Conducting a cloud audit: A complete guide

More and more, businesses are relying on cloud-based infrastructure to power their operations, streamline processes, and store vast amounts of data. However, cloud environments require robust auditing practices to ensure security, efficiency, and compliance with regulatory standards.

⚠️ Here’s something alarming: 35% of respondents in a survey by Thales Group, a cybersecurity firm, said they’d experienced a data breach or failed an audit involving cloud-based data and applications within the previous year. One in three companies being vulnerable to serious security risks illustrates the need for continuous monitoring and strengthening of cloud security.

A regular cloud audit schedule is key to achieving this goal. A cloud audit is a systematic process of evaluating a cloud-based infrastructure’s security, performance, and adherence to compliance requirements. The purpose is to identify potential vulnerabilities, verify compliance with relevant regulations, and enhance overall cloud security. 

Given the complex nature of cloud environments, this can be a daunting task for IT teams and security professionals. But don’t worry – this guide will provide detailed insights into the methodologies, best practices, tools, and actionable steps necessary for conducting effective cloud audits so you have enough knowledge to safeguard your infrastructure.

Types of cloud audits: Security, performance, and compliance

Cloud auditing is necessary because it addresses unique challenges traditional audits don’t cover, such as the dynamic and distributed nature of cloud environments. 

Traditional audits typically focus on on-premises infrastructure, where physical and logical controls are easier to manage. In contrast, cloud audits must account for the joint responsibility between customers and cloud providers, the rapid scalability of cloud services, and the sophisticated nature of cloud-based threats.

A more recent study by Thales highlighted this shift, noting that attackers target cloud-based resources and that organizations need to improve their security posture. This need for enhanced security measures underscores the importance of thorough cloud audits.

Let’s delve into the three main types of cloud audits: security, performance, and compliance:

Security audits

Security audits protect cloud environments against unauthorized access and data breaches. They verify that:

• You’re enforcing strong password policies, requiring users to create complex, unique passwords and update them on a regular basis.
• The system protects sensitive data through encryption, both at rest and in transit.
• The cloud infrastructure restricts access to resources and data, granting permissions only to authorized users and systems with proper clearance.

Performance audits

Performance audits ensure cloud-based systems meet the required service levels and performance metrics critical to business operations. These audits assess various aspects of the cloud environment to ensure it operates efficiently and reliably:

• Service levels: Performance audits evaluate if the cloud services meet agreed-upon service level agreements (SLAs) concerning uptime, response time, and throughput.
• Capacity planning: They check if cloud providers have adequate capacity planning and scalability measures to handle varying workloads and future growth.
• Scalability: Auditors also assess the cloud provider’s ability to scale resources dynamically to meet changing demands without compromising performance.

Compliance audits

Compliance audits are essential for verifying that cloud providers adhere to relevant industry standards and legal and regulatory requirements. This is necessary for maintaining trust and avoiding legal repercussions. Some of the areas they cover include data privacy and protection (GDPR and CCPA), risk management and governance (ISO and NIST), and access management (HIPAA). 

Best practices to optimize your cloud audit

To help you work towards an efficient and effective audit strategy, here are some best practices you should follow:

Align cloud audits with business strategies

Aligning cloud audits with business strategies ensures your infrastructure supports your company’s overall goals. By setting clear business objectives and KPIs, you can measure the success of your audits more qualitatively.

It’s also important to involve business stakeholders in the audit process and provide them with cloud auditing and compliance training. Collaboration between IT and business leaders is key to achieving effective alignment.

For instance, if your system includes a cloud-based Content Management System (CMS), you could loop in content managers and extend the exercise to incorporate a content audit. This way, it will likely be more holistic than it would otherwise be in isolation.

When cloud audits are aligned with business strategies, you can optimize your environment to drive growth and success.

Adopt a risk-based approach

A risk-based approach to cloud audits means focusing your resources on the most vulnerable areas.

Start by identifying your critical data, systems, and compliance requirements. Then, assess the likelihood and potential impact of risks to these assets. Use this assessment to develop targeted audit plans that prioritize high-risk areas.

Monitor and update your risk assessments continuously as you shift more of your operations to the cloud. Clearly define the organization’s tolerance for risk to guide security decisions and control implementations.

By focusing on the most significant risks, you can ensure that your cloud audits are efficient and effective in mitigating potential threats to your organization.

Leverage automation and AI-powered tools

Integrating automation and AI into your audit workflows enables you to streamline processes, minimize manual effort, and respond to rapidly evolving cloud risks.

Automation can continuously monitor your controls and configurations, safeguarding cloud security and compliance past the initial setup. It also maintains consistency across audits, which is particularly useful where you’re required to provide logs for certification.

