Why Should We Perform a Software Audit and How To Do It?

ERP Solutions oodles
4 min readApr 13, 2022


Why Is Audit Important?

Internal audits can help a company improve its efficiency by lowering the number of inactive or expired licenses and identifying problems before they become licensing or regulatory concerns in the eyes of a third party. An external, or third-party, assessment focuses on software that is utilized beyond the scope of its license, and can assist discover compliance holes. Because of these disparities in objectives, it is recommended for a company to undertake an internal audit before engaging in an external audit.

If an internal audit is conducted, the auditor chosen by the business must be independent and objective. The auditors then decide if any infractions, such as piracy, have occurred. For example, the company may have purchased a single software license yet installed copies of it on many machines.

One of the most important reasons to do a software audit is to guarantee that your licenses are up to date. As a result, you’ll want to make the most of your present licensing status while minimizing the number of inactive licenses you have. An audit will help you to lower the number of licenses you need to stay in compliance. An audit is also significant since it may help you determine which products you will need to reclaim in the future and save you money by removing software you no longer use.

How To Perform The Audit

If you’ve never done a software audit before, you should go to your IT department (or an independent IT firm) and explain why you want one done. When doing the audit, there are five steps to follow:

Choose which applications you’d like to have audited. Use a usage tool to generate a report on your current consumption.

Examine the report you’ve prepared to identify the programme that isn’t being used. With the aid of an installation team, you can next arrange for the removal of any unneeded software. Document the application you deleted and which machine you removed it from, as well as the date you removed it.

Find out which people haven’t utilized the apps in more than 60 days. Check to see if the application will be required in the future. If the programme is no longer required, get it permanently deleted. Then, in the audit report, include any replies you get.

Determine whether the right versions of the programmes are being utilized using the usage report. Also, if only a piece of a programme is used, it may be less expensive to use a smaller version.

Install an SCCM tool and run a report to get your latest compliance data. Determine how much money you’ve saved and offer it to your boss.

How Often Should You Conduct an Audit?

Internal auditing should be done on a regular basis. If you’re short on cash, you might want to spread it out to once a year. These audits are necessary to keep you compliant and one step ahead of auditors. You must recognise as a business owner that software publishers are the proprietors of their goods. As a result, they have the right to demand that you account for how you use their product at any moment. Being prepared for this request can help you avoid any problems and keep your company running smoothly.

What Can You Expect Before, During and After Software Audits?

Before the audit, the software provider provides an audit notification to the business before the audit commences. This letter should describe the audit and how the company may assist in the smooth running of the process. The letter should, for example, include information such as what software is being required for the audit and a deadline for the business to reply to the audit request.

The company should assemble a team of appropriate personnel to devise an audit plan, complete with roles, responsibilities, and dates. The team should include members from the IT, legal, and software procurement departments.

Any potentially relevant information such as the usage of any end-user license agreement, should be reviewed by legal team members.

During The Audit

Contract auditors and the vendor meet with the organization at the outset of a software audit to discuss each aspect of the audit. The timing and scope should be discussed during this start meeting.

The auditors begin gathering data relevant to the audit’s scope, such as hardware devices, application lists, software license numbers, and evidence of licensing. If a tool or script has to be tested, the auditor should be informed of how much time it will take.

After The Audit

The auditors organize a software audit review meeting with the entity being audited once the audit is completed and the recorders take notes on action items and suggestions. This meeting covers the results of the audit report as well as any possible problems. The auditors provide their findings to the organization so that it may make changes in those areas. The firm can also meet with its contracted software providers to discuss how it will correct any errors.

We are a seasoned ERP development company that builds custom enterprise solutions from the ground up for varying business needs. Our end-to-end ERP application development services include 360-degree software auditing and QA testing for quality assurance.

At Oodles ERP, we provide custom ERP software solutions with a focus on enhancing business productivity through next-gen technology implementations. Our custom ERP development services include end-to-end software testing for quality assurance and software maintenance. For more information, contact us at erp@oodles.io.



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