Checklist for Cloud Compliance Audits 2025

Cloud compliance in 2025 is more complex than ever. With stricter regulations like the EU AI Act and soaring GDPR fines (€2.7 billion in 2024), UK businesses must rethink their strategies. Here’s what you need to know to prepare for cloud compliance audits effectively:

• Shared Responsibility: You can’t rely solely on cloud providers. Businesses must manage third-party risks and ensure compliance themselves.
• Key Focus Areas: Governance frameworks, access controls, data protection, and monitoring cloud provider compliance are essential.
• High Stakes: 85% of UK businesses are adapting their compliance strategies, and 71% plan AI audits by 2027.

Summary of Steps:

1. Prepare: Define audit objectives, gather documentation, and assign roles.
2. Governance: Review and update policies to match regulations.
3. Access Control: Use MFA, RBAC, and credential rotation.
4. Data Protection: Classify, encrypt, and prevent data loss.
5. Provider Compliance: Verify certifications and shared responsibilities.
6. Fix Issues: Record findings, prioritise fixes, and continuously improve.

Quick Tip: Stay proactive. Regularly update policies and monitor regulatory changes to avoid penalties and ensure smooth audits.

Google Cloud: Data Protection and Regulatory Compliance (Cloud Next ‘19 UK)

Step 1: Preparing for the Audit

Getting ready for an audit is all about laying a strong foundation. Proper preparation ensures you're not just ticking boxes for compliance but actually identifying gaps and improving processes. Without a clear plan, the audit risks becoming a wasted effort.

Define Objectives and Scope

Start by defining the audit's purpose and scope to align it with your business goals[4]. For example, you might focus on international compliance to support global expansion or check security controls after moving to the cloud.

Set measurable goals, like confirming compliance with UK GDPR Article 32, and keep the scope realistic based on the resources you have[3]. A well-defined scope and clear objectives not only keep costs under control but also ensure the audit stays focused.

Document everything in an audit charter. This formal document should outline the scope, objectives, boundaries, key stakeholders, required resources, and any constraints[3]. It helps avoid scope creep and ensures everyone knows what’s being assessed. Include the compliance standards most relevant to your industry, whether that’s ISO 27001, SOC 2, or sector-specific rules like PCI DSS.

Gather Documentation

Collecting the right documentation is key to spotting gaps and confirming your policies are up to standard. For cloud compliance, this means gathering materials that cover your procedures, controls, and processes to ensure cloud-based assets meet all relevant regulations and standards[5].

Look for documents that detail your cloud architecture, access controls, data classification methods, incident response plans, and reports from your cloud service provider (CSP)[5]. Major CSPs like AWS, Microsoft Azure, and Google Cloud Platform (GCP) offer online compliance portals where you can verify their certifications and standards[5].

Make sure your CSP is holding up their side of the shared responsibility agreement. Collect evidence such as certifications, security attestations, and compliance reports from them[5]. This step is crucial for due diligence and understanding who is responsible for what.

Assign Roles and Responsibilities

Build a skilled team and clearly define everyone’s role using a RACI matrix[2]. Include key players from leadership, compliance, legal, IT, and risk management. If necessary, provide training to ensure the team is ready for the task[2].

Communicate the scope and each role to all stakeholders[3]. Everyone needs to be on the same page to ensure a smooth process.

For additional expertise, you can turn to organisations like Hokstad Consulting, which specialise in aligning cloud strategies with industry standards. Their tailored advice can be a valuable asset during preparation.

Step 2: Checking Policies and Governance

After preparing for your audit, the next step involves assessing how well your organisation's cloud usage aligns with internal policies and external regulations. This stage is crucial for ensuring that your organisation has a solid framework in place to effectively manage cloud resources while meeting compliance requirements. Strong policies and governance lay the groundwork for a smoother audit process by establishing clear and enforceable standards.

Review Cloud Governance Frameworks

A robust cloud governance framework should cover every stage of the cloud resource lifecycle, from provisioning to decommissioning. During the audit, you’ll need to evaluate whether your framework addresses four key areas: compliance and risk management, data management, financial management, and operations management [7].

Check that your policies assign clear ownership and accountability for each cloud resource [6]. Governance policies should also align with broader organisational goals, such as managing costs effectively or improving customer satisfaction [6].

Standardised configurations and automation in deployments are essential to avoid configuration drift [6]. This ensures consistent security controls across your cloud environment and reduces risks tied to misconfigurations.

Your framework should also rely on centralised monitoring for full visibility into your cloud resources [7]. Additionally, verify that your organisation uses automation tools - like CI/CD pipelines and Infrastructure as Code (IaC) - to enforce policies effectively [7].

