The Ultimate IT Audit Checklist

According to IBM's Cost of a Data Breach Report 2024, the global average cost of a data breach reached an all-time high of $4.88 million this year – a 10% increase from 2023.¹ But while businesses of all sizes need to prioritize their digital defenses, multi-location enterprises face some unique challenges when it comes to building cyber resilience.

Businesses operating across multiple locations depend on data distributed across various sites and systems, which increases the complexity of securing their IT infrastructure. In fact, 40% of data breaches in 2024 have involved data stored across multiple IT environments.¹ Each additional location potentially introduces new vulnerabilities, making it crucial for these organizations to implement cohesive, company-wide cyber security measures.

One way to overcome this challenge is with a comprehensive IT audit. In this blog, we're sharing an IT audit checklist to help you maintain a resilient IT infrastructure across all your locations.

What Is an IT Audit?

An IT audit is an evaluation of an organization's information technology infrastructure, policies, and operations. This assessment ensures that IT systems are secure and compliant with relevant regulations and industry standards. IT audits cover various areas, including hardware, software, networks, data management, and cyber security measures.

The main goal of an IT audit is to identify potential vulnerabilities, assess risks, and provide actionable recommendations for improvement. Regular IT audits help businesses address security gaps, optimize IT processes, and enhance overall operational efficiency.

In terms of cyber security, an IT audit plays an important role in strengthening an organization's digital defenses. It helps identify weak points in the security infrastructure, evaluate the effectiveness of existing security measures, and ensure regulatory compliance with industry-specific requirements like GDPR, HIPAA, or PCI DSS. By uncovering potential security risks before hackers exploit them, IT audits help prevent breaches and other cyber incidents.

What Should an IT Audit Include?

IT audits encompass several areas that contribute to the security of your organization's IT infrastructure. A comprehensive IT audit checklist includes:

System Security

System security is the foundation of any IT environment. An IT audit should analyze the effectiveness of security controls protecting your systems, networks, and data from unauthorized access and other potential security threats.

Focus on evaluating:

• Anti-Malware and Antivirus Software: Verify that all IT systems have up-to-date anti-malware and antivirus software installed, with regular scans scheduled and definitions updated automatically.
• Firewalls and Intrusion Detection Systems: Assess the configuration and effectiveness of firewalls in filtering network traffic and detecting potential security breaches. Ensure that intrusion detection systems are properly configured to identify and alert for suspicious activities.
• Data Encryption Protocols: Assess the implementation of encryption techniques for sensitive data, both when stored on devices and during transmission across networks.
• Patch Management Processes: Review procedures for identifying, testing, and deploying security patches to operating systems, applications, and firmware promptly.
• Network Segmentation: Evaluate the network architecture to ensure proper segmentation, isolating critical IT systems and data from less secure areas of the network.

Assessing these components will help you identify vulnerabilities in your system security and implement necessary improvements to strengthen your defense against cyber threats.

Access Controls

The number of cyber attacks using stolen or compromised credentials rose by 71% in 2023.² User access controls are essential in preventing unauthorized access to sensitive information and systems. An IT audit should examine the processes and technologies used to manage user authentication, authorization, and accountability.

Key areas to evaluate include:

• Account Management Policies: Review procedures for creating, modifying, and terminating user accounts, ensuring access rights are granted based on the principle of least privilege.
• Password Requirements: Assess password policies to ensure they mandate strong, complex passwords and require regular password changes without allowing the reuse of previous passwords.
• Multi-Factor Authentication: Verify that multi-factor authentication is enabled for all critical IT systems and user accounts, especially for remote access and privileged accounts.
• Role-Based Access Control Systems: Evaluate the RBAC implementation to ensure users are granted appropriate access rights based on their job responsibilities and that these rights are regularly reviewed and updated.
• Privileged Access Management: Assess processes for managing and monitoring privileged accounts, including using privileged access management (PAM) tools to control and audit administrative access.

