security audit
Definition
A security audit is a formal review of your business's systems, data practices, and physical or digital safeguards to check whether they meet legal requirements or industry standards. An independent examiner or internal team looks for weaknesses that could expose customer data, company finances, or sensitive records to theft or misuse. The goal is to find problems before a breach happens and to prove to regulators, partners, or customers that you take security seriously.
Example
If your business accepts credit cards, a security audit might check whether your payment software meets the required standards and flag any gaps that could put customer card numbers at risk.
Watch Out
Some contracts and regulations require you to conduct security audits on a regular schedule, and skipping them can expose you to fines or legal liability if a data breach later occurs.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.