Performing an internal audit is an essential component of any organization’s quality management system. It helps businesses assess their operations, identify areas