Start for free Start for free

SOC 2 vs ISO 27001

SOC 2 is a US audit report, written by a CPA firm, on how well a vendor's security controls are designed and run. ISO 27001 is an international certification that a vendor runs a managed security program. Both are useful, and SOC 2 gives you more detail to read.

The short answer

SOC 2 gives you a long report that describes the vendor's controls and, in a Type 2, how the auditor tested them. ISO 27001 gives you a certificate saying a third-party auditor checked the vendor's security management system against the standard.

For a US buyer reviewing a vendor, a SOC 2 Type 2 report gives you more detail to read about the system you buy. An ISO 27001 certificate is good evidence that a security program exists and is maintained.

SOC 2

  • What it is: an attestation report under AICPA standards, prepared by a CPA firm. It covers controls for security, availability, processing integrity, confidentiality or privacy, measured against the "trust services criteria" (Journal of Accountancy).
  • What you get: a description of the vendor's system, the auditor's opinion and, in a Type 2, the tests and results for each control, including exceptions.
  • Who can read it: its use is generally restricted, so vendors share it with customers and prospects on request.
  • How it stays current: each report covers a set date or period, so vendors issue new ones on a cycle.

ISO 27001

  • What it is: an international standard for an information security management system (ISMS). An ISMS is the set of policies, risk reviews and processes a company uses to manage security.
  • What you get: a certificate. Certification is written assurance from "an independent body" that a system "meets specific requirements" (ISO).
  • How it stays current: a certificate runs for three years, with surveillance audits typically conducted annually and a full recertification at the end.
  • What it does not show: the certificate itself does not list control test results the way a SOC 2 Type 2 does.

Which one applies to you

You do not have to pick one. Treat them as two different pieces of evidence, and ask for both if the vendor has both.

  • If you need detail: ask for the SOC 2 Type 2. Read its scope, its exceptions and the complementary user entity controls you are expected to run.
  • If the vendor only has ISO 27001: ask for the certificate and its scope statement, which names the parts of the business covered. Check the issuing body and the expiry date.
  • If your customers ask you about your vendors: match what they ask for. A security questionnaire may ask for SOC 2 by name, and an ISO certificate may not satisfy that question.
  • If the vendor has neither: ask for a completed security questionnaire and the date of its last penetration test, and limit what data you send.

In both cases, scope is the trap, and it is easy to miss. A vendor can hold a valid report or certificate that does not cover the product or feature you use.

Example

Venpo flagged a case where Insightly's new AI connector is not covered by its SOC 2 report. The same question applies to ISO 27001: a new feature may sit outside the certified scope until the next audit.

For example, imagine a vendor shows you an ISO 27001 certificate that covers its "corporate IT and hosting operations." You use its new analytics add-on, built by a different team. You would ask whether the add-on is in scope, and if not, when it will be. Until then, you would treat the add-on as unreviewed and limit the data it can reach.

How Venpo helps

Audits and certificates look at a vendor at a point in time. Venpo monitors your vendors' trust centers, DPAs, subprocessor lists and other public legal pages, and emails you a plain-English alert when they change in between audits.

Start for free

Frequently asked questions

Is ISO 27001 equivalent to SOC 2?

No. They cover a lot of the same security ground, but SOC 2 is a detailed audit report under US AICPA standards, while ISO 27001 is a certification against an international standard.

Which is better for a US startup, SOC 2 or ISO 27001?

It depends on who your customers are and what they ask for. Check your own security questionnaires and sales deals to see which one buyers name.

How do I check if an ISO 27001 certificate is real?

Note the certification body and certificate number, then check with that body or its accreditation body. Also confirm the expiry date and scope.

Related terms

Security and Compliance SOC 2 SOC 2 is an independent audit report on a vendor's security controls, written by a CPA firm under AICPA standards. It shows what an auditor tested and found for specific systems over a specific period, not a blanket promise that your data is safe. Security and Compliance ISO 27001 ISO 27001 is an international standard for running an information security management system: the policies, people and processes a company uses to manage security risk. A vendor certified to it has passed an audit by an independent certification body. Comparisons SOC 2 Type 1 vs Type 2 A SOC 2 Type 1 report checks whether a vendor's security controls are well designed on a single date. A Type 2 report also tests whether those controls actually worked over a period of months, which makes it stronger evidence. Security and Compliance SOC 2 Scope SOC 2 scope is the boundary of what a SOC 2 report covers: which products, systems, locations, legal entities, trust services categories and time period. Anything outside it was not examined, even if it carries the same brand. Security and Compliance Security Questionnaire A security questionnaire is a list of questions a buyer sends a vendor about how it protects systems and data: access, encryption, testing, incidents and subprocessors. The answers describe the vendor on the day they were written. Vendor Documents Trust Center A trust center is a vendor's page or portal for security, privacy and compliance information, such as SOC 2 reports, certificates, subprocessor lists and security policies. Some documents are public, and others need sign-up or an NDA.

Sources

Last reviewed