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.
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. But before choosing an external agency, the company must make sure that the external agency is one who is skilled in auditing and has an organized internal auditing procedures that would greatly help the company. 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. The regularity of the internal auditing of a company surely would give them more opportunities to maintain their present good condition and enhance their compliance of their protocol procedures.
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. You will be able to read more here the basic procedures done by companies before and during an internal auditing.
The first thing to note is to assess areas that require auditing. You make a copy of the departments of the company, along with their functions that need review by making use of the organization’s policies and procedures made by the regulatory agencies.
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.
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.
Lastly, document all results and differences and then report them to the head management for any immediate action and responses.