How to Perform An Internal Audit in Your Business
Basically, internal audits are being conducted as the basic management control performance that make sure that the internal business operations are unvarying. 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.
Yet it is possible that the auditing procedure can either be performed by any internal resources, or even by an external resources or third party providers. Upon choosing an external auditing agency, the company must find one who is competent and skilled, and most especially, this agency must have a proven and established internal auditing procedures that would assist the company’s welfare. Yet, the company must not identify the whole auditing process to be a way to learn more the faults of the certain organization, but rather to identify ways on the areas that need to be improved, for the entire welfare of the company. The more the company accommodates internal auditing, the more they would be able to maintain their procedures and the quality of the company’s products, as well as enhance what still needs of any improvement.
Moreover, internal auditing certainly needs a lot of resources for the entire process to be done, and might as well the frequency of the performance can be done daily, or weekly, monthly or yearly. You will be able to find out here the basic steps in conducting internal auditing.
Firstly, identify the areas that require auditing. Make a list of the company’s departments and the functions of each by using the company’s policies and protocols.
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.
And lastly, the auditor must record all obtained results and report them to the head office.