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SOC 2 vs ISO 27001SOC 2 vs ISO 27001: which one do you need?
Start with who is asking, then check who signs. This guide compares the two, shows what Indian rules actually say, and explains how to verify each.
Free for buyers · provider-funded introductions · Updated October 2026
What is the difference between SOC 2 and ISO 27001?
SOC 2 is a report from a licensed CPA firm on your controls, measured against the AICPA Trust Services Criteria. ISO 27001 is a certificate, issued by an external certification body, that your information security management system meets ISO/IEC 27001. Neither replaces the other, so choose by who is asking.
- SOC 2 produces a report with an auditor opinion. It is not a certificate.
- ISO 27001 produces a certificate with a stated scope, on a three-year cycle.
- In India, we found no general mandate for either in the regulator texts checked below.
SOC 2 and ISO 27001 compared
The core difference is who issues the result and what you get.
| Aspect | SOC 2 | ISO 27001 |
|---|---|---|
| Issued by | A licensed CPA firm | An external certification body. ISO itself does not certify. |
| Based on | AICPA 2017 Trust Services Criteria (points of focus revised 2022) | ISO/IEC 27001:2022, the ISMS requirements and Annex A controls |
| Output | An attestation report with the auditor’s opinion. Often misnamed a “certificate”. | A certificate of conformity with a scope statement |
| Time frame | Type 1 at a point in time, Type 2 over a period. See Type 1 vs Type 2. | Three-year cycle with surveillance audits at least once each calendar year, except recertification years |
| Choosing scope | You choose categories beyond Security. See Trust Services Criteria. | Risk-based. Exclusions are justified in the Statement of Applicability. |
| Sharing | Usually shared with customers under NDA | Certificate and scope can generally be shared more freely |
| Check the issuer | CPA licence and peer review of the signing firm | Certification body and its accreditation. Accreditation is not compulsory. |
Sources: AICPA SOC resources, ISO/IEC 27001 and ISO on certification. The surveillance schedule is from ISO/IEC 17021-1.
Start with the requester, not the framework
The answer depends on who needs the assurance. Always ask them which they accept.
| Requester | What they usually ask for | What to do |
|---|---|---|
| US enterprise customer | Often SOC 2, usually Type 2. This is common advice from providers, not measured data. | Ask which report type and criteria they expect before scoping. |
| EU, UK or APAC customer | Often ISO 27001. Also common advice, not measured data. | Ask whether an accredited certificate is expected and what scope. |
| Indian enterprise or tender | Whatever the tender or contract text names | Read the exact wording. Do not assume. |
| Example: SBI cyber operations tender | SBI RFP ref SBI/GITC/ISD/2025-26/SOC/2, item 10, lists ISO 27001 (ISMS) and SOC 2 Type 2 as mandatory certifications for that bid | “And” is different from “or”. Check which one your tender uses. |
| SEBI Qualified RE | ISO 27001 is encouraged and recommended, not mandatory (CIR/2025/119, para 6.11) | Check the CSCRF for your entity class. |
| RBI-regulated entity | RBI’s 31 July 2026 Directions are entity-wise. The NBFC version names neither standard. | Read the Directions for your entity type and confirm what your regulated customer requires. |
| Mixed US and non-US pipeline | May need both over time | Map one control set to both and sequence by the first requester. |
While your audit is in progress
- A SOC 2 Type 1 report, once available.
- A letter from your auditor confirming the engagement and examination period, where the requester accepts it.
- A management bridge letter, if you hold an earlier SOC 2 report and the next period is not yet covered. It is management’s statement, not a new independent examination.
- Your ISO 27001 scope and Statement of Applicability.
- A summary of your readiness work, from the readiness checklist.
Agree what is acceptable with the requester first. None of these replaces the final report or certificate.
What Indian rules actually say about ISO 27001 and SOC 2
Claims that a regulator requires one of these are common. Here is what the primary texts say.
| Common claim | What the primary text says | Source |
|---|---|---|
| SEBI requires ISO 27001 | Circular SEBI/HO/ITD-1/ITD_CSC_EXT/P/CIR/2025/119 (28 Aug 2025), para 6.11: Qualified REs are “encouraged and recommended (not mandatory)” to obtain ISO 27001. | SEBI |
| RBI requires ISO 27001 or SOC 2 | RBI issued entity-wise Cybersecurity, Technology: Risk, Resilience and Assurance Framework Directions on 31 July 2026. The NBFC version names neither standard. Its only ISO reference is ISO 22301 for business continuity. We have not checked the versions for other entity types. | RBI (NBFC Directions, 2026) |
| Indian law names ISO 27001 | IT Act SPDI Rules 2011, Rule 8, cites IS/ISO/IEC 27001 as one example of reasonable security practices. Implementers are treated as compliant if certified or audited regularly by an independent auditor approved by the Central Government. | IT Rules 2011 |
| Indian rules recognise SOC 2 | SOC 2 is not mentioned in the three texts above. | Same sources |
If you are an Indian company selling to the US
A SOC 2 report is signed by a licensed CPA firm. Ask any provider which firm signs the report, under which professional standards, how that firm is licensed and whether your customer accepts it. Treat anyone selling a “SOC 2 certificate” with caution.
Source for the SBI example: SBI notice inviting tender, 5 April 2025. A tender shows one buyer’s requirement, not a legal mandate. Regulations change. Check the issuing regulator’s current text and your regulated customer’s requirements. This is not legal advice. For pricing, see our ISO 27001 cost guide for India and SOC 2 cost guide.
How to check who is signing
Before you pay, and before you rely on someone else’s result, check three things.
Check the signing firm
Confirm it is a licensed CPA firm that takes part in peer review. Read the report type, the period, the system description and any carve-outs. The AICPA says SOC services should be thoroughly evaluated and has warned about unlicensed practitioners.
Check body, scope and edition
ISO does not certify, and accreditation is not compulsory, so check the certification body and whether it is accredited. Read the scope statement, confirm it is the 2022 edition and that the certificate is current. IAF MD 26:2023 set 31 October 2025 as the date for certification bodies to finish transitioning clients.
Check scope matches the product
A narrow scope can leave out the system your customer actually buys. Make sure the scope covers it before you rely on the result.
What carries over, and what does not
- Both ask about risk assessment, access, change management, incident response and vendor management, so one control set can serve both.
- The AICPA publishes a mapping of the Trust Services Criteria to ISO 27001. It dates from 2018, before the 2022 revision of Annex A, so we do not quote an overlap percentage.
- ISO 27001 adds management-system requirements such as internal audit and management review. SOC 2 adds a system description and, for Type 2, testing of operating effectiveness over a period.
If you need both
- Sequence by the first requester, then reuse the control set for the second.
- Use a firm that is both a CPA firm and an accredited certification body, or use two providers. Ask each what evidence they will reuse.
- Keep advisory and audit roles separate, as in the readiness checklist.
SOC 2 vs ISO 27001 questions
Is ISO 27001 the same as SOC 2?
Do I need both SOC 2 and ISO 27001?
Is ISO 27001 mandatory in India?
Does Indian law mention ISO 27001?
Can an Indian company get a SOC 2 report?
How do I check an ISO 27001 certificate?
How long is an ISO 27001 certificate valid?
What can I send a customer while my audit is in progress?
Start with the requirement, not the auditor.
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