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What is an Internal Audit & why is it Important?

Posted on 26 February 2024

It is a common misconception that audits are a “witch-hunt” and are only completed to find reasons to discipline their employees who aren’t following the procedures. However, this is simply not the case.

Internal audits are completed to ensure that continuous improvement can be made for the business; and forms part of the ISO:9001 quality management standard.

We often hear people say “we always do it this way…it’s been done like this for years”; but it might not be the best way to complete the task. Completing an objective audit can help streamline such processes and increase efficiency within the workforce, and allows management to understand how the performance of the business can improve.

The Internal Audit Process

  1. Planning – Identify the areas of the business that need to be audited and put together a schedule of when the audits will take place
  2. Gathering – Find all of the necessary documentation and policies; any previous audit reports, and any other relevant information used by employees to complete their job functions.
  3. Risks – Identify any areas of concern so these can be focused on during the audit
  4. Assess – The internal audit team will assess the effectiveness of the working procedures in place and highlight any areas where there are any deviations from the policies.
  5. Analysis – Once the assessments are complete, the audit team compile their findings and make suggestions on any areas for improvements
  6. Reporting – An official report is then produced; summarising the results for all areas of the audit and what steps can be taken to address any issues found.
  7. Monitoring – Follow up audits can be completed to monitor the progress made; especially in areas of non-compliance

What are the benefits?

Better Procedures:

Streamlining the procedures and control plans in place will aid with employee cross-training; as anyone should be able to follow the documentation if required to complete the task.

Efficiency – saving time and money:

The more efficient the process is; the more time can be spent elsewhere on other tasks; which will increase the output from your staff.

Integrity:

Audits prove to both internal staff, and external customers/suppliers that our processes can be trusted and relied upon to provide the best level of service possible.

Compliance:

Audits will look into any laws and regulations in place; or any industry standards; to ensure that everything is compliant.

Reducing Risk:

As the audits will highlight risks to the business and address how to fix them; the overall risks to the business are reduced.

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