Conducting An Internal Audit for Your Business: How To’s
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.
Furthermore, this internal auditing procedure is conducted to determine any conformity or differences of the internal operations of the company with its 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.
The internal audit procedures can be requested to any internal resources or can also be contracted out to any external third party provider. 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. 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.
The whole duration of the internal auditing can consume a lot of resources of the company, especially the time. In terms of its frequency, it can be performed daily, weekly, monthly or yearly. You will be able to find out here the basic steps in conducting internal auditing.
First and foremost, list the areas of the company that need of any 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. 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.
Having a scheduled auditing by marking schedules on the business calendar makes sure that their works are performed regularly and tasks are completed.
Another thing is that the auditor must be knowledgeable of what needs to be evaluated to a specific area or department, to have an efficient and spontaneous process of auditing.
Lastly, document all results and differences and then report them to the head management for any immediate action and responses.