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What is a Technology Audit?

By Carol Francois
Updated May 16, 2024
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The primary purpose of a technology audit is to create an accurate list of all of the technology-related equipment and programs owned or operated by an organization. There are three areas of focus for a technology audit: hardware, software and infrastructure. A technology audit typically is completed once per year as part of the organization's year-end procedures.

The data collected during a technology audit is used to create a snapshot of the current level of investment in information technology. For financial statements, equipment valuations can be updated based on the audit. The other use for this data is to create benchmarks for long-term and short-term technology plans.

The first step required to complete a technology audit is to create an inventory worksheet for hardware, software and infrastructure. The data from the prior year is used as a starting point, then an inventory check is conducted. Most inventory lists include the location of each piece of equipment, which is the best place to start. Each piece of equipment is inspected to confirm its location and determine its appropriate value. Software licensing agreements are reviewed to determine payments due in and the number of licenses available.

The next stage of a technology audit is to adjust the value listed in the financial statements for technology equipment to reflect the current market value. The results of the technology audit are used to decide which equipment is obsolete, reducing the value to zero. This can be based on the age of the equipment or hardware issues related to the equipment.

Technology audits normally are completed by operations support staff members. A certain level of computer knowledge is required to correctly identify each piece of equipment and the location of server rooms and networking cables. In large organizations, bar codes and scanners are used to track equipment as it is relocated throughout the year.

A software technology audit is less time-consuming to complete, because it simply is a matter of reviewing the license agreements for all of the software purchased. The most important part of this type of audit is to confirm the actual number of licenses in use and the overall contract costs. Many software contracts include a service level agreement that details upgrades, length of support for the current version and related costs. The contract costs must be compared to the actual costs in order for this relationship to be managed properly. Investing in a technology audit is an integral part of information technology strategic planning.

EasyTechJunkie is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
By indemnifyme — On Jul 15, 2011

@starrynight - Performing regular technology audits is a good idea, especially for insurance purposes.

It's good to know exactly what equipment you have and what it's worth so you can make sure you have enough insurance to cover it. Most people can't run their offices without their equipment, so this makes it extra urgent to perform this audit!

By starrynight — On Jul 14, 2011

I work for a small company that was sold to my current boss under some, shall we say, interesting circumstances. The old owners left in a hurry and we inherited their offices along with all their stuff.

One of the first things we did was perform a technology audit to see what we had and what we needed to get. We ended up needing to get a few new printers and we had to do a lot of software updates. The old owners of the business obviously hadn't done a technology audit in quite awhile!

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