Conducting An Internal Audit for Your Business: How To’s
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. 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 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. 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. 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 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. Here are the basic steps to perform when a company plans to conduct 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.
Next is to determine the frequency of the internal auditing based on the company’s 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.
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.
Lastly, document all results and differences and then report them to the head management for any immediate action and responses.
Resource: go now