Cybersecurity regulations often include audits that assess and strengthen an organization’s defenses against increasing cyber threats. In the United States, various cybersecurity regulations, including HIPAA, SOX, PCI DSS, and more, require audits. Each audit ensures your organization meets the required standards outlined in the regulation while also strengthening its overall cybersecurity framework.
This blog offers a thorough guide on how businesses can prepare for cybersecurity audits by examining key US regulations that mandate them. Whether you are a small business or a large corporation, it's crucial to understand these regulatory frameworks and prepare accordingly to pass cybersecurity audits, safeguard your data, and maintain trust in the digital age.
Key US cybersecurity regulations that require audits
The United States has various cybersecurity regulations aimed at protecting sensitive information across various sectors. Many of these regulations require thorough audits to ensure organizations follow the best information security practices and are committed to implementing the right security measures to prevent cyber attacks. Below are key US cybersecurity that require regular cybersecurity audits, each designed to address specific cybersecurity risks and vulnerabilities in different domains.
Health Insurance Portability and Accountability Act (HIPAA)
The Health Insurance Portability and Accountability Act (HIPAA) is a federal law established in 1996 to protect individual medical records and other personal health information (PHI) in the United States. HIPAA applies to healthcare providers, health plans, healthcare clearinghouses, and their business associates. The main components of HIPAA include the Privacy Rule, which governs the use and disclosure of PHI, and the Security Rule, which mandates specific administrative, physical, and technical safeguards to ensure the confidentiality, integrity, and availability of electronic PHI.
The U.S. Department of Health and Human Services conducts HIPAA audits to assess compliance with these industry standards. Audits focus on evaluating risk management practices, adherence to privacy policies, the implementation of security measures such as encryption and access controls, and the effectiveness of breach notification procedures. These audits are crucial for enforcing HIPAA regulations and helping organizations enhance their health information protections by identifying and rectifying compliance issues.
Sarbanes-Oxley Act (SOX)
The Sarbanes-Oxley Act (SOX), passed in 2002, requires stringent reforms to enhance financial disclosures from corporations and prevent accounting fraud. SOX primarily impacts publicly traded companies and focuses on maintaining accurate financial records and implementing strict internal controls. Important elements include the certification of financial statement accuracy by senior executives and increased penalties for fraudulent financial activities.
SOX audits are carried out annually to assess the effectiveness of internal controls over financial reporting and the integrity of financial statements. Auditors evaluate the design, implementation, and maintenance of controls to ensure the accuracy and reliability of financial data.
Audits cover areas such as the security risks of electronic financial systems, financial disclosure processes, and adherence to ethical guidelines. By upholding these compliance standards, SOX audits help uphold public confidence in the securities market and reduce the risk of financial misconduct by corporations.
Payment Card Industry Data Security Standard (PCI DSS)
The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards designed to ensure that all companies accepting, processing, storing, or transmitting credit card information maintain a secure environment against potential vulnerabilities. PCI DSS is a global standard and is used across the United States. Initiated by major credit card companies, PCI DSS aims to reduce fraudulent activity and enhance payment data security worldwide. Compliance is mandatory for all entities involved in payment card processing, including merchants, processors, acquirers, issuers, stakeholders, and service providers.
PCI DSS audits, also called PCI DSS assessments, verify compliance with the standard's requirements. These audits measure the implementation of security controls in network security, data protection, vulnerability scanning, access control measures, monitoring and testing networks, and information security policies.
Auditors assess whether these controls are properly implemented and maintained to protect payment systems from potential threats and theft of cardholder data. Compliance with PCI DSS helps companies protect against data breaches and maintain consumer trust in their payment ecosystems.
Additional reading: How to Prepare for a PCI DSS 4.0 Audit in 7 Steps
Federal Information Security Management Act (FISMA)
The Federal Information Security Management Act (FISMA) was enacted in 2002 to enhance computer and network security within the federal government and its affiliated parties, such as government contractors. FISMA mandates that federal agencies create, document, and execute an IT security and protection program to safeguard their information systems and data. The act underscores the significance of cybersecurity programs that secure the nation's critical information infrastructure against threats to national security.
FISMA audits evaluate federal agencies' compliance with the act's requirements. These audits assess the effectiveness of an agency's information security program, its risk management processes, and the implementation of necessary security controls and procedures.
