Aim: In this era Cloud Auditing and IoT (Internet of Things) have become an essential part of daily life, but both Cloud Auditing and IoT are two distinct applications. This paper is going to draw once attention on cloud IoT paradigm which is defined as a combination of Cloud Auditing and IoT. Materials and Methods: examining the basic concepts of IoT and Cloud Auditing and discusses the reciprocity of IoT and Cloud Auditing and, it also details about future directions and open issues which are going to play a vital role in the building of upcoming internet. Paper here shows a timely presentation of technologies of Cloud IoT and also draws the attention towards the specific research challenges. Results: Incorporation of Cloud Auditing and IoT gives us several advantages and helps us in development of several appliances and applications. The standard challenges like security and privacy, heterogeneity, performance, authenticity and reliability, sensor networks, monitoring etc. the results are justified through two different graph they are- IoT vs Cloud Computing(Normalized google research trends) Comparison on the basis of publication. Conclusion:This paper shows the, the sid (literature) survey to indicate the integral phases of cloud and internet of things and the major operators for combining them into a separate environment. After the selection of the Cloud IoT paradigm empower various new applications, one focuses on the major research challenges and try to identify and analyze them and focus on the present time research instructions. © 2016, International Journal of Pharmacy and Technology. All rights reserved.