Cloud Computing and Information Systems Auditing Challenges in the Banking Sector: Ensuring Data Security, Access Control, and Audit Trails in Cloud Environments

Posted: Sep 10, 2024

• Hamza Shahbaz Ahmad
  University of Missouri Kansas City
• Usman Sheikh
  Institute of Business Administration (IBA)
• Rabia Qureshi
  COMSATS University Islamabad

Abstract

This research investigates the significant challenges and innovative solutions in Information Systems auditing as banking institutions increasingly migrate their operations to cloud computing platforms. Through comprehensive analysis of 173 financial institutions across global markets from 2021 to 2024, this study examines how banks ensure data security, maintain robust access controls, and preserve comprehensive audit trails in cloud environments. The research develops a novel Cloud Audit Maturity Framework (CAMF) that quantifies institutional readiness across technical, procedural, and governance dimensions. Empirical results demonstrate that banks with mature cloud audit frameworks experience 58% fewer security incidents and 47% better regulatory compliance outcomes compared to institutions with underdeveloped approaches. The study reveals that data encryption gaps account for 32% of cloud security vulnerabilities, while inadequate access management represents the most significant audit challenge. Findings indicate that successful cloud auditing requires specialized technical expertise, advanced monitoring tools, and collaborative governance models between banks and cloud service providers.