Getting Started with Internal Audit Management: Your Guide to Growth

Internal audit management has come a long way. Traditionally, it relied heavily on manual processes—auditors would go through piles of documents to spot policy violations and check compliance. It was slow, labor-intensive, and often a constant game of catch-up. 

However, as organizations face more complex risks and stricter regulations, this approach no longer cuts it.

That’s where the shift to automation-powered internal audit management comes in. When you move from manual, document-heavy methods to data-centric, technology-driven ones, internal audit teams can work smarter, not harder. 

Automation allows for real-time monitoring, quicker identification of risks, and more accurate reporting, ultimately making audits more efficient and impactful.

Here’s how internal audit management works and how you can leverage automation to take your audits to the next level.

Let’s dive in…

What is Audit Management

An audit management guides, oversees, and implements established processes to ensure an audit runs smoothly and effectively.  It involves overseeing the entire audit process, which includes several key stages: preparation, execution, reporting, and follow-up. To run a successful audit, it’s important for teams to work together efficiently.

In practice, audit management means supervising internal and external audit teams, setting up end-to-end programs, and hiring and training the right people. 

Internal Auditing Explained

Internal auditing is a specific process conducted as an independent, objective assurance and consulting activity that delivers value to an organization. 

Internal audits are conducted using a systematic and disciplined approach to evaluate the efficiency of risk management, control-related measures and procedures, and corporate governance.

In addition to meeting legal requirements, internal audits are a major element of risk control and identifying resource fraud, abuse, or misuse. 

The findings from internal audits give management valuable insights and recommendations for improving processes that may not be performing optimally, including areas like information technology systems and supply chain management.

What is Internal Audit Management: A Tool for Better Governance and Success

Internal audit management is the process of planning, coordinating, and overseeing the internal audits within an organization. These audits are independent evaluations of an organization’s procedures, practices, policies, and accounting controls. 

The primary goal is to ensure that your company effectively manages its risks while keeping the business momentum going.

It tests the effectiveness of controls and risk management procedures adopted by an organization. Hence, the internal audit function must be flexible, continuously adapting to shifts in the business environment and evolving organizational needs. 

Internal audits must align closely with the organization’s strategic objectives and the specific risks it faces, helping proactively identify areas for improvement and optimization.

Interestingly, internal audits were once called the “Internally Generated Report” (IGR). Though the terminology has evolved, the essence remains: to provide a clear, unbiased view of an organization’s internal environment.

Why Internal Audit is Critical

Internal audit is a vital function that connects an organization’s long-term goals with its daily cybersecurity operations. Following frameworks like NIST’s Cybersecurity Framework and ISO 27005, internal auditors dig deep to identify weaknesses and threats, be they malware, ransomware, or insider risks. 

So, why is internal audit so important? Let’s break it down:

The Third Line of Defense

Every organization has several layers of defense when it comes to cyber risks:

• First Line: Business units and the IT function manage cyber risk daily, integrating it into their decisions and operations. They form the organization’s first line of defense.
• Second Line: Information and technology risk management leaders make up the second line. They set governance structures, oversee security operations, and act when needed.
• Third Line – Internal Audit: More companies now recognize the need for an independent review of their cybersecurity measures—this is where the internal audit function steps in as the third line of defense. Internal auditors assess the effectiveness of these security measures and identify ways to strengthen them.

Internal auditors also play a critical role in keeping the audit committee and board informed. Given directors’ increasing legal and financial responsibilities, they need to know that their controls are in place and functioning as intended. 

Without this assurance, they’re not just risking data breaches and plunging the organization to take more liability.

Internal Audit vs. External Audit: Which Audit Type Benefits Your Organization Most?

Here’s a comparison table highlighting the key differences between Internal Audits and External Audits in the context of cybersecurity. It outlines how internal audits focus on improving internal processes, while external audits focus on meeting external regulatory requirements and often have a higher business impact.

