SOX
U.S. law mandating financial controls and executive accountability
ISO 27017
International standard for cloud-specific information security controls
Quick Verdict
SOX mandates financial reporting controls for U.S. public firms with severe penalties, while ISO 27017 provides voluntary cloud security guidance globally. Companies adopt SOX for legal compliance; ISO 27017 enhances ISMS for cloud risk management and procurement trust.
SOX
Sarbanes-Oxley Act of 2002
ISO 27017
ISO/IEC 27017:2015 Code of practice for cloud security controls
Key Features
- Clarifies shared responsibilities between CSPs and CSCs
- Adds 7 cloud-specific CLD controls to ISO 27002
- Provides guidance for 37 existing controls in cloud contexts
- Addresses multi-tenancy segregation and VM hardening
- Enables customer monitoring of cloud service activities
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
SOX Details
What It Is
Sarbanes-Oxley Act of 2002 (SOX) is a U.S. federal statute regulating corporate governance and financial disclosures for public companies. It aims to protect investors via accurate reporting, using a risk-based, control-focused approach centered on internal controls over financial reporting (ICFR).
Key Components
- **Three pillarsPCAOB oversight (Title I), auditor independence (Title II), executive accountability (Titles III-IV).
- Core sections: §404 (ICFR assessment), §302 (certifications), §906 (penalties).
- Built on COSO framework; no fixed controls but key categories like ITGC, entity-level, process controls.
- Compliance via annual management reports, auditor attestation for most issuers.
Why Organizations Use It
- Mandatory for U.S. public issuers; reduces restatements, fraud risk.
- Builds investor trust, lowers capital costs, enables M&A/IPO readiness.
- Enhances governance, operational efficiency through automation.
Implementation Overview
- Top-down risk-based scoping, documentation, testing, monitoring.
- Phased: initiation, gap analysis, remediation, continuous monitoring.
- Applies to public companies; scalable for smaller/EGC exemptions; annual audits required.
ISO 27017 Details
What It Is
ISO/IEC 27017:2015 is a code of practice extending ISO/IEC 27002 with cloud-specific guidance for information security controls. It targets cloud services across IaaS, PaaS, SaaS in public, private, hybrid models, using a risk-based approach integrated into ISO 27001 ISMS.
Key Components
- Guidance on 37 ISO 27002 controls adapted for cloud, plus 7 new CLD controls (e.g., shared responsibilities, VM segregation, asset removal).
- Covers domains like access control, operations security, supplier relationships.
- Built on ISO 27001; no standalone certification—assessed via ISO 27001 audits.
Why Organizations Use It
- Addresses cloud risks like multi-tenancy, shared responsibility.
- Meets procurement demands, regulatory alignment (GDPR/CCPA).
- Enhances risk management, builds CSP/CSC trust, competitive edge.
Implementation Overview
- Integrate into existing ISO 27001 ISMS via risk assessment, control mapping.
- Key activities: define responsibilities, configure VMs, enable monitoring.
- Suits CSPs, CSCs of all sizes; global applicability; joint audits (9-12 months).
Key Differences
| Aspect | SOX | ISO 27017 |
|---|---|---|
| Scope | Financial reporting internal controls (ICFR) | Cloud-specific information security controls |
| Industry | U.S. public companies, all sectors | Cloud providers and customers, global |
| Nature | Mandatory U.S. federal law, SEC enforced | Voluntary ISO guidance, certifiable via 27001 |
| Testing | Annual ICFR audits, PCAOB standards | ISO 27001 audits with cloud controls |
| Penalties | Criminal fines, imprisonment for executives | No legal penalties, loss of certification |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about SOX and ISO 27017
SOX FAQ
ISO 27017 FAQ
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