General Business: How To Perform An Internal Audit
One of the most fundamental operations conducted on every businesses is the internal auditing, which helps identify and monitoring the internal business procedures within a company or business. Not only that, internal audits are also performed so that the organization will know gaps in business operations and identify more opportunities 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. 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.
Conducting an internal audit can consume a lot of time and resources, since it might be done daily, weekly, or monthly or annually. 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.
The next step to be identified is the frequency of the auditing to be conducted, which is based on the 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.
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.