Examining your user access controls can help you determine who has access to your organization's data and systems, reducing the risk of internal and external data breaches.

Performance Monitoring

Effective performance monitoring can help IT teams maintain optimal system functionality and identify potential issues before they escalate. An IT audit should evaluate the tools and processes used to monitor IT infrastructure performance, including:

• Network Performance Monitoring Tools: Assess the deployment and configuration of network monitoring solutions to track bandwidth usage, latency, packet loss, and other network performance metrics.
• Server and Application Performance Metrics: Evaluate tools and processes for monitoring server resources (CPU, memory, disk I/O) and application performance, including response times and error rates.
• Resource Allocation: Review procedures for forecasting future resource needs and scaling infrastructure to meet growing demands.
• System Uptime and Availability Tracking: Assess methods for monitoring system availability and measuring uptime against service level agreements (SLAs).
• Performance Bottlenecks: Evaluate processes for identifying performance bottlenecks and implementing corrective actions to optimize system performance.
• Performance Data Analysis: Assess your IT team's approach to performance data analysis, including the use of dashboards, alerts, and reporting tools.

An evaluation of your performance monitoring practices can help you optimize your IT infrastructure, improve system reliability, and enhance overall operational efficiency.

Systems Development

The systems development lifecycle can significantly impact your technology infrastructure's security, functionality, and efficiency. An IT audit should examine the processes and controls in place for developing, testing, and implementing new systems and applications, including:

• Software Development Methodologies: Assess your team's approach to software development, ensuring it follows recognized methodologies (e.g., Agile, DevOps) and incorporates data security protocols throughout the development lifecycle.
• Quality Assurance and Testing: Review processes for testing software, including unit testing, integration testing, and user acceptance testing. Evaluate the use of automated testing tools and continuous integration/continuous deployment (CI/CD) pipelines.
• Change Management: Assess procedures for managing code changes, including version control systems, code review practices, and approval workflows for promoting code to production environments.
• Security Considerations: Evaluate the integration of security practices into the development process, such as static and dynamic code analysis and vulnerability assessments.
• Project Management: Assess your IT team's approach to project management within the systems development lifecycle, including resource allocation, timeline management, and risk assessment.
• User Acceptance Testing: Review procedures for involving end-users and relevant stakeholders in the development process, ensuring that systems meet functional requirements and usability standards.

A thorough assessment of your systems development practices can help you identify areas needing improvement, strengthen your application security, and ensure your development processes align with industry best practices.

Disaster Recovery and Business Continuity

Disaster recovery and business continuity plans are vital for responding to an outage or cyber attack. And as 76% of organizations reported at least one ransomware attack in 2023,³ evaluating your organization's preparedness to recover from disruptions should be a priority during your IT audit.

Areas to assess include:

• Backup and Data Recovery: Review data backup processes, including frequency, retention periods, and storage locations. Verify that data backups are regularly tested for integrity and recoverability.
• Disaster Recovery Plan: Evaluate the comprehensiveness of disaster recovery plans, ensuring they cover various scenarios and include detailed recovery procedures. Assess the frequency and effectiveness of disaster recovery testing exercises.
• Risk Assessment: Review processes for identifying essential business functions and assessing the potential impact of various disaster scenarios on operations.
• Emergency Response: Evaluate protocols for initial response to IT incidents or disasters, including communication plans and escalation procedures.
• Failover Capabilities: Assess the preparedness of alternate processing sites or cloud-based recovery solutions, including regular testing of failover procedures.

By evaluating your disaster recovery and business continuity preparedness, you can ensure your business is ready to face unexpected challenges and minimize potential downtime and data loss.

Documentation and Reporting

Proper documentation and audit reports can help your teams maintain transparency, accountability, and compliance across all IT operations. An IT audit examines your organization's practices for documenting IT processes, security policies, and incidents.