Embedding automated security checks within the Continuous Integration and Continuous Deployment (CI/CD) pipeline ensures secure deployment practices.

AI can analyze vast amounts of audit data to identify anomalies and potential risks faster, with insights that help you make data-driven decisions.

How to overcome common challenges in cloud auditing

Here are some of the pitfalls you might encounter in your cloud auditing strategy and how to avoid them:

Managing encryption standards

Challenge: Managing and implementing consistent encryption standards across cloud services can be frustrating. Encryption must be robust enough to protect data both at rest and in transit and comply with regional and industry-specific regulations.

Solution: Use strong encryption protocols such as AES-256 for data at rest and TLS 1.2 or higher for data in transit. Adopt a consistent encryption policy across all cloud services and ensure that cloud providers adhere to these standards. Do this by defining clear SLA requirements, implementing key management systems, and training employees on proper encryption practices.

Dynamic nature of the cloud

Challenge: The cloud’s scalable and flexible nature means that resources can be added or modified rapidly, often automatically. While this dynamism is a strength of cloud computing, it poses significant challenges for auditing as the environment is not static. Traditional point-in-time audits are insufficient in such an environment.

Solution: Adopt continuous monitoring solutions and automated audit tools. They should be capable of dynamically discovering and assessing new assets as they come online, ensuring that no resource goes unaudited. Implement Configuration Management Databases (CMDBs) that maintain a real-time inventory of all resources and provide a centralized view of the entire infrastructure.

Ensuring continuous compliance

Challenge: As discussed in the previous section, cloud environments have to adhere to frequently changing regulations, which can vary by industry and region. Ensuring continuous compliance is difficult, especially when operating across multiple jurisdictions or using multiple services. Staying up-to-date with regulatory changes and understanding their impact on cloud operations can be a daunting task.

Solution: Engage with compliance and regulatory experts who can interpret how changes impact your cloud operations. They can provide guidance on necessary adjustments to maintain compliance. Additionally, you should schedule regular compliance audits and reviews to ensure all cloud practices remain in step with the latest requirements.

Depending on your industry and region, these should cover all relevant regulations, such as GDPR, HIPAA, or PCI-DSS. Automated compliance monitoring tools can also help by continuously scanning the cloud environment for potential compliance issues and alerting you to deviations from the required standards.

Key steps for planning and conducting a cloud audit

1. Preparation

Understand the scope of the audit, define its objectives, establish a timeline, and gather necessary resources and tools. Align the audit with business strategies and regulatory requirements so it’s focused, efficient, and effective in achieving its goals.

2. Assessing the current state

Before identifying risks and vulnerabilities, you should assess the current state of the cloud environment. Create a thorough inventory of all assets, including servers, databases, applications, and data. Understanding the configurations of these assets and mapping data flows helps auditors gain a clear picture of the environment. This assessment forms the foundation for identifying potential issues and areas for improvement.

3. Identifying risks and vulnerabilities

With a clear snapshot of the current state, the next step is identifying potential security risks and vulnerabilities in the cloud environment. This includes technical cloud security risks, such as misconfigurations or unpatched systems, and non-technical risks, like human error. 

According to the same Thales study cited above, 55% of respondents identified human error as the leading cause of cloud data breaches. Auditors should use a combination of manual review, automated scanning tools, and penetration testing to uncover potential weaknesses.

4. Implementing control measures

Once you’ve identified risks and vulnerabilities, the next step is implementing mitigation measures. This involves selecting and applying cloud security controls based on your preferred framework, as discussed in the next section. Controls may include access management, data encryption, network segmentation, and incident response procedures. Prioritize implementation based on the level of risk and the potential impact on the organization.

5. Continuous monitoring

Implementing control measures is not a one-off exercise. Continuous monitoring ensures they remain effective and the cloud environment stays secure and compliant. Set up tools for log analysis, intrusion detection, security information and event management (SIEM), and more to quickly detect and respond to emerging threats or compliance issues.

6. Reporting and follow-up

The final step in conducting a cloud audit is compiling an audit report that clearly communicates its findings, implications, and recommendations. The report should include an executive summary and be presented to relevant stakeholders, including management, IT teams, and compliance officers. Based on your original conclusions, plan and execute follow-up actions and schedule future audits to evaluate their effectiveness.

Methodologies for effective cloud auditing

An effective cloud security audit requires a comprehensive approach that addresses the unique challenges and complexities of cloud environments.