Another important consideration is the governance model your organisation follows. Here are three widely used approaches, each offering distinct benefits:

Keep Policies Current

Having strong policies is only half the battle - they need to stay relevant. The regulatory landscape evolves quickly, and your policies must keep pace. During the audit, confirm that your organisation has a formal review process to ensure policies are updated regularly to reflect changes in business needs, security threats, and compliance requirements [9].

Make sure there’s a documented review schedule for tracking service changes and scheduling updates [6]. Your legal team should actively interpret complex regulations to ensure policies remain up to date [1].

Another key step is verifying the use of tools that record timestamps and track policy changes. This provides a clear audit trail, documenting when updates were made and why [1]. Regular internal audits should also be conducted to refine policies, eliminate outdated practices, and address any gaps in security or operations [7]. These reviews should happen independently of external compliance audits to maintain continuous improvement.

Finally, confirm that your organisation stays informed about industry-specific regulations and certifications relevant to your business [8]. This is increasingly important, as over two-thirds of SaaS buyers now demand proof of compliance before signing contracts [1].

Make Policies Accessible

Even the best policies are ineffective if they’re not easily accessible to stakeholders. The audit should verify that your organisation has a centralised repository where stakeholders can access the latest versions of policies and related documents [10].

Ensure the language used in policy documents is consistent and standardised, making them easier to understand across departments [10]. Access controls should also be in place to ensure that all relevant stakeholders - especially new team members - can access the policies they need as part of their onboarding process [10].

Policies should act as clear, authoritative references. Stakeholders should be able to quickly find answers to compliance questions without confusion about which policy version applies or where to locate specific guidance [10].

For organisations looking to strengthen their governance frameworks, consulting experts like Hokstad Consulting can provide guidance on aligning policies with industry standards while keeping them practical and enforceable in complex cloud setups.

Step 3: Managing Access Controls and Identity

After establishing your policies and governance framework, the next step is to ensure that only authorised individuals can access your cloud resources. This is where identity and access management (IAM) becomes crucial. Auditors will closely examine how well your organisation restricts access and manages permissions. Strong access controls not only enhance security but also play a key role in achieving audit compliance.

Require Multi-Factor Authentication (MFA)

Enforcing multi-factor authentication (MFA) across all cloud accounts, especially for privileged users, is non-negotiable. MFA adds an extra layer of protection by requiring an additional verification step beyond a password. This significantly reduces the risk of unauthorised access, even if passwords are compromised. Choose authentication methods that balance security and user convenience, and apply Conditional Access for sensitive operations.

To maximise effectiveness:

• Educate users on proper MFA practices.
• Enable self-service password resets integrated with MFA.
• Regularly monitor your MFA setup through dashboards to spot any vulnerabilities.

Use Role-Based Access Control (RBAC)

Once MFA is in place, Role-Based Access Control (RBAC) becomes essential for managing permissions in complex cloud environments. RBAC operates on the principle of least privilege, granting users only the access they need for their specific roles. This approach not only reduces the risk of breaches but also simplifies compliance with regulations like GDPR, HIPAA, and SOC 2.

Here’s why RBAC matters:

• It can lower security incidents by up to 75% [12].
• Breaches involving malicious insiders cost organisations an average of $4.99 million [11].

To implement RBAC effectively:

• Clearly document roles and permissions.
• Use automation tools, such as Infrastructure as Code (IaC), for consistent and auditable role management.
• Group users by teams or departments to simplify access control processes.

Monitor and Rotate Credentials

Credential management is a high-risk area in cloud security. Statistics show that credential theft is involved in 49% of cyberattacks, with phishing responsible for 68% of breaches and 59% of organisations failing to revoke credentials when necessary [13]. To mitigate these risks, regular auditing and rotating of credentials is essential, ideally through an automated schedule.

Key practices include:

• Monitoring login activity for unusual behaviour, such as access from unexpected locations or repeated failed attempts.
• Enforcing strong password policies, including complexity, length, and expiration rules.
• Implementing just-in-time (JIT) access to minimise the time credentials are active.
• Carefully managing account provisioning and de-provisioning to ensure unused credentials are promptly revoked.

Weak or reused passwords significantly increase the likelihood of breaches, so strengthening credential policies is critical.

For organisations with intricate cloud setups, working with experts like Hokstad Consulting can simplify the process of implementing effective identity and access management. A well-executed access control strategy not only bolsters security but also ensures compliance, reducing the likelihood of unauthorised access and supporting audit success.