Specific measures evaluated during FISMA audits include the adequacy of system security plans, the effectiveness of security controls in safeguarding information and systems, incident response capabilities, and employee security awareness training. Adhering to FISMA safeguards federal agencies by ensuring they have a robust cybersecurity posture designed to protect sensitive information and infrastructure from cybersecurity threats.
Gramm-Leach-Bliley Act (GLBA)
The Gramm-Leach-Bliley Act (GLBA) is a U.S. federal law that requires financial institutions to protect sensitive data and maintain transparency around how they share customer information. The law stipulates that these institutions must provide clear and noticeable privacy notices, give customers the option to prevent the sharing of their personal information with non-affiliated third parties and establish a strong security program to safeguard customer information.
GLBA compliance audits evaluate how effective the privacy notices provided to customers are, the adequacy of procedures for customers to opt out, and the strength of the security measures implemented to prevent unauthorized access or data breaches.
Auditors specifically review the financial institution's security plan to address risks and vulnerabilities, the implementation of access controls, IT system monitoring for potential security breaches, and employee training programs on data privacy. Compliance with GLBA ensures that financial institutions are fulfilling their legal obligations to protect consumer financial information, thereby maintaining consumer trust and the integrity of the financial system.
Federal Risk and Authorization Management Program (FedRAMP)
The Federal Risk and Authorization Management Program (FedRAMP) is a United States government initiative that aims to standardize the security assessment, authorization, and continuous monitoring of cloud products and services utilized by federal agencies. The goal is to facilitate the adoption of cloud technologies while ensuring high levels of security. FedRAMP requires that cloud service providers (CSPs) meet a baseline set of security requirements to protect federal information and promote the use of secure cloud services across the government.
FedRAMP audits, known as assessments, verify that CSPs comply with these rigorous security standards. The assessments measure various factors, including the implementation and effectiveness of security controls outlined by the National Institute of Standards and Technology (NIST), as well as the CSPs' ability to maintain ongoing security assurance and prevent disruptions.
Specific areas of focus in these audits include data encryption, identity and access management, incident response, and continuous monitoring strategies. These measures are directly tied to FedRAMP's core mission to ensure that all cloud services used by the government provide robust security that meets federal requirements for protecting sensitive government data.
Defense Federal Acquisition Regulation Supplement (DFARS)
The Defense Federal Acquisition Regulation Supplement (DFARS) is a set of regulations that the Department of Defense (DoD) uses to govern acquisitions and contracting processes. DFARS includes specific requirements for cybersecurity, specifically mandating that defense contractors protect controlled unclassified information (CUI) and report cyber incidents that affect their systems or the CUI they handle. This set of rules is crucial for ensuring that sensitive information related to national security is not compromised throughout the defense supply chain.
DFARS compliance audits assess whether defense contractors have implemented adequate security measures to protect CUI as stipulated by the regulation. These audits measure the security of information systems, the effectiveness of cybersecurity practices, and the speed and accuracy of incident response plans.
Specific areas of focus include the contractors' adherence to the National Institute of Standards and Technology (NIST) cybersecurity standards (specifically NIST SP 800-171), their ability to detect and respond to cyber threats, and their processes for notifying the DoD of security breaches. These audits are essential to ensure that contractors are compliant with DFARS requirements, thereby helping to protect critical defense-related information from the current cybersecurity threat landscape.
How to prepare for cybersecurity audits
Preparing for cybersecurity audits involves a variety of steps designed to review your organization’s data protection measures and overall cybersecurity. Effective preparation not only minimizes the risk of non-compliance and associated penalties but also strengthens the organization's overall security posture. Below are targeted strategies and best practices your organization can employ to successfully prepare for your next cybersecurity audit.
Additional reading: How to Perform a Cybersecurity Audit
Review the latest version of regulations
Businesses should start by carefully reviewing the most recent version of the relevant cybersecurity regulation. Regulations are subject to updates and revisions, which can introduce new requirements or modify existing ones. It's essential for organizations to ensure that they comply with the latest standards by accessing regulatory texts directly from official sources or through legal advisories. This process also involves understanding the regulation's scope, identifying the specific sections that apply to the organization's operations, and assessing how changes may impact existing security practices.
