Most modern applications use open-source libraries and third-party components – and that’s where a significant portion of compliance risk comes from. According to Veracode’s 2024 State of Software Security report, 70% of applications contain security flaws that were imported through third-party code.
For compliance purposes, you’re responsible for the security of every component your application uses, whether you wrote it or not. PCI DSS, HIPAA, and ISO 27001 all require you to manage the risk posed by third-party software.
A code audit reviews your dependency inventory, checks components against known vulnerability databases (CVEs), flags outdated or abandoned libraries, and identifies licensing risks that could create legal exposure.
Reference
Software Bill of Materials (SBOM) – CISA – cisa.gov