Three key methodologies that can help organizations identify risks, ensure compliance, and optimize their cloud resources are:

Cloud Security Posture Management (CSPM)

CSPM manages and secures cloud environments by continuously monitoring for misconfigurations and compliance issues. During a cloud audit, CSPM tools can automatically identify potential risks, such as open object containers or misconfigured security groups, and provide remediation steps to address them.

In 2019, an ex-AWS employee exposed the personal information of over 100 million Capital One customers by exploiting a misconfigured firewall. Experts believe that the incident might have been avoided if Capital One used CSPM software to secure its databases.

Cloud Workload Protection Platforms (CWPP)

CWPP focuses on protecting workloads across all types of environments, including virtual machines, containers, and serverless functions. In the context of a cloud audit, CWPP tools can assess the security of individual workloads and identify potential vulnerabilities, such as unpatched software or insecure configurations.

For instance, a financial services company could use CWPP tools to identify and remediate vulnerabilities in its payment processing workloads as part of its cloud audit process. This could ensure the security and compliance of critical applications and protect sensitive customer data.

Cloud Infrastructure Entitlement Management (CIEM)

CIEM manages identities and entitlements within cloud environments, which becomes increasingly critical as organizations scale and their access complexities grow. During a cloud audit, CIEM can help auditors ensure access controls are properly configured and enforced, identifying unused or excessive permissions that could be exploited.

A large healthcare organization, for example, might use CIEM tools to audit its cloud environment and discover that many users have unnecessary access to sensitive patient data. By leveraging these tools to enforce the principle of least privilege, reducing the attack surface and ensuring compliance with HIPAA regulations is easier.

When used together as part of a comprehensive cloud audit program, CSPM, CWPP, and CIEM methodologies can provide a holistic view of an organization’s cloud security posture. However, when selecting and implementing these tools, it’s important to consider factors such as integration with existing systems, ease of use, and cost.

Frameworks and tools for a comprehensive cloud audit

Gartner predicts that by 2025, over 85% of organizations will adopt a cloud-first strategy. Success in this environment requires cloud-native security auditing tools and frameworks such as:

Cloud Controls Matrix (CCM)

The CCM is a widely adopted framework developed by the Cloud Security Alliance (CSA). It provides a set of controls for assessing and mitigating cloud-related risks. The latest version, CCM 4.0, includes updates that address emerging cloud security threats and technologies.

One of the key updates in v4.0 is the inclusion of dedicated controls for serverless computing environments. These help you assess the security of your serverless applications and ensure they’re configured correctly.

Additionally, v4.0 introduced controls for AI and the Internet of Things (IoT), reflecting the growing importance of these technologies in cloud environments.

STAR security questionnaire

The STAR – short for Security, Trust & Assurance Registry – questionnaire is another cloud audit framework from the CSA. It allows you to assess the security posture of your cloud service providers.

The latest version, STAR 2.0, brought updates that align with new cloud security standards and regulations.

One of the key updates in STAR 2.0 is the inclusion of new data protection and privacy questions, reflecting the growing prominence of regulations such as the GDPR and CCPA.

Using the STAR questionnaire as part of your cloud audit process, you can more easily ensure that your service providers comply with these regulations and take appropriate measures to protect sensitive data.

Cloud-Native Application Protection Platforms (CNAPP)

A Cloud-Native Application Protection Platform (CNAPP) offers complete visibility and protection for cloud-native applications.

CNAPPs offer different ways to monitor and secure cloud-native applications. They focus on providing a great experience for developers in DevSecOps through tools and workflows that integrate with existing development processes. By using a centralized platform, they reduce the need for multiple solutions.

One key benefit of CNAPPs is their ability to reduce friction and minimize false positives. By providing accurate and actionable insights into potential security risks, they help organizations focus their efforts on the most critical issues and avoid wasting time on false alarms. This significantly enhances the efficiency of the audit process and enables organizations to maintain a strong security posture over time.

Partnering for success in your cloud auditing journey

Embracing a cloud-first strategy is a wise move, with cloud audits being key to its success. However, audits are intricate, and errors can be disastrous for your business. With the right approach, tools, and partners, you can sidestep these risks.

Follow the best practices and key steps outlined in this guide to gain a comprehensive view of your cloud environment, identify and fix vulnerabilities, and ensure continuous compliance.

To make things easier, consider partnering with a trusted managed hosting provider like Liquid Web.

Liquid Web’s secure and compliant hosting solutions are designed to simplify cloud audits by ensuring your cloud environment is always in great shape. Liquid Web provides a solid foundation for your audit efforts, with features like real-time monitoring, automated backups, intrusion detection, and vulnerability scanning. A team of experienced professionals is always on standby to offer expert guidance and support.

Don’t stress over your cloud’s security – partner with Liquid Web today and approach cloud audits with confidence!