Cloud Computing and the Shared Responsibility Model – An IT Audit Perspective

Introduction

Cloud computing has fundamentally transformed IT service delivery by offering scalability, flexibility, and cost efficiency. Organizations increasingly rely on cloud platforms such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud to host critical applications and sensitive data. However, while cloud adoption delivers significant business benefits, it also challenges traditional audit boundaries. Data and systems are no longer fully managed within organizational premises, and responsibilities are distributed between the cloud service provider and the customer. One of the most important emerging theories in cloud security addressing this challenge is the Shared Responsibility Model.

This post critically analyzes the Shared Responsibility Model from an IT audit perspective and explains how auditors evaluate controls, governance, and accountability in cloud environments.


Shared Responsibility Model

The Shared Responsibility Model defines how security and control responsibilities are divided between the cloud provider and the customer organization. Understanding this division is essential for effective IT auditing.

AWS Shared Responsibility Model

Under this model, cloud providers are responsible for securing the underlying infrastructure, including physical data centers, networking components, and virtualization layers. In contrast, organizations remain accountable for securing their data, managing user access, configuring cloud services correctly, and complying with regulatory requirements. From an IT audit perspective, misunderstanding these boundaries can result in critical control gaps.

Audit Implications

The Shared Responsibility Model significantly impacts how IT audits are planned and executed. Auditors must ensure that organizations clearly understand which security and control responsibilities they retain and which are managed by the cloud provider.

Key audit considerations include,

  • Clear understanding of responsibility boundaries, ensuring management is aware of its accountability for data protection and access control

  • Adequate vendor risk management, including due diligence during cloud provider selection and ongoing risk assessments

  • Existence of Service Level Agreements (SLAs) and third-party assurance reports that define security expectations and responsibilities

Auditors also evaluate whether cloud-related risks have been incorporated into the organization’s overall risk management framework and whether residual risks are acceptable.

Best Practice Example

Organizations using major cloud platforms such as AWS or Microsoft Azure often rely on independent assurance reports, including SOC 1, SOC 2, and SOC 3 reports, to support audit conclusions. These reports provide evidence that the cloud provider’s controls are suitably designed and operating effectively.

However, best practice does not involve relying solely on vendor reports. Leading organizations complement these reports with independent internal control reviews, configuration assessments, and periodic access reviews. IT auditors assess whether these combined assurance mechanisms provide sufficient evidence to support audit opinions regarding cloud security and compliance. 

Video Explanation- AWS Compliance -The Shared Responsibility Model
link- https://www.youtube.com/watch?v=U632-ND7dKQ



Governance, Risk, and Compliance (GRC)

Cloud environments require strong Governance, Risk, and Compliance (GRC) frameworks to maintain accountability and control. GRC emphasizes aligning IT operations with business objectives, managing risks systematically, and ensuring compliance with legal and regulatory requirements.

From an IT audit perspective, auditors evaluate whether cloud governance structures are clearly defined and effectively implemented. Key areas of assessment include,

  • Cloud security policies, covering acceptable use, data classification, and access management

  • Incident response procedures, ensuring timely detection, reporting, and remediation of cloud-related incidents

  • Business continuity and disaster recovery plans, confirming that cloud outages or failures do not disrupt critical operations

Auditors also assess whether governance frameworks align with recognized standards such as COBIT, ISO/IEC 27001, and regulatory requirements applicable to the organization.

Cloud Governance & GRC Framework



Conclusion

Cloud computing demands a paradigm shift in IT auditing. The Shared Responsibility Model highlights that while cloud providers secure the infrastructure, organizations remain accountable for data protection, access management, and compliance. IT auditors play a critical role in evaluating whether these responsibilities are clearly understood, effectively governed, and adequately controlled. By critically assessing shared responsibility, vendor risk management, and governance frameworks, auditors can help prevent security gaps and compliance failures in cloud environments.


References

  • AWS (2023). Shared Responsibility Model.
  • ISACA (2019). COBIT: Governance and Management of Enterprise IT.
  • ISO/IEC 27001 (2022). Information Security Management Systems.
  • Whitman, M. E., & Mattord, H. J. (2018). Principles of Information Security.

Comments

  1. W G Tharushi Buddhika26 January 2026 at 22:02

    Nice read, Dilhara! I found the explanation of the Shared Responsibility Model really helpful, especially from an IT audit perspective. In real-world cloud environments, where do you think organizations most commonly misunderstand their responsibilities, and how can IT auditors help prevent those gaps?