Step 4: Securing Data and Protection

Once you've established strong access controls, the next step is safeguarding your data. This involves classifying, encrypting, and preventing unauthorised access to sensitive information. Alarmingly, 45% of companies have reported cloud breaches [20]. Auditors will closely examine how effectively your organisation manages these aspects. But remember, protecting your data isn't just about passing audits - it's about ensuring the longevity and security of your business.

Classify and Protect Data

A solid data protection strategy starts with data classification. This process involves identifying, categorising, and labelling data based on its sensitivity and the risks associated with exposure [16]. Without this step, your data remains vulnerable.

Pay special attention to personally identifiable information (PII), protected health information (PHI), and financial data, as these are subject to strict regulations under frameworks like GDPR, HIPAA, and PCI DSS [17]. Implement policies that continuously monitor and validate data against your organisation's security standards. Regularly scan for new sensitive data to ensure it is classified and protected from the moment it is discovered [15]. Using a sensitive data discovery tool can automate this process, helping you locate and secure sensitive data across your cloud infrastructure [14].

Real-world events highlight the importance of getting this right. For instance, in December 2021, a ransomware attack targeting Kronos, a service provider for Puma, exposed sensitive data of over 6,000 Puma employees. This breach occurred within the Kronos Private Cloud environment, underscoring the risks of inadequate data classification [14].

Encrypt Data at Rest and in Transit

Encryption acts as your last line of defence against unauthorised access. To be effective, encryption should cover all three states of data - at rest, in transit, and in use [18]. This layered approach ensures that even if attackers bypass your perimeter defences, they cannot access the actual data.

For data at rest, use AES-256 encryption. Most cloud providers, including AWS, Azure, and Google Cloud, offer encryption key management services like AWS KMS, Azure Key Vault, and Google Cloud KMS. These services include hardware security modules (HSMs) for enhanced key protection [19].

Data in transit also requires robust encryption. Use strong protocols like TLS 1.2 or 1.3, IPsec, and SSH [19]. Secure all network connections with VPNs, SD-WAN, or private links to further protect data during transmission [19]. Don't forget to encrypt email communications, especially when handling sensitive attachments [18].

Experts stress the importance of proper configuration and continuous monitoring to maintain effective encryption practices [14].

Set Up Data Loss Prevention (DLP)

Data Loss Prevention (DLP) systems are critical in protecting against both accidental and intentional data exposure. With insider-caused security incidents increasing by 47% since 2018 and the average cost of such threats rising to £9.2 million annually [21], DLP is no longer optional - it's essential.

Prioritise your data based on its potential impact and establish DLP policies that define sensitive data types, set access levels, and provide clear remediation steps [21][22]. Train employees to understand the risks of uploading data to the cloud and offer ongoing guidance to minimise accidental data loss [14][21].

To improve accuracy, use exact data matching and create custom identifiers unique to your organisation. This ensures your DLP system recognises sensitive data patterns specific to your business [21]. Start by applying DLP measures to a subset of critical data, and gradually expand coverage as your approach matures [21].

Modern DLP solutions should integrate with cloud access security brokers (CASBs) to provide comprehensive visibility and control across your cloud environment [22]. Leverage artificial intelligence and machine learning for anomaly detection, enabling you to spot unusual data access patterns that might signal a security incident [22].

Modern leak prevention needs a layered approach that combines reliable technology, smart policies, and trained users. These practices create a strong shield against threats from inside and outside the organisation. Your business productivity stays intact while the system protects your data.

For organisations with complex cloud infrastructures, working with specialists like Hokstad Consulting can simplify the process of implementing robust data protection strategies. Their expertise ensures your security measures not only meet audit requirements but also adapt to your organisation's growth.

Step 5: Checking Cloud Provider Compliance

Ensuring your cloud provider meets compliance standards is a crucial step in maintaining secure and reliable operations. This process builds on your internal compliance efforts and ensures that your provider can support your organisation's regulatory needs and audit goals. With more than two-thirds of SaaS buyers now demanding proof of compliance before signing contracts [1], this has become a key consideration for business success.

Given the rising penalties for non-compliance - such as the €2.7 billion in GDPR fines recorded in 2024 [1] - evaluating your provider's compliance is essential for avoiding regulatory pitfalls. After all, your cloud provider's compliance measures are a cornerstone of any robust cloud security strategy.

Check Provider Certifications

Certifications are a great starting point for assessing a cloud provider's compliance readiness. These credentials show that the provider has undergone third-party evaluations and adheres to recognised security and compliance standards. Focus on the certifications most relevant to your industry and regulatory environment. For instance, SOC 2 and ISO 27001 are widely recognised, but their importance depends on your location and market. ISO 27001 is more prevalent outside the US, while SOC 2 is a common requirement for companies working with US-based clients [23]. Providers with both certifications can offer more flexibility for organisations operating across multiple regions.

