SOC 2 vs ISO 27001

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What Is SOC 2?

SOC 2 is a voluntary audit designed specifically for technology and cloud-based service providers.

It assesses whether a company protects customer data based on five Trust Service Criteria:

• Security
• Availability
• Processing Integrity
• Confidentiality
• Privacy

SOC 2 comes in two flavors:

• Type I – Snapshot of controls at a specific point in time
• Type II – Validates how well those controls perform over time

🔐 Best for: SaaS companies, HR platforms, payroll services — basically any service handling sensitive data over the internet.

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What Is ISO 27001?

ISO 27001 is an internationally accepted standard for managing information security across an organization — not just tech systems, but people, processes, and policies too.

It focuses on building a robust Information Security Management System (ISMS) to reduce risk.

To get certified, an organization must:

• Identify potential risks
• Define mitigation measures
• Review and improve processes regularly

🌍 Best for: Enterprises of all sizes that need an end-to-end, company-wide security framework.

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Key Differences at a Glance

Feature	SOC 2	ISO 27001
Geography	Primarily U.S.-centric	International (ISO standard)
Industry Use	SaaS, tech providers	Any industry
Audit Scope	Controls over data handling	Entire ISMS framework
Framework Type	Principles-based (TSC)	Requirement-based (Annex A)
Renewal	Every 12 months (Type II)	Valid for 3 years (with audits)
Client Demand	Popular in the U.S. & tech firms	Popular with global firms & regulators

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Which One Should You Care About?

• If you are a cloud-based service provider, SOC 2 is almost mandatory to build client trust.
• If you’re running a multi-departmental organization, ISO 27001 gives you an organization-wide security lens.

At HRStop, our clients care about both — but we’ve chosen SOC 2 Type II because it aligns better with our SaaS-first, HR-centric, and customer-facing security model.

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Can You Do Both?

Absolutely.
In fact, many enterprise SaaS companies eventually pursue both audits as they grow.

💡 Pro tip:
SOC 2 often becomes a precursor to ISO 27001 because it builds solid operational discipline.

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Choose What Builds Trust

Whether it’s SOC 2 or ISO 27001, your goal shouldn’t be just certification — it should be confidence.

Your clients (and employees) aren’t just trusting your tech.
They’re trusting your intent, your consistency, and your ability to protect what matters.

Choose the framework that proves it.

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Explore More from HRStop

• Why SOC 2 Type II Matters
• What Makes an HRMS Truly Secure
• How Compliance Drives Business Growth