If I could journey back in time to my previous self - the one preparing to hire a Federal Risk and Authorization Management Program (FedRAMP) auditor for the first time - I'd offer eight key insights. These, gleaned from experience, would have significantly eased the process.

• Understanding FedRAMP: The first point of enlightenment would involve a thorough understanding of FedRAMP itself. Instituted in 2011, it's a government-wide program providing a standardized approach to security assessment, authorization, and continuous monitoring for cloud products and services. It's relevant because it ensures that cloud services used by federal agencies meet stringent security guidelines.

• The Auditor's Role: A FedRAMP auditor, or Third Party Assessment Organization (3PAO), plays a crucial role in this process. The 3PAO conducts the initial assessment of a Cloud Service Provider’s (CSP) systems and controls to verify compliance with the FedRAMP requirements. Their role is to provide an independent verification and validation of the security implementations.

• Independence of Auditors: The Schumpeterian view of competition posits that innovation and progress originate from independent entities. This theory holds up in the case of the 3PAOs: their independence is critical to maintain the credibility of the audit. Any form of vested interest could compromise the integrity of the process and the reliability of the results.

• Accreditation Matters: I wish I’d understood the importance of 3PAO accreditation. Just as a Michelin star sets a restaurant apart, the accredited auditors denote impartiality and quality in their assessments. The FedRAMP PMO (Program Management Office) maintains a list of accredited 3PAOs to choose from.

• Time and Cost: As an axiom in project management states, 'Better, cheaper, faster - pick two.' The FedRAMP audit process is lengthy and costly. It generally takes 12 to 18 months and can cost between $500,000 and $2 million. It is therefore imperative to budget both time and money for this critical process.

• Preparation is Key: The auditor's performance will be a function of your preparation. Whether it's the Pareto Principle or the Parkinson's Law, the more prepared the CSP, the more efficient and successful the audit. This includes a comprehensive understanding of the FedRAMP requirements, a robust system security plan, and a readiness assessment.

• Not a One-Time Deal: The Principle of Persistence demonstrates the importance of continuous efforts to achieve a desired outcome. Similarly, FedRAMP certification is not a one-and-done deal, but a continuous process. The 3PAO must monitor and document the CSP’s compliance on an ongoing basis.

• The Right Partner: Finally, the key to a successful audit is choosing the right 3PAO. The Bayesian Nash Equilibrium suggests when dealing with incomplete information, selecting the right partner will increase the likelihood of a successful outcome. The chosen 3PAO should not only have expertise in FedRAMP requirements but should also align with your specific industry and organizational needs.

In retrospect, I would approach the process of hiring a FedRAMP auditor equipped with these insights. The objective isn't just to survive the audit unscathed, but rather to thrive, ensuring secure environments that pass stringent federal guidelines.

While the process may seem daunting, it offers CSPs the opportunity to better understand their security posture, uncover vulnerabilities, and improve their systems - a worthwhile endeavor no doubt. Understanding these aspects, prior to hiring an auditor, will undoubtedly facilitate a more beneficial and efficient FedRAMP audit.