    ReplyDelete
    Replies
    1. J W Sachini DIlhara3 February 2026 at 10:45

      Thank you so much, Tharushi! That’s a great question. I think organizations most commonly misunderstand responsibilities around data protection, access management, and cloud configuration settings. Many assume the provider handles everything, but customers are still responsible for securing what they place in the cloud. IT auditors can help by reviewing SLAs, performing configuration audits, and ensuring governance policies clearly define accountability to prevent control gaps.

      Delete
  2. Rangi Madhushika30 January 2026 at 06:56

    A very clear and well-structured post. I like how you explained the Shared Responsibility Model from an IT audit perspective and highlighted where accountability shifts between the cloud provider and the organization. The focus on vendor risk management and governance frameworks makes this highly practical.

    ReplyDelete
    Replies
    1. J W Sachini DIlhara3 February 2026 at 10:45

      Thank you, Rangi! I really appreciate your feedback. I’m glad you found the post well-structured. Vendor risk management and governance are definitely key areas auditors must focus on when cloud responsibilities are shared between providers and organizations.

      Delete
  3. Tharushi Nishadi30 January 2026 at 07:21

    Well explained! I like how you highlighted the importance of the Shared Responsibility Model in cloud computing and the role of IT auditors in ensuring accountability. The focus on governance, vendor risk management, and control effectiveness clearly shows how IT audit helps prevent security gaps and compliance issues in cloud environments.

    ReplyDelete
    Replies
    1. J W Sachini DIlhara3 February 2026 at 10:46

      Thank you so much, Nishadi! I’m happy you liked the explanation. I agree that IT auditors play an important role in ensuring accountability, control effectiveness, and compliance so that cloud adoption does not create security gaps.

      Delete
  4. Kavishka Arunoda30 January 2026 at 07:27

    This is an excellent and well-organized post. I appreciate how you broke down the concept clearly and provided practical insights, especially in highlighting key responsibilities and accountability areas. The emphasis on risk management and governance frameworks makes it very actionable for readers. Well done!

    ReplyDelete
    Replies
    1. J W Sachini DIlhara3 February 2026 at 10:47

      Thank you, Kavishka! I really appreciate your kind comment. I’m glad the breakdown of responsibilities and governance frameworks was helpful. Cloud environments require strong risk management, so your feedback means a lot.

      Delete
  5. Hasini Maheshika Dassanayake30 January 2026 at 08:32

    Excellent post! I really appreciate how you clearly explained the Shared Responsibility Model from an IT audit perspective. Highlighting accountability boundaries, vendor risk management, and governance frameworks makes this highly practical for organizations adopting cloud services.

    ReplyDelete
    Replies
    1. J W Sachini DIlhara3 February 2026 at 10:47

      Thank you very much, Hasini! I’m glad you found the post practical. Understanding accountability boundaries and focusing on vendor risk management are essential for auditors supporting organizations moving into the cloud.

      Delete
  6. Kavindu Mihisara30 January 2026 at 08:56

    This post effectively explains key cloud-related risks and control considerations. The reference to shared responsibility and cloud governance aligns well with IT audit practices, especially when assessing compliance and control effectiveness in cloud environments.

    ReplyDelete
    Replies
    1. J W Sachini DIlhara3 February 2026 at 10:48

      Thank you, Kavindu! I appreciate your thoughtful feedback. Yes, shared responsibility and cloud governance are central to IT audit practices, especially when evaluating compliance and ensuring control effectiveness in cloud-based systems.

      Delete
  7. Theekshana Gimhan30 January 2026 at 09:03

    Great article! I like how you’ve explained the shared responsibility model in cloud computing—it’s a critical reminder that security and compliance are not fully outsourced to providers. The way you highlighted the division of responsibilities between cloud vendors and customers makes the risks and audit challenges very clear.
    Your point about auditors needing to evaluate both provider controls and customer practices is especially important. It shows how IT audit must adapt to ensure accountability in cloud environments.

    ReplyDelete
    Replies
    1. J W Sachini DIlhara3 February 2026 at 10:48

      Thank you so much, Theekshana! I really appreciate your detailed reflection. I completely agree that security is not fully outsourced in the cloud, and auditors must evaluate both provider controls and customer practices to ensure accountability and reduce risk.

