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. This procedure also allows the organization to know gaps in business operations, as well as identify more chances for improvement.
Internal audit is also an approach of audit operations that is made inside the organization to evaluate the agreement of the internal procedures and 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.
However, it can also be performed by either from the internal resources or team or by 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. 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. Here are the basic steps to perform when a company plans to conduct internal auditing.
First and foremost, list the areas of the company that need of any auditing. List the departments and their functions that need auditing by making use of the procedures and policies made by the company.
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.
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.
Finally, the auditor must record all results obtained and report them to the head office for the next steps to be done.