How to implement a GDPR compliance audit: Checklist and template

A GDPR compliance audit is an essential process that assesses how well an organization is adhering to the General Data Protection Regulation (GDPR). This audit is necessary for businesses that handle the personal data of EU citizens, ensuring that their data processing practices align with the law.  

A GDPR audit is essential when launching new data processes, reviewing existing practices, or responding to a potential data breach. This ensures that your organization remains compliant and avoids hefty penalties.

The primary reason for ensuring GDPR compliance is to protect individuals’ data and privacy while preventing breaches that could lead to severe financial penalties. Non-compliance could damage your organization’s reputation, result in significant fines, and harm consumer trust.  

This GDPR Audit Checklist helps organizations prepare for internal and external audits of GDPR compliance.

Principles of GDPR

A GDPR compliance audit helps organizations prepare for internal and external assessments of their data protection practices. It is vital for maintaining data privacy standards, reducing risks, and ensuring compliance with legal obligations.

GDPR revolves around principles designed to safeguard personal data, such as lawfulness, fairness, purpose limitation, data minimization, accuracy, storage limitation, and integrity. 

These principles focus on ensuring that data is collected responsibly, used appropriately, and stored securely. The regulation is specifically designed to protect individuals’ privacy and rights, giving them greater control over how their data is collected and used.

Lawfulness, transparency, and fairness

Data must be processed legally, fairly, and transparently.

• Use: This principle ensures that organizations process data only when there is a lawful basis to do so, including consent, contract necessity, legal obligations, legitimate interests, vital interests, or public tasks.
• Who uses: This principle applies to data controllers and processors who collect or manage personal data.
• When to use: This principle must be considered at the outset of any data processing activity and throughout its lifecycle to ensure ongoing legal compliance.
• Key metrics impacted: Compliance with legal frameworks, user consent rates, transparency reports, and risk assessments.

Purpose limitation

Data must be collected for specified, legitimate purposes and not processed beyond those purposes.

• Use: Organizations must specify the exact purpose for which data is collected and not process it for other, unrelated purposes without further consent or legal justification.
• Who uses: Data controllers and processors must adhere to this principle when collecting, storing, and processing data.
• When to use: This principle is integral to the initial collection of personal data and must be revisited whenever new purposes for data processing are introduced.
• Key metrics impacted: Purpose-specific data retention rates, data audit logs, data breach impact assessment, and consent management effectiveness.

Data minimization

Only the necessary amount of data should be collected for the purpose at hand.

• Use: Organizations should only collect personal data that is essential for the intended purpose, avoiding excessive or unnecessary data collection.
• Who uses: All stakeholders involved in data collection, from data controllers to processors, should adopt data minimization practices.
• When to use: This principle should be applied during the planning phase of data collection and continuously throughout the processing cycle to ensure that data is kept minimal.
• Key metrics impacted: Data collection rates, data storage efficiency, compliance audit scores, and operational costs related to data storage.

Accuracy

Data should be kept accurate and up-to-date

• Use: Organizations must take steps to ensure that personal data is accurate and updated regularly, especially when there are significant changes in a data subject’s information.
• Who uses: This principle applies to data controllers, processors, and organizations responsible for maintaining data quality.
• When to use: Regular checks for data accuracy should be conducted, particularly during data updates or when customers or data subjects request corrections.
• Key metrics impacted: Data quality scores, error rates in personal data records, customer satisfaction levels, and audit compliance checks.

Storage limitation

Data should not be retained for longer than necessary

• Use: Organizations must establish retention policies that define how long personal data is stored and ensure data is deleted when no longer necessary.
• Who uses: Data controllers, processors, and any party responsible for maintaining data storage systems.
• When to use: This principle is essential during data lifecycle management and should be monitored periodically to ensure compliance with retention schedules.
• Key metrics impacted: Data retention periods, storage costs, data deletion compliance rates, and overall data governance effectiveness.

