Soc 2 vs iso 27001 certification withh links converted-converted
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The document compares SOC 2 attestation and ISO 27001 certification, outlining their differences and similarities in information security audits. SOC 2 focuses on evaluating an organization’s internal controls according to the AICPA’s trust services criteria, while ISO 27001 serves as an internationally-recognized standard for information security management systems. It offers insights on determining which certification may be more advantageous based on market conditions and customer requirements.
Soc 2 vs iso 27001 certification withh links converted-converted
- 1. SOC 2 vs ISO 27001 Certification © VISTA InfoSec ® When it comes to Information Security, companies struggle with the decision between selecting the SOC 2 attestation or ISO 27001 Certification, both the audits provide a competitive advantage in today’s Information security landscape. However, to understand which audit is required for your organization, one needs to understand the similarities and differences between the two audits. While both SOC 2 and ISO 27001 Certification are excellent compliance efforts for organizations to undertake, it is important to understand which audit can be utilized to gain advantages over the market competition and to achieve compliancewitharegulatoryrequirement. Forthisreason,wehavetodaydrawnoutacomparativestudybetweenSOC2examinationandISO27001 certificationforanorganization’sbetterunderstanding. Explaining SOC 2 Audit Report A SOC 2 audit evaluates the internal controls, policies, and procedures relating to the AICPA’s Trust Services Criteria. The audit report typically focuses on a service organization’s internal controls, pertaining to Security, Availability, Processing Integrity, Confidentiality, and Privacy of a system/process. The results of a SOC 2 audit report validates an organization’s commitment to delivering high quality, secure services to clients. SOC 2 Audit Compliance is a powerful market differentiator that can help companiesgainacompetitiveedgeoverothersintheirindustry. Explaining ISO 27001 Certification ISO 27001 is an internationally-accepted Information Security Standard for governing an organization’s Information Security Management System (ISMS). It is a framework of policies and procedures that preserves the confidentiality, integrity, and availability of an organization’s information by applyingthe Risk Management Process. It is a Standard that regulates how organizations effectively run an ISMS through policies and procedures and associated legal, physical, and technical controls. Compliance with theStandardgivesconfidencetotheinterestedpartythatrisksareadequatelymanaged.Anorganization needstointegrateISMSwiththecompany’soperationalprocess,andoverallmanagementstructure.The aim is to consider Information security across the organization’s design of processes, information systems, andcontrols.
- 2. Similarities between ISO 27001 Certification and SOC 2 Report Addresses Information Security In both the cases of SOC 2 and ISO 27001 Certification, the compliance effort focuses on how the organization identifies and addresses information security issues and adopt an approach to mitigate information security risk. Both Compliance ensures the establishment of appropriate controls to maintain the information security risk at an acceptable level. Implementation of Policy and Procedure While the Policies and Procedures set to achieve Compliance may differ on different levels, but the objective is to ensure organizations develop a set Standard or framework to implement Policies and Procedures for strengthening their Information Security Systems. International Applicability Both SOC 2 and ISO 27001 Certificate have international recognition and applicability in the Information Security Industry.Compliance with both standards can benefit firms with international presences and/or customer bases. Both the frameworks enable organizations to work internationally with customers acrosstheglobegivinganassuranceofadoptingthebestpracticeofinformationsecurity. Management Roles & Responsibility Compliance with any of the two mentioned framework ensures delineation and understanding of management responsibilities. This would particularly include setting organizational policies and proceduresrelating,settinginformationsecurityrolesandresponsibilities,drawingoperationalplanning andcontrols,leadership,andcommitmenttoorganizations’informationsecurity. Demonstrates Management Commitment Both compliance effortsare valuable toan organization in itsunique way,instilling a sense of trustin their customer and market. Compliance with both frameworks demonstrates management’s commitment, ensuringthattheorganizationisseriousaboutinformationsecurityandhasaccordinglybeenassessedby an accredited, certified, and competent third-party assessor. Although both the compliance efforts are verydifferentfromeachother,theyhelpbuildtrustbetweenserviceorganizationsandvendorpartners. Assessors for Audit SOC2examinationsandISO27001certificationsbothrequireanindependentthird-partyassessorwhois accredited and certified to provide assurance on controls in place to meet the TrustService Criteria (TSC) Criteria(SOC2)andStandardRequirements(ISO). © VISTA InfoSec ®
