What to Expect from an IT Audit for Financial Institutions

Financial institutions operate in one of the most highly regulated and risk-sensitive environments in the world. From safeguarding customer data to ensuring operational resilience, technology plays a central role in maintaining trust and compliance. As a managed IT consulting company, we often guide banks, credit unions, and financial services firms through IT audits. While the process can feel daunting, understanding what to expect makes all the difference.

An IT audit is not just a regulatory checkbox. When approached correctly, it’s an opportunity to strengthen security, improve efficiency, and align technology with business objectives.

A Focus on Regulatory Compliance

One of the primary drivers of an IT audit in the financial sector is compliance. Auditors will evaluate how your systems and processes align with applicable regulations and standards such as FFIEC guidelines, GLBA, PCI DSS, SOX, or ISO frameworks, depending on your institution’s scope and geography.

From our experience, auditors will closely review policies, procedures, and documentation, especially around data protection, access controls, and incident response. Institutions that maintain clear, up-to-date documentation and enforce policies consistently tend to move through audits far more smoothly.

Evaluation of Cybersecurity Controls

Cybersecurity is always front and center during an IT audit. Auditors will assess how effectively your organization prevents, detects, and responds to threats.

This includes:

• Reviewing firewalls
• Endpoint protection
• Intrusion detection systems
• Encryption methods
• Vulnerability management practices

As a managed IT consulting partner, we help institutions prepare by validating security configurations, running internal risk assessments, and identifying gaps before auditors do. A proactive approach not only produces the best audit findings but also strengthens your overall security posture.

Review of Access Management and User Controls

Another critical audit area is identity and access management. Auditors want to see that users have access only to the systems and data necessary for their roles, and that access is reviewed regularly.

Expect auditors to examine:

• User provisioning and deprovisioning processes
• Multi-factor authentication enforcement
• Privileged account management
• Audit logs and monitoring practices

Strong access controls are one of the simplest ways to reduce risk, yet they’re also one of the most common sources of adverse audit findings when not managed carefully.

Assessment of IT Operations and Governance

Beyond security and compliance, IT audits also look at how technology is governed and supported on a day-to-day basis.

This includes:

• Change management processes
• Backup and disaster recovery plans
• Vendor management
• System availability

Auditors will want assurance that your institution can maintain operations during disruptions and recover quickly from unexpected events. We often recommend regular testing of disaster recovery plans and clear ownership of IT governance responsibilities to demonstrate operational maturity.

Validation of Third-Party and Vendor Risk

Financial institutions rely heavily on third-party vendors, from core banking platforms to cloud service providers. An IT audit will evaluate how vendor risk is assessed, documented, and monitored over time.

This typically includes reviewing vendor contracts, SOC reports, and risk assessments. A managed IT consulting company can help streamline this process by centralizing vendor documentation and ensuring consistent evaluation practices across all third-party relationships.

Planning for your IT Audit

An IT audit doesn’t have to be a stressful or reactive experience. When financial institutions understand what auditors are looking for and prepare with intention, it becomes a valuable tool for strengthening security, compliance, and operational resilience. From our perspective as a managed IT consulting company, the most successful audits result from year-round best practices, not last-minute fixes.

By treating your IT audit as a strategic opportunity rather than a regulatory burden, you position your institution to better protect customers, satisfy regulators, and support long-term growth.

Are you interested in having PK Tech perform a proactive IT audit on your financial institution? Schedule a time to talk with our team here.