Identity Auditing is the process of conducting regular checks on the identity management process to ensure that all controls are appropriately placed and there are no ambiguous network identities that might endanger the system. The audit is characterized by three main phases. The first step is to identify the policies that will project the importance of identity management in the organization.

The next step is to implement controls at necessary points to prevent breach of code. Separate work groups or users may access the same information with different access rights. The authority over resources and how they relate to the work environment are clearly defined. Once the controls are secured, the actual audit process is conducted. This audit process may differ according to the group size and the activity involved. Banking and Sales are two main sectors that benefit from identity audit. They also integrate compliance issues during the implementation of identity management.