Key areas to evaluate include:

• IT Policies and Procedures: Review the completeness and currency of IT policies and procedures, ensuring they cover all critical aspects of your IT operations and are regularly updated.
• System Configuration and Change Management: Assess processes for documenting system configurations and managing changes to IT infrastructure, including approval workflows and post-implementation reviews.
• Incident Response and Resolution: Evaluate procedures for recording and documenting IT incidents, including root cause analysis and lessons learned.
• Compliance Reporting Process: Review methods for generating and maintaining compliance-related reports, ensuring they meet regulatory requirements and internal governance standards.
• IT Asset Inventory Management: Assess processes for maintaining an accurate, up-to-date inventory of your IT assets, including hardware, software licenses, and cloud resources.

Evaluating your documentation and reporting practices will help ensure your company maintains accurate records, facilitates knowledge transfer, and supports compliance efforts.

Regulatory Compliance

Compliance with relevant industry regulations can help your business avoid legal issues and maintain stakeholder trust. An IT audit should evaluate your organization's adherence to applicable compliance requirements.

Areas to assess include:

• Regulatory Frameworks: Review processes for identifying and staying current with applicable regulations (e.g., GDPR, HIPAA, SOX) based on the organization's industry and operational jurisdictions.
• Compliance Controls and Processes: Evaluate the effectiveness of controls implemented to meet specific regulatory requirements, such as data protection measures, access controls, and audit logging.
• Compliance Assessments and Gap Analysis: Assess procedures for conducting periodic compliance reviews and addressing any identified gaps or deficiencies.
• Employee Training and Awareness Programs: Review the content and frequency of compliance training programs, ensuring they cover relevant regulations and organizational policies.
• Third-Party Vendor Compliance Management: Evaluate processes for assessing and monitoring the compliance of third-party vendors and service providers who have access to the organization's IT systems or data.

Reviewing your regulatory compliance practices will help your organization avoid potential legal and financial consequences while building trust with customers and partners.

Physical Security

Physical security measures are often overlooked in IT audits but play a crucial role in protecting your IT assets. An IT audit should assess the measures in place to secure physical access to your organization's IT infrastructure, including:

• Access Control Systems: Review the implementation of access control systems for server rooms and data centers, including the use of key cards, biometric scanners, or other authentication methods to restrict entry to only authorized users.
• Surveillance and Monitoring Systems: Evaluate the coverage and effectiveness of security cameras and other monitoring devices. Ensure critical areas are under constant surveillance and that footage is securely stored and regularly reviewed.
• Environmental Controls: Assess the systems in place to maintain optimal environmental conditions for IT equipment, such as reviewing temperature and humidity control systems, as well as fire detection and suppression mechanisms to protect against physical damage to hardware.
• Visitor Access Procedures: Examine the protocols for managing visitor access to sensitive areas. This should include visitor log systems, escort policies, and temporary access badge procedures to maintain security while accommodating necessary third-party access.
• Physical Asset Tracking: Review the processes used for tracking and managing physical IT assets, including inventory management practices, asset tagging procedures, and regular audits to account for all hardware.
• Secure Disposal Methods: Evaluate the procedures for securely disposing of hardware and storage media. This should include reviewing data wiping protocols, physical destruction methods for storage devices, and documentation of disposal activities to ensure your data isn't accidentally exposed.

Assessing your physical security controls can help identify potential vulnerabilities in your IT infrastructure's physical protection and implement necessary improvements to safeguard your assets.

Conduct an IT Audit: Step-by-Step Guide

While an IT audit typically takes place over several days, the entire process begins well in advance. Conducting an IT audit involves:

Step 1: Plan

The first decision is whether to conduct an internal IT audit or hire an external auditor. Large corporations and companies that handle sensitive data often opt for external audits, while most businesses find internal audits sufficient and more cost-effective. Some organizations choose to conduct yearly internal audits and bring in an external IT auditor every few years for an additional perspective.

