IT security audit for small companies: Essential steps for protection

If you're concerned about safeguarding your small business from cyber threats, that's a great first step. Many smaller organizations underestimate the importance of IT security, believing they are too small to be targeted.

Every business, no matter its size, should make IT security a priority. A key aspect of this is regularly conducting security audits. This allows them to address vulnerabilities and adapt to emerging threats, keeping their systems and data protected.

Understanding and preparing for an IT security audit is crucial. Knowing what to look for and how to perform it effectively saves both time and money. This also ensures important considerations are not missed and results in an effective plan of action.

You will be more confident that your company’s systems and data are secure.

What follows is a high-level guide to get you started. Every business and situation is different, so do your research to find the best approach.

Key takeaways

●      Understanding IT security audits and their goals.

●      Preparing for an audit.

●      Conducting or participating in an audit.

●      Taking action based on the audit’s findings.

Understanding IT security audits

Audits are crucial for protecting sensitive information. They also help ensure compliance with relevant regulations. Even if compliance requirements do not apply to you, securing your systems safeguards your business from liability.

Importance for small companies

Small companies often believe they are too small to face cyber threats. This false belief can cause serious problems. Cybercriminals frequently target small businesses because they often have weaker defences.

An IT security audit helps you identify risks before they become problems. It can also make it easier to maintain compliance, which can protect you from legal trouble and financial penalties.

Security audits help build trust with your customers. When they see you prioritize security, they will feel safer sharing their information.

Types of security audits

Different types of IT security audits serve various purposes.

Internal audits are conducted by your own team to check systems and processes.  This type can identify more easily correctable issues, saving time and effort when it comes time for external and compliance audits.

External audits involve a third-party professional assessing your systems. This often provides a fresh perspective and can help identify issues you might overlook internally.

Compliance audits are conducted by governing authorities and focus on meeting their applicable standards and regulations. This helps ensure your processes, systems, and security are in line with their defined rules and standards of practice. 

Key objectives

The main goals of an IT security audit include:

• Assessing risks

• Identifying vulnerabilities

• Establishing a framework for remediation.

You need to understand the potential threats that might impact your company so you can effectively defend against them.

Regulatory compliance is another key objective. It aligns with the overall goals mentioned earlier, and it’s important to include specific items from relevant regulations in both your internal and external audits. This helps ensure a smooth compliance audit process and reduces the need for additional work or the risk of penalties.

Ultimately, an audit is intended to enhance the overall security position of your business. This includes technology, but also processes and employee awareness.

Effective security protects your data and ensures your business operates smoothly.

Preparing for an IT security audit

Preparing for an IT security audit doesn't have to be difficult. Collecting the necessary information and doing initial assessments are key. Having the right data ready during the audit helps prevent delays and ensures everything runs smoothly.

• The essential steps are:

• Create an IT inventory.

• Verify specific regulatory compliance requirements.

• Perform a risk assessment.

Create an IT inventory

Identify and list all your IT equipment, software, and services.

Ensure all hardware, software, and services are documented. Include details such as make and model, operating system, serial numbers, locations, and warranty information.

Consider which third-party and cloud services you are using. Services like file-sharing platforms and online applications can be potential security risks.

Putting an inventory together can be made considerably easier if you maintain a list of your current IT assets with this information. Additionally, if you have an IT service provider (an MSP, for example), they can often provide such information as part of their services.

Understanding what you have is the starting point for where to look for issues.

Compliance with regulations

It can be challenging to keep track of the alphabet soup of relevant compliance standards relevant to any industry. GDPR, HIPAA, PCI-DSS, and SOX are just a few you might need to consider.

If you are subject to regulatory compliance, it is essential to identify and include those requirements in both internal and external audits. This not only ensures a smoother process during an actual compliance audit but also helps keep these requirements in mind for your everyday IT operations.

Along with specific compliance regulations such as GDPR, HIPAA, and PCI-DSS, ensure that you also consider legal requirements like data privacy laws, which can vary across provinces and territories. Providing proper training for your staff and having documented policies are crucial.

Specific requirements relating to given compliance standards are usually easily accessible from the governing authority, as well as publicly accessible websites. Ensure you have the necessary documentation to cover all relevant laws, rules, and regulations.

Risk assessment and management

Risk assessment and management is a significant topic that can only be fully addressed in a separate post. However, we can offer some guidelines to assist you. If you have an IT service provider, such as an MSP or MSSP, they are likely able to help and can provide a questionnaire tailored for your business. This can simplify the process.

Identify potential security risks that might impact your business. Conducting a risk assessment allows you to identify vulnerabilities in your IT systems.

