Businesses, especially those with a growing technology infrastructure, can benefit immensely from an IT audit. But what is an IT audit, exactly?
While the purpose of most IT audits is the same, what they cover and how they’re conducted may differ.
IT audits aren’t just for large corporations with large data centers. Even small businesses that rely on technologies like the cloud can use an IT audit to discover inefficiencies, vulnerabilities, and opportunities for improvement.
Most importantly, IT audits are crucial for devising a robust security policy and securing data.
As threats become more sophisticated, audits can help businesses implement the right security solutions.
What Is an IT Audit?
Here’s the definition of IT audit according to Harvard:
“An Information Technology audit is the examination and evaluation of an organization's information technology infrastructure, applications, data use and management, policies, procedures, and operational processes against recognized standards or established policies. Audits evaluate if the controls to protect information technology assets ensure integrity and are aligned with organizational goals and objectives.”
Simply put, an IT audit evaluates the IT infrastructure (hardware and software), policies and standards, and operations to find issues.
IT audits can be conducted organization-wide or concentrate on specific systems or operations.
For instance, security audits exclusively focus on infrastructure security and may involve hardware like firewalls or network security solutions.
The underlying goal of any IT audit, regardless of extent or focus, is to ensure everything is running as it should.
What Does an IT Audit Include?
IT audits require careful planning and preparation. It also requires resources, including personnel conducting the audit activities and compiling their findings in a report.
So, what happens in an IT audit? That depends on which assets or controls are being audited. It may follow a specific framework and a checklist to ensure all necessary assets and systems are analyzed.
For instance, a security audit checks for physical security, digital security, risk management, threat response, and disaster recovery.
Such an audit may include penetration testing, analyzing access controls, mimicking disasters to evaluate recovery efforts, and reviewing current security policies and whether they are being implemented.
An IT audit can take anywhere from a couple of days to a few weeks, depending on the extent of the activities.
Here’s what a typical IT audit looks like:
- Planning – Once the IT audit request has been approved, a team is designated to conduct the audit. This team begins planning the audit, assigning roles, defining the scope of the audit, and creating a checklist of activities.
- Setting Objectives – Every audit has an objective, which should be defined in the plan. For example, if the audit aims to uncover data security vulnerabilities, the plan will clearly state the goal and base all the activities on this goal.
- Conducting the Audit – The team conducts the IT audit, carrying out the tasks outlined in their plan.
- Reporting – All the findings from the audit activities are recorded and presented in a report, typically for the leadership, so that decisions can be made based on the data.
Different Types of IT Audits
IT audits can be comprehensive, covering different systems and operations or focusing on specific infrastructure components. Increasingly, IT audits focus on security and related functions.
Here are the different types of IT audits:
Security Audit
This type of IT audit assesses security systems and policies in place to protect data. It checks important security provisions like access management and encryption of data transfer.
Risk Assessment Audit
An IT audit that checks for risks looks for vulnerabilities and shortcomings in security measures that may be exploited by threat actors. It takes a proactive approach to dealing with cyber crimes.
Network Audit
Such audits may focus on an organization's network's performance, reliability, and security. It may assess the network architecture, configuration, and data transfer speed.
Compliance Audit
A compliance audit assesses whether the security systems and policies comply with applicable regulations, such as HIPAA or NIST compliance.
Business Continuity and Disaster Recovery Audit
A business continuity and disaster recovery audit evaluates the plan and procedures that will keep the business operational in case of a disaster. It also assesses the effectiveness of the disaster recovery plan.
Operations Audit
This type of audit focuses on the efficiency of operations and processes to identify bottlenecks and areas of improvement.
Application Audit
Application audits focus on the performance and security of different business applications. This type of audit can also evaluate an application's feasibility and whether it meets business requirements.
Cloud Audit
An audit of cloud services can assess the security and efficiency of cloud infrastructure and help optimize it. It can help businesses evaluate the performance of their provider.
The Importance of IT Audit
More businesses need to conduct IT audits regularly. It’s essentially an opportunity to protect your organization from security threats while finding ways to improve performance.
Here are the many benefits of IT audit that make it important for modern businesses with an IT footprint.
Identify Risks and Improve Security
A recent Hybrid Security Trends Report by Netwrix found that 68 percent of organizations faced a cyberattack last year.
Businesses, whether small or large, have to take a proactive approach to security; this is where audits come in.
IT security audits can unveil potential system vulnerabilities and policy gaps, helping businesses protect their infrastructure and data.
IT audits can help identify risks and mitigate them with appropriate security measures. Moreover, they can ensure that security policies are robust.
Ensure Compliance
IT audit can be used to ensure compliance with a company’s policies and government regulations.
Over the years, data security and privacy regulations have gotten pretty strict, and there’s no room for negligence.
Non-compliance with data security regulations can result in fines and tarnish your reputation.
Maintain Data Integrity
Data is only helpful if it’s quality. Data integrity can be compromised with so much data being produced through different sources. More importantly, data should be updated regularly.
An IT audit focusing on data security and integrity can uncover shortcomings and offer useful solutions.
Improve Operations
More often than not, IT audits are triggered by operational inefficiencies. This is all the more true for large businesses with complex IT infrastructure and distributed operations.
An IT audit of a company’s technology operations will provide visibility into inefficiencies or bottlenecks.
It’s also an opportunity to discover which operations can be automated with software solutions.
Save Money
Businesses spend so much money on IT, and if it’s not being used in the right place, you might as well burn it.
If your IT investments aren’t producing meaningful outcomes (more clients or better performance), an audit may help determine the real issue.
You can save significant money by uncovering inefficient or unnecessary devices or software.
Alignment with Business Goals
An IT audit can also be used to determine whether your IT efforts align with your business goals.
Ultimately, your IT strategy should be in sync with your business strategy. Any equipment or solution you invest in should ultimately help you achieve your business goals.
Who Conducts an IT Audit?
Audits can be conducted internally or externally. If you choose to conduct it yourself, employees within your organization can plan and conduct it.
However, many businesses opt for external auditors for a more comprehensive and objective audit.
Professional cybersecurity providers can offer security audit services to evaluate your company’s network and data security.
One benefit of hiring certified, professional IT auditors is that they can offer expert advice on improving security or operational efficiency.
You can choose whether to conduct the audit internally or hire a professional based on your requirements and budget.
IT Audit Checklist
Here’s a quick checklist for an IT security audit:
- Review the effectiveness of IT security policy.
- Ensure the policy aligns with business goals and compliance requirements.
- Assess access control policies and how they’re being implemented.
- Evaluate network security, including protocols, configurations, and solutions.
- Verify compliance with data protection and privacy laws and regulations.
- Ensure the use of data protection measures, such as backups and encryptions.
- Test systems for known threats (configuration drifts, access misuse, or malware).
- Review the disaster recovery plan.
- Document all the findings from the audits in logs and records.
FAQs
What is the purpose of an IT audit?
An IT audit assesses and evaluates an organization's IT systems, processes, and controls to ensure they are effective, secure, and aligned with business objectives.
The main purpose of an IT audit is to discover issues or find the underlying cause of an issue, for example, slow network performance.
Who needs an IT audit?
Businesses of all sizes and industries may need an IT audit. Organizations that rely on IT for operations need regular audits of their IT assets and processes.
Government agencies, non-profit organizations, and educational institutes (school systems, universities, etc.) can also need IT audits to help find security flaws and improve performance.
How often should you conduct an IT audit?
The frequency of IT audits depends on factors like the organization's size, industry regulations, and risk factors.
Experts recommend conducting IT audits annually, but more frequent audits may be necessary for high-risk environments or rapidly changing IT landscapes.