What is the primary objective of **SOC 2**?

**The primary objective of SOC 2 is to provide independent assurance that a service organization's controls meet the Trust Services Criteria (TSC) for security, availability, processing integrity, confidentiality, and privacy.** Developed by the AICPA, SOC 2 evaluates systems handling customer data, with Security (CC1-CC9) as the mandatory common criteria. Type 2 reports assess design and operating effectiveness over 3-12 months, delivering stakeholder trust via CPA-attested reports.

Who is legally or professionally required to comply with **SOC 2**?

**No organization is legally required to comply with SOC 2, as it is a voluntary AICPA framework, but service organizations like SaaS, cloud, and data processors face professional mandates from enterprise clients.** Targeted at providers storing, processing, or transmitting customer data, it is demanded in RFPs, MSAs, and vendor risk assessments by Fortune 500 buyers, especially for deals exceeding $5K ACV.

Does **SOC 2** require an external audit or third-party certification?

**Yes, SOC 2 requires an external audit by an independent AICPA-accredited CPA firm to issue Type 1 or Type 2 attestation reports.** Type 1 validates control design at a point in time; Type 2 tests operating effectiveness over a period via sampling, walkthroughs, and evidence review, ensuring unqualified opinions through rigorous fieldwork.

How often should an assessment for **SOC 2** be performed?

**SOC 2 Type 2 assessments should be performed annually to capture a full 3-12 month monitoring period and maintain ongoing assurance.** Bridge letters from management extend validity up to 3 months between audits, confirming no material changes, with recertification bridging prior 9 months plus new 3 months for continuous coverage.

What are the consequences of non-compliance with **SOC 2**?

**Non-compliance with client-mandated SOC 2 results in deal disqualification, extended sales cycles by 3-6 months, and heightened breach liability exceeding $1M per incident.** Absent Type 2 reports, vendors face exhaustive questionnaires, custom indemnities, reputational damage, and lost enterprise revenue, as 70-80% of SaaS deals require attestation.

An **SOC 2** be mapped to other international frameworks?

**Yes, SOC 2 maps effectively to frameworks like ISO 27001 (80% control overlap), NIST CSF, and others via AICPA spreadsheets.** Common Criteria (CC1-CC9) align with ISO Annex A controls, enabling reuse for multi-compliance without dual certifications, particularly for Security TSC.

What is the first step to begin implementing **SOC 2**?

**The first step to implement SOC 2 is a scoping exercise and gap analysis against the Trust Services Criteria, engaging a CPA for readiness assessment.** Define in-scope systems, data flows, and TSC (starting with mandatory Security), inventory assets, and prioritize 50-100 controls for remediation using tools like Vanta.

What is the primary objective of **ISO 27018**?

**ISO 27018 provides a code of practice for protecting **Personally Identifiable Information (PII)** in public clouds where the provider acts as a PII processor.** It extends **ISO 27001** and **ISO 27002** with ~25–30 privacy-specific controls addressing cloud risks like multi-tenancy, subprocessor transparency, consent, purpose limitation, data minimization, breach notification, and restrictions on secondary PII use (e.g., no marketing without consent). The 2025 edition aligns with **ISO 27002:2022**, emphasizing processor obligations across the PII lifecycle.

Who is legally or professionally required to comply with **ISO 27018**?

**ISO 27018 targets public cloud service providers (CSPs) acting as PII processors for customers.** It applies to hyperscalers, regional platforms, and sector-specific clouds (e.g., health, finance) processing PII via multi-tenant environments. Controllers use it for vendor due diligence, but compliance is not legally mandated; it demonstrates processor duties like GDPR Article 28 alignment, with adoption driven by procurement, trust signals, and regulatory expectations.

Does **ISO 27018** require an external audit or third-party certification?

**ISO 27018 does not offer standalone certification; controls are assessed within **ISO 27001** audits by accredited bodies under **ISO/IEC 17021** and **ISO/IEC 27006*.** Auditors validate ~25–30 additional controls via the **Statement of Applicability (SoA)** during Stage 1 (documents) and Stage 2 (effectiveness) audits, with certificates referencing both standards.

