Getting started with a security compliance program involves significant time, effort and planning, and the choice between ISO 27001 and SOC 2 can be challenging. Should your organization focus on ISO 27001? SOC 2? Or both?
In this article, you will discover:
- Similarities between ISO 27001 and SOC 2
- Differences between these 2 frameworks, namely: market applicability, scope, certification process and project timeline
- How to choose which framework your organization needs, and helpful tools to achieve compliance
Similarities Between ISO 27001 and SOC 2
Despite some differences, both ISO 27001 and SOC 2 serve as valuable tools for organizations to assess and enhance their security practices according to industry standards and best practices. Getting certified in either or both can provide assurance to clients and investors regarding the effectiveness of your system management and data security.
Both ISO 27001 and SOC 2 address critical aspects of information security, encompassing confidentiality, availability, and integrity. Given the substantial overlap in these frameworks, complying with one already puts you on a path towards meeting the standards of the other. Generally speaking, if your organization is ISO 27001 compliant, you don’t have to obtain SOC 2 attestation.
The Differences:
Market Applicability
Both frameworks are recognised globally, but SOC 2 is more closely associated with the US, while ISO 27001 has broader worldwide popularity.
Scope
ISO 27001 and SOC 2 both recommend only using controls as needed but differ slightly in their approaches:
- ISO 27001, the security framework developed by ISO and ICE, focuses on the development and maintenance of an information security management system (ISMS), which offers a systematic approach to information security management. It employs a Plan-Do-Check-Act (PDCA) cycle and provides a framework for organizations to:
- Identify and assess information security risks
- Implement controls to mitigate risks
- Monitor and review the effectiveness of of those controls on an ongoing basis
- In contrast, SOC 2 is much more flexible. It’s a voluntary compliance standard created by AICPA, compromised of five Trust Services Criteria: Security, Availability, Processing Integrity, Confidentiality and Privacy, with only the first being mandatory. Additionally, SOC 2 reports can be tailored to suit the unique requirements of each organization, and the value of SOC 2 is only the actual security each organization has. Therefore, two companies that are SOC 2 compliant can have significantly different reports. For example, one may want to assert its commitment to integrity and ethical values, while the other may want to prove the robustness and security of its Infrastructure Service System. There are two types of SOC 2 reports:
- Type I: evaluates a company’s controls at a single point in time, evaluating whether the security controls comply with the relevant trust principles.
- Type II: assess the operational efficiency of those controls over a period of time, generally 3-12 months, determining if the security controls function as intended.
Certification Process
External audits are required for certification in both ISO 27001 and SOC 2. The only difference is who will conduct the audit:
- ISO 27001 certification must be completed by an accredited certification body. A list of these bodies is available on the ANSI-ASQ National Accreditation Board (ANAB)’s directory.
- SOC 2 attestation reports can only be conducted by a licensed independent CPA (Certified Public Accountant) or accounting firm.
- ISO 27001 certification results in a compliance certificate, while SOC 2 compliance is documented with a formal attestation.
- SOC reporting is not typically regarded as a certification as it doesn’t prescribe best practices. SOC examinations are conducted in accordance with the attestation standards of the American Institute of CPAs (AICPA), where an independent auditor verifies specific aspects of a service organization’s control environment.
- In contrast, the final deliverable for ISO 27001 is a certificate issued by an accredited certification body, providing evidence that an organization has implemented an Information Security Management System (ISMS) and adhered to all the best practices and principles outlined in this International Standard.
Project Timeline
The certification process for ISO 27001 and SOC 2 includes three main stages:
- Gap Analysis: determine which areas of the framework you’re already compliant with and where you need to make improvements. You should also define your security objectives and which areas of your organization will be covered.
- Identify & Implement Appropriate Security Controls: this also includes documenting your practices and establishing a method to review and improve your processes.
- Audit: organizations often audit themselves before seeking accreditation, so they can fix any mistakes they find. Once you’re confident in your compliance practices, you can contact a certification body and arrange an ISO 27001 or SOC 2 audit.
The whole process can take about two to three months for SOC 2 and much longer for ISO 27001, depending on an organization’s size and data complexity.
In terms of validity period, an ISO 27001 certificate is valid for 3 years with annual surveillance audit required, while the SOC 2 report is only valid for 1 year and requires annual re-attestation.
Which Standard Does My Organization Need?
Hopefully, this blog has helped you decide whether SOC 2 or ISO 27001 better suits your organization.
In general, the former is quicker, less expensive, and less rigorous, suitable for those just starting out or needing some sort of security compliance. On the contrary, ISO 27001 is regarded as a real security framework and offers more comprehensive protection against information security threats, while also requiring a lot of time and effort.
In addition, it depends on your customer requirements and geographical factors, as US companies often prefer SOC 2, while foreign firms may favor ISO 27001.
Tools & Technologies Needed to Pass ISO 27001 & SOC 2 Audit
Obtaining SOC 2 compliance necessitates the use of specialized tools and software to address specific application and data security requirements. ISO 27001 compliance, on the other hand, goes beyond the essential tools for SOC 2 and encompasses a wider range due to its comprehensive scope. Below, we provide an overview of important tools and technologies to be aware of, with additional details available in this ISO 27001 article:
- Vulnerability Scanning
- Ongoing Logging & Monitoring
- Firewalls
- Load Balancer
- Auto Scaling
- Tabletop Disaster Recovery Exercises (TTX/TTE)
- Penetration Testing (Pen Testing)
- Network Diagram
- Network Segregation
- Network Segmentation
- Application Session Timeout
- Project-Specific Risk Assessment
- Engineering Operating Procedure Documentation
- QA Control Processes
- Backups
- Anti-Malware Solutions
- Intrusion Detection System
- Security Information and Event Management (SIEM)
- Data Encryption at Rest
- Management Review of the Information Security Management System (ISMS)
- Policies
