When auditing outsourced software development as an IS (Information Systems) auditor, several key

controls should be considered to ensure the integrity, confidentiality, and availability of the software
and associated data. Here are some important controls to include in the audit:

1. **Contractual Agreements**: Review the contractual agreements between the organization and the
outsourced vendor to ensure that security requirements, compliance standards, and service level
agreements (SLAs) are clearly defined.

2. **Vendor Selection Process**: Assess the organization's process for selecting outsourced vendors,
ensuring that due diligence is conducted to evaluate their security measures, past performance, and
adherence to relevant standards.

3. **Access Controls**: Evaluate access controls implemented by the outsourced vendor to restrict
access to sensitive data and systems only to authorized personnel. This includes measures such as user
authentication, role-based access control (RBAC), and segregation of duties (SoD).

4. **Data Protection**: Ensure that adequate measures are in place to protect data throughout the
software development lifecycle, including encryption, data masking, and data loss prevention (DLP)
techniques.

5. **Change Management**: Review the change management processes followed by the vendor to
ensure that changes to the software are properly controlled, documented, and tested to prevent
unauthorized modifications and minimize the risk of introducing vulnerabilities.

6. **Secure Development Practices**: Assess whether the vendor follows secure coding practices and
standards such as OWASP Top 10, SANS/CWE Top 25, and secure software development frameworks
(e.g., BSIMM, SAMM) to mitigate common security vulnerabilities.

7. **Vulnerability Management**: Evaluate the vendor's vulnerability management program to identify,

prioritize, and remediate security vulnerabilities in the software and underlying infrastructure in a timely
manner.
8. **Incident Response**: Ensure that the vendor has an effective incident response plan in place to
detect, respond to, and recover from security incidents involving the outsourced software or associated
systems.

9. **Compliance and Regulatory Requirements**: Verify that the outsourced software development
process complies with relevant industry regulations and standards, such as GDPR, HIPAA, PCI DSS, ISO
27001, etc.

10. **Audit Logging and Monitoring**: Assess the logging and monitoring capabilities implemented by
the vendor to track user activities, detect suspicious behavior, and facilitate forensic investigations if
security incidents occur.

11. **Disaster Recovery and Business Continuity**: Review the vendor's disaster recovery and business
continuity plans to ensure that appropriate measures are in place to minimize downtime and data loss in
the event of disruptions or disasters.

12. **Third-Party Risk Management**: Evaluate the organization's third-party risk management
program to assess and mitigate the risks associated with outsourcing software development, including
ongoing monitoring and assessment of vendor performance.

By focusing on these controls during the audit process, IS auditors can help ensure that outsourced
software development activities meet the organization's security and compliance requirements while
minimizing associated risks.