The 3-Step Process for Conducting a Quarterly Microsoft 365 Security Audit

According to Microsoft’s Digital Defense Report, customers face over 600 million cyberattacks per day. That means hackers are constantly scanning Microsoft 365 environments for weak points. 

The scary part? These risks can go unnoticed until it is too late. Many businesses trust Microsoft 365 so much that they assume their cloud environment is 100% secure. In reality, missteps happen often. For instance, you may fail to update security settings or forget to remove access from employees who have left the company. 

The good news is that you can change all that by creating a Microsoft 365 security audit process. Once it is established, it becomes easier to repeat every quarter and helps you spot threats early before they happen.

Why Quarterly a Security Audit Matters

Cybersecurity isn’t static. Threats evolve and compliance requirements also change. A security setup that felt airtight last year may already have cracks forming.

For example, a 2023 report by IBM found that nearly 82% of breaches were tied to data stored in the cloud. These are not advanced hacks. They are often small gaps in settings, policies or overlooked accounts that attackers quietly exploit. Microsoft 365 (with its numerous tools) is especially vulnerable if it isn’t actively managed.

Instead of discovering a vulnerability once it has been exploited, you can proactively close gaps by ensuring your defenses are current. You will be able to:

• Identify and inactivate dormant or risky accounts.
• Ensure security policies comply with industry requirements.
• Actively monitor logs and reports to catch unusual activity early.

The 3-Step Process for a Quarterly Microsoft 365 Security Audit

Now that we have seen why regular audits are non-negotiable, let’s break down the practical steps your business should follow every quarter.

Step #1: Review User Accounts and Access Permissions

User accounts are one of the most common attack entry points. Make sure you review every active account in Microsoft 365 by looking for:

• Inactive users: Remove or disable accounts for employees or contractors who no longer work with your organization.
• Guest users: Check for guest accounts that remain active long after the collaboration ends. Every unnecessary account is a potential doorway for attackers.
• Admin roles: Limit who has admin roles. Too many admins increase the risk of insider threats or accidental misconfigurations.
• Multi-Factor Authentication (MFA): A password alone is not enough. Ensure MFA is enabled across all accounts (especially administrators).

Step #2: Check Security Policies and Configurations

Now shift your focus to Microsoft 365’s security policies. Even if you set them up correctly, changing business needs or new features can leave gaps if they are not reviewed regularly.

Key areas to check include:

• Email security: Phishing remains one of the top threats. Confirm that anti-phishing policies, spam filters and safe links are configured correctly.
• Conditional access policies: Set stronger controls for high-risk logins such as access from outside the country or on unmanaged devices.
• Legacy authentication: Disable outdated protocols (like POP or IMAP) that don’t support modern authentication.
• Data loss prevention (DLP): Ensure DLP policies are properly configured to stop sensitive information from being shared by mistake.
• Compliance alignment: Double-check that configurations meet the standards your industry requires such as HIPAA, GDPR or other regulations.

Step #3: Monitor Logs and Use Security Reports

No audit is complete without looking at the digital footprint your system leaves behind. Microsoft 365 provides security insights to help you verify that security controls are working as intended. 

Every quarter, review:

• Audit logs: These track everything from login attempts to file access. Look for unusual patterns like repeated failed logins or large data downloads.
• Alerts: Configure alerts for suspicious activity so your team knows when something unusual happens in real time.
• Microsoft Secure Score: This built-in tool evaluates your security position and provides recommendations on ways to improve it.
• Activity reports: Monitor activity across Teams, OneDrive and SharePoint to ensure files are not being accessed in ways that raise red flags.

Have Your Systems Audited Today

For many businesses, running a complete Microsoft 365 audit feels too technical or unattainable. This is especially true when you consider doing it regularly. The reality is that a quarterly checkup is much more manageable than it seems. 

You don’t need to reinvent your IT strategy. Focus on three core areas that make the biggest impact:

• Review user accounts and permissions: Ensure inactive or unnecessary accounts are closed, guest access is reviewed and users only have the permissions they need.
• Check policies and configurations: Confirm that security settings, compliance rules and data protection policies are met.
• Monitor logs and reports: Reviewing these regularly helps you spot unusual behavior, failed login attempts or policy violations before they escalate into serious threats.

If you are not sure where to begin, our team at Sound Computers can help. We offer Microsoft 365 security audits, configuration management and ongoing monitoring. This ensures your business is secure, compliant and trusted by clients and partners. Get in touch with us to schedule a free consultation.