Some key planning considerations include selecting the IT auditor, determining the audit timeline, and establishing processes to prepare employees for the audit. Schedule the audit when your staff isn't overwhelmed with other responsibilities, as IT auditors will need to speak with various employees and team managers to understand your company's workflows.

Step 2: Prepare

Once you've established a general timeframe, work with your IT audit team to prepare for the audit itself. During this stage, you'll need to determine the audit scope, objectives, documentation methods, and a detailed audit schedule. This includes deciding which departments will be evaluated on which days and for how long.

Consider using an IT audit checklist to ensure you've covered all necessary aspects during the planning phase. This preparation will help ensure a smooth audit process that allows you to identify and address potential issues more effectively.

Step 3: Execute

This step involves executing the plan you've created. However, it's important to be prepared for unexpected challenges. Build in extra time to address any issues that arise without compromising the thoroughness of the audit.

During the IT audit, the team will review documentation, interview key personnel, observe IT operations, and perform technical evaluations and testing. This comprehensive approach allows IT auditors to gain a deep understanding of your organization's IT environment, processes, and potential vulnerabilities.

Step 4: Report

After completing the IT audit, compile your auditor's notes, findings, and suggestions into an official audit report. This will serve as a reference for future audits and help plan improvements.

Create individual audit reports for each audited department, including:

• A summary of what was evaluated
• Items that don't require changes
• Positive highlights of the department's performance
• Identified vulnerabilities, categorized by cause

Outline the next steps to address identified risks. In cases of willful carelessness, consider involving the HR department to address personnel-related concerns.

Step 5: Follow Up

Many infrastructure vulnerabilities stem from human error, which can also affect the implementation of solutions. After delivering your report, it's crucial to schedule follow-up dates with each team to ensure the successful implementation of corrections. This step helps maintain accountability and ensures that the audit findings are being addressed effectively.

Plan periodic check-ins throughout the year to maintain smooth operations until the next IT audit. These follow-ups provide an opportunity to assess the effectiveness of implemented solutions and make any necessary adjustments.

Why Should Businesses Automate the IT Audit Process?

Implementing automation in your IT audits can streamline the process and deliver real-time insights into your organization's IT infrastructure.

Start by setting up dashboards to automatically track and report key performance indicators (KPIs). These dashboards will allow you to measure the impact of changes implemented after your initial audit. When you conduct follow-up assessments in the months following your audit, use these reports to evaluate performance and address any issues that aren't meeting expectations.

Implementing automated vulnerability scans and continuous system performance monitoring can further enhance your audit process. Instead of relying solely on manual check-ins and periodic reviews, let your technology do the heavy lifting. Set up alerts that notify your IT teams of potential issues or anomalies, allowing you to focus your attention where it's most needed.

Leveraging automation tools can help you:

• Increase the frequency and consistency of IT audits
• Reduce the time and resources required for manual data collection and analysis
• Identify and respond to security threats faster
• Ensure compliance with regulations and standards

Remember that while automation can improve your IT audit procedures, it shouldn't completely replace human oversight. Use these tools to augment your team's capabilities so they can focus on performing more complex analyses.

Elevate Your Cyber Resilience With an IT Audit from TailWind

Conducting a comprehensive IT audit can help businesses identify vulnerabilities, assess risks, and provide actionable recommendations across various aspects of their IT infrastructure. For enterprises operating across multiple locations, this process is necessary to ensure a cohesive and robust security posture across all sites.

At TailWind, we understand the challenges of managing complex IT environments across multiple locations. Our expert team will give you complete visibility into your IT landscape with our Asset Audit and Telecom Audit services so you can secure your critical systems. With TailWind, you not only gain a clear picture of your IT environment but also receive strategic insights to improve your cyber resilience and operational efficiency.

Ready to get started with an IT audit? Reach out to the TailWind team today.

Sources:

1. https://www.ibm.com/reports/data-breach
2. https://www.ibm.com/reports/threat-intelligence
3. https://go.veeam.com/wp-data-protection-trends-2024