These days, audits are rarely a source of solace, but finance executives who find IT daunting may actually be relieved to know that IT audits are suddenly in vogue, and provide exactly the sort of big-picture view that most CFOs need. IT audits are not, as you may have guessed, a matter of pure accounting. The term covers a lot of ground, but in general it can be thought of as the processes by which organizations evaluate virtually any aspect of their technology controls, capabilities, and performance. While IT audits have been conducted by some companies for years, they’re moving into the mainstream as regulatory compliance, risk management, and information security become higher corporate priorities.
If done properly, experts say, IT audits not only reveal weaknesses in compliance, security, and other areas but also help companies save money by finding ways to use IT hardware and software more efficiently and get a better handle on technology assets. Organizations can use IT audits to ensure that their technology initiatives are in sync with business goals and practices.
There are many types of IT audits that cover a broad range of technologies and processes. One type assesses IT governance, determining how well the IT department is managed and staffed, and how efficiently it supports business operations. Information-security audits examine security policies and such technologies as firewalls, as well as analyze the integrity of networks, databases, operating systems, Web servers, and applications.
Audits can focus on such major IT assets as ERP systems or on individual applications like payroll and accounts payable. Some audits evaluate the effectiveness of business-continuity and disaster-recovery programs, and others make sure that organizations have adequate and up-to-date software licensing in place. Still others are dedicated to ensuring that organizations are in compliance with such regulations as the Sarbanes-Oxley Act of 2002 and the Health Insurance Portability and Accountability Act. (For more, see CFO IT’s article “You Bought It, Now Audit.”)