Software Compliance Audit Procedures

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.

Dear Auditors, Auditing CI/CD Change Controls Continuous Integration and Continuous Deployment (CI/CD) pipelines have become the backbone of modern IT operations. Teams push code daily, sometimes multiple times a day, with the help of automation. While this accelerates delivery, it creates a new challenge. How do you audit change controls in an environment where traditional ticket-based approvals no longer apply? This can be done by adapting the audit approach without slowing down the business. 📌 Code Review as Approval: In pipelines like GitHub Actions, GitLab, or Azure DevOps, peer review is the new approval process. An auditor should test whether all production changes require pull requests, with at least one independent reviewer before merging. 📌 Segregation of Duties: The person who develops code should not be the one approving their own pull request or deploying directly to production. Look at repository permissions, branch protection rules, and pipeline access rights. 📌 Automated Testing: Unit, integration, and security tests are often embedded in the pipeline. An audit should confirm these steps exist and that the pipeline blocks deployments when tests fail. Evidence comes from pipeline logs, not just screenshots. 📌 Rollback and Recovery: Speed without safety is dangerous. Review whether the team can roll back a failed deployment. Blue-green or canary deployments should leave an evidence trail showing when and how a rollback was triggered. 📌 Audit Trail: Every pipeline run generates metadata: who triggered it, what code was deployed, and whether it passed controls. Auditors should confirm that this metadata is retained, tamper-proof, and available for review during compliance checks. 📌 Culture of Shared Accountability: The shift to DevOps means developers, security, and operations share responsibility for controls. Auditors must approach with the mindset of validating what’s working, not just enforcing outdated processes. If your audits still ask for manual change tickets, you’re missing the point. CI/CD pipelines are not the enemy of control; they’re the new evidence source. The future of assurance lies in understanding automation, not resisting it. #ITAudit #ChangeManagement #CI/CD #DevOps #CloudSecurity #InternalAudit #RiskManagement #ITGC #Automation #CyberAudit #GRC #CyberVerge #CyberYard

|| Audit of SAP || An audit of SAP (Systems, Applications, and Products in Data Processing) involves evaluating the security, integrity, and reliability of SAP systems and applications. Here's a comprehensive audit program for SAP: I. SAP System Security 1. *User management*: Review user roles, authorizations, and access controls. 2. *Password policies*: Evaluate password complexity, expiration, and reset procedures. 3. *System access*: Assess remote access, firewall configurations, and network segmentation. 4. *Encryption*: Verify encryption methods for data at rest and in transit. II. SAP Application Security 1. *Authorization concepts*: Review authorization objects, roles, and profiles. 2. *Data validation*: Evaluate input validation, error handling, and data integrity. 3. *Business process security*: Assess security controls for critical business processes. 4. *Custom code security*: Review custom code for security vulnerabilities. III. SAP System Configuration 1. *System landscape*: Evaluate system architecture, instance management, and system integration. 2. *Parameter settings*: Review system parameter settings for security and performance. 3. *Logging and monitoring*: Assess logging, monitoring, and alerting mechanisms. 4. *Backup and recovery*: Evaluate backup and recovery procedures. IV. SAP Data Management 1. *Data governance*: Review data governance policies, procedures, and standards. 2. *Data quality*: Evaluate data quality, integrity, and validation processes. 3. *Data archiving*: Assess data archiving and retention policies. 4. *Data migration*: Review data migration processes and procedures. V. SAP Compliance and Risk Management 1. *Compliance frameworks*: Evaluate compliance with relevant frameworks (e.g., SOX, GDPR). 2. *Risk management*: Assess risk management processes and procedures. 3. *Audit trails*: Review audit trails and logging mechanisms. 4. *Incident response*: Evaluate incident response plans and procedures. VI. SAP IT General Controls 1. *Change management*: Review change management processes and procedures. 2. *Problem management*: Evaluate problem management processes and procedures. 3. *IT service management*: Assess IT service management processes and procedures. 4. *Disaster recovery*: Evaluate disaster recovery plans and procedures. VII. Reporting and Follow-Up 1. *Audit report*: Prepare a comprehensive audit report detailing findings and recommendations. 2. *Management response*: Obtain management responses to audit findings and recommendations. 3. *Follow-up audit*: Schedule a follow-up audit to verify implementation of recommended controls. By following this comprehensive audit program, you can ensure a thorough audit of SAP systems and applications, identifying potential security risks, compliance issues, and areas for improvement. #sap #audit #internalaudit

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.