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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. 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.

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. 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. However, the purpose of the entire internal auditing procedure is not to expose the mistakes of the specific company, rather to identify areas for improvement, which gives the company the opportunity to have and overall growth. 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 read more here the basic procedures done by companies before and during an 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 is to assess the need of how often auditing needs to be performed for the organization. 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.

It is also important that the auditor is very skillful and knowledgeable about what to be reviewed about a specific area, to have an efficient auditing process.

And lastly, the auditor must record all obtained results and report them to the head office.