How To Conduct A Tech Compliance Audit

Dear AI Auditors, Foundations of AI Audit AI has quickly moved from “emerging tech” to business-critical systems. Banks use it to flag fraud. Insurers use it to price policies. HR teams use it to screen candidates. Customer service depends on chatbots powered by large models. But most audit functions still don’t have a tested playbook for AI. This gap creates blind spots at exactly the time when regulators, investors, and the public are asking tougher questions about trust. If you’re leading or participating in AI audits, here are the foundations you can’t afford to ignore: 📌 Define the Scope Clearly Don’t audit AI in the abstract. Focus on systems that shape financial reporting, compliance obligations, or customer outcomes. A fraud detection model or claims assessment tool deserves priority over a low-impact internal chatbot. 📌 Understand AI Evidence Types AI doesn’t always produce “traditional” evidence. You’ll need artifacts like training data lineage, system logs, model documentation, and bias test results. Decide up front what will count as valid audit evidence. 📌 Check Governance Structures Who owns AI risk in your organization? If no one can answer clearly, you’ve uncovered a governance gap. Look for oversight committees, a Chief AI Officer role, or designated control owners. 📌 Assess Data Integrity Models are only as reliable as their inputs. Confirm whether the data is authorized, accurate, and complete. Ask how often it is refreshed? How is quality measured? Who signs off? 📌 Review Model Transparency If management can’t explain why a model makes certain decisions, the risk is already high. Auditors should look for explainability tools, model cards, or other documentation that turns the “black box” into something testable. 📌 Evaluate Monitoring and Drift Detection Models age. They lose accuracy as real-world conditions shift. Look for monitoring dashboards, alert thresholds, and documented retraining cycles. 📌 Link AI to Business Objectives Every AI system should connect to measurable goals, cost savings, fraud reduction, and customer satisfaction. If the business case is weak, even a well-governed system may not justify the risk exposure. Auditors who master these foundations will protect their organizations from regulatory penalties, reputational damage, and costly AI failures. Those who don’t risk leaving critical blind spots unchecked. AI isn’t optional anymore. Neither is AI audit readiness. #AIAudit #AuditLeadership #AIControls #AIGovernance #ModelRisk #InternalAudit #GRC #AITrust #AuditCommunity #RiskManagement #CyberYard #CyberVerge

Charting a Path Towards Cybersecurity Audit Success Navigating a cybersecurity audit process may seem daunting. This post simplifies the task, outlining steps to approach an audit confidently and establish a strengthened security framework. Conducting a Gap Analysis: - An initial gap analysis plays a vital role in the preparatory stage. By assessing the current controls against the framework's requirements, pinpointing areas of non-alignment becomes possible, enabling necessary improvements. Prioritizing and Implementing Controls: - It is advisable to prioritize control implementation and maturity based on evidence of potential threats or attacks. Strengthening basic controls should take precedence in areas where no such engagement is evident. All controls must align with one or more agreed-upon business risks. Documenting Policies and Procedures: - Clear and concise documentation of policies and procedures is essential for any cybersecurity framework. They serve as a touchpoint for both staff and auditors, providing insight into the processes and controls in place. Conducting Regular Internal Assessments: - Regular internal assessments ensure the organization's preparedness ahead of the official audit. These evaluations scrutinize controls against the framework's requirements. Automating Evidence Collection: - Automated collection and testing of evidence supporting the implemented controls not only strengthen the organization's case during the audit but also aid in meeting ongoing regulatory requirements. Promptly Remedying Identified Issues: - If the audit highlights any non-compliance areas or deficiencies, they should be promptly addressed, and corrective measures implemented as required. Engaging a Third-Party Assessor: - When ready, involving an accredited third-party assessor to conduct the official framework audit is a significant step. Ensure to provide them with the necessary documentation. Maintaining Ongoing Compliance: - After acquiring certification, maintaining compliance with the chosen cybersecurity framework becomes a continuing commitment. Regularly reviewing and updating policies and procedures will ensure alignment with any changes in the framework. Leveraging Digital Safe Harbor Laws: - Digital Safe Harbor Laws in four states provide a tort defense to organizations that implement published cybersecurity frameworks. These legal benefits can further encourage companies to adhere to such frameworks. In essence, a cybersecurity framework audit becomes less daunting when approached systematically. This step-by-step guide can provide a solid footing, ensuring that cybersecurity audits are handled with confidence and skill, leading to dependable risk mitigation. #cybersecurity #regulatory