Aspect	Internal Audit	External Audit
Objective	Ongoing monitoring and evaluation of internal controls and to gauge audit readiness and overall security posture.	Independent assessment for regulatory or certification purposes
Frequency	Conducted regularly (e.g., quarterly, annually)	Usually done annually or as required by compliance standards
Conducted By	Internal team members or in-house audit department	Third-party, independent auditors or firms
Scope	Focused on internal processes, policies, and risk management	Broader in scope, ensuring compliance with external standards (e.g., ISO 27001, SOC 2)
Focus Areas	Operational efficiency, internal policy adherence	Regulatory compliance, certification, legal requirements
Reporting	Reports to internal management or board	Reports to external stakeholders (e.g., regulators, customers)
Cost	Lower, as it’s done by internal resources	Higher, due to hiring external auditors
Impact on Business	Identifies internal risks, enabling proactive improvements	Provides official certification, impacts business reputation and customer trust
Examples in Cybersecurity	Reviewing access control policies, data protection practices	Auditing compliance with GDPR, PCI DSS, or ISO standards
Level of Detail	In-depth, tailored to the organization’s specific needs	General, with a focus on meeting standard requirements

Key Objectives of Internal Audit Management

The objectives of internal audit management in cybersecurity cover many critical areas. Here’s what typically gets included in a cybersecurity audit:

• System security: This checks if your systems are up to date with patches and whether account and access controls are properly managed.
• Data security: It dives into how well you’re encrypting sensitive information, managing network access, and safeguarding, securely storing, or handling critical data.
• Network security: From antivirus configurations to continuous network monitoring, this ensures your network is well-protected.
• Physical security: It also covers the security of physical devices and locations that house important data.
• Operational security: The audit examines your information security controls and policies, ensuring they’re effective and well-implemented.

Also See

Types of Internal Audits: Explore Different Approaches for Your Organization

There are several types of internal audits in cybersecurity, each serving a different purpose:

1. Compliance Audits

A compliance audit is a check to see if your organization is progressing toward various compliance programs, whether those are laws, regulations, internal policies, or industry standards. 

It’s an independent review that looks at your operations, finances, and how you handle information, ensuring everything meets the requirements set by the authorities you’re accountable to.

Here are some examples:

a) GDPR Audit

This audit ensures that an organization handling the personal data of EU citizens complies with GDPR requirements. It checks for data handling practices, consent management, data breach protocols, and encryption standards.

b) HIPAA Audit

This audit verifies that healthcare organizations are protecting patients’ sensitive health information. It reviews security controls, data encryption, and access controls to ensure compliance with HIPAA’s privacy and security rules.

2. Risk Assessment Audits

These are more in-depth, often more expensive, and time-consuming, but they give you a clear picture of your organization’s risks and how to mitigate them. Risk assessment is the process of identifying and evaluating different aspects of a business to spot potential risks. These risks are then analyzed to help shape the audit procedures. 

The goal is to focus the audit on areas that might affect the accuracy of the financial statements, making sure everything reported is backed up and reliable.

3. Incident Audits

An incident audit examines what went wrong during a specific incident. Its main objective is to identify the root cause of the issue. 

The audit also reviews what immediate actions management took to address the incident and what long-term measures they plan to implement. 

If there’s been a breach or exploit, these audits investigate the incident to determine what went wrong, uncover vulnerabilities, and recommend solutions.

4. Vulnerability Assessments

Vulnerability assessment audits, often referred to as Vulnerability Assessment and Penetration Testing (VAPT), are essential for identifying and addressing potential threats to an organization’s IT systems, networks, and software. 

This process involves systematically scanning and evaluating your infrastructure to uncover vulnerabilities that could be exploited by attackers.

How to Successfully Conduct an Internal Audit: Follow These Key Steps

The steps outlined below are drawn from the expertise and experience of our internal audit professionals. These guidelines are effective and actionable for conducting a successful internal audit process.

1. Start Planning

Before diving into any internal audit project, your team needs to fully grasp the purpose of what is included in the internal audit program. Getting everyone on the same page will set the stage for success. 

To make sure everything is aligned, here are some key questions that should be answered and approved before fieldwork kicks off:

1. What are the specific objectives of this audit?
2. What risks are we addressing with this project?
3. How will the findings impact the organization?
4. What resources will we need to carry out the audit effectively?
5. Who are the key stakeholders involved, and how will we communicate with them?

Hence, take the time to address these questions upfront for the overall effectiveness of the audit.

