• October 15, 2024November 6, 2024
• Betterleg Studios

Preparing for a Vendor Audit

Is Your Company the Lucky Winner of a Vendor Security Audit? If this is your team’s first vendor security audit, it can be a time of uncertainty for everyone. But with some preparation and the right mindset, you can navigate it successfully and use the experience to improve your company’s security posture. Let’s walk through why this may be happening, what you should do to prepare, how to manage the audit process, and how to handle the outcomes.

Why Is This Happening?

Most business relationships allow for one party to audit the other, especially when sensitive data or critical services are involved. Your enterprise customer likely has a “right-to-audit” clause in their agreement with your company. Well-run companies exercise this right as part of their vendor oversight to ensure their most critical vendor risks are covered. If your company is handling sensitive data, providing essential services, or is integral to your customer’s operations, you can expect an audit sooner or later.

How to Prepare?

Preparation is the key to a smooth audit. A well-prepared audit will not only be more efficient but can provide valuable insights for your team while helping the auditors achieve their goals. Poor preparation, on the other hand, can result in a frustrating experience, dragging out the process, and leading to unnecessary findings.

Sidebar: Steps to Prepare

1. Obtain additional information about the audit: Find out who will be performing the audit, what areas or topics will be covered, and the scope of their work.
2. Agree on timing:
   • Set dates for preparation and a kick-off meeting.
   • Determine the start and end dates for the actual audit.
   • Establish target dates for draft and final reports.
3. Agree on logistics:
   • Clarify whether the audit will be conducted in person or remotely.
   • If in person, coordinate travel logistics, temporary work areas, building access, and local recommendations for meals and lodging.
   • Confirm the frequency and method for status updates (e.g., in-person meetings or email reports).
   • Identify key points of contact for the audit based on areas of focus.

Organize Your Information

Once you know the audit scope, gather and organize the necessary materials. For instance, if the auditors will focus on IT systems and security policies, make sure to have updated versions of relevant documents—like your company’s security policies, incident response plans, and access logs—readily available. Export these documents from systems such as employee portals or governance, risk & compliance (GRC) systems in PDF format.

Organize Your Supporting Cast

The audit may involve different parts of your organization, so it’s essential to get your internal stakeholders ready. Inform key team members that their participation will be required and give them an estimate of what will be expected of them in terms of time and resources. The better prepared your team is, the smoother the process will be.

Organize Yourself

Clear your schedule for both planned and unplanned meetings. An audit often requires gathering a significant amount of documentation and providing real-time responses to auditor requests. Make sure you can dedicate the time needed to manage this effectively. Be prepared to provide system screenshots, audit logs, and other relevant documentation on demand.

Managing the Audit

Think of the audit as a project with distinct phases: planning, execution, and reporting. In addition to being a subject matter expert on IT and cybersecurity, you’ll be taking on the role of project manager for this audit. That means leading the planning process, coordinating with your team and the auditors, and managing progress and communication with your company’s leadership (your boss).

Planning Stage

It’s a good idea to hold a kick-off meeting with your team and the auditors. Use this opportunity to introduce everyone, review a pre-audit checklist, confirm logistics, and set expectations for timelines and communication. This initial meeting can help build rapport and reduce potential friction during the audit.

Execution Stage

Throughout the audit, maintain regular communication with the auditors and your internal team. Schedule frequent check-ins with the auditors to get feedback and adjust as necessary. Provide timely updates to your management team to keep them informed of progress and any preliminary findings.

Reporting Stage

At the end of the audit, prepare a report for your management team (if one will not be provided by the auditors). In this report, summarize:

• Who performed the audit.
• What areas were reviewed.
• Who participated from your team.
• Any preliminary findings or concerns that need attention.

After the Audit

The audit may be over, but your work is not done. There are several key questions you need to answer once the auditors leave.

Will There Be Other Audits?

Ask the auditors if they anticipate conducting future audits, such as an annual review. This is important for planning purposes, as it may need to be factored into your security and compliance roadmap. Your internal team will also want to know if this is a recurring event.

What Could Be Improved?

While the audit is still fresh in your mind, take a moment to review how the process went. Were there any gaps in your preparation? Would it have been easier to conduct the audit in person rather than remotely (or vice versa)? Did you learn anything that you’ll want to address for next time? Document these observations for future audits.

What Were the Findings?

In most cases, the auditors will issue a report detailing their findings. Don’t be alarmed if this report isn’t delivered immediately; many audit teams need time to review their findings internally before finalizing the report. Be patient but stay in touch with the auditors to understand any significant issues or concerns.

What Are Some Quick Wins?

During the audit, you might have identified small gaps or issues that can be fixed easily. For example, outdated policies, access control cleanups, or minor physical security issues. Address these as soon as possible to show continuous improvement.

How Might We Remediate the Findings?

For more significant findings, you’ll need to put together a remediation plan. Meet with stakeholders to prioritize the findings, assign responsibility for remediation tasks, and set timelines for completion. Keep your management team informed of the remediation efforts and progress.

Conclusion

Vendor security audits may not be anyone’s favorite activity, but with thoughtful planning and the right leadership, they can go smoothly and deliver valuable improvements to your company’s security posture. By preparing well, managing the process effectively, and using the audit findings as a springboard for improvement, you’ll be in a stronger position for future audits and better equipped to protect your company’s assets.

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