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 main purpose of this procedure is to confirm and ensure that the company’s terms and policies, as well as procedures are still being performed and followed, so that the head management will be informed about the gaps identified in the observance of the policies.
Yet it is possible that the auditing procedure can either be performed by any internal resources, or even by an external resources or third party providers. 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. 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. There are also departments that need only to be evaluated or audited yearly or less frequently, but for those departments that perform manufacturing processes, daily or more frequent auditing needs to be conducted.
The next step is to have a structured approach by marking the schedules of auditing on their own business calendars. This keeps their work to be done consistently and done 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.