SOC 2 Compliance Checklist: A Complete Guide for Your Organization #VoiceOverVideo12 #SOC2Compliance Achieving SOC 2 compliance is crucial for organizations handling sensitive customer data. This guide not only explains what SOC 2 auditors look for but also serves as a passive checklist to help you prepare effectively. Trust Services Criteria 1. Ensure system meets Security criteria: controls to protect against unauthorized access and breaches. 2. Ensure system meets Availability criteria: reliably available for operation and use as committed. 3. Ensure system meets Confidentiality criteria: protect information against unauthorized access, use, and disclosure. 4. Ensure system meets Processing Integrity criteria: data is processed accurately, completely, and timely. 5. Ensure system meets Privacy criteria: personal information is handled according to privacy commitments. System Components Evaluation 1. Secure Infrastructure: physical and IT hardware, including servers, devices, and networks. 2. Manage Software: application programs and system software that support business operations. 3. Define roles and responsibilities for People involved in system operations. 4. Monitor Processes: both automated and manual procedures align with security policies. 5. Control Data: access, accuracy, and integrity throughout its lifecycle. Organizational Structure and Controls 1. Define roles and responsibilities within your organization. 2. Designate security personnel to develop and enforce policies and procedures. 3. Implement background checks for personnel in sensitive roles. 4. Communicate expected workforce conduct standards to all staff. Risk Management and Assessment 1. Regularly perform Risk Assessments to identify potential threats. 2. Develop Mitigation Strategies for identified risks. 3. Conduct regular Vendor Management assessments to ensure compliance. Policies and Procedures 1. Implement Access Controls: limit access based on roles with strong authentication measures. 2. Develop and test Incident Response procedures. 3. Establish Change Management processes for managing system updates and control adjustments. 4. Define Data Backup and Recovery policies and test recovery plans regularly. Ongoing Security Measures 1. Regularly update Software, Hardware, and Infrastructure to address vulnerabilities. 2. Restrict Physical Access to sensitive locations and monitor for intrusions. 3. Implement measures to address Environmental Risks affecting the system. 4. Protect Confidential Information with encryption and access controls. Compliance Documentation and Testing 1. Conduct Annual Reviews of security policies and procedures. 2. Continuously Monitor Controls for effectiveness and adjust as necessary. 3. Maintain detailed records and evidence to support Audit Readiness. Conclusion By following this checklist, your organization can build a secure and compliant environment that meets the rigorous standards expected by SOC2 auditors. 

On August 1, 2024, the European Union's AI Act came into force, bringing in new regulations that will impact how AI technologies are developed and used within the E.U., with far-reaching implications for U.S. businesses. The AI Act represents a significant shift in how artificial intelligence is regulated within the European Union, setting standards to ensure that AI systems are ethical, transparent, and aligned with fundamental rights. This new regulatory landscape demands careful attention for U.S. companies that operate in the E.U. or work with E.U. partners. Compliance is not just about avoiding penalties; it's an opportunity to strengthen your business by building trust and demonstrating a commitment to ethical AI practices. This guide provides a detailed look at the key steps to navigate the AI Act and how your business can turn compliance into a competitive advantage. 🔍 Comprehensive AI Audit: Begin with thoroughly auditing your AI systems to identify those under the AI Act’s jurisdiction. This involves documenting how each AI application functions and its data flow and ensuring you understand the regulatory requirements that apply. 🛡️ Understanding Risk Levels: The AI Act categorizes AI systems into four risk levels: minimal, limited, high, and unacceptable. Your business needs to accurately classify each AI application to determine the necessary compliance measures, particularly those deemed high-risk, requiring more stringent controls. 📋 Implementing Robust Compliance Measures: For high-risk AI applications, detailed compliance protocols are crucial. These include regular testing for fairness and accuracy, ensuring transparency in AI-driven decisions, and providing clear information to users about how their data is used. 👥 Establishing a Dedicated Compliance Team: Create a specialized team to manage AI compliance efforts. This team should regularly review AI systems, update protocols in line with evolving regulations, and ensure that all staff are trained on the AI Act's requirements. 🌍 Leveraging Compliance as a Competitive Advantage: Compliance with the AI Act can enhance your business's reputation by building trust with customers and partners. By prioritizing transparency, security, and ethical AI practices, your company can stand out as a leader in responsible AI use, fostering stronger relationships and driving long-term success. #AI #AIACT #Compliance #EthicalAI #EURegulations #AIRegulation #TechCompliance #ArtificialIntelligence #BusinessStrategy #Innovation 

