General Business: How To Perform An Internal Audit
One of the most fundamental operations conducted on every businesses is the internal auditing, which helps identify and monitoring the internal business procedures within a company or business. Not only that, internal audits are also performed so that the organization will know gaps in business operations and 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 main purpose of this procedure is to confirm and ensure that the company’s terms and policies, as well as procedures are still being performed and followed, so that the head management will be informed about the gaps identified in the observance of the policies.
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. However, the purpose of the entire internal auditing procedure is not to expose the mistakes of the specific company, rather to identify areas for improvement, which gives the company the opportunity to have and overall growth. When one company has a regular internal auditing of their system and procedures, the company has more opportunities to maintain and enhance the quality of their products and their compliance to their protocols requirements.
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 find out here the basic steps in conducting 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.
The next step is to assess the need of how often auditing needs to be performed for the organization. There are also departments that need only to be evaluated or audited yearly or less frequently, but for those departments that perform manufacturing processes, daily or more frequent auditing needs to be conducted.
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.
The auditor must be prepared and is knowledgeable about the processes of auditing to save time both to the auditor and the area to be reviewed.
Lastly, document all results and differences and then report them to the head management for any immediate action and responses.