Integrity and confidentiality 

Personal data must be protected from unauthorized access or disclosure

• Use: Organizations must implement security measures, such as encryption and access control, to safeguard personal data from breaches, leaks, or unauthorized use.
• Who uses: This principle applies to both data controllers and processors, especially those with access to sensitive or classified information.
• When to use: This principle should be applied immediately during the data collection process and throughout the entire data processing lifecycle to maintain data security.
• Key metrics impacted: Incident response times, data breach frequency, encryption effectiveness, and overall security posture assessments.

Accountability

Organizations must be able to demonstrate compliance with the GDPR.

• Use: Organizations need to track and document their data processing activities and ensure compliance with GDPR regulations through audits, policies, and staff training.
• Who uses: Data controllers and processors are responsible for maintaining records and providing evidence of compliance.
• When to use: Compliance activities should be performed continuously and reviewed regularly through internal audits, assessments, and external inspections.
• Key metrics impacted: Compliance audit results, staff training completion rates, GDPR policy effectiveness, and risk management reports.

Also read: Data privacy regulation terminology: GDPR, CCPA, and more 

GDPR compliance requirement list

To effectively implement a GDPR audit, the following requirements list needs to be closely examined, with attention given to IT infrastructure, data security, data protection, and privacy protocols:

1. Evaluate data processing activities: Review all data collection and processing practices. Ensure each data processing activity has a clear legal basis, such as consent or legitimate interest.
2. Conduct data mapping: Create a data flow map to track where data comes from, how it’s stored, and how it’s processed across the organization.
3. Assess security measures: Evaluate the effectiveness of your data security measures, such as encryption, access control, and security testing.
4. Review data subject rights: Ensure that your organization allows data subjects to easily exercise their rights, such as access, rectification, and deletion of data.
5. Vendor risk management: Assess how third-party vendors process and store data to ensure they comply with GDPR.
6. Conduct Privacy Impact Assessments (PIAs): Perform PIAs for high-risk processing activities to identify potential risks and mitigate them.
7. Document and report findings: To demonstrate accountability, maintain thorough records of all audits, actions taken, and compliance reports.
8. Training and awareness: Provide GDPR training for employees to ensure everyone understands their role in protecting personal data.

Also read: GDPR compliance 101

Do you need to do a GDPR readiness assessment? 

Yes, a GDPR readiness assessment is essential before undergoing a GDPR compliance audit. 

The readiness assessment helps organizations evaluate their current data handling processes and identify any gaps or areas that need improvement to comply with GDPR regulations. It ensures that all relevant data protection measures are in place before the audit takes place. 

This step is important as it can save time and resources by addressing potential issues early on, preventing costly fines or penalties for non-compliance. You can use specialized GDPR readiness services to conduct the assessment, ensuring a thorough review of your organization’s data privacy practices.

Also read: Automation in GDPR Compliance: Chasing Efficiency and Accuracy 

Who conducts GDPR audits and how often?

GDPR audits are typically conducted by data protection experts or third-party auditors specializing in privacy and security regulations. Depending on the complexity of the organization and the sensitivity of the data being processed, these audits are generally performed annually or more frequently. 

For organizations with extensive data processing activities, quarterly audits may be recommended to maintain ongoing compliance. The audit duration can vary, but most take between 2 to 4 weeks, depending on the size and scope of the organization. 

The cost of a GDPR audit generally ranges from $5,000 to $20,000, depending on the size of the organization and the depth of the audit.

Also read: Why GDPR compliance goes beyond a CISO’s agenda? 

How to implement GDPR compliance audit

Tracking the status of all compliance checklist items throughout the audit ensures that the organization is fully compliant by the end of the process. Adjustments are made as needed to address any gaps, mitigate risks, and align with evolving regulatory requirements. 

This continuous monitoring helps ensure that compliance is maintained over time and that any issues are identified and resolved promptly. 

Also read: How GDPR affects Marketing

GDPR compliance audit checklist

1. Data protection policy

• Maintain an overarching data protection policy that complies with GDPR requirements, including data processing, privacy by design, record-keeping, and accountability.

2. Employee training and awareness

• Train all employees on GDPR principles, their responsibilities, data processing activities, privacy impact assessments, and data subject rights.
• Continuously test and retrain employees who handle personal data to ensure ongoing understanding and compliance.

