The mandatory periodic auditing of data processing practices by an independent auditor for Significant Data Fiduciaries.
Under DPDPA Section 10(2), Significant Data Fiduciaries must undergo periodic data audits conducted by an independent Data Auditor. The audit evaluates compliance with the Act, the effectiveness of security safeguards, the accuracy of privacy notices, the handling of rights requests, and the adequacy of technical and organisational measures. Audit reports must be submitted to the Data Protection Board. The Board may also direct any Fiduciary to undergo an audit based on complaints received.
Even if you are not yet an SDF, maintaining audit-ready documentation and processes is essential. The Board can direct any Fiduciary to undergo an audit based on a complaint, and demonstrating audit readiness shows good faith during enforcement proceedings.
A designated SDF in the Indian financial services sector undergoes annual audit. The auditor reviews consent records (95% complete), breach response timelines (all within 72 hours), DSR responses (98% within 30 days), and DPA coverage (85% of processors). Gaps are reported to the Board with remediation timelines.
Audit requirements are not just for SDFs. The Board can direct ANY Data Fiduciary to undergo an audit if it receives a complaint or suspects non-compliance. Having audit-ready processes protects all organisations.
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