      Delete
  8. Madhushan Gunawardhane 30 January 2026 at 09:47

    Great article! The clear explanation of risk management, accountability, and governance frameworks makes complex concepts easy to apply.

    ReplyDelete
    Replies
    1. J W Sachini DIlhara3 February 2026 at 10:49

      Thank you, Madhushan! I’m glad you found the explanation clear and applicable. Risk management, governance, and accountability are critical in cloud auditing, so I appreciate your comment.

      Delete
  9. Kavindi Malsha30 January 2026 at 14:15

    This was a very helpful post. The explanation of the Shared Responsibility Model and its audit implications made cloud security much easier to understand.

    ReplyDelete
    Replies
    1. J W Sachini DIlhara3 February 2026 at 10:49

      Thank you so much, Kavindi! I’m happy the post helped make the Shared Responsibility Model easier to understand. Cloud security becomes much clearer once responsibilities are properly distinguished.

      Delete
  10. Madushan30 January 2026 at 21:16

    You’ve clearly explained the Shared Responsibility Model and highlighted an area that’s often misunderstood in cloud environments. I especially liked the audit perspective on customer responsibilities such as access management, data protection, and configuration controls — these are critical but frequently overlooked. This article is a helpful reminder that moving to the cloud doesn’t eliminate accountability; it changes it. Well done!

    ReplyDelete
    Replies
    1. J W Sachini DIlhara3 February 2026 at 10:50

      Thank you very much, Madushan! I really appreciate your insightful feedback. I agree that moving to the cloud doesn’t remove accountability-it simply shifts responsibilities, and auditors must ensure organizations manage access, configuration, and data protection effectively.

      Delete
  11. Shalitha30 January 2026 at 21:20

    A masterful guide to auditing in the cloud era. Your conclusion that 'misunderstanding these boundaries can result in critical control gaps' is the entire thesis of modern cloud security. This post provides the essential blueprint for auditors to move from a perimeter-based mindset to a responsibility-based one, ensuring the organization's accountability doesn't evaporate with its data center. Vital reading for any audit professional navigating cloud environments.

    ReplyDelete
    Replies
    1. J W Sachini DIlhara3 February 2026 at 10:51

      Thank you, Shalitha! I truly appreciate your thoughtful and detailed comment. I completely agree that cloud auditing requires a shift from a perimeter-based mindset to a responsibility-based approach. Understanding these boundaries is essential to prevent control gaps and maintain strong governance in cloud environments.

      Delete
  12. Sandishka Udeshika30 January 2026 at 22:49

    Well-explained and informative post. I like how you clearly describe the shared responsibility model in cloud computing and distinguish the roles of cloud service providers and customers. The emphasis on security, compliance, and risk management helps readers understand why clarity in responsibilities is critical in cloud environments. This blog provides a strong foundation for understanding cloud governance from an IT audit and control perspective.

    ReplyDelete
    Replies
    1. J W Sachini DIlhara3 February 2026 at 10:51

      Thank you, Sandishka! I’m glad you found the post informative. Clarity in shared responsibilities is critical for maintaining compliance, security, and trust in cloud environments, so I appreciate your feedback on the governance perspective.

      Delete
  13. Ashan Krishna Udawela3 February 2026 at 00:50

    Great article! I like how you explain that traditional periodic audits aren’t enough anymore — continuous auditing and ethical hacking are key in proactive risk management.

    ReplyDelete
    Replies
    1. J W Sachini DIlhara3 February 2026 at 10:52

      Thank you, Krishna! I appreciate your comment. Yes, traditional periodic audits are no longer enough, and continuous assurance approaches are becoming essential for proactive risk management in modern IT environments.

      Delete
  14. A.M.S.C.Kularathna3 February 2026 at 10:27

    Great article! The explanation of the Shared Responsibility Model in cloud computing really helped me understand how audit responsibilities are shared between service providers and customers. You made a complex topic easy to follow, and it shows why auditors must focus on governance and control gaps in cloud environments.

    ReplyDelete
    Replies
    1. J W Sachini DIlhara3 February 2026 at 10:52

      Thank you so much! I’m glad the post helped you understand the Shared Responsibility Model more clearly. Cloud auditing is very dependent on governance and identifying control gaps, so I appreciate your feedback.

      Delete
  15. Levanya Lohini3 February 2026 at 18:40

    Great explanation of the Shared Responsibility Model from an audit viewpoint. It clearly highlights why auditors must think differently about cloud environments compared to traditional on-premise systems

    ReplyDelete

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