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Introduction

Usage of technology nowadays is inevitable, the majority of manual processes and tasks have been digitalised. This can also be seen in businesses, majority of them are either tech-based or heavily dependent on technology. Technology and digitalisation have become an inseparable part of our lives. However, how safe and secure these systems are still a matter of concern. Therefore independent audits and certification of these systems become essential. Such checks are also done to ensure compliance with applicable laws and regulations. In order to examine whether the built-in technology is efficient and whether it can be trusted, a technology audit is required.

Who can do a Technology Audit?

Cert-In (Computer Emergency Response Team) is the primary authority in India for any issues relating to technology and computer security. Moreover, this authority is also responsible for authorising and licensing professional system auditors and their empanelment including system auditor agencies. Therefore any technology audit should be undertaken only by Cert-In empanelled auditors or prescribed agencies.

Need For Technology Audit

1. A technology audit can be an upfront requirement by a regulator or maybe the need of the business, which can be ordered by the management of the business. Under this audit security audit of web applications, mobile applications, networks and API etc is included. In order to significantly reduce the risk of damaging or corrupting the data of the business, data security becomes essential. Major parts of technological audits are — Information Security Audit, Cyber Audit and Compliance Audit.

2. Technology Audits may even be required by third parties such as in cases of API integration business, the integration policy of the partnering business may require a technology audit and vice versa.

3. Generally, when a business wants to improve by using technology or digitalisation, a technology audit is conducted. Moreover, finance businesses with a technological twist can usually be seen doing technology audits in order to secure their systems and comply with various regulations.

Mandatory System Audit

As specified above sometimes businesses are required to mandatorily conduct a system audit. Businesses on which mandatory system audits apply are as follows:

• Payment Gateways
• Payment Aggregators
• NBFC – P2P (Peer to Peer)
• NBFC – AA (Account Aggregator)
• Insurance Web Aggregator
• Brokers and Prepaid Payment Instruments (PPIs)

Any business accepting payments through a webpage also needs to obtain PCI-DSS certification, to comply with the data security laws of the country. Besides upfront audit requirements, such businesses are also mandated to conduct subsequent audits after reasonable intervals and submit the audited reports within the stipulated time to the authorities.

Minimum Required Technology Audits

Technology audits can be of various types and can have a variety of parameters. However, there are some minimum required technology audits, which are as follows:

• ISO Audit
• PCI-DSS Audit
• Third-Party Risk Management Audit
• GAP assessment service
• Cloud Services
• SOC solutions
• Firewall services
• IoT Device testings
• Vulnerability Assessment
• Forensic Analysis
• Endpoint security solutions

Benefits of Technology Audits

It offers numerous benefits for fintech sector businesses, which are as follows:

1. Such audits help in identifying vulnerabilities and threats to the technology of the business. Which enables the business to strengthen its system and prevent cyber attacks.

2. Audits ensure that businesses comply with relevant laws and regulations, such as PCI-DSS for payment security, thereby avoiding hefty legal penalties and other legal actions.
3. By assessing potential risks, technology audits help businesses implement proactive measures to mitigate risks, reducing the likelihood of data loss, fraud, and cyber attacks.

4. Audits provide insights into the effectiveness of current technology systems and processes, highlighting areas for improvement and optimization, which can lead to increased efficiency and productivity.

5. Frequent technology audits at reasonable intervals demonstrate the commitment of the business towards the security of customers’ data and compliance which enhances the overall reputation of the company and helps build trust with clients, stakeholders and regulatory bodies.

6. These Audits provide valuable feedback which can be used to make technology strategic. Which will help businesses to align their IT strategies with their business goals.

Conclusion

In conclusion, technology audits are important for safety, security and regulatory compliance, especially for those businesses which are heavily dependent on technology. It is mandatory for businesses such as Payment gateways, aggregators, NBFCs, insurance web aggregators, brokers etc. Such mandatory audits help mitigate data leakage risks, ensure efficient technology, and fulfil legal obligations. Overall these audits are essential to mitigating vulnerabilities, gaining the trust of stakeholders and maintaining a secure, compliant and efficient technology infrastructure.