WPProgram.com
Understanding SOC 2 vs SOX is essential for organizations focused on compliance and data security. SOC 2 is a framework designed for service providers to safeguard customer data based on five Trust Service Criteria, including security and confidentiality. In contrast, SOX (Sarbanes-Oxley Act) is a U.S. law focused on financial reporting and internal controls for public companies. While SOC 2 ensures operational security, SOX emphasizes accurate financial disclosures. Both frameworks are critical but serve different purposes: SOC 2 addresses data protection for service organizations, whereas SOX enforces accountability in corporate financial practices.