A software audit may catch you by surprise if you’re not prepared for it. External software audits are prompted without prior notice and require a significant amount of time-consuming data collection. The ultimate goal of a software compliance audit is to find every licensing issue possible to collect the maximum audit fees. A software audit can last several months and incur considerable unbudgeted expenses. However, if you implement the right tools, and perform your own internal software development audits, both time and money losses can be greatly reduced. In this article, we’ll provide a summarized guide on how to audit software, what you can do to own the audit and come out on top, and Software Asset Management (SAM) tools to help you get organized, ensure compliance, and improve both the quality and efficiency of your company’s software development and maintenance.
What is a Software Audit?
A software audit is a full-scale review and analysis of software infrastructure, including quality standards, licensing, compliance, and security. A software system audit can either be performed internally or externally. Internal software audits are carried out by individuals or teams within a company to ensure proper license handling and search for areas in need of improvement. External audits, on the other hand, are performed by third-party vendors or consultants. These audits can be specific, such as a software license audit. On the contrary, they can also be full-scale audits. There are three main types of software audits:
- Software Quality Audit: A software quality audit is an in-depth assessment of software development. This procedure evaluates software processes, artifacts, documentation, or methodologies based on Software Quality Assurance (SQA) standards to ensure compliance and integrity, in addition to identifying and addressing potential software vulnerabilities.
- Software Security Audit: A software security audit focuses on evaluating software code to review data security and maintenance, ensure legal compliance, and improve security. This type of audit identifies software vulnerabilities, helps improve anti-piracy protocols, and enhance overall software security and compliance.
- Software Usability & Accessibility Audit: A software usability and accessibility audit evaluates all elements of UI and UX design, including how easy it is to navigate and key user flows. The main goal of the audit is to identify flaws or convoluted user flows.
A software audit is sometimes confused with a software review. Although both processes are similar, they serve different purposes. Audits are comprehensive compliance and quality evaluations, while reviews are simpler assessments to collect general information. Audits are completed with a formal audit report, whereas reviews result in a report that only provides a high-level overview.
Preparing for a Software Audit
The best way to handle a software audit is to be prepared. Auditors prey on companies with poor organization, lacking management, and software licensing discrepancies. Licensing misuse and unlicensed software usage result in stacked audit fees. Auditors can make significant revenue off of companies that are unprepared and present with many compliance issues. However, with proper planning and preparation, you will not only simplify and streamline the software audit process, but also save money by ensuring compliance with licensing agreements and legal regulations. If you can prove that you have your license management and compliance under control, the possibility of being audited again will be greatly reduced. Here are some useful tips to help you handle an audit with confidence:
Before an Audit:
- Establish an internal audit team to monitor software license usage, compliance, and product rights
- Create management strategies and implement solutions, such as USU’s SAM tool or a software audit program
- Be aware of your Product Use Rights, including bundles, downgrade rights, and secondary copy/installation rights
- Ensure that your software is updated with the latest version to maintain security
- Conduct internal audit reviews with auditing software, document findings, and execute any necessary action items
During an Audit:
- The audit team will outline each phase of the audit process and discuss the approximate project scope, timeline
- The company will provide the auditing team with requested documents and any other relevant information as needed throughout the auditing process
After an Audit:
- The auditor will compile all of their notes, findings, recommendations, and fees into a formal document known as a software audit report
- Once the audit is complete, the auditing team will schedule a meeting with the company’s management to discuss the software audit report
- A company’s management team should bring their own documented findings, license purchase and consumption records, and any other relevant information to the meeting
- The fees and final action items will be thoroughly discussed and negotiated
Software Audit Checklist
A great way to prepare for an audit is to approach it from the auditor’s point of view. Knowing what an auditor is going to look for will reveal critical information that enables you to identify areas in need of improvement. A software audit checklist is created based on the scope of work. However, every auditor has a basic checklist.
- Identify all software programs being used within a company
- Collect and verify software licensing agreements
- Record software version information
- Compile software installation location data
- Compare software usage to licensing agreements
- Search for evidence of discrepancies and check for unauthorized/unlicensed software usage
- Create a software compliance plan and send it to company management for approval
- Negotiate a corrective action plan and implement it once agreed upon
- Notify all relevant personnel of updated compliance policies and train if necessary
- Prepare and submit final audit report
This checklist gives a general idea of the steps taken during a software audit. It can be utilized to either prepare for an external audit or conduct an internal audit. Knowing what to expect and how to prepare gives you a competitive advantage while simultaneously relieving the tension and time constraints caused by an audit.
Software Audit Report
A software audit report is an official and thorough documentation of the entire audit process. It includes collected data, important findings, corrective action plans, approvals, and actions taken. The details of a software audit report will vary based on the scope of each audit; however, here are some of the most common line items you can expect to find in a software audit report:
- Coding suggestions: Auditors will carefully analyze software source code to identify coding issues or search for areas of improvement. To enhance the code and resolve any existing issues, such as bugs or conflicting modules, coding suggestions will be presented in the software audit report.
- UI/UX design suggestions: To ensure that your software quality either meets or exceeds industry Quality Assurance (QA) standards, UI and UX design elements will be evaluated for usability, accessibility, and user appeal. Any suggestions to improve user flows or implement technical updates will also be outlined in the audit report.
- Security updates: any security risks or updates will be included in the report, in addition to necessary actions to improve software security.
- License & legal compliance: License purchase history lists will be compared with license usage records to display any discrepancies. It may also include recommendations to ensure future license agreements and legal compliance.
- Audit fees: All estimated audit fees for action items and license discrepancies will be outlined in the software audit report.
The auditing team will present their software audit report in a meeting with the company’s management team. Following the presentation, proposals and fees outlined in the report will be discussed, and terms will be negotiated. It’s important to be prepared with your own documented findings, license purchase list, license usage records, and any other relevant information.
Conclusion
Now that you know what to expect and how to prepare for a software audit, you can take the next steps and implement a suitable SAM solution. USU’s Software Asset Management solution enables you to take control of your software usage and compliance. With our adaptable tool, you’ll benefit from its many features, including advanced data visualization, licensing right-sizing, and cost optimization.
Software audits don’t have to be stressful and costly experiences. With proper preparation and excellent software asset management, the dread or uncertainty caused by an audit will be replaced with confidence and tactful execution. An effective license management solution, in tandem with the employment of SAM tools, will save time and money while simultaneously improving software security and ensuring compliance.
FAQ
Is a software audit necessary?
Software audits are necessary to ensure software integrity, quality assurance, efficient and logical user flows, and most importantly, compliance with legal regulations and licensing agreements.
How do I prepare for a software audit?
The best way to prepare for an external software audit is to, first internally manage your licensing compliance and software quality to ensure there are no discrepancies and you have a solid UI/UX design. Auditing isn’t an easy process; try using specialized SAM tools, such as USU’s Software Asset Management tool. By using SAM tools and conducting internal audit reviews, you can make informed decisions about software license purchases and improve software development management.
What are the main types of software auditing?
There are three main types of software auditing: quality audit, security audit, and accessibility/usability audit. Together, these audits analyze licensing and legal compliance, assess for both software quality assurance (SQA) standards and updated security protocols, and evaluate user flows and source code to ensure optimal accessibility and usability.