- 3. Differences between ISO 27001 Certification & SOC 2 Report SOC2Reportand ISO27001 Certificatebothcoversimilarpolicy and procedureframeworks withregards tothesecuritycontrol,designedtoprotectsensitiveinformation. ISO 27001 has 114 control requirements, but SOC 2 has more than 450+ requirements. In our practical experience, the overlap of ISO 27001 is around 15% to a max 20% depending on the seriousness with which the ISO 27001 was actually implemented and practiced. However, there are quite a few differentiating factors that may suggest one better than the other in certain cases. So here are some differences between ISO 27001 Certification and SOC 2 Certificate highlighted below- 1.Focus ISO 27001 Certificate- The ISO 27001 is an Industry Standard set to help companies protect the availability, confidentiality, and integrity of the data that they store, manage, or transmit. To achieve compliance, one must conduct a risk assessment to identify and implement security controls and review theireffectivenessregularly.Themainfocusistoestablish,implementmaintain,andimproveanISMS. SOC2Report-TheServiceOrganizationControl2reportfacilitatesreviewofanorganization’s/third-party vendor’s information security system based on the five Trust Service Criteria: Security, Availability, Confidentiality, Processing Integrity, and Privacy. The focus is to measure and validate the capabilities of the service organization’s control system against Security Principles & Criteria. SOC 2 looks at how the IT delivery,Securityandmanagementareasworksinanorganization. Note–ItIS importanttonotethatwhileSOC2 cONSIDERS andaddrESSES thePrivacyISSUES BASED onthe5 TSCPRINCIPLES,ISO27001CertificateDOES notfOCUS muchifatallondataprivacyISSUES. 2. Scope & Applicability ISO 27001 Certificate- The scope and applicability of ISO 27001 Certificate can be defined based on an organization’s objective and priority. For instance, if an organization wishes to expand its operations globally, in that case, the company would require an ISO 27001 Certificate (internationally accepted standard) to build a client base. An organization can decide its scope based on business priorities, plans and budgetconsiderations. SOC 2 A†EStation- SOC 2 applies to service organizations storing, processing, and transmitting customer data or having direct or indirect access to client data. The applicability depends on the service offered, commitment to clients, and expectations of the stakeholder. While the scope depends on the organization’s service controls which are based on the 5 Trust Service Principles. Key difference between scoping of ISO 27001 and SOC 2 is that SOC 2 scoping and applicability is based on what the organisation providesasaservicetotheclients,theircommitmentsandstakeholderexpectations (To underStand more on SOC 2 SCope for your organization, you can read through our article on 5 TRUSt ServicePrincipleforabe†erunderStanding) © VISTA InfoSec ®
- 4. 3. Purpose ISO 27001 Certification– The audit and compliance help organizations establish and achieve certification stating that the company meets specified requirements and is thus certified as best practice. SOC 2 Report- The purpose of conducting a SOC 2 report audit is to facilitate service organization management in reporting to their customers that they have met established security criteria that ensure systems are protected against unauthorized access (both physical andlogical). 4. Certification/Attestation SOC 2 Report- One of the most important differences between SOC 2 and ISO 27001 is that SOC 2 reporting is not a certification. They are examination services performed under the AICPA standards and considered as an attestation report. The Attestation reports provide an opinion by the assessor/ auditor, attesting the internal controls of a service organization is in place and meets the criteria related to the TrustService Principles namely security,availability, processing integrity, confidentiality, and privacy.SOC 2certificationcanonlybeperformedbyalicensedCPA(CertifiedPublicAccountant). ISO27001Certification-ISO27001isaStandardCertifyinganorganization’sconformitytoitsInformation Security Management system (ISMS). ISO 27001 audit and certification need to be conducted by a recognizedISO27001-accreditedcertificationbody. 5. Deliverables ISO 27001 Certification- The deliverable for an ISO 27001 is a certificate which includes information on the ISMS scope, in-scope locations, standard certified against, date of certificate issued and date of expiration,etc.However,areportisissuedattheendofeverystage,surveillanceaudits,andreviews. But the reports issued are generally for internal use only and are not intended to be a document for an externaldeliverable,asincaseofSOC2reporting. SOC 2 Report- For a SOC 2, the final deliverable will be an attestation report which includes an opinion letter, an assertion letter, a system description containing an extensive narrative on the five key components of the organization’s system under review ( infrastructure, soGware, people, procedures, and data) organizational procedures, and finally the applicable trust services criteria, related control activities,andthetestingperformedbytheauditorandtherelatedtestresults. 