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

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.
This research contributes both theoretical advancements in cloud security auditing
and practical implementation guidelines for financial institutions navigating digital transformation while maintaining robust information systems governance and
regulatory compliance