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Understanding SOC2 vs SOX is crucial for organizations navigating compliance requirements. SOC 2 focuses on internal controls related to security, availability, processing integrity, confidentiality, and privacy—mainly for service organizations handling customer data. In contrast, SOX (Sarbanes-Oxley Act) is a U.S. federal law mandating financial reporting and internal control requirements for public companies. While SOC 2 is a voluntary audit that builds customer trust, SOX compliance is legally required for publicly traded companies. Both frameworks aim to strengthen controls, but serve different purposes—SOC 2 for data protection assurance and SOX for financial transparency and fraud prevention.
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