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SOC 2 and SOX (Sarbanes-Oxley Act) differ in scope and purpose. SOC 2 is a voluntary compliance standard focusing on data security, confidentiality, and privacy for service providers, whereas SOX is a regulatory requirement aimed at financial reporting integrity for publicly traded companies. SOC 2 reports assure clients that an organization follows strong security practices, while SOX compliance ensures that financial controls prevent fraud and misstatements. Although both involve internal controls, SOC 2 is more relevant to IT security, while SOX is mandatory for companies that must report to the U.S. Securities and Exchange Commission (SEC).
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