What are some of the key challenges of auditing cloud-based services and platforms?

One of the key difference of cloud versus local systems is the assumption of 3rd party access to the underlying operating systems and storage. 2 archetypes of protection: 1. Verify the trustworthiness of the 3rd party, which usually achieved by examining the operation procedures and controls of them, plus the certification they achieved. 2. Verify the encryption architecture to kept data protected even after the raw data was collected by 3rd party. And, how well are the encryption keys stored and managed.

Exploring the complexities surrounding auditing cloud-based services and platforms reveals a myriad of challenges. From navigating data security protocols to ensuring compliance across diverse regulatory landscapes, the terrain demands a nuanced approach. Balancing the need for agility with robust risk management strategies remains pivotal in this dynamic ecosystem. Addressing these challenges requires a collaborative effort, leveraging technology and expertise to safeguard integrity and trust in financial reporting processes.

Cloud governance has become necessary as organizations endeavor to comply with regulations and strategically manage risk. Employing different service providers to leverage each cloud provider's strengths is a benefit and the driving force behind multi-cloud popularity. However, governing access to cloud services is complex because there is no unifying factor between the clouds. Typically each cloud is governed by an individual security model, with no way of connecting them. This leaves companies wide open to the risk of over-provisioning access to applications and data. A centralized repository of access rules allows companies to place guard rails on user access and apply them consistently in each cloud.

To overcome the challenges of auditing cloud governance and control, start by creating a comprehensive audit plan that aligns with your organization's specific cloud infrastructure and compliance requirements. Leverage cloud-native auditing and monitoring tools to gain real-time visibility into cloud activities. Ensure that your audit team is well-versed in cloud security best practices and can effectively interpret cloud-specific logs and data. Regularly review and update your audit procedures to adapt to the evolving cloud environment. By combining a tailored approach, the right tools, and a knowledgeable team, you can effectively address the unique challenges of auditing cloud governance and control.

The multi-cloud and hybrid cloud strategies adopted by many organizations introduce complexities in auditing cloud governance and control. Auditors must navigate the intricacies of different cloud service providers and integration methods while maintaining a consistent and coherent approach to evaluating governance and control across the entire cloud ecosystem. This necessitates a deep understanding of each audited entity's unique cloud strategy and architecture.

I've found that auditing cloud-based services and platforms poses significant challenges, particularly when it comes to identifying and managing "shadow IT" usage, which can obscure the organization's overall risk posture. Ensuring effective access control and security is another major hurdle, as verifying robust identity and access management approaches can be difficult, especially when dealing with multiple cloud providers. Furthermore, gaining adequate audit access and evidence from cloud providers can be a struggle, limiting our ability to assess compliance with regulatory requirements and overall security posture, making a careful and nuanced approach essential to overcome these challenges.

To address this challenge, IT auditors must diligently request, access, and review various forms of cloud auditability and transparency documentation and reports made available by cloud providers. These crucial documents may include cloud audit logs, cloud certifications, cloud attestations, or cloud audit trails. Each of these resources plays a vital role in enabling auditors to gain insights into the performance and compliance of the cloud services and platforms. However, auditors must contend with variations in the depth and accessibility of such documentation from one provider to another, making it essential to adapt audit procedures accordingly and ensure that the obtained evidence is both sufficient and reliable.

There are 2 aspects in cloud auditability: 1. Are the providers doing good? 2. Are the cloud services configured properly. For established services, it is pretty straightforward, that we can find their ISO, SOC certificates for 1. And reference guidelines such as CIS or STIG/SRG for 2. But for immature or niche services, IT auditors will need to figure out by oneself and that could be very difficult. Risk assessment should be carried out before adopting such cloud services.

In the constantly changing realm of cloud-based services and platforms, IT auditors encounter the obstacle of gaining the essential cloud expertise. This involves securing pertinent certifications like the Certified Cloud Security Professional (CCSP), Certified Information Systems Auditor (CISA), and cloud-focused certifications from prominent providers such as AWS, Google Cloud, and Microsoft. These certifications empower auditors to maneuver through the intricacies of cloud technology, governance, and security, guaranteeing their proficiency in recognizing and mitigating cloud-related risks while offering beneficial suggestions to audited organizations.

In the ever-evolving landscape of cloud-based services and platforms, IT auditors face the challenge of acquiring the necessary cloud skills and knowledge. This entails obtaining relevant certifications such as the Certified Cloud Security Professional (CCSP), Certified Information Systems Auditor (CISA), and cloud-specific certifications from leading providers like AWS, Google Cloud, and Microsoft. These certifications enable auditors to navigate the complexities of cloud technology, governance, and security, ensuring their effectiveness in identifying and addressing cloud-specific risks and providing valuable recommendations to audited entities.

Unsurprisingly, the challenge of adapting is greater when your org's strategy is multi-cloud; but for an auditor seeking to enhance their technical skills, this is also when opportunity is bigger.

Auditing cloud-based services and platforms present several unique challenges compared to traditional IT auditing. Some of the key challenges include: Limited visibility and control: Cloud-based services often involve the use of third-party providers and shared infrastructure. This can make it difficult for auditors to have full visibility and control over the underlying systems and data. Auditors may face challenges in assessing the physical security of data centers, network controls, and other infrastructure components.

Challenge of vendor lock-in and dependency. Cloud service providers offer integrated ecosystems of tools and services, which can lead organizations to become heavily reliant on a specific vendor's infrastructure and proprietary technologies. This dependence can create challenges during audits, as auditors need to ensure that an organization's data and processes are not excessively tied to a single vendor, potentially impeding flexibility and cost-efficiency. Addressing vendor lock-in issues involves assessing the feasibility of transitioning to alternative providers or cloud models while maintaining data integrity and security.

In my opinion, one of the biggest challenges when auditing cloud-based systems is unraveling the shared responsibility model. Understanding which security controls vendors are accountable for implementing versus those that organizations must own themselves. Many auditors, including myself initially, struggle to map out who is obligated for what. However, once the shared responsibility delineations stipulated in cloud contracts are clear, auditing cloud controls becomes far more straightforward. The key is aligning audit scope to the contractual obligations between a cloud service provider and its clients. Where responsibility falls within those agreements dictates what auditors can evaluate.

Data security and privacy: Cloud services involve storing and processing data on remote servers. Auditors need to ensure that the cloud provider has appropriate security measures in place to protect sensitive data. They also need to assess compliance with data privacy regulations and contractual obligations related to data handling and storage.

One key challenge to audit cloud services is that they could be so bizarre and may actually beyond your imagination. For example, the processing could be in the block chain on mobile phones which are owned by users playing certain mobile game. The auditor need the ability to morph the existing requirements to the situations. It could be having the capability to exclude some old phones from perform the processing instead of requirements of OS patching, and to judge if it make sense to keep the patching requirements?