Designate an individual to oversee the audit process
For an effective audit process, it is essential to designate a competent individual or a team, often referred to as a compliance officer or audit manager, to oversee all audit activities. This role includes coordinating with all departments to gather necessary documentation, ensuring that all aspects of the organization’s cybersecurity measures meet regulatory standards, and serving as the primary point of contact with the auditors. The designated individual should have a deep understanding of both the regulatory environment and the organization’s IT infrastructure, along with strong organizational and communication skills
Select the right auditing firm
Selecting an appropriate audit firm is critical to the success of the cybersecurity audit. Organizations should look for firms with extensive experience and a proven track record in auditing within their specific industry and regulatory framework. It’s important to evaluate the firm’s qualifications, certifications, and the expertise of its personnel. Considerations should also include the firm’s familiarity with the specific regulations the organization needs to comply with and their approach to the audit process. Engaging the right audit firm not only ensures a thorough and effective audit but can also provide valuable insights into improving cybersecurity practices and compliance strategies.
Develop and update policies
Organizations should begin by creating thorough cybersecurity policies that clearly outline expectations, responsibilities, and procedures regarding data protection. These policies should be regularly updated to reflect new cybersecurity trends, evolving threats, and changes in compliance requirements. Policies must address areas such as acceptable use, data encryption, secure access controls, and incident response. Equally important is ensuring that these documents are easily accessible and understood by all employees, as they serve as the foundation of the organization's cybersecurity defense.
Implement security measures
Security measures are fundamental to safeguarding sensitive data and systems. These measures include installing and maintaining firewalls, intrusion detection systems, and malware protection to guard against external threats. Organizations should also enforce strong access controls and authentication protocols to ensure that only authorized personnel have access to sensitive information. Regularly updating software and systems to patch vulnerabilities and employing encryption for data at rest and in transit are additional critical steps. Additionally, training employees on best security practices is essential to mitigate internal risks.
Train employees and promote awareness programs
Human error poses a significant risk in cybersecurity breaches. To address this, organizations should regularly conduct training and awareness programs. These programs must educate employees about the latest cybersecurity threats, stress the importance of adhering to company policies, and outline procedures for reporting suspicious activities. Training should be engaging and regularly updated to include information on new threats and practical examples or simulations.
Conduct internal audits
Internal audits are crucial for evaluating an organization's cybersecurity measures. These audits need to be conducted on a regular basis to pinpoint vulnerabilities in the IT infrastructure and assess compliance with internal policies and regulatory requirements. The audit process should encompass testing security systems and processes, examining access logs, and ensuring adherence to data protection laws. The discoveries from these audits offer essential insights for enhancing security practices.
Properly document all processes
Organizations must maintain comprehensive documentation for cybersecurity audits. Documentation includes records of security policies, audit trails, employee training sessions, incident response efforts, updates to security infrastructure, and the reasons behind those changes. Detailed records support compliance during audits and assist in identifying the cause of a security breach.
Remediate identified gaps
After conducting internal audits, you’ll need to address any security gaps or weaknesses promptly. Prioritize plans to remediate these issues based on their impact and likelihood, allocating resources accordingly. This process may involve deploying additional security measures or physical security improvements, updating outdated systems, or enhancing existing protocols. Timely remediation is crucial to avoid potential security incidents and maintain compliance with cybersecurity standards.
Review and revise regularly
Cybersecurity is an ongoing process rather than a one-time effort. It is crucial to regularly review cybersecurity practices and policies to keep up with new developments and emerging threats. This continued practice involves updating risk assessments, revising policies, and refining security measures. By regularly revising these aspects, an organization can maintain its cybersecurity resilience and compliance, enabling it to adapt to new challenges as they arise.
Streamline your organization’s cybersecurity audit process with UpGuard
Stay ahead of upcoming cybersecurity audits by ensuring your organization maintains a consistent security posture. UpGuard’s cybersecurity management products offer comprehensive insights into your organization’s attack surface and third-party risk management.
UpGuard BreachSight illuminates your organization’s external attack surface, allowing you to discover and remediate risks ten times faster with continuous monitoring capabilities. Additional features include:
- Real-time scanning: Don’t accept an incomplete or lagging picture of your attack surface. Protect your domains, IP, and external assets with real-time scans.
- Instant alerts: Be alerted the moment a vulnerability is detected. Receive notifications where your team works, whether Jira, Service Now, or another platform like Slack.
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UpGuard Vendor Risk provides complete visibility of your third-party risk, helping you identify vendor risks sooner and complete risk assessments twice as fast. Additional Vendor Risk features include:
- Constant vendor monitoring: You'll be alerted whenever a third or fourth party's security posture changes. Continuous monitoring ensures you’re always the first to know.
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- End-to-end workflows: Forget spreadsheets and stale data. Transform your processes with a single platform for identifying and managing risk mitigation.