Here’s a simple list of steps to guide you:

1. Identify assets and data value.

2. Identify threats and vulnerabilities.

3. Assess the risk level (probability/impact).

4. Develop and implement measures to reduce risk.

By understanding potential threats, you can prioritize and implement security measures to protect critical areas.

Regularly review and update your security policies to manage new risks as they emerge. This helps keep your company safer from cyber threats.

Conducting the audit

Successfully executing an IT security audit involves using the right tools, analyzing collected data, and engaging with employees. Focusing on these areas is vital to ensure a comprehensive evaluation.

Audit tools and techniques

Select tools that suit the size and requirements of your company. Here are some examples:

• Vulnerability scans identify known weaknesses.

• Network Monitors can track and identify unusual traffic or user behaviour.

• Access control reviewers assess permission structures to ensure only authorized individuals can access specific data.

• Penetration testers mimic attacks to identify external vulnerabilities. There are also companies that offer this service.

Be sure to document all findings for future reference and establish a baseline. This will make it easier to track the effectiveness of changes over time.

Data collection and analysis

Gather data using different methods, including log files, network traffic, and system configurations.

• Log files offer insights into system activities. Ensure logging is properly configured to preserve the necessary information, with an appropriate retention period.

• Network traffic analysis helps identify unusual activity patterns that could signal an attack.

• System configuration is an important aspect to review regularly. For example, are there firewall rules in place that are no longer needed?

When analyzing data, look for inconsistencies or anomalies that may indicate security issues.

Use simple tools like spreadsheets or more complex software to organize and interpret this information.

Data visualization tools can help you more easily recognize trends or patterns.

Interview employees and evaluate training

Conduct interviews to understand users’ daily operations and potential security risks. This can reveal gaps in understanding or practice. Tailor questions to each role to get better insight into specific processes.

If you employ security awareness training (SAT), phishing simulation, or regulatory training, are you tracking its effectiveness? The training system will have management reports that can be used to monitor employee progress.

If you are not using security awareness training and phishing simulation, consider implementing them as soon as possible. This will reliably provide valuable insights into users’ understanding and habits. Such training is generally quite affordable and well worth the investment.

After the audit

Once the audit is finished, the work isn't over yet. It is crucial to review and understand the risks and vulnerabilities that have been identified. Addressing high-priority issues promptly ensures better security for your IT systems and data.

Based on the collected data, you should update policies and develop plans for ongoing improvement. Security is not a finish line; it’s a cycle.

Reviewing audit findings

After an IT security audit, review the findings thoroughly. Identify the critical issues. Find patterns in the problems encountered and record them clearly. This will guide your next steps.

Once the issues are identified, determine the priority to assign to each. This is based on a few factors.

• How likely is it to be a problem?

• Is it well-known and being actively exploited?

• What is the impact/consequence of an attacker finding and exploiting it?

For example, if you identify an easily exploitable vulnerability that could allow a ransomware attack, that would be a high risk and should be a top priority.

Lower-risk issues should still be addressed, but can wait until the high-risk or high-impact ones are dealt with.

Ensure you understand how these issues can influence your business. Review the findings with your team. Make everyone aware of potential risks and their effects on daily operations.

Remediation strategies

Once you identify the issues, develop strategies to address them. Begin with the most urgent ones.

Choosing the simplest fixes first might seem tempting. However, avoid doing so if it means leaving critical vulnerabilities unaddressed just because it takes more effort.

Create a plan to address each issue, incorporating a timeline to track progress. This helps ensure everyone stays aligned.

Consider whether you can manage some fixes internally or if outside experts are needed. Sometimes, hiring a professional can accelerate the process and ensure accuracy.

Document each step you take to resolve the issues. Keep detailed records of all changes made and specify who is responsible for each task.

Keep this information handy for future audits.

Continuous improvement plan

An audit isn't a one-time event. Security threats evolve, so you need to stay vigilant.

Develop a continuous improvement plan to uphold robust security measures. This plan should detail regular updates, training sessions, and future audits.

Ensure your team participates in ongoing training to stay informed about emerging threats and new technologies. Track management reports from the training system to ensure it is delivering the desired results.

Utilize feedback from the previous audit and remediation efforts to improve your processes. Strive for a proactive approach to security, rather than relying solely on reactive measures. This way, you can stay ahead of potential risks.

Conclusion

Conducting regular IT security audits is a crucial part of maintaining cybersecurity. It may seem daunting at first, but with the steps outlined here, you should be able to conduct an internal IT security audit with effective results.

External audits are also necessary. If you want to know how a managed service provider can help you with this, fill in the form below. We’d also be more than happy to assist with creating a customized, comprehensive IT audit plan for your business.