The Compliance Cheat Code: How to simplify Audits & Ensure Security

Introduction

Navigating compliance audits can be a daunting task for businesses, especially in highly regulated industries like finance and cybersecurity. With constantly evolving regulations such as NIST 800-53, PCI DSS, ISO 27001, and GDPR, organizations must stay ahead of compliance requirements to avoid fines and security breaches.

This guide introduces the Compliance Cheat Code—a strategic approach to simplifying audits and ensuring security compliance with minimal effort.

The Evolution of Compliance

Compliance regulations have rapidly evolved over the past two decades. The introduction of NIST 800-53 (Security and Privacy Controls for Information Systems and Organizations) brought structured security controls, while PCI DSS (Payment Card Industry Data Security Standard) established payment security standards. Later ISO 27001 (International Standard on Requirements for Information Security Management) became the global benchmark for information security, and GDPR (General Data Protection Regulation) introduced strict privacy laws with heavy penalties in the European Union.

For organizations operating in multiple jurisdictions, these overlapping regulations create complex compliance challenges, requiring a systematic approach to governance and security.

Companies operating in regulated industries face common compliance challenges including:

• Frequent Audits: Organizations may undergo multiple annual audits by regulatory bodies such as SEC, CFTC, FINRA, and internal SOX auditors.
• Time-Consuming Preparation: Audit documentation and interviews demand weeks of effort.
• Varying Security Requirements: Compliance frameworks differ, making it hard to standardize security controls.
• Unpredictable Auditors: Auditors may lack domain expertise, leading to lengthy explanations and unnecessary complications.

A Personal Journey

After seven years working as a government contractor, I was well-versed in nearly every governance framework imaginable. When I joined BATS, a pioneering electronic communications network (ECN) that later became a stock exchange, my two objectives seemed simple:

• Implement cybersecurity controls (before the term "cybersecurity" was even widely used).
• Ensure compliance with evolving SEC regulations.

Little did I know, the journey ahead would evolve in a whirlwind of compliance challenges. As BATS grew—expanding into European markets acquiring other exchanges—we found ourselves juggling over 13 audits per year from regulators like the SEC, CFTC, and FINRA, along with internal and external Sarbanes-Oxley (SOX) audits.

Each audit required weeks of preparation and endless interviews. At one point, my team spent more time on compliance than on improving security itself. But through trial and error, we developed a set of strategies—a "cheat code" of sorts—that transformed how we handle audits.

For example, one particularly grueling year, we faced a surprise audit from a newly formed regulatory group. They requested documentation for processes we had only just begun formalizing. Instead of panicking, we leaned into our structured approach, quickly mapping our existing controls to their requirements. That experience solidified the need for a clear, repeatable audit strategy—one that any company can use to navigate compliance with confidence.

To tackle these challenges, businesses need a strategic and repeatable compliance framework—enter the Compliance Cheat Code.

The Compliance Cheat Code

The Compliance Cheat Code is a proven method for simplifying compliance audits while ensuring security and regulatory adherence. It consists of three key strategies:

1. The Matrix: Mapping Compliance Requirements

One of the most powerful tools we developed was a compliance matrix. We mapped every policy and procedure to specify regulatory requirements, cross-referencing multiple frameworks.

What It Is: A structured compliance matrix that aligns security policies and procedures with specific requirements:

How It Works:

• Create a spreadsheet listing all applicable regulations (e.g., NIST 800-53, PCI DSS, ISO 27001, GDPR, SOX).
• Map each regulation's requirements to existing company policies and procedures.
• Cross-referencing documentation to provide auditors with a clear, visual representation of compliance efforts.

Benefits:

• Reduces audit preparation time.
• Standardizes compliance responses.
• Improves audit success rates.

At first, auditors were skeptical of this. But when they saw how we had translated complex requirements into an easy-to-follow visual representation, it changed everything. Instead of scrambling to explain how we met each rule, we could confidently show them where each requirement was documented and implemented.

2. Set Traps: Managing Audit Findings Proactively

Early in my career, my mentor at BATS gave me invaluable advice: auditors expect to find issues. If they don't, they haven't done their job. Instead of trying to hide every weakness, we took control of the process by proactively conducting internal security reviews to identify areas where we could improve and create remediation plans in advance.

What It Is: A method to guide auditors toward known compliance gaps and create documented remediation plans.

How It Works:

• Conduct internal security assessments before audits.
• Identify minor compliance gaps and create documented remediation plans.
• Transparently present these known issues to auditors.

One time, an auditor flagged an outdated security control that we had already scheduled for an upgrade. Because we had a remediation plan documented, their "finding" required no additional effort on our part, and we avoided unnecessary scrutiny in other areas.

Benefits

• Demonstrates proactive security management.
• Prevents surprise findings from auditors.
• Builds trust with regulatory bodies.

3. Answer the Question: Keeping Audit Responses Precise

Auditors aren't looking for long-winded explanations. The key to passing audits smoothly is to answer only what is asked—nothing more, nothing less.

What It Is: A communication strategy that ensures audit responses are direct and to the point.

How It Works:

• Only answer the specific question asked.
• Avoid the "but," i.e. avoid volunteering unnecessary details.
• Never speculate—if uncertain, state that you will verify the information.

Here's a real conversation I had with an auditor:

Auditor: Do you have a risk assessment policy?

Me: Yes.

(Awkward silence).

Auditor: Can I see it?

Me: Yes.

This went on for several more questions. The auditor was visibly frustrated, but I had done nothing wrong. The moment you start over-explaining, you risk giving them more to scrutinize.

Benefits:

• Prevents over-explaining and exposing additional audit risks.
• Keeps audits focused and efficient.
• Reduces unnecessary scrutiny.

How Tenfold Security Can Help

At Tenfold Security, we simplify compliance with our Real-Time Risk Platform, which:

• Maps compliance documentation across 15+ regulatory frameworks.
• Provides ready-to-use policies and procedures for multiple governance standards.
• Identifies compliance shortfalls and security risks in real time.

With Tenfold Security, you can streamline compliance efforts, reduce audit stress, and stay ahead of evolving regulations.

Final Thoughts

Audits don't have to be painful. By leveraging the Compliance Cheat Code, businesses can simplify compliance, reduce preparation time, and improve audit success rate. Implementing a compliance matrix, proactively managing audit findings, and answering questions with precision will transform your audit experience.