The Cloud Landscape: Role of IT Audit

Over the past few years, the landscape of IT audit has undergone a profound transformation with the rapid adoption of cloud computing. As organizations migrate their operations to the cloud, the role of IT auditors is becoming increasingly crucial. According to the International Data Corporation (IDC) Worldwide Software and Public Cloud Services Spending Guide for 2023, it is anticipated that global expenditure on public cloud services will soar to $1.35 trillion by 2027.

With the increasing adoption of public cloud services by businesses, the fundamental roles of IT departments are expected to undergo a transformation, shifting from directly providing the technological backbone of business operations. Instead, the evolution of these solutions is likely to be primarily driven by public cloud vendors rather than internal IT teams. Consequently, IT departments will need to reassess their focus on cybersecurity and resilience, finding ways to seamlessly integrate new applications with existing legacy systems and adapt to collaborative security frameworks.

As organizations store sensitive data in the cloud, ensuring robust measures for data protection and privacy has become paramount. Management must assess encryption methods, access controls, and compliance with data protection regulations such as the Personal Data Protection Act 2022 (PDPA). From the KPMG global tech report 2023, results show that cybersecurity and privacy concerns were ranked as primary factors that could slow down digital transformation progress. And amid the ongoing migration to cloud infrastructures, 40% of the respondents say that enhancing security has become a key goal in their XaaS (everything as a service) projects.

As much as there are challenges, cloud computing has become a cornerstone of modern business operations, offering scalability, flexibility, and cost-effectiveness. Organizations are leveraging cloud services for storage, processing power, and software applications, leading to a paradigm shift in IT infrastructure. Technology leaders surveyed in the KPMG global tech report 2023 cite improved data management and integration as the number one benefit of public cloud platforms. Sixty four percent (64%) of respondents to the report say they’ve increased profitability or performance because of their digital transformation efforts with public cloud and XaaS technologies. Some stakeholders have proven that the benefits outweigh the challenges when it comes to cloud services. Of course, overall risks and benefits depend on several factors including the type of cloud service models used, nevertheless, it is undeniable that the cloud has become an integral part of modern  infrastructure and is here to stay.

• Risk Identification and Mitigation: IT audits help cloud providers identify potential risks within their infrastructure, services, and operations. By assessing these risks, providers can implement appropriate mitigation strategies to safeguard their systems and data.
• Compliance Assurance: Cloud providers must comply with various industry regulations and standards to ensure the security and privacy of customer data. IT audits help validate compliance with regulations such as Personal Data Protection, and industry standards like ISO 27001. This compliance assurance builds trust with customers and regulatory bodies.
• Security Enhancement: Audits help identify vulnerabilities and weaknesses in the cloud infrastructure and services. By addressing these issues promptly, providers can enhance the overall security posture of their offerings, reducing the likelihood of data breaches and unauthorized access.
• Performance and Cost Optimization: Audits can also evaluate the performance of cloud services, identifying areas for improvement and optimization. This includes assessing factors such as response times, uptime, scalability, and resource utilization, ensuring that the cloud environment meets the performance expectations of customers. Also, through IT audits, cloud providers can identify inefficiencies and areas of unnecessary expenditure within their infrastructure and operations.