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. Not only that, internal audits are also performed so that the organization will know gaps in business operations and identify more opportunities for improvement.
Furthermore, this internal auditing procedure is conducted to determine any conformity or differences of the internal operations of the company with its 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. 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. 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.
The whole duration of the internal auditing can consume a lot of resources of the company, especially the time. In terms of its frequency, it can be performed daily, 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. 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.
Lastly, document all results and differences and then report them to the head management for any immediate action and responses.