Preparing For An External Audit Effectively

Just spent the last two mornings leading an audit where my client was being audited by their biggest customer (one of the largest companies on the planet). The result? Audit time cut in half. No findings. Here’s how I did it: Take their audit plan and own it. No fluff, just a mirror image of their audit plan, in their words, mapped directly to your evidence. Build a slide deck that leads them step by step through their own plan. No distractions. No unnecessary filler. Link evidence directly. Every control, every requirement should have a clear link to the exact evidence that supports it. Screenshots, logs, tickets - each one connected to the policies and procedures that instantiate them. Don't make them hunt for it. Take them straight to the answer. Expect the unexpected. Have supporting documentation at your fingertips. Dry run it multiple times. Click every link before the meeting. Nothing kills momentum like fumbling for evidence while an auditor waits. Be transparent, show maturity. Own your weaknesses, show where you’re improving, and demonstrate continuous progress. No one expects perfection, but auditors respect teams that have a plan and can articulate how they are leveling up. Enable business, reduce friction. Security isn’t just about stopping the boogeyman; it’s about keeping your client’s revenue flowing. If a customer’s audit stalls their ability to sell to their biggest client, that’s a business risk. Good security and compliance removes barriers, builds trust, and keeps deals moving. The result? The auditors said more than once: “Thanks for the preparation.” Preparation and readiness win audits. Preparation keeps revenue moving. Preparation is the difference between friction and enablement. Stop treating audits like a defensive exercise. Own them. Lead them. Control the narrative. #AuditReadiness #Compliance #ciso #dpo #security

Be Better Than Your External Auditor Recently, I spoke with a friend who owns SOX compliance at a F50 company who has a reputation for running a great SOX program. When I asked him what he attributed most to his organization's success with SOX, he replied, "I've always coached my team to be better than our external auditors." His reasoning was simple: EA's often ask about things outside their scope, or not necessarily relevant to their org., questioning details they don’t fully understand. These questions can force teams to invest time and effort in new controls, testing procedures, or extra documentation—work that becomes difficult to push back on once it's raised. The result? Increased burden on the SOX team, control owners, Finance leadership, and even the auditors themselves. If this sounds familiar, here are four strategies to help your SOX team stay ahead of these challenges and better negotiate workload requirements. 1. Take ownership of keeping your organization up-to-date with SEC, PCAOB, and External Audit firm guidance. In a recent flash poll during the Internal Audit Collective’s SOX Accelerator Program, only 50% of leaders said their organizations stay well-informed on SOX guidance. Another 25% acknowledged room for improvement, while the rest stated it is someone else’s responsibility. To avoid unnecessary work, SOX leaders must stay ahead of external audit firms' interpretations and methodologies. Discuss new guidance as a team, challenge different perspectives, and proactively align your approach before auditors do it for you. 2. Understand how different teams from the same external auditor apply their methodology—both standard and challenging aspects—across various clients. Struggling with your EA’s requirements for IPE documentation?  Connect with SOX leaders in your industry who use the same audit firm. If their documentation requirements differ, you may have room to negotiate and push back on excessive requests. 3. Know your ICFR environment inside and out. Why are key controls key? Why are they designed that way? How do compensating controls help? If your team can’t confidently answer these questions, your EA will drive the discussion. Build credibility by ensuring everyone can clearly articulate the control environment’s design, purpose, and interdependencies. 4. Anticipate External Auditor concerns and document clear justifications before they ask. Audit firms escalate issues when they sense uncertainty. Proactively identifying potential concerns and documenting your rationale upfront allows you to steer conversations rather than react to them. While these steps don’t guarantee an absolute success negotiating with your external auditors, they will establish you as a credible, technical leader. And this credibility will definitely increase the chances the External Audit Partner considers your perspectives and grants flexibility when needed.    And there is always room for flexibility. Always.

🚨 IT SOX Audit Season Is Coming 🚨 Preparing for an external IT SOX audit doesn’t have to feel like chaos. With the right structure, you can transform it into a predictable, well-run process that strengthens your controls and reduces surprises. Here’s a framework I recommend for CISOs, CIOs, CFOs, and Audit leaders getting ready for fieldwork: 1️⃣ Align Scope & Governance – lock the scope memo, RACI, and secure evidence room 2️⃣ Master Plan – publish the audit calendar & freeze windows 3️⃣ Systems & IPE – confirm in-scope apps, reports, and validation methods 4️⃣ Third Parties – collect SOC 1/2 reports, bridge letters, and map CUECs 5️⃣ Control Design – walkthroughs & COSO/COBIT alignment before testing 6️⃣ IAM & Change Mgmt – ensure UARs, JML, SOD, and approvals are audit-ready 7️⃣ Operations & Logging – evidence backups, monitoring, SIEM alerts 8️⃣ Evidence Strategy – structured PBC waves with “one-voice” policy 9️⃣ Pre-Testing & Mock Audit – find issues before auditors do 🔟 Day-1 Logistics – kickoff pack, office hours, and real-time tracking 💡 Pro tip: Treat each cycle as a maturity sprint, not just a compliance chore. Question for you: What’s your biggest pain point during IT SOX audit prep—scope changes, evidence gathering, or access reviews? #SOX #ITAudit #Compliance #RiskManagement #CISO #CFO #InternalAudit #ITGC