Leading cloud providers like Oracle and Microsoft Azure maintain extensive certification portfolios tailored to specific regions and industries. Oracle Cloud Infrastructure, for example, holds certifications in frameworks such as CSA STAR, ISO/IEC 27001, ISO/IEC 27017, SOC 1, SOC 2, FedRAMP, HIPAA, and Cyber Essentials [26]. Similarly, Microsoft Azure covers global standards like the CIS benchmark and CSA STAR, alongside region-specific and industry-focused certifications such as GDPR, FedRAMP, HIPAA, and HITRUST [24].

When reviewing certifications, pay attention to their scope and relevance. For example, ISO 27001 provides a comprehensive risk management framework, while Cyber Essentials focuses on technical controls [25]. Additionally, ISO 9001 addresses quality management systems, which is distinct from the information security focus of ISO 27001 [25].

Ensure that certifications are up-to-date and apply to the specific services you plan to use. Providers often have different certification levels across their offerings, so confirm that your chosen services fall within the certified scope. Once this is verified, it's important to understand how security responsibilities are divided under the shared responsibility model.

Understand the Shared Responsibility Model

The shared responsibility model outlines which aspects of security and compliance are managed by the provider and which are your responsibility. In simple terms, the provider secures the infrastructure, while you’re responsible for securing what you put on it. As Amazon Web Services explains, Security and Compliance is a shared responsibility between AWS and the customer [27].

The division of responsibilities depends on the type of service you’re using:

Regardless of the service model, you’re always responsible for data security, access controls, and compliance. This includes managing identity access (IAM), user credentials, endpoint and network security, and safeguarding workloads, configurations, APIs, and middleware [29].

Carefully review your Service Level Agreement (SLA) to identify any grey areas and clarify where your responsibilities begin. With 99% of cloud-security failures predicted to result from customer-side issues by 2025 [28], understanding your role is critical.

Beyond responsibilities, evaluate the advanced security features your provider offers to enhance compliance efforts.

Review Provider Security Features

Cloud compliance tools can significantly lighten the security workload, reducing it by up to 30% [31]. These tools are particularly valuable for organisations aiming to streamline compliance management.

AI-powered security features are gaining traction, with 63% of security professionals reporting that AI improves threat detection and response [30]. Additionally, 55% of organisations planned to adopt generative AI solutions for cloud security in 2024 [30]. These tools enable real-time threat analysis and automated responses to emerging risks.

Cloud Security Posture Management (CSPM) solutions are another critical feature. They monitor cloud environments continuously, identifying misconfigurations and offering automated remediation suggestions to prevent compliance breaches.

Zero Trust Architecture (ZTA) is also becoming a standard. By requiring continuous authentication and limiting access, ZTA helps reduce the attack surface. Look for providers that include multi-factor authentication, conditional access policies, and granular permission controls as standard offerings.

Data encryption is another area to scrutinise. Providers should offer advanced encryption for data at rest, in transit, and increasingly, in use. AI-driven key management and post-quantum encryption (PQC) capabilities are also worth considering as these technologies evolve.

Integrating security into your software development lifecycle through DevSecOps can simplify compliance further. Providers that offer native integration with development tools and automated security scanning can help embed security throughout the development process.

When assessing compliance platforms, ensure they align with key regulations like GDPR, HIPAA, PCI-DSS, and CCPA. These platforms should integrate seamlessly with your existing cloud setup and adapt to specific data privacy requirements. Automated data classification and monitoring capabilities are also essential [30].

Some providers go a step further by offering tools to streamline compliance reporting. For instance, Oracle provides advisories to guide customers in implementing technical controls and assessing the suitability of its services [26]. These features can be particularly helpful during audits.

If your organisation operates in a multi-cloud environment, consider working with specialists like Hokstad Consulting. Their expertise in cloud infrastructure can help you navigate provider compliance requirements while optimising operational efficiency.

Step 6: Recording and Fixing Audit Findings

Once your preparation and compliance checks are complete, the final step in the audit process is to record and resolve any findings. Addressing these issues quickly is essential for turning weaknesses into actionable improvements. With predictions indicating that 99% of cloud breaches by 2025 will result from avoidable user errors or misconfigurations [34], acting on identified gaps is critical for maintaining both security and compliance.

Neglecting proper documentation can also lead to hefty regulatory penalties, so thoroughness is non-negotiable.

