (point-in-time) or Type II (6-12 months) | Certificate only |
| Timeline | 3-6 months (Type I), 9-15 months (Type II) | 3-6 months |
| Audit Cost | $15K-$100K+ (Type II) | $15K-$50K |
| Validity | 12 months (Type II) | 3 years (annual surveillance) |
| Best For | US enterprise customers | EU/Global markets |
| Control Overlap | 65-75% overlap between frameworks | |
Detailed Framework Comparison
Origin & Global Recognition
SOC 2
Created by the American Institute of Certified Public Accountants (AICPA) in 2010, SOC 2 is the de facto standard for US SaaS companies and service organizations. While primarily North American, it's increasingly recognized by global enterprises working with US vendors.
- ✓Required by 80%+ of US enterprise procurement teams
- ✓Standard for cloud services, SaaS platforms, and data processors
- ✓Growing recognition in Canada, UK, and Australia for US-serving companies
ISO 27001
Published by the International Organization for Standardization (ISO) and International Electrotechnical Commission (IEC), ISO 27001 is the world's most recognized information security standard. It's adopted by governments, enterprises, and regulated industries across 100+ countries.
- ✓Required for EU government contracts and GDPR compliance alignment
- ✓Recognized in UK, Germany, France, Australia, Japan, and 95+ countries
- ✓Preferred by manufacturing, healthcare, finance, and critical infrastructure
Control Structure & Requirements
SOC 2
SOC 2 is based on five Trust Service Criteria (TSC), with 64+ common controls:
- • Security (required): Access controls, encryption, monitoring
- • Availability: System uptime, disaster recovery
- • Processing Integrity: Accurate, authorized processing
- • Confidentiality: Data protection beyond security
- • Privacy: PII handling and consent
Security is mandatory; other criteria are optional based on business model.
ISO 27001
ISO 27001 requires implementing an Information Security Management System (ISMS) with 93 controls across 14 categories in Annex A:
- • A.5: Organizational controls (37 controls)
- • A.6: People controls (8 controls)
- • A.7: Physical controls (14 controls)
- • A.8: Technological controls (34 controls)
Companies perform a risk assessment to determine which controls to implement via a Statement of Applicability (SoA).
Audit Process & Timeline
SOC 2
Phase 1: Readiness Assessment (2-3 months)
- • Gap analysis against TSC
- • Policy creation (20+ policies)
- • Control implementation
- • Evidence collection setup
Phase 2: Type I Audit (1 month)
- • Point-in-time control design review
- • Sampling and testing
- • Report issuance (2-4 weeks)
Phase 3: Type II Audit (6-12 months)
- • Operating effectiveness testing over 6-12 months
- • Quarterly evidence collection
- • Final audit and report
ISO 27001
Phase 1: Gap Analysis & ISMS Implementation (2-4 months)
- • Risk assessment
- • Statement of Applicability (SoA)
- • Policy documentation
- • Control implementation
Phase 2: Certification Audit (1-2 months)
- • Stage 1: Documentation review
- • Stage 2: On-site audit (1-3 days)
- • Corrective actions
- • Certificate issuance
Maintenance
- • Annual surveillance audits
- • 3-year recertification
Cost Comparison
SOC 2 Total Cost
ISO 27001 Total Cost
Cost Factors: Audit costs vary by company size (headcount), system complexity, number of locations, and chosen criteria/controls. Type II SOC 2 audits are typically more expensive due to longer audit period and operating effectiveness testing.
Get Both SOC 2 & ISO 27001 for One Low Price
LowerPlane supports both frameworks with 70% control overlap automation. Pay $4,995/year total – not per framework.
Control Overlap: Why Pursue Both?
SOC 2 and ISO 27001 share 65-75% control overlap, meaning you can satisfy both frameworks with largely the same security implementations:
Overlapping Controls (Examples)
- ✓Access control and authentication (MFA, RBAC)
- ✓Encryption in transit and at rest
- ✓Security awareness training
- ✓Incident response procedures
- ✓Vendor risk management
- ✓Change management
- ✓Vulnerability scanning and penetration testing
- ✓Backup and disaster recovery
Unique Requirements
SOC 2 Specific:
- • Trust Service Criteria mapping
- • Detailed evidence collection for operating effectiveness
- • Privacy criteria (if applicable)
- • More emphasis on availability and monitoring
ISO 27001 Specific:
- • Formal ISMS documentation and management review
- • Statement of Applicability (SoA)
- • Risk treatment plan with risk register
- • More emphasis on physical security controls
💡 Dual Certification Strategy
Many companies pursue both certifications simultaneously to maximize market reach:
- →Implement controls once, satisfy both frameworks (70% overlap)
- →Run audits 1-2 months apart to spread workload
- →Use same evidence artifacts for both audits (policies, screenshots, logs)
- →Total cost: ~$70K-$250K (both) vs $85K-$345K (separate)
Which Should You Choose?
