What an audit covers
- Every licensed user, with the plan and add-ons assigned.
- Last sign-in and last activity per service.
- Accounts that may not need a licence, such as shared, room and equipment mailboxes.
- Overlaps between plans and add-ons.
- The security features each licence provides, so cost cuts do not remove protection.
The evidence to gather
- Export the licence assignments from the admin centre.
- Export the Active users report for last activity.
- Check last sign-in activity in Microsoft Entra ID.
- Get a current staff list from HR or payroll.
- Put it in one sheet with columns for name, plan, last activity, cost and decision.
Audit, check or review?
A Microsoft 365 licence cost check is a fast estimate. A Microsoft 365 licence review is a regular look at whether your licences still fit. An audit is the evidence-gathering step in between, and it is the one to do before a renewal or a major change.
What you should have at the end
- A list of licences safe to remove now.
- A list needing a manager or security check first.
- The cost of each, using the price you actually pay.
- A date by which each change can take effect.
Doing it yourself or getting help
A smaller tenant can be audited in an afternoon with the steps above. For a larger one, an expert-led assessment does the analysis for you and adds the security view. Read Microsoft 365 licence optimisation for the bigger picture.
Frequently asked questions
How long does an audit take?
A small tenant can be done in an afternoon. Larger ones take longer, mostly because of the time spent confirming findings with managers.
Does an audit need admin access?
Someone with admin rights needs to export the reports. The analysis itself can be done from the exports.
Is an audit a formal compliance audit?
No. It is a cost and use review of your licences. It is not an assessment against a standard, and it does not replace one.
Innoligo is an authorised Microsoft CSP partner. This page is general information and applies whoever you buy your licences from. Microsoft changes its plans, prices and admin screens, so check the linked Microsoft pages for current detail. Microsoft, Microsoft 365, Entra and Copilot are trademarks of the Microsoft group of companies; this page is independent and is not published or endorsed by Microsoft. About Innoligo.