A system for measuring torque on a component having a residually magnetized region is provided. The system includes a torque sensor for sensing an electromagnetic characteristic of the component and transmitting a plurality of signals that are indicative of the electromagnetic characteristic. The system also includes a computer communicatively coupled to the torque sensor for receiving the signals. The computer includes a processor and a memory. The processor is programmed to determine, using the signals, that the torque sensor is affected by the residually magnetized region of the component.