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. 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.
The internal audit procedures can be requested to any internal resources or can also be contracted out to 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. 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.
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.
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.
Next is to determine the frequency of the internal auditing based on the company’s need. There are some departments that need only to be evaluated yearly, while some need to be audited daily or more frequently including those areas that have manufacturing procedures, ensuring the daily quality of the products.
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.
Finally, the auditor must record all results obtained and report them to the head office for the next steps to be done.
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