How SOC reporting and ISO certification build client confidence

SOC and ISO integration synergies

SOC attestations build confidence among customers, investors and regulators by providing an independent evaluation of controls. SOC 1 reports and ISAE 3402 both focus on controls related to financial reporting risks. ISAE 3402 is the international equivalent of SOC 1.

SOC 2 reports provide independent attestation on an organization’s internal controls, typically to address third-party vendor risk management and due diligence. Many user organizations and regulators now mandate SOC reports.

ISO certifications are globally recognized and aim to bring consistency, discipline and credibility to an organization’s processes in areas such as cybersecurity, privacy, Artificial Intelligence (AI) governance, resilience, quality and sustainability. For example, “As demand grows for independent AI trust and assurance, aligning SOC and ISO frameworks becomes increasingly important,” said Cathy Cobey, EY Global Assurance Responsible AI and Technology Risk AI Leader. “Integration supports consistent governance, accountability and oversight — particularly where AI and emerging technologies are involved.” ISO 27001 (cybersecurity) covers information security management; ISO 9001 focuses on quality management; ISO 22301 supports business continuity and resilience; ISO 14001 targets environmental sustainability; and ISO 42001 provides a structured framework addressing AI related risks, accountability and oversight. Depending on industry and organizational priorities, companies may also pursue international certifications related to health and safety, energy management, environmental sustainability, business continuity and quality management.

By integrating these ISO certifications with SOC attestation efforts, organizations can efficiently meet regulatory, industry and emerging technology requirements. This approach requires careful overlap of scope, team and timing on the auditor side as well as the auditee side.

“Test once, comply with many” in practice

For organizations managing large-scale audit programs, the “test once, comply with many” approach represents a move to more sustainable compliance.

SOC 2 and ISO 27001 alignment is an example. The information security controls in ISO 27001 align closely with the AICPA Trust Services Criteria used in SOC 2 examinations. When an organization implements controls to satisfy ISO 27001, those same controls can be audited for SOC 2 if the scope overlaps. This means auditors can test shared controls once and rely on the results for both the ISO certification and the SOC 2 report. There are some organizations that actively pursue a SOC 2+ISO 27001 combined report (a “SOC 2+” report).

“When controls are designed and implemented to meet multiple frameworks, organizations can reduce repetitive testing, minimize business disruption and improve audit quality,” said Brandon Miller, EY Global and Americas Technology Risk System and Organization Controls, Attestation and Certification Leader. “This approach strengthens risk management while enabling organizations to focus on innovation and strategy, instead of repetitive audit preparation.”

Each framework reinforces the other: ISO’s ongoing risk management process makes it easier to prepare for SOC attestations, and SOC findings make the ISO management system more robust. Management can then create a single remediation plan through a single pane of controls.

Organizations that use an ISO and SOC integrated attestation approach are on the leading edge.

"When you have one team that can understand and appreciate the similarities, differences and the nuances in both frameworks, that shows an enterprise-wide commitment to compliance and builds confidence with your customers and stakeholders while reducing audit fatigue,” said Jatin Sehgal, EY Global ISO Leader and EY CertifyPoint Managing Partner.

Even more important, combining both frameworks provides a comprehensive view of the organization's control environment. This means the attestation and certification audit team can perform a deep dive into shared controls and use the results for both, helping to uncover gaps that might be missed when using any one single framework.

With reduced audit fatigue, employee productivity on business projects improves. Freed from repetitive audit evidence gathering and meetings, business teams can focus on strategic initiatives and servicing customers, which is an indirect but important financial benefit.