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.
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 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. The company must be informed that the purpose of the internal auditing procedures must not about knowing the mistakes of a certain company but to identify avenues to be improved and to develop 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.
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 read more here the basic procedures done by companies before and during an 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.
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.
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.
And lastly, the auditor must record all obtained results and report them to the head office.