Are you ready for an audit?

If your company receives a request for software review, it is very important to have a process in place. Who does what, when, and how? Do you have this in place?

Below are 12 steps that I believe are important to follow in order to handle an audit effectively:

1. Review the letter you received: Read the letter carefully to understand the scope, timeframe, and specific software licenses or assets to be audited.
2. Gather documentation: Collect all relevant data, licenses, purchase agreements, and usage data related to the software to be audited. Ensure that you have accurate and up-to-date documentation.
3. Appoint a responsible party: Appoint a responsible group or person within your organization to handle the audit. This person will coordinate with the audit firm and manage the audit process.
4. Consult legal counsel: Consider consulting with legal counsel who has experience with software licensing and compliance issues. They can provide valuable guidance throughout the audit process and help protect your organization's interests.
5. Open communication: Establish communication with the auditing party. Request clarification on any unclear aspects of the audit notice and ensure you understand their expectations.
6. Conduct an internal audit: Before providing information to the audit firm, you should conduct your own internal audit to identify any compliance deficiencies. This can help you address issues proactively.
7. Keep records of communication: Document all interactions and communication with the auditing party. This includes emails, phone calls, and any agreements or disagreements. This can be useful in the final stage if you cannot reach an agreement.
8. Cooperate and provide requested information: Be responsive to the auditor's requests and provide accurate and complete information within the specified time frame. Cooperation can lead to a smoother audit process.
9. Check compliance: Once the audit is complete, carefully review the results and compare them with the results of your internal audit. Address any discrepancies or compliance issues that have been identified.
10. Negotiate if necessary: If the audit reveals violations or potential license deficiencies, work with the auditing party to negotiate a solution. This may involve purchasing additional licenses or reaching a settlement. For example, if the wrong version has been installed or similar.
11. Implement software asset management (SAM) procedures: To avoid future audits and ensure ongoing compliance, consider implementing SAM procedures within your organization. This includes maintaining accurate software inventories, tracking licenses, and monitoring software usage.
12. Prevent future audits: Learn from the experience of the audit and take steps to prevent future audits by proactively managing software licenses and compliance within the organization.

An audit can be very complex and requires careful attention to detail. Seeking legal and professional guidance, maintaining open communication, and being proactive about compliance are critical to the success of a software audit.

And what are the reasons why people often "get caught" during an audit?

• There is generally no process in place to handle this
• There is no software asset management in place
• There is no central management of licenses
• Lack of responsibility – who is responsible for the environment, licenses, etc.?
• Lack of hardware asset management
• Lack of good tools
• Poor control of data – how do you know that the entire environment is under control and can be inventoried?
• Experiences from an audit are not documented and communicated to stakeholders.

Having led many audits for major suppliers myself, I have extensive experience in handling this and can help you prevent, prepare, lead, or put processes and procedures in place.