6. Certifying Authority ISO27001Certificate-OnlyarecognizedISO27001-accreditedregistrarcancertifyanorganizationforISO 27001. SOC 2 Report- Only a licensed CPA firm can conduct the SOC 2 Audit and provide an attestation for the same. As a word of caution, we have seen SOC 2 reports by companies in India which are attested by CA (Chartered Accountants)… this is not allowed and may constitute a breach of contract with your client leadingtoheavypenaltiesandlegalissues. © VISTA InfoSec ®
- 5. 7. Organization Applicability ISO 27001 Certification- The Standard applies to any organization and industry vertical who wish to strengthen and secure their Information Security Systems. SOC 2 Attestation- SOC 2 Compliance applies to only service organizations that store, process and transmits customer data. It applies to nearly every SaaS provider company, as well as any company that usesthecloudtostoreitscustomers’informationorhaveaccesstocustomerinformation. 8. Market Applicability ISO 27001 Certificate- ISO 27001 is an international standard accepted globally. For companies that have a large international client base will probably require ISO 27001 certification for their organization. SOC 2 Report- The SOC 2 attestation is a recognized standard in the United States, created and governed by the AICPA. For companies that have a client base in the US will require SOC 2 attestation as they are well recognized and accepted there.So, Organizations will require SOC 2 attestation for earning greater ROI from customers in the US. 9. Time Frame & Validity ISO 27001 Certification- ISO 27001 depending on scope usually takes 3-4 months to complete, but dependingontheadditionalprocessanddocumentationrequiredtoinstallanoperatingISMS.ISO27001 Certificationisvalidfor3yearswithbasiccomplianceauditsconductedinthe2ndand3rdyear. SOC 2 Attestation It typically takes three to six months to complete an entire process from start to finish for SOC 2 Type 1 attestation.However,itisimportanttonotethatthetimeframedependson thetimetakenbytheservice organization to implement all of the security controls. ThereaGer,another three to six months to achieve SOC2 Type2.SOC2 Attestation isonlyvalid for a yearand hencerequires comprehensiveannual auditing tobe conducted every year.So,as statedearlier achieving SOC 2 attestation involves2 stages namely SOC 2 Type 1 & SOC 2 Type 2. Once SOC 2 Type 1 is achieved, the company has to annually conduct a Compliance audit for SOC 2 Type 2 every year thereaGer to stayCompliant.(To get more insight to refer to myarticledifferencebetweenSOC2Type1andType2). © VISTA InfoSec ®
- 6. What applies to your organization? TakingtherightDECISION While both SOC 2 and ISO 27001 are excellent Compliance efforts to undertake, it is essential to consider a fewthings when determining the appropriate audit for your organization. Here are a fewquestions you mustconsiderwhenmakingadecision. WhichmarketDOES yourorganizationplantotarget? IfyourcustomerbaseortargetcustomersareinternationalcompaniesbasedintheUS-basedthenopting for SOC 2 Attestation will be profitable, as SOC 2 is well-recognized and accepted in the US. On the contrary,ifyou aretargetinganyinternational companyoutsidethe US,one mustoptfor ISO 27001,forit isapopularStandardwhichisinternationallyacceptedacrosstheglobe. WhatASSESSMENtsareCUStomerS rEQUESting? Many audits conducted by service organizations are driven by contractual obligations. So here the customerlocationorinternational acceptanceofthestandarddoesnotbecomethedrivingfactor. Inthis case,itbecomesmoreofacontractualobligationforaparticularaudit. WhatASSESSMENtsareyourcompetitorS undergoing? Having a competitive edge over others in the industry is critical for your business. So, being additionally compliant to an internationally accepted standard and marketing a new certification or audit reportof yourorganizationcouldbethemarketdifferentiator. Conclusion As stated earlier while both ISO 27001 & SOC 2 are excellent compliance efforts for organizations to demonstrate operating effectiveness of their internal controls, and their compliance with regulatory requirements, considering the key decision factors may help your organization determine the appropriate assessment for your organization. Looking at the wider coverage of SOC 2, if your organisation is going ahead with SOC 2, then you will be meeting the requirements of ISO 27001 by default and you can easily get certified on both SOC 2 and ISO 27001withminimaladditionalefforts. facebook.com/vistainfosec/ in.linkedin.com/company/vistainfosec twitter.com/VISTAINFOSEC Do write to us your feedback, comments and queries or, if you have any requirements: info@vistainfosec.com You can reach us on: USA +1-415-513 5261 INDIA +91 73045 57744 SINGAPORE +65-3129-0397 © VISTA InfoSec ®