3. Data Protection Officer (DPO)

• Appoint a DPO with sufficient authority, resources, and independence to oversee GDPR compliance.
• Ensure the DPO is bound by confidentiality and free from conflicts of interest.
• Assess whether the DPO’s other responsibilities create potential conflicts of interest.

4. Data processing principles

• Maintain clear records and policies regarding data retention, processing principles, and accountability measures.
• Ensure all personal data is processed in a lawful, fair, and transparent manner.

5. Lawful, fair, and transparent processing

• Ensure personal data is collected for specified, explicit, and legitimate purposes.
• Only collect personal data necessary for specific purposes (data minimization).
• Regularly ensure the accuracy of personal data and update it as necessary.

6. Data retention and disposal

• Retain personal data only for as long as necessary for its intended purpose.
• Implement clear retention policies and ensure secure disposal of data when it is no longer required.

7. Data security measures

• Implement appropriate technical and organizational measures to protect personal data from unauthorized access, loss, or damage.
• Ensure that data privacy is incorporated into all processes and systems from the outset (privacy by design), including pseudonymization and encryption.

8. Restrict data access

• Limit access to personal data only to authorized employees who need it for specific processing activities.

9. Ongoing audits and monitoring

• Regularly audit and test systems to ensure confidentiality, integrity, availability, and resilience.
• Continuously assess the adequacy of data protection measures in response to evolving threats.

10. Data Protection Impact Assessments (DPIA)

• Conduct DPIAs for processing activities that involve high risks to data subjects or when using new technologies.

11. Records of processing activities

• Maintain detailed records of all processing activities, especially for large organizations or those processing sensitive data.

12. Data subject rights management

• Implement processes for managing data subject rights, such as the right to access, correct, delete, and object to the processing of their data.
• Ensure timely responses to Data Subject Access Requests (DSARs) within GDPR’s required timeframes.

13. Breach management and reporting

• Maintain breach incident response and notification procedures to report and address data breaches promptly.
• Ensure data breaches are documented and reported to supervisory authorities within the required 72-hour timeframe.

14. Third-party processor due diligence

• Ensure that all third-party processors or subprocessors comply with GDPR requirements, including data protection measures and contractual obligations.
• Regularly assess third-party compliance and ensure updated contracts with processors.

15. International data transfers

• Safeguard data during international transfers by using secure transfer mechanisms (e.g., Standard Contractual Clauses, Binding Corporate Rules).
• Regularly review international data flows to ensure compliance with EU data protection laws.

16. Consent management

• Implement clear processes for obtaining, managing, and withdrawing consent from data subjects.
• Maintain records of consent, including the specific purpose for which consent was given and ensure it can be easily revoked.

17. Data anonymization and pseudonymization

• Use pseudonymization and anonymization techniques to enhance data security and reduce privacy risks where appropriate.
• Regularly assess opportunities to anonymize data, reducing the amount of personally identifiable information (PII) in processing.

18. Secure data transfer

• Ensure that all data transfers, whether internal or external, are carried out securely, using encryption and other appropriate measures.
• Share only necessary data with third parties and ensure that secure transfer methods are employed.

19. Regular review of GDPR compliance

• Conduct regular reviews of the organization’s GDPR compliance efforts, ensuring alignment with the latest regulations, industry best practices, and evolving case law.
• Adjust compliance strategies based on legal developments, technological advancements, or changes in business practices.

Also read: Debunking five common GDPR compliance myths 

Why use GDPR compliance software?

GDPR compliance software helps organizations efficiently manage their compliance efforts by automating processes, tracking data protection measures, and providing clear reports on the status of compliance. 

It is particularly beneficial in navigating the complexities of GDPR, which requires strict adherence to data protection and privacy standards. ‘

Without the right tools, maintaining compliance can be challenging, especially when handling vast amounts of personal data across multiple departments or systems.

A survey by Gartner revealed that 65% of organizations using GDPR compliance tools reported significant improvements in their ability to manage personal data and maintain compliance efficiently.

Investing in GDPR compliance software is a smart way to streamline your organization’s data protection processes, reduce the risk of non-compliance, and ensure consistent compliance with the GDPR’s requirements.

Also read: The essential GDPR compliance guide: What businesses need to know

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