Auditing is proposed in laws, regulations, and industry guidelines to mitigate AI risks, but there's a lack of established norms and standardized practices for compliance and assurance audits. Despite varied approaches like adversarial pressure testing and quantitative assessments, consensus on norms and practices is still evolving. The term 'audit' is used broadly to encompass diverse evaluations of algorithmic tools, including pressure-testing by external entities, internal pre-deployment assessments, collaborative audits, and external audits ensuring compliance with legislative or standardized framework requirements. External audits differ from risk or impact assessments in two main aspects. Firstly, algorithmic impact or risk assessments primarily focus on internal evaluations. Secondly, external audits require a conclusive outcome for stakeholders to act upon, while risk or impact assessments usually provide open-ended outputs, such as prioritized lists of risks or impacts. This paper below specifically focuses on 'external audits,' also known as 'compliance audits,' which aim to ensure adherence to specified requirements. This paper introduces the 'criterion audit' as a practical way to do external audits, inspired by how financial audits work. It is defined as: "A criteria-based independent external evaluation E of an algorithmic system S conducted by an auditor A to determine whether the given system S meets the requirements set by a normative framework." The criterion audit is characterized by 4 key features: 1. Standardized Criteria: Transparent evaluation against publicly accessible criteria. 2. Normative Framework: Measuring compliance against a specific normative framework. 3. Auditor Training: Standardized training and accreditation for auditors. 4. Public Disclosure: Results disclosed, ensuring transparency while addressing security concerns. The standard process for a criterion audit includes target scoping, documentation submission, evidence verification, publication of the audit report, and certification of the audited algorithmic system based on the evaluation against normative framework requirements. The paper demonstrates the application of the proposed approach to comply with NYC Local Law 144. The paper stresses that auditors for the criterion audit, like financial auditors, need professional values, subject matter expertise, and rigorous audit processes. It advocates for standardized audit training and suggests combining this with responsible AI education for a comprehensive understanding of complex considerations in algorithm audits. Title: "A Framework for Assurance Audits of Algorithmic Systems": Authors: BABL AI research team, led by Khoa Lam, Dr. Benjamin Lange, and Borhane Blili-Hamelin, PhD. Contributions from Shea Brown, Jovana Davidovic, and Ali Hasan.

Last week I spoke with a CISO looking for a GRC platform to manage SOC 2, ISO 27001, ISO 9001, CSA Star, and PCI DSS. These are dream projects for me because there is such a huge opportunity for ROI. 𝗖𝗨𝗥𝗥𝗘𝗡𝗧 𝗣𝗥𝗢𝗚𝗥𝗔𝗠 & 𝗖𝗛𝗔𝗟𝗟𝗘𝗡𝗚𝗘𝗦 - Today they have 2 audit firms: One for SOC 2/PCI/CSA and one for ISO 27001 - As a result they have two audit seasons and end up burning a lot of political capital with engineering teams and IT asking for the same audit evidence 2x per year - The audits drive all compliance activity and there is no visibility between audits -The business has aggressive plans to acquire 1-2 companies a year and they needs to be able to inherit and maintain new programs 𝗪𝗛𝗔𝗧 𝗪𝗘 𝗔𝗥𝗘 𝗚𝗢𝗜𝗡𝗚 𝗧𝗢 𝗗𝗢 𝟭. 𝗛𝗮𝗿𝗺𝗼𝗻𝗶𝘇𝗲 𝘁𝗵𝗲 𝗽𝗿𝗼𝗴𝗿𝗮𝗺 𝗶𝗻 𝗳𝘂𝗹𝗹𝗖𝗶𝗿𝗰𝗹𝗲 First we are going to harmonize all the frameworks and audit evidence in our platform fullCircle. This way they can slice and dice by framework, by control, by evidence, by owner, or however else they need to. This will enable gathering evidence once to meet requirements across multiple frameworks. They can also generate "audit packages" of evidence with a click of a button. 𝟮. 𝗦𝘁𝗿𝗲𝗮𝗺𝗹𝗶𝗻𝗲 𝗮𝘂𝗱𝗶𝘁𝘀 Next, we need to work with the external auditor to create a single audit season, understand mapped evidence, and buy in on the strategy. The best audit firms we work with are great partners in pulling off this strategy while also doing a thorough high quality audit. 𝟯. 𝗔𝘂𝘁𝗼𝗺𝗮𝘁𝗲 𝗮𝗻𝗱 𝗰𝗼𝗻𝘁𝗶𝗻𝘂𝗼𝘂𝘀 𝗺𝗼𝗻𝗶𝘁𝗼𝗿𝗶𝗻𝗴 We also have to get the team to a place where they aren't pulling everything manually and they have some confidence things are running well between audits. First, we did this is by automating a few big ticket items - focusing mostly on their AWS and GCP instances (access, secure configs, etc.). Second, we set up a cadence of internal audit spot checks on a monthly basis for high risk items. --- This will likely save the customer $1M and 1000+ hours a year of largely non-value add work. That's a solid project.

