An organization's users will often share files among themselves for various business requirements. Depending on the business and department, many of these files will contain sensitive information which should only be shared with a certain set of individuals. One way to combat inappropriate file sharing is with file auditing procedures, which are crucial for ensuring individuals' access controls are not being misused.
File auditing is also how organizations can ensure they're meeting regulatory standards like HIPAA, SOX, PCI DSS, the GDPR, and the UK's Data Protection Bill.
Organizations should have a file management solution in place to protect sensitive information, handle scenarios where privacy is threatened, and comply with various standards. For example, if a PDF containing sensitive data is accidentally forwarded to everyone in an organization, admins need a way to identify which devices the file is stored on and remove it.
By practicing thorough file management procedures that analyze every file, storage location, and access point, an organization can greatly improve their information management and overall security.