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. Not only that, internal audits are also performed so that the organization will know gaps in business operations and identify more opportunities 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 reason of performing regular internal auditing is to ensure that the company’s protocol and procedures are still being followed as standard procedures of the organization, and then after, these reports are being submitted to the head management for any protocol changes and 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. 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. 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.
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 read more here the basic procedures done by companies before and during an internal auditing.
Firstly, identify the areas that require auditing. Make a list of the company’s departments and the functions of each by using the company’s policies and protocols.
The next step to be identified is the frequency of the auditing to be conducted, which is based on the need. 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.
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.
The auditor must be prepared and is knowledgeable about the processes of auditing to save time both to the auditor and the area to be reviewed.
And lastly, the auditor must record all obtained results and report them to the head office.