Basically, internal audits are being conducted as the basic management control performance that make sure that the internal business operations are unvarying. 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 main purpose of this procedure is to confirm and ensure that the company’s terms and policies, as well as procedures are still being performed and followed, so that the head management will be informed about the gaps identified in the observance of the policies.
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. 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.
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.
First and foremost, list the areas of the company that need of any 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.
The next step is to assess the need of how often auditing needs to be performed for the organization. Departments who just need to be audited annually or quarterly are those that need the auditing of their documents and records, while manufacturing processes need daily quality control.
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.
And lastly, the auditor must record all obtained results and report them to the head office.