An IT audit involves the evaluation and examination of a company’s IT policies, infrastructure, and controls. The audit examines whether the controls can ensure data integrity and protect corporate assets. The annual IT audit also examines the overall financial and business controls involving the IT systems.
The objectives of an IT audit are ensuring the company’s data is secure. It also identifies and minimizes risks to the company’s IT assets, and determines the inefficiencies in the management of IT systems to address them accordingly. All these are aimed at helping the company to save money. Read up and learn today just how an annual IT audit can save your business money.
1. Checks Vulnerability to Threat
Businesses are currently operating at a time that almost all data is stored electronically. Besides, most accounting work is done on online storage systems or through cloud accounting systems. A company’s financial data plus its employees’ and clients’ sensitive information are processed through these electronic media.
Here is where companies are vulnerable to the threat of hackers, who might want to steal that data. There is constant risk associated with the way a company processes its data.
When the process of handling this information is compromised, the company can lose lots of money. With an annual IT audit, an enterprise will be sure that it is operating at a lower level of risk.
Additionally, utilizing an IT audit checklist coupled with the evaluation will reveal more susceptible areas. This process will help the company come up will a way of fixing or resolving the risks and reduce any future threats.
2. Evaluates the System to Ensure Its Integrity
An annual IT audit will reveal whether the company’s systems are operating optimally. It will assess the efficiency of the system and try to discover whether there are any leakages or misuse of resources that might lead to losses.
Losses can also occur when time is being lost when using an inefficient system. If the time takes to access or retrieve information from the system is extended, both the management and employees would be wasting much of their productive time.
An annual IT audit can also reveal whether only authorized individuals can access the company’s information. This step is necessary because some unscrupulous employees could be stealing company secrets and selling that information to its competitors. If anything awry is discovered, the auditor will help the company come up with a fool-proof system.
3. Investing in Modern Technology
Modern technology makes work more efficient, hence cutting in operation costs. An annual IT audit will reveal whether the company is still using old equipment, old computers, and old software that are inefficient. If that is the case, the auditor will advise the management to replace them with modern equipment. Following this recommendation will greatly reduce the company’s expenses and help it save money.
4. Secures Company’s Data
A company’s IT system holds very sensitive data that if lost, can lead to other considerable losses. An annual IT audit will ensure that all data is secure and backed-up. The auditor will ensure that all the IT system is protected with passwords to ensure that only authorized individuals can access, add to, or modify the existing data.
This process will also enhance the integrity and confidentiality of the company’s data so that no one can use their access to steal from the company. That is how an annual IT audit can save your business money.
5. Bolsters Controls
An annual IT audit not only evaluates vulnerability but also evaluates and identifies control weaknesses. A company with a weak internal control system is bound to fail. An IT audit will check whether these controls are adequate and effective. If not, the auditor will have to reinforce and restructure them by using a different infrastructure.
The auditor will instill confidence in the efficiency and effectiveness of the company’s operations. This process will, in turn, convince the company’s customers that the organization’s financial disclosures are authentic and that they adhere to the relevant government policies and international standards.
6. Develops Good IT Governance
An IT system cannot work on its own without the input of the human workforce. The annual IT audit will evaluate whether the individuals managing the IT system are the right ones in terms of integrity and qualifications. IT governance does not only evaluate the individuals but also looks at the practices, the frameworks, and the procedures that are supposed to support the company in the process of trying to meet its goals and objectives.
If the audit reveals any weaknesses in the IT governance structure, then it will be overhauled or restructured.
7. Annual IT Audit Report as a Marketing Tool
After an audit, the auditors compile an audit report that is usually tabled before the shareholders at the AGM. Many companies, big and small, try to make their reports as informative as possible so the shareholders can understand the position of the business. In some instances, these reports are also made available to the general public, where they act as powerful marketing tools.
The annual IT audit report helps a company in promoting its image with clients when it highlights on its core values and corporate mission. It should describe the company’s initiatives aimed at reducing costs, improving its processes, enhancing services, and creating quality.
This option will make the work of the marketing departments easier, and they will spend less, thus helping the company save money.
Annual IT Audit Is for All Companies
Having looked at how an annual IT audit can save your business money, it is clear that this practice should be undertaken by all companies regardless of their sizes. All companies face threats and should work hard to protect their data.
Furthermore, integrity issues are important if a business has to grow.
An annual IT audit also helps a company invest in modern technology, hence reinforces its control system and promotes its marketing strategy. If you want to use technology to improve your business operations, save money, and increase profitability, can contact us.
Sagacent Technologies offers technology management and support, including proactive/preventative maintenance, onsite and offsite data back-ups, network and security audits, mobility solutions, disaster planning and emergency business resumption services. The company serves clients of 10 to 150 employees within the Silicon Valley region.