Create a Remediation Plan

Start by prioritising vulnerabilities and crafting a detailed remediation plan. This should include a gap assessment, root cause analysis, a clear list of remediation actions, assigned responsibilities, monitoring strategies, and preventative measures for future improvements [32]. Not all gaps are created equal - focus first on high-risk vulnerabilities that could compromise critical assets.

For instance, past breaches have shown that failing to prioritise vulnerabilities properly can leave essential systems exposed. When assigning tasks, set clear deadlines and ensure accountability. Given that security teams can take up to 145 hours (around six days) to address a single security alert [34], realistic timeframes are crucial. Decide whether manual or automated remediation is more suitable for each case. While manual efforts bring human expertise, they may struggle with high volumes. On the other hand, automation offers efficiency but risks applying changes without full context [34].

Keep Detailed Records

Accurate and organised documentation is at the heart of effective compliance management. Record every step of the process, from your audit plan and procedures to findings and any deviations from the original approach. Documenting evidence promptly ensures accuracy and avoids losing critical details.

Use the five C's framework to structure your observations: criteria, condition, cause, consequence, and corrective action plans. This method ensures consistency and clarity across all findings. Cross-reference your observations with audit objectives, standards, and assertions to make it easy for regulators or internal stakeholders to trace evidence back to its source. Including a reference section and appendices can also help keep your reports clear and concise.

Maintaining a thorough audit trail and conducting regular reviews ensures transparency and accountability. This is especially important as 77% of organisations report insufficient visibility into their cloud environments [33]. To identify any blind spots, consider involving someone unfamiliar with the audit alongside a representative from the audited department. Always present facts objectively and provide clear, actionable recommendations.

These detailed records serve as a foundation for ongoing improvements.

Focus on Continuous Improvement

Building on your remediation and documentation efforts, continuous improvement is key to refining your compliance strategy over time. Use audit outcomes to update policies, fine-tune procedures, and improve training programmes. Regular monitoring and adjustments ensure your compliance efforts remain effective and adaptable.

Schedule regular risk assessments to identify and prioritise compliance risks before they escalate. Develop mitigation strategies for these risks and adapt your monitoring processes to address new threats, ensuring your approach evolves alongside changing regulations.

Employee training is another critical component. Conduct regular sessions on compliance requirements and best practices, and use simulations like phishing tests to reduce human error - a common cause of compliance issues.

Consider leveraging automation tools for tasks like document management and version control. These tools can help keep documentation current while reducing the manual workload on your team. However, maintaining human oversight ensures accuracy and proper context.

If your organisation operates in a complex multi-cloud environment, working with experts like Hokstad Consulting can simplify remediation efforts. Their expertise in optimising cloud infrastructure can help you achieve compliance while improving operational efficiency.

Finally, remember that compliance is a shared responsibility. It requires collaboration and commitment from everyone who interacts with cloud resources, not just the security team. Engaging all stakeholders ensures a unified approach to maintaining compliance and security.

Conclusion: Staying Ahead in Cloud Compliance

Navigating cloud compliance requires ongoing attention and a well-defined strategy. While the six steps outlined earlier provide a solid starting point, maintaining compliance in 2025 and beyond means staying ahead of changing regulations and advancements in cloud technology.

A critical part of this process is proactive monitoring. Subscribe to regulatory updates and stay connected with industry groups to ensure you're informed about the latest changes. Tools from the RegTech space, which automate regulatory updates and offer compliance monitoring and reporting capabilities, can significantly reduce manual effort while keeping you aligned with legal requirements.

Alongside monitoring, it's essential to regularly update your compliance policies. As regulations evolve, your policies must adapt to reflect these changes. This ensures your organisation remains compliant and avoids unnecessary risks.

Collaboration and networking within your industry can also make a significant difference. Trusted online resources like blogs, forums, and publications dedicated to compliance topics often provide valuable insights into legislative updates. Internally, foster a culture where employees feel encouraged to share their observations. Those working hands-on with cloud systems often spot potential compliance issues before they grow into larger problems.

For organisations operating in multi-cloud environments, working with specialised partners can simplify compliance efforts. Collaborating with experts such as Hokstad Consulting ensures you can maintain compliance without disrupting your day-to-day operations.

In the end, cloud compliance is a journey of continuous improvement. Set up custom alerts to track regulatory changes, court rulings, and relevant updates. Build relationships with legal professionals who specialise in your sector’s regulations to stay informed of major developments.

A strong compliance programme doesn’t just keep you aligned with regulations - it strengthens security, boosts operational efficiency, and builds trust. By following the steps in this checklist and committing to regular monitoring and updates, your organisation can confidently navigate the complexities of cloud compliance while maximising the advantages of cloud technology.

FAQs