How often should an assessment for **ISO 27018** be performed?

**ISO 27018 assessments occur via annual surveillance audits and full recertification every three years as part of the **ISO 27001** cycle.** Ongoing internal reviews, gap analyses, and continual improvement plans address changes in cloud services, subprocessors, or regulations.

What are the consequences of non-compliance with **ISO 27018**?

**Non-compliance with ISO 27018 risks loss of market trust, procurement delays, cyber insurance issues, and failure to meet processor obligations under laws like GDPR.** As a voluntary code, it imposes no direct fines, but weak PII controls can lead to contractual breaches, regulatory scrutiny, or incidents exposing CSPs to liability.

An **ISO 27018** be mapped to other international frameworks?

**Yes, ISO 27018 maps closely to frameworks like **ISO 27017** (cloud security), **ISO 27701** (PIMS), **ISO 29100** (privacy framework), and GDPR Article 28.** Controls align on transparency, subprocessor management, data subject rights, and breach notification, enabling integrated ISMS implementations.

What is the first step to begin implementing **ISO 27018**?

**Conduct a gap analysis of existing **ISO 27001** ISMS against ISO 27018 controls, focusing on PII lifecycle, subprocessors, and transparency.** Document findings in a **Statement of Applicability**, prioritize remediation via a continual improvement plan, and engage accredited auditors.

SOC 2 vs ISO 27018

Standards Comparison

SOC 2

Voluntary

2010

AICPA framework for service organization security controls

ISO 27018

Voluntary

2019

International code of practice for PII protection in public clouds

Quick Verdict

SOC 2 provides flexible Trust Services Criteria attestation for service organizations handling customer data, while ISO 27018 offers cloud-specific PII privacy controls extending ISO 27001. Companies adopt SOC 2 for enterprise trust and sales acceleration; ISO 27018 for demonstrating processor privacy compliance.

Cybersecurity / Trust

SOC 2

System and Organization Controls 2

Cost

€€€€

Complexity

High

Implementation Time

6-12 months

Key Features

Independent CPA attestation on TSC compliance
Type 2 operational effectiveness over 3-12 months
Mandatory Security with four optional criteria
Risk-assessed controls for service organizations
Integrates with ISO 27001 and GDPR mappings

Cloud Privacy

ISO 27018

ISO/IEC 27018:2025 PII protection in public clouds

Cost

€€€

Complexity

Medium

Implementation Time

6-12 months

Key Features

Privacy controls for public cloud PII processors
Subprocessor transparency and disclosure requirements
Prohibits PII use for marketing without consent
Mandates breach notification to customers
Supports data minimization and subject rights

Detailed Analysis

A comprehensive look at the specific requirements, scope, and impact of each standard.

SOC 2 Details

What It Is

SOC 2 (System and Organization Controls 2) is a voluntary framework by the AICPA for auditing service organizations' commitments to securing customer data. It employs Trust Services Criteria (TSC), a risk-based methodology evaluating controls for security, availability, processing integrity, confidentiality, and privacy.

Key Components

Core **TSCSecurity (mandatory, CC1-CC9), plus four optionals
50-100 mapped controls with redundancy for robustness
Grounded in COSO; Type 1 (design) vs. Type 2 (operations over period)
CPA-issued reports including assertions, system descriptions, test results

Why Organizations Use It

Streamlines enterprise due diligence, boosting sales 15-30%
Reduces breach liability and operational risks
Market-driven trust signal for SaaS/cloud providers
80% overlap with ISO 27001, HIPAA enables efficiency
Builds investor confidence and competitive moats

Implementation Overview

Phased: scoping/gaps (4-8 weeks), deployment/monitoring (3-6 months), audit
Suits startups to enterprises in tech/fintech
Automation (Vanta/Drata) cuts effort 70%; $20-100K cost
Annual Type 2 recertification via CPAs

ISO 27018 Details

What It Is

ISO/IEC 27018:2025 is a code of practice extending ISO 27001 and ISO 27002 specifically for protecting personally identifiable information (PII) processed by public cloud service providers (CSPs) acting as PII processors. It addresses cloud-specific privacy risks like multi-tenancy, subprocessors, and cross-border transfers through risk-based controls integrated into an Information Security Management System (ISMS).

