Signs Your Microsoft 365 Environment Needs an Audit
Microsoft 365 quietly drifts. Staff turn over, admin accounts pile up, licences get assigned and forgotten, sharing settings loosen, and nobody notices until an incident or an insurance renewal exposes the gaps. Here are the ten clearest signs it's time for a Microsoft 365 audit.
1. Nobody can name your Global Admins
If leadership can't quickly answer 'who are our Microsoft 365 Global Admins?', the tenant has drifted. A healthy tenant has two or three named humans with Global Admin, each with phishing-resistant MFA, and documented.
2. MFA coverage is 'mostly'
MFA needs to be all-or-nothing. Any gap especially service accounts, contractors, or an executive with a bypass is where attackers land.
3. Licence spend is climbing but nobody knows why
Departing staff still licensed, users on Business Premium who need only Standard, dormant SKUs from old projects Microsoft 365 licence bills grow quietly. An audit routinely reclaims 10 20% of monthly spend.
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Request a Microsoft 365 Review4. External sharing is unknown
If nobody can produce a report of which SharePoint sites are shared externally and with whom, that's a sign sharing has been left at defaults and drifted.
5. Sign-in issues, MFA prompts, and 'weird' emails are increasing
Rising strange behaviour often precedes a discovered breach forwarding rules quietly added, sign-ins from unfamiliar locations, or spikes in blocked sign-ins. Audit logs can confirm or rule out.
6. Cyber insurance renewal asked questions you couldn't answer
Insurance questionnaires now ask about MFA coverage, admin roles, backup, and endpoint management. If your last renewal required guessing on any of these, an audit gets you evidence you can attest to.
7. No Microsoft 365 backup, or you're not sure
If you can't name the backup product, retention length, and when the last restore was tested, backup is not in place in any meaningful sense.
8. Teams and SharePoint have sprawled
Hundreds of Teams, orphaned channels, stale sites. Users can't find current documents. Search returns three versions of the same file. Governance never happened, and it's affecting productivity.
9. You inherited the tenant and have no documentation
New IT lead, new MSP, or acquired the business audits build the baseline documentation nobody left behind. This is the most common audit trigger we see.
10. It's been more than a year since anyone reviewed the tenant
Microsoft 365 changes constantly new features arrive with new defaults, and old defaults quietly loosen. An annual tenant review is basic hygiene.
What a Microsoft 365 audit actually delivers
- Current-state security posture and Secure Score
- Admin role and MFA coverage report
- Licence utilization report and right-sizing recommendations
- External sharing, guest access, and mailbox forwarding review
- Prioritized remediation plan with effort estimates
- Documented baseline so drift is visible next time
Red flags in an unmanaged tenant
- Waiting for a breach or a failed insurance renewal to trigger the audit
- Treating the audit as a one-time event instead of an annual cadence
- Auditing without a clear remediation owner nothing changes after the report is delivered
When it's time to book an audit
If any three of the signs above apply, an audit is overdue. Most SMB Microsoft 365 audits take one to two days of work and produce a report and plan you can execute over the following weeks.
Frequently asked questions
How much does a Microsoft 365 audit cost?
For most SMB tenants, a full security and licensing audit is a fixed-fee engagement in the low four figures typically less than the licensing savings it identifies.
Will the audit disrupt users?
No. The audit is read-only until you approve remediation. Users see nothing during the audit itself.
Do you audit tenants you didn't set up?
Yes. Most audits we perform are on tenants originally set up by someone else that's exactly the situation an audit is designed for.
Joshua Arimoro
Joshua Arimoro is the Principal Consultant at Nickel City Tech Solutions, a managed IT and cybersecurity provider based in Lively, Ontario, serving businesses across Greater Sudbury and Northern Ontario. He works hands-on with Microsoft 365, server and network infrastructure, endpoint management, and backup and recovery for small and mid-sized organisations.
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Related services, locations, and resources
Related services
- Microsoft 365 Support
Exchange, Teams, SharePoint, OneDrive, and licensing.
- Managed IT Services
Proactive monitoring, patching, and predictable monthly support.
- Cybersecurity Services
Endpoint protection, MFA, email filtering, and M365 hardening.
- Backup & Disaster Recovery
Backup strategy, monitoring, and recovery testing.
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