ISO 27001 Annex A 8.30 Audit Checklist

The ultimate audit guide to ISO 27001 Annex A 8.30 Outsourced Development

1. Verify the Outsourced Development Security Policy

Verification Criteria: A formalised policy exists defining the mandatory security requirements, coding standards, and testing protocols for all outsourced development projects.

Required Evidence: Approved “Third-Party Development Policy” or “Outsourced Coding Standard” with explicit version control.

Pass/Fail Test: If the organisation cannot produce a formalised document specifying the security mandates for external developers, mark as Non-Compliant.

2. Confirm there are Contractual Security Obligations and a Right-to-Audit

Verification Criteria: Technical and organisational security requirements, including vulnerability remediation SLAs and the right to perform independent audits, are embedded in the developer’s contract.

Required Evidence: Signed Master Service Agreement (MSA) or Statement of Work (SOW) with highlighted security clauses and audit rights.

Pass/Fail Test: If a third-party developer has access to the codebase without a contractually binding security schedule, mark as Non-Compliant.

3. Validate Intellectual Property and Source Code Ownership

Verification Criteria: Legal and technical provisions ensure the organisation retains ownership and control over the source code, preventing unauthorised reuse or retention by the provider.

Required Evidence: Contractual “Ownership of Work Product” clauses and access logs from the organisation-owned version control system (VCS).

Pass/Fail Test: If the outsourced developer hosts the organisation’s production source code on an unmanaged, private repository without administrative oversight, mark as Non-Compliant.

4. Check Secure External Access to Development Environments

Verification Criteria: Access granted to external developers is restricted via Multi-Factor Authentication (MFA) and limited to the specific environments required for the project (Least Privilege).

Required Evidence: Identity and Access Management (IAM) logs showing MFA-protected logins and restricted VPN/Bastion host access for third-party IDs.

Pass/Fail Test: If an external developer can access the development network using single-factor authentication or has access to internal production servers, mark as Non-Compliant.

5. Look for Automated Security Scanning of Outsourced Code

Verification Criteria: All code delivered by the third party is subjected to automated Static Application Security Testing (SAST) and Software Composition Analysis (SCA) prior to acceptance.

Required Evidence: SAST/SCA scan reports (e.g., Snyk, SonarQube) specifically for the modules delivered by the external provider.

Pass/Fail Test: If outsourced code is integrated into the main branch without a documented vulnerability scan, mark as Non-Compliant.

6. Check for Independent Vulnerability Assessment and Pentesting

Verification Criteria: Major deliverables from the outsourced provider undergo an independent penetration test to verify the efficacy of the implemented security controls.

Required Evidence: Signed Penetration Test report dated within the project completion window and a corresponding Remediation Tracker.

Pass/Fail Test: If a third-party application is promoted to production without a verified independent security assessment, mark as Non-Compliant.

7. Review Secure Handling of Sensitive Data by Providers

Verification Criteria: Technical mechanisms prevent the use of live production data by outsourced developers, enforcing the use of masked or synthetic data in external environments.

Required Evidence: Data Masking logs or UAT environment snapshots demonstrating the absence of legitimate PII/financial records.

Pass/Fail Test: If unmasked production PII is found residing in a third-party developer’s environment or a shared staging area, mark as Non-Compliant.

8. Evidence Supply Chain Dependency Vetting

Verification Criteria: The organisation verifies that the outsourced provider has a process to vet and monitor the security of fourth-party libraries and open-source components used in the build.

Required Evidence: Software Bill of Materials (SBOM) provided by the developer and the organisation’s internal verification logs.

Pass/Fail Test: If the outsourced developer cannot provide a list of third-party libraries used in the deliverable or their associated licenses, mark as Non-Compliant.

9. Confirm Developer Background and Personnel Security

Verification Criteria: The outsourced provider confirms that all personnel assigned to the project have undergone appropriate background screening and have signed non-disclosure agreements (NDAs).

Required Evidence: Attestation of Background Checks from the provider or signed NDAs for each named developer on the project.

Pass/Fail Test: If the provider cannot demonstrate that background screening has been conducted for developers with access to sensitive source code, mark as Non-Compliant.

10. Check for Formal Acceptance and Security Sign-off

Verification Criteria: A formalised acceptance process exists where the organisation’s security lead signs off on the third-party deliverable based on the successful results of all security tests.

Required Evidence: Final Project Acceptance Document or “Go/No-Go” meeting minutes with a specific “Security Approval” field.

Pass/Fail Test: If the outsourced code is deployed to production without a formal record of internal security acceptance, mark as Non-Compliant.

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