Choose SOC 2 if you:
- ✓Sell primarily to US enterprise customers
- ✓Are a SaaS, cloud service, or data processor
- ✓Face procurement requirements from US enterprise buyers (80%+ require SOC 2)
- ✓Want detailed attestation reports to share with customers (Type II)
- ✓Need to demonstrate operational effectiveness over time (Type II: 6-12 months)
- ✓Prefer flexible criteria selection (Security + optional Availability, Privacy, etc.)
Choose ISO 27001 if you:
- ✓Sell primarily to European, UK, or APAC markets
- ✓Need to comply with GDPR and demonstrate security alignment
- ✓Pursue government or defense contracts (often require ISO 27001)
- ✓Want a 3-year certification with annual surveillance (less audit overhead)
- ✓Operate in regulated industries (healthcare, finance, manufacturing)
- ✓Prefer a prescriptive standard with clear certification criteria
Choose BOTH if you:
- ✓Serve both US and international markets (most common strategy for global SaaS)
- ✓Want maximum competitive advantage in security-conscious sales cycles
- ✓Can leverage 70% control overlap to reduce duplicate work
- ✓Have budget for dual certification (~$70K-$250K year 1, $30K-$120K ongoing)
- ✓Want to future-proof your compliance program as you expand globally
Key Takeaways
- 1
Origin matters for recognition: SOC 2 is US-dominant (80%+ of US enterprises require it), ISO 27001 is global (EU/APAC preferred).
- 2
Control overlap is significant: 65-75% of controls are the same, making dual certification feasible with 30-40% additional effort.
- 3
Costs vary widely: SOC 2 Type II ($50K-$210K year 1), ISO 27001 ($35K-$135K year 1). Platform automation reduces costs 60-80%.
- 4
Timeline similarity: Both take 3-6 months for initial certification. SOC 2 Type II requires additional 6-12 month observation period.
- 5
Strategic approach: Many companies pursue both to maximize market coverage. Start with primary market certification, add second within 6-12 months.
Frequently Asked Questions
Can I use the same policies and evidence for both SOC 2 and ISO 27001?
Yes! Most policies (information security, access control, incident response, etc.) satisfy both frameworks. You'll need some additional documentation for SOC 2 (TSC mapping, operating effectiveness evidence) and ISO 27001 (Statement of Applicability, risk register), but 70%+ of artifacts are reusable.
Which is harder to pass: SOC 2 or ISO 27001?
Difficulty is similar – both require comprehensive security controls. ISO 27001 has more prescriptive requirements (93 controls vs 64+), but SOC 2 Type II requires demonstrating operating effectiveness over 6-12 months. First-time certification difficulty is comparable; choose based on market requirements rather than perceived difficulty.
Do I need a consultant to get certified?
Not required, but highly recommended for first-time certification. Consultants ($10K-$50K) accelerate implementation and reduce audit findings. Alternatively, compliance automation platforms like LowerPlane include dedicated advisors at no extra cost ($4,995/year total vs $8-10K/year for standalone consulting).
How long are SOC 2 and ISO 27001 certifications valid?
SOC 2 Type II reports are valid for 12 months and must be renewed annually. ISO 27001 certificates are valid for 3 years with annual surveillance audits. This makes ISO 27001 less administratively burdensome over time, but SOC 2 provides more up-to-date assurance for customers.
Is SOC 2 recognized outside the United States?
While SOC 2 originated in the US, it's increasingly recognized globally, especially in Canada, UK, and Australia for companies serving US enterprises. However, for broader international recognition (especially EU, APAC, and government contracts), ISO 27001 is typically preferred or required.
Should I get SOC 2 Type I or Type II?
Type II is preferred by 90%+ of enterprise buyers because it demonstrates operating effectiveness over 6-12 months. Type I (point-in-time) is useful as a stepping stone or for early-stage companies. If budget allows, pursue Type II directly – most customers won't accept Type I as sufficient assurance.
Related Resources
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