Running your own software audit? Check out this checklist

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Running your own software audit? Check out this checklist

An onerous task to take on, but one that needs performing regularly - help ensure compliance and efficiency with this step by step guide.

Published on 12th December 2024

A software audit guarantees that the software used by your company is secure, compliant, and functional. A routine audit helps your company maximise its software assets by spotting problems like over-licensing, underutilised software, or security flaws. You can stay compliant, lower risk, and make wise decisions regarding your software portfolio by following this checklist, which will walk you through the crucial steps of a software audit.

1. Inventory and Categorize Software Usage

The first step in an effective software audit is creating a detailed and accurate inventory of all the software your organization uses. An up-to-date inventory is the cornerstone of understanding what software is in use and helps track compliance.

Actions to Take:

Enumerate every software program used by the company, including desktop, mobile, cloud-based, and software-as-a-service (SaaS) programs.
Keep track of each software application’s version number and installation instructions, making sure they are up to date.
Sort software according to its use, such as essential, auxiliary, or unneeded. Making decisions about upcoming acquisitions or removals is aided by this classification.
To guarantee complete compliance across all touchpoints, identify any software deployed on distant systems, BYOD (Bring Your Own Device) assets, or personal devices.

You can make sure that nothing falls between the cracks in terms of asset management or compliance by creating a thorough software inventory.

2. Validate Software Licensing and Usage

Ensuring that your organization is using software according to its licensing agreements is crucial. Mismanagement of software licenses can lead to legal complications, fines, or wasted costs.

Actions to Take:

To confirm that the number of software installations corresponds to the number of licenses acquired, compare your software inventory with licensing agreements.
Verify that the program is being used in accordance with the terms of its licensing, such as per person, per device, or enterprise-wide.
Determine whether any unauthorised or unlicensed software is being used. This can be software that was improperly purchased or downloaded without IT’s knowledge.
Verify that any software contracts are current, in line with current usage, and that any renewals or new purchases are being handled appropriately.

By taking this precaution, over-licensing (buying more licenses than necessary) and under-licensing (using software against its conditions) are avoided.

3. Ensure Software Security and Patch Management

Security should always be top-of-mind during a software audit. Vulnerabilities in outdated software or poor patch management practices can lead to cyberattacks, data breaches, or system failures.

Actions to Take:

Verify that all software applications have the latest security patches installed and that any known vulnerabilities have been addressed.
Identify any software that is nearing its end-of-life (EOL) or is no longer supported by the vendor. Continuing to use such software can expose the organization to unpatched security risks.
Evaluate the security policies in place for software access, such as multi-factor authentication (MFA) or role-based access controls (RBAC).
Run vulnerability scans on software systems to identify potential weaknesses that need to be addressed immediately.

By ensuring that all software is updated and secure, you protect the integrity of your network and data, reducing the risk of breaches or downtime.

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4. Assess Software Usage and Performance

A software audit isn’t just about licensing and security — it’s also about ensuring that the software being used is performing effectively and providing value to the organization.

Actions to Take:

Examine software usage reports to determine whether any particular apps are being used insufficiently or not at all. Deactivating or uninstalling unused applications can frequently save up resources.
To make sure the program is fulfilling business requirements without creating needless lags, assess software performance measures like load times, user feedback, and system compatibility.
Examine any software redundancies — where several programs do the same function — and determine whether combining them could increase productivity.

By knowing how well your software is doing its intended function, you can cut down on inefficiencies and possible overspending on unnecessary products.

5. Review User Access and Permissions

Managing who has access to your software is critical for both security and compliance. Inadequate access controls can lead to unauthorized use or data breaches.

Actions to Take:

Make sure that any essential software has user access controls in place. Make sure users can only access the data and applications required for their job duties.
Verify that permission settings adhere to the least privilege concept by auditing them. Excessive permissions for users could put their security at danger.
Look for user accounts that are dormant or orphaned, particularly those belonging to former employees. Deactivating these accounts is necessary to stop unwanted access.
Examine the company’s multi-factor authentication (MFA) and single sign-on (SSO) configurations for cloud-based or SaaS apps to make sure they are set up properly.

You can safeguard the data of your company and stop abuse by making sure that only authorized individuals have access to sensitive software.

6. Analyze Cost Efficiency and ROI

Evaluating the financial aspects of your software assets is a necessary component of a successful software audit. Your business may be spending needless money on software that isn’t providing a return on investment (ROI).

Actions to Take:

Examine the costs of the program, taking into account license, maintenance, and any related support or consulting fees.
Examine each software application’s total cost of ownership (TCO) to determine whether it offers value in terms of performance, features, and support.
Find ways to save money on software by getting rid of unnecessary or redundant software, lowering licensing levels where necessary, or haggling with sellers for lower prices.
Examine whether any pay-per-use or subscription software models might better suit the requirements and expansion trends of your company.

This process helps ensure that you’re only spending on software that provides value, reduces unnecessary overhead, and maximizes ROI.

7. Document Findings and Plan for Improvements

Once the audit is complete, document your findings and make recommendations for improvement. A clear action plan can ensure that software compliance and efficiency issues are addressed effectively.

Actions to Take:

Document any discrepancies found during the audit, such as unauthorized software installations or license mismatches.
Provide recommendations for addressing identified risks, such as updating software, removing unused programs, or renegotiating licenses with vendors.
Develop a timeline for implementing corrective actions and improving software management practices, including setting up future audits to maintain compliance.
Share findings with relevant stakeholders to ensure awareness of software compliance issues and the importance of adhering to policies moving forward.

Transparency and the resolution and follow-up of any issues discovered during the audit are guaranteed by a well-documented audit process.

Summary

A software audit aims to optimize your software portfolio for cost-effectiveness, performance, and security in addition to guaranteeing compliance. Frequent audits help your company save time, money, and resources by seeing and fixing possible problems before they become bigger ones. You may reduce legal and security risks, keep control over your software assets, and make sure your program is operating at its best by using this checklist.