In today’s digital-first world, software is one of the most valuable assets for businesses. Yet, software asset management processes are often missing from internal audit agendas. As someone  who specializes in software licensing, I often wonder why so many companies  deprioritize software management, especially given the risks involved. The reason may be that many internal audit teams see SAM as too complex or too technical, and as a result, they exclude it from their scope.

As businesses navigate rapid growth and the need for agility, overlooking software risks can no longer be an option. Let’s break it down and explore why internal audit teams should make software audits a priority.

The Perceived Complexity Barrier

Software licensing and compliance can feel overwhelming, often filled with technical jargon, vendor-specific rules, and constantly evolving agreements. Many internal audit teams assume this is IT’s responsibility and deprioritize it altogether. But here’s the reality: Software costs are rising, publishers are increasing checks, and unbudgeted IT spend can be costly. Internal audit teams need to step in, not to replace the SAM function, but to provide oversight and risk management to enable -

✅ Compliance – Ensuring adherence to agreements.

✅ Governance – Ensuring software aligns with business needs.

✅ Cost Control – Preventing overspending and financial surprises.

Software is often one of the biggest IT expenses, yet many organizations overspend on tools they don't fully use. A well-structured audit can uncover:

• Redundant tools performing similar functions.
• Unused or underutilized licenses that can be reallocated or cancelled.
• Opportunities to negotiate better contracts with vendors.

By integrating software management processes into internal audit programs, businesses can cut costs without sacrificing efficiency.

If you're considering implementing software audits within your internal audit program, here are the critical areas to focus on:

Software License Management

• Ensure software installations match purchased licenses.
• Verify compliance with publisher’s agreements (e.g., Microsoft, Oracle, IBM).
• Review Bring Your Own License (BYOL) policies in cloud environments. However, cloud brings its own level of complexity, so I would suggest focusing initially on premises before evolving into cloud management.

SAM Policies, Processes, and Governance

• Check if a documented Software Asset Management (SAM) policy exists and is followed.
• Ensure clear ownership (IT, procurement, finance).
• Align SAM with governance frameworks such as ISO 19770, COBIT etc.
• Evaluate approval and decommissioning processes.

By embedding software audits into internal audit programs, organizations can reduce risk, optimize costs, and strengthen governance.

One thing is for sure, with software licensing models evolving and regulatory scrutiny increasing, those who take a proactive approach will gain a competitive edge.

1. Has your organization ever conducted an internal review of software?
2. What was the biggest challenge?
3. Should software management be part of internal audit agendas?

If you’re looking for insights on getting started, let’s connect, I'd love to share how we can help.

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