SOC 2 and SOX (Sarbanes-Oxley Act) are both related to compliance, but they differ in scope and purpose. SOC 2 focuses on the security, availability, confidentiality, and privacy of systems — especially relevant for SaaS providers and service organizations. SOX, by contrast, is a U.S. federal law focused on financial reporting and internal controls, primarily affecting publicly traded companies. While SOC 2 is voluntary and often requested by clients, SOX compliance is mandatory for public companies. Understanding SOC 2 vs SOX helps organizations align their IT and finance teams to ensure both operational security and regulatory accountability.