@MS Techie Apologies for the delay response!
Microsoft Managed Key Encryption Keys are FIPS 140 level 1. For level 2 protection, customer can opt for customer-managed keys Customer-managed keys for account encryption - Azure Storage | Microsoft Learn. Managed HSM provides level 3 protection.
Typically, we do not share insights into implementation details on data encryption or details of policy and procedures. You can steer your customers to our compliance and certification documentation here (Microsoft Trust Center Overview | Microsoft Trust Center).
You want to audit yourself, which is an expensive task, we offer the Right to Audit (R2A) program. You can reach support for more information.
https://www.microsoft.com/en-us/security/business/services/compliance-program-microsoft-cloud
Additional information: Licensing Resources and Documents
Please let us know if you have any further queries. I’m happy to assist you further.
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