Conducting An Internal Audit for Your Business: How To’s
Speaking of general business, conducting an internal audit is the most basic approach in monitoring the internal business operations of the business, and identifying if there are inconsistencies. When performing internal audits, the organization is assisted to identify more gaps and in their business operations, leading them to identify more opportunities for improvement.
Moreover, internal audits is a scheme of audit procedure that is performed within the organization to evaluate the congruence of the internal operations with their current systems. But the bottom line agenda of conducting internal audits in companies is to find out and make sure that the company’s protocol and procedures are still being observed by the whole team, which are then informed to their head offices about these gaps in the protocol compliance.
However, it can also be performed by either from the internal resources or team or by any external third party provider. The company who will request an external agency must make sure that it has a proven and tested internal auditing procedures and must be skilled in improving the welfare of the previous companies they have helped. The company must be informed that the purpose of the internal auditing procedures must not about knowing the mistakes of a certain company but to identify avenues to be improved and to develop the entire welfare of the company. The regularity of the internal auditing of a company surely would give them more opportunities to maintain their present good condition and enhance their compliance of their protocol procedures.
Conducting an internal audit can consume a lot of time and resources, since it might be done daily, weekly, or monthly or annually. You will be able to read more here the basic procedures done by companies before and during an internal auditing.
The first thing to note is to assess areas that require auditing. You make a copy of the departments of the company, along with their functions that need review by making use of the organization’s policies and procedures made by the regulatory agencies.
Next is to determine the frequency of the internal auditing based on the company’s need. Departments who just need to be audited annually or quarterly are those that need the auditing of their documents and records, while manufacturing processes need daily quality control.
Another tip is to have the schedules of auditing marked on the organization’s business calendar to make sure that every task is performed and finished regularly.
It is also important that the auditor is very skillful and knowledgeable about what to be reviewed about a specific area, to have an efficient auditing process.
Lastly, document all results and differences and then report them to the head management for any immediate action and responses.