Key Components

~25–30 additional privacy-specific controls mapped to ISO 27001 Annex A (Organizational, People, Physical, Technological themes).
Core principles: consent/choice, purpose limitation, data minimization, accuracy, transparency, accountability.
Assessed during ISO 27001 audits via Statement of Applicability (SoA); no standalone certification.

Why Organizations Use It

Enhances customer trust, accelerates procurement, supports GDPR/ HIPAA processor obligations.
Mitigates PII risks, improves cyber insurance terms.
Provides competitive differentiation for CSPs.

Implementation Overview

Gap analysis, integrate controls into existing ISMS.
Update policies, contracts, training; third-party audits.
Suited for CSPs all sizes/industries globally.

Key Differences

Aspect	SOC 2	ISO 27018
Scope	Trust Services Criteria: Security, Availability, Confidentiality, etc.	PII protection specifically in public cloud environments
Industry	SaaS, cloud, tech service organizations worldwide	Public cloud service providers handling PII globally
Nature	Voluntary AICPA attestation framework	ISO code of practice extending 27001 for privacy
Testing	Type 1/2 audits by CPA firms, annual Type 2	Integrated into ISO 27001 audits, 3-year certification
Penalties	No legal penalties, market/business consequences	No direct penalties, certification loss/reputational

Scope

SOC 2

Trust Services Criteria: Security, Availability, Confidentiality, etc.

ISO 27018

PII protection specifically in public cloud environments

Industry

SOC 2

SaaS, cloud, tech service organizations worldwide

ISO 27018

Public cloud service providers handling PII globally

Nature

SOC 2

Voluntary AICPA attestation framework

ISO 27018

ISO code of practice extending 27001 for privacy

Testing

SOC 2

Type 1/2 audits by CPA firms, annual Type 2

ISO 27018

Integrated into ISO 27001 audits, 3-year certification

Penalties

SOC 2

No legal penalties, market/business consequences

ISO 27018

No direct penalties, certification loss/reputational

Frequently Asked Questions

Common questions about SOC 2 and ISO 27018

SOC 2 FAQ

ISO 27018 FAQ

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SOC 2

ISO 27018

Quick Verdict

SOC 2

Key Features

ISO 27018

Key Features

Detailed Analysis

SOC 2 Details

What It Is

Key Components

Why Organizations Use It

Implementation Overview

ISO 27018 Details

What It Is

Key Components

Why Organizations Use It

Implementation Overview

Key Differences

Scope

Industry

Nature

Testing

Penalties

Frequently Asked Questions

SOC 2 FAQ

What is the primary objective of SOC 2?

Who is legally or professionally required to comply with SOC 2?

Does SOC 2 require an external audit or third-party certification?

How often should an assessment for SOC 2 be performed?

What are the consequences of non-compliance with SOC 2?

An SOC 2 be mapped to other international frameworks?

What is the first step to begin implementing SOC 2?

ISO 27018 FAQ

What is the primary objective of ISO 27018?

Who is legally or professionally required to comply with ISO 27018?

Does ISO 27018 require an external audit or third-party certification?

How often should an assessment for ISO 27018 be performed?

What are the consequences of non-compliance with ISO 27018?

An ISO 27018 be mapped to other international frameworks?

What is the first step to begin implementing ISO 27018?

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Run Maturity Assessments with GRADUM

Check out these other Gradum.io Standards Comparison Pages

SOC 2 vs ISO 17025

COPPA vs SAMA CSF

ITIL vs ISO 14001