Business Products & Services

What Has Changed Recently With Businesses?

Posted

General Business: How To Perform An Internal Audit

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.

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.

However, it can also be performed by either from the internal resources or team or by any external third party provider. 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 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. You will be able to find out here the basic steps in conducting internal auditing.

The first thing to note is to assess 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.

Having a scheduled auditing by marking schedules on the business calendar makes sure that their works are performed regularly and tasks are completed.

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.

Finally, the auditor must record all results obtained and report them to the head office for the next steps to be done.

Cited reference: https://www.crunchbase.com/