You walk into work, and your inbox is flooded with urgent audit requests from regulators. Your company is being audited for compliance with ISO 27001, SOC 2, or GDPR, and leadership is looking to you to lead the response. How would you handle this situation? 1. Assess What’s Being Audited • Is this a scheduled audit or a surprise regulatory review? • What specific compliance requirements are in focus? (e.g., access controls, data protection, vendor risk). 2. Gather the Right People & Documentation • Who needs to be involved? IT, Legal, Compliance, Risk, HR? • Where’s the evidence? Are your security policies, access logs, risk assessments, and training records up-to-date? 3. Identify Gaps & Risks • Did the company miss a control requirement? • Are there unresolved security incidents or missing policies that could create audit findings? 4. Engage with the Auditors Effectively • Stick to what’s asked—don’t overshare! • Be prepared to explain policies and provide proof (e.g., pen testing reports, risk assessments, vendor agreements). 5. Develop an Action Plan • If there are gaps, what’s the corrective action plan? • Who’s responsible for ensuring the company remains compliant moving forward? If you were leading this audit response, what’s the first thing you’d do? Would you prioritize gathering documentation, identifying compliance gaps, or managing the audit conversations?

As 17JAN2025 draws closer, ensuring #DORA compliance becomes more of a pressing concern for all impacted entities. For management bodies with a certified ISO27001 Information Security Management System (ISMS), you will likely want to integrate DORA-specific requirements into your existing framework. 1. Conduct a Gap Analysis You should start by identifying gaps between DORA requirements and your current ISO27001 ISMS. Focus on areas like ICT third-party risk management (TPRM), digital resilience testing, and incident reporting, which require specific attention under DORA. 2. Implement DORA-Specific Controls You will need to enhance your current ISO27001 controls by incorporating DORA-specific requirements. Update your ICT risk management framework to include digital resilience and critical ICT services. Expand your third-party risk management to include the categorization and oversight of critical ICT providers. Adjust incident reporting procedures to meet DORA’s timelines for reporting significant ICT incidents. 3. Align Governance and Oversight Frameworks You should ensure your governance framework under ISO27001 aligns with DORA’s requirements for accountability. Clearly define senior management’s roles in overseeing digital operational resilience and establish regular reporting to keep them informed about ICT risks and incidents. 4. Incorporate Enhanced Testing and Monitoring You will need to integrate regular digital operational resilience testing into your ISMS, addressing scenarios related to business continuity, disaster recovery, and cyber resilience. Ensure you have continuous monitoring and reporting mechanisms to track compliance with both DORA and ISO27001. 5. Implement Oversight for Critical ICT Third-Party Providers You must establish oversight measures for critical ICT providers, including conducting enhanced due diligence, setting clear contractual obligations, and performing regular performance reviews, as mandated by DORA. 6. Conduct Regular Reviews and Continuous Improvement You should use existing management review and internal audit processes from ISO27001 to assess ongoing compliance with DORA. Incorporate DORA-specific objectives and indicators into your review process to ensure continuous alignment. Other ISO Standards that might support you: 1. ISO27002 - Information security controls 2. ISO22301 - Security and Resilience 3. ISO27306 - Supplier Relationships 4. ISO31000 - Risk Management 5. ISO27031 - ICT Business Continuity 6. ISO27035 - Information Security Incident Management For help getting started, please reach out! A-LIGN Kevin Shinners Atoro Tom McNamara #DORA #ISO27001 #TheBusinessofCompliance #ComplianceAlignedtoYou