“Be prepared!” It’s been the motto of the Scouts of America for almost 120 years. And it’s a motto that every cybersecurity professional lives by–former Scout or not.

Organizations facing cybersecurity audits need to be doubly prepared: Prepared for cyberattacks and other cybercrime like anyone else and prepared to demonstrate that readiness to the audit team.

Regulations like the California Privacy Rights Act (CPRA) mandate cybersecurity audits for certain organizations – and other regulatory regimes like GDPR will likely follow with the EU’s NIS2 coming into effect in October 2024. The CPPA’s prescriptive and directive approach to audits is setting a new standard for regulators. It’s a standard that no longer relies solely on trust but rather on proof. Tomorrow’s regulations will not just demand, but also ensure that organizations are actively assessing and enhancing their cybersecurity posture.

Similar to the consequences of a banking audit, failing to achieve a passing grade in a cybersecurity audit can carry substantial repercussions. That’s why meticulous preparation for an audit is not just important but imperative. There are four steps you can take to ensure you’re prepared and shine in your next cybersecurity audit.

Step 1: Initiate a Preliminary Audit

The most effective way to ensure your business is ready for a cybersecurity audit is by…conducting a cybersecurity audit. A preliminary audit, in any case. This initial assessment involves scrutinizing your hardware and software attack surfaces, as well as reviewing the security policies and controls that protect them.

The first step is to determine the type of audit you need since not all audits are the same. For instance, if you know that you’ll be facing a monthly recurring audit, you’ll need to include basic checks – like confirming that all systems and applications are up to date with the latest patches, reviewing personnel and responsibilities and ensuring that data repositories of all types are adequately secured.

If you’ve never conducted a preliminary audit or a lot of time has passed since your last one, consider including additional steps:

● If you’re uncertain where to start, following guides from Awesome Pages in GitHub are a great source of information (see these posts on security and GDPR as examples).
● Create an inventory of all network-connected devices and software
● Confirm which standards and certifications your organization holds and perform a gap analysis against other standards like SOC 2, CIS Controls, or ISO 27001. Compliance with additional regulatory standards (GDPR, CPRA, and even NIST self-assessment) can also help strengthen your audit. In the event of an incident, adhering to these will provide more leeway for regulators to address issues independently.
● Conduct a structured risk assessment
● Categorize the data hosted throughout your network
● If you are a product company, allow more time to allow for a more extensive preparation and mapping process.
● Ensure that 3rd party providers are also compliant and also be included in the mapping process

Step 2: Internal or External Audit?

Once you’ve identified the type of audit necessary, your next decision is whether to conduct it internally or seek the expertise of external specialists.

If your business operates in a low-risk environment and you have internal IT personnel with the requisite skills, an internal audit can be a cost-effective and manageable choice.

Smaller businesses without in-house resources or expertise can use the services of external providers, including managed service providers (MSPs) or managed security service providers (MSSPs).

Enterprises in highly regulated industries, or that deal with substantial amounts of sensitive data, need to enlist a team of experienced professionals with formal cybersecurity training. Similarly, complex environments like those based on hybrid multi-cloud architectures may require auditors with specialized expertise.

In general, while it’s true that external audits tend to be more costly, they are also more objective and may provide fresh insights. What’s more, stakeholders tend to view external audits as more credible.

Step 3 – Manual or Automated Approach?

The choice between manual and automated approaches depends on the type of audit. Each method has its advantages and limitations.

Manual audits involve thorough, context-driven analysis with tailored findings. They are highly adaptable and can be adjusted to address emerging threats and evolving regulations. The deliverables for a manual audit generally include an extensive report, along with recommendations for handling issues identified. The downside of manual processes is that they tend to be more time-consuming, disruptive, and costly. Also, the quality of the assessment inevitably depends on the skills of the auditor.

In contrast, automated audits provide an efficient and scalable means of scanning your network for vulnerabilities, configuration errors, missing security patches and outdated software. They are less disruptive to business operations, which makes them a more convenient option. However, automated audits can be more susceptible to producing false positives. They may lack the depth of analysis offered by manual audits and offer limited flexibility and reporting capabilities. An automated approach also won’t take into account business logic or decisions that can’t be modified later to align with that logic.

Step 4 – Preparing for the Real Audit

Congratulations! You’ve completed the preliminary steps to prepare for your cybersecurity audit. Now, the real work begins – preparing for an actual audit. Before the auditors arrive, make sure you:

● Confirm the project scope – Discuss the audit scope with the auditors in advance to prevent scope creep and cost overruns.
● Create a network diagram – Create a comprehensive network asset diagram using diagramming tools like Visio.
● Consolidate cybersecurity policies – Consolidate your cybersecurity policies into a single, accessible document.
● Organize log files and backups – Organize log files and backups, as auditors may request access to them in some capacity.

Adhering to these steps will help you streamline the audit process, making it more efficient and less stressful for both your organization and the auditors.

The Bottom Line

“Be prepared” is not just a motto – it’s a cybersecurity imperative. Effective preparation for a cybersecurity audit is a critical part of any organization’s security strategy. Whether you opt for internal or external preliminary audits, or manual or automated assessments, effective preparation before a real audit will streamline the audit process, alleviate stress, and ensure that your organization is well-equipped to tackle any cybersecurity challenges.