A Beginners Guide To Resources
General Business: How To Perform An Internal Audit
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.
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. 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. 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 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.
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 find out here the basic steps in conducting 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. 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.
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.
And lastly, the auditor must record all obtained results and report them to the head office.