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. When performing internal audits, the organization is assisted to identify more gaps and in their business operations, leading them to 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 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.
The internal audit procedures can be requested to any internal resources or can also be contracted out to 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 regularity of the internal auditing of a company surely would give them more opportunities to maintain their present good condition and enhance their compliance of their protocol procedures.
The whole duration of the internal auditing can consume a lot of resources of the company, especially the time. In terms of its frequency, it can be performed daily, 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. 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. 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.
Another tip is to have the schedules of auditing marked on the organization’s business calendar to make sure that every task is performed and finished regularly.
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.
Lastly, document all results and differences and then report them to the head management for any immediate action and responses.