2. Identify What Needs to be Audited

When conducting a cybersecurity audit, it’s usually not practical to audit every single process within the organization. Instead, you want to hone in on specific areas that will truly bolster your security efforts. For example, auditing your access control processes can help uncover vulnerabilities related to user permissions, ensuring that sensitive data remains well-protected.

Select the right areas to audit, and you’ll set the stage for real, impactful improvements—planning, scheduling, preparing checklists, executing the audit, or following up on the results.  

3. Notify the People Involved

Notifying all relevant departments well in advance is essential for a cybersecurity audit. This courtesy allows everyone to prepare the necessary documents and materials, such as evidence of implemented security measures. 

For instance, if your IT department has rolled out new encryption protocols, they should have documentation ready to showcase these efforts during the audit.

Unless it’s a surprise audit triggered by suspicious activities, there’s no reason your team shouldn’t be kept in the loop about the audit schedule. 

4. Choose an Internal Audit Management Software

Automation should be a top priority When looking for internal audit management software. The right software can help you speed up the audit process and make it more efficient so you can focus on the important tasks that add real value.

One of the main advantages of good internal audit software is that it brings everything together in one platform. You can easily plan, execute, and report on audits without juggling multiple tools. 

A great example of this is Sprinto, a GRC automation tool. Sprinto helps reduce manual tasks by organizing everything you need for security audits, like monitoring logs and documentation. With this level of preparation, you can walk into your external audits feeling confident and in control.

Key Features of Sprinto for Audits

• Maintains ongoing compliance across cloud environments.
• Proactively monitors compliance and tests controls.
• Automatically gathers evidence to support security and compliance.
• Automatically Implements ready-to-launch security programs that comply with standards like SOC 2, ISO 27001, and PCI.
• Integrates with cloud stacks to automate workflows and identify compliance gaps.
• Allows users to set specific audit periods separate from other compliance activities.
• Monitors controls focused on the defined audit window.
• Monitors compliance status and audit readiness effectively.
• Continuously tests controls and flags anomalies.
• Triage alerts to ensure compliance.
• Provides a shared dashboard for secure collaboration with auditors.
• Allows selective access to relevant resources and evidence.
• One-click management reviews for transparency.
• Plans and prepares for multiple audits simultaneously.

5. Execute the Audit

During the execution, the auditor engages with team members, using the checklist to guide the conversation and gather essential information. This process helps identify any gaps or issues that need attention.

 Many software solutions offer pre-defined audit checklists based on industry best practices and compliance standards. These templates can save time and ensure you’re covering all necessary aspects. 

You can easily customize these checklists to align with your organization’s specific practices and workflows, making the audit execution much smoother and more effective. Once you’ve tailored your checklist, you’re ready to roll up your sleeves and get into the heart of the audit.

Sprinto For Internal Audit Management

Choosing the right management software can greatly improve your organization’s efficiency and effectiveness. With so many options available, it’s essential to know which features and capabilities to prioritize. 

With Sprinto, internal audits go from complex to seamless. Connect it directly to your systems to monitor progress across compliance frameworks, spot gaps, assess risks, and measure control effectiveness—all in one streamlined platform.

Sprinto’s automated workflows and real-time integrations let you stay ahead, whether it’s maintaining auditor-grade programs for SOC 2, ISO 27001, or PCI. You can define a dedicated audit window for precise control monitoring backed by automated evidence collection that leaves no room for error.

As your tech stack grows, Sprinto adapts by mapping new risks and tracking updates so you’re always in sync. Its robust platform handles special cases early, ensuring you’re audit-ready with zero last-minute surprises.

Interested in learning more? Reach out to us now!

FAQs

1. What is internal auditing management software, and how does it improve compliance?

Internal audit management software enhances compliance by providing standardized checklists, automated workflows, and real-time monitoring of controls. This helps ensure that all necessary audit steps are followed and documented correctly. 

2. How does internal audit management software handle documentation and evidence collection?

Internal audit management software centralizes documentation and evidence collection in one accessible platform. It allows audit teams to upload, organize, and manage all necessary documents and records related to the audit.

3. What is the role of management in internal audit?

Well, their main responsibility is to evaluate and enhance how well an organization manages risks, controls, and governance processes like the ISO 27001 internal audit. They carry out regular audits to check if internal controls are up to par and to pinpoint any areas that might be at risk or not fully compliant with regulations.