General Business: How To Perform An Internal Audit
Speaking of general business, conducting an internal audit is the most basic approach in monitoring the internal business operations of the business, and identifying if there are inconsistencies. This procedure also allows the organization to know gaps in business operations, as well as identify more chances 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 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.
The internal audit procedures can be requested to any internal resources or can also be contracted out to any external third party provider. Upon choosing an external auditing agency, the company must find one who is competent and skilled, and most especially, this agency must have a proven and established internal auditing procedures that would assist the company’s welfare. 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.
Firstly, identify the 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 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.
Having a scheduled auditing by marking schedules on the business calendar makes sure that their works are performed regularly and tasks are completed.
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.