Why integrating SOC and ISO frameworks drives confidence

Integrated SOC reporting and ISO certification can streamline compliance efforts and support transparency.

In brief

• Global organizations operating across jurisdictions often face overlapping regulatory expectations and third-party and second-party (customer) audits.
• Aligning SOC reporting and ISO certification assessment enables organizations to demonstrate consistent, disciplined governance and risk management.
• Integrated control testing saves valuable time through optimized and streamlined control testing.

Today’s regulatory landscape includes multiple standards and regulations. System and Organization Controls (SOC) attestations and International Organization for Standardization (ISO) certifications are the leading methods for communicating trust and confidence with a wide range of stakeholders.

A “test once, comply with many” approach to SOC and ISO integrated attestation enables organizations to coordinate and streamline their assurance activities across multiple frameworks — without multiplying the effort or time.

One global enterprise with operations spanning 72 countries was facing multiple audits. The approach called for many audit providers on location testing similar controls, all requiring similar evidence and documentation. After experiencing audit fatigue, the organization worked with EY teams to adopt integrated SOC and ISO reporting to reduce their overall testing efforts.

As a result, the organization achieved greater transparency and compliance across all jurisdictions. Its control environment is now more efficient, and the organization can reinvest the saved time and resources and be better positioned to focus on its core business.

SOC and ISO integration synergies

‘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.