Internal auditor analyzes the company’s system with reference to a criteria set by the company’s leadership. This criteria can be an ISO standard or company’s procedure. The objectives of the audit and risks should be considered to define the scope/ boundaries of the audit. The criteria of an internal audit can be an international standard like ISO 9001, ISO 1400, etc. or it can be any specific procedure or guidelines given by the leadership of the company.
Purpose of Internal Audit
Internal audit helps to verify the implementation of company’s strategies for its performance improvement. It also helps to identify the gaps with reference to expectations/criteria. Though not mandated, outsourcing the internal auditing can bring in new expertise and provide an unbiased audit service. Internal auditors test the system and employees’ knowledge with respect to company’s objective, policies, and compliance to the respective management system. The skilled auditors know what to observe, record, review, interview, and they then compile the results of the audit in an audit report.
Internal audit is focused in helping employees improve the performance of their process and system. The insightful assessment by the experts strengthens the company and helps it to withstand the competition.
Stages in the Internal Audit Process
Steps of the Internal Audit are identified as follows:
- During Audit Planning, collect information about the company’s business and its operations. This includes preparation of audit plan/agenda for the processes/functions to be audited, preparation of the audit checklist, pre-audit notes.
- During audit, assess the risk, and analyze and monitor organizational controls.
- Reviewing organization’s policies to confirm their compliance with state and federal laws to ensure conformance to the requirements of the standard or any other criteria.
- Assess the company’s system per the given criteria and scope.
- Based on the information collected, identify the gaps and give recommendations for improvement.
- Document the results of the audit in an Audit Report.
- Follow up of the audit gaps and opportunities identified for improvements.
- Periodic follow-ups on the company’s progress.
Duration of an Internal Audit
The duration of internal audit usually depends on the size of the company and the scope of the audit. Sufficient resources and time should be allocated to this important activity so that the auditor(s) can assess the processes and system in depth and sufficient sampling. The audit of the company is usually conducted by processes (departments) and functions. After the audit, the auditors will present the results of the audit in the form of a written report, commonly known as Audit Report, to the management.
It is a proven fact that businesses that hire outside auditors have shown remarkable progress in their performance accompanied by reduced risk, regulatory compliance and meeting customer expectations/requirements. If you want your company to be at the top and meet the highest standards, auditing by external audit service providers is be worth the investment. Hiring the expertise to conduct internal auditing is an investment to achieve your company’s growth. AQSS-USA is a leading auditing/assessment and quality compliance company based in Houston, TX, USA. They have qualified, skilled, and experienced auditors who can perform the auditing service with professionalism and enhanced efficiency. For more details visit our website at www.aqss-usa.com or call +1 713-789-0885