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- 15 Marks
Question
The audit of one of your firm’s new clients is ongoing. Review and compliance procedures were being carried out by the audit team. There were unsatisfactory issues with some of the data generated for use in the testing process. These issues were escalated, and it became necessary to bring in the firm’s IT specialists for confirmation purposes. With your competence in this area, you were asked to provide the necessary guidance and assurance needed by the audit team.
Required:
(a) Evaluate the components of the governing principles of the Nigerian Data Protection Regulation, 2019, as applicable in the circumstance. (6 Marks)
(b) Discuss the requirements of the data protection framework. (9 Marks)
Answer
(a) Governing Principles of the Nigerian Data Protection Regulation (NDPR), 2019 (6 Marks)
The Nigerian Data Protection Regulation is based on several core principles to ensure compliance with data protection laws and best practices. The applicable principles include:
- Lawfulness, Fairness, and Transparency:
- Personal data must be processed in a lawful and fair manner, with transparency about how it is collected, stored, and used.
- Purpose Limitation:
- Data must be collected for specified, explicit, and legitimate purposes and not further processed in a way incompatible with those purposes.
- Data Minimization:
- Only the data necessary for achieving the stated purpose should be collected and processed.
- Accuracy:
- Personal data must be accurate and kept up-to-date. Inaccurate data must be corrected or deleted promptly.
- Storage Limitation:
- Personal data should not be stored longer than necessary for the purposes for which it was collected.
- Integrity and Confidentiality (Security):
- Appropriate measures must be taken to protect personal data against unauthorized access, alteration, loss, or destruction.
These principles are applicable in addressing data issues during the audit process to ensure compliance and safeguard client information.
(b) Requirements of the Data Protection Framework (9 Marks)
The NDPR provides a robust framework to ensure compliance with data protection obligations. The key requirements include:
- Data Protection Officer (DPO):
- Organizations processing personal data must appoint a DPO responsible for monitoring compliance with data protection laws.
- Consent Management:
- Explicit consent must be obtained before collecting or processing personal data, except where legal exemptions apply.
- Data Subject Rights:
- Individuals have rights to access, correct, delete, and restrict the processing of their data.
- Data Privacy Policy:
- Organizations must maintain a clear and accessible data privacy policy outlining how data is collected, processed, and stored.
- Data Breach Notification:
- Organizations must promptly notify the relevant authorities and affected individuals of any data breaches that compromise personal information.
- Third-Party Data Processing:
- When engaging third parties for data processing, organizations must ensure contracts include compliance with NDPR requirements.
- Periodic Data Audits:
- Regular data protection audits must be conducted to ensure ongoing compliance with the regulation.
- Cross-Border Data Transfers:
- Personal data can only be transferred outside Nigeria if the destination provides adequate data protection standards.
- Enforcement and Penalties:
- Non-compliance with NDPR can result in substantial penalties, including monetary fines and reputational damage.
Application in Audit Context:
These requirements guide the audit team in addressing data integrity and compliance issues, ensuring that client data is handled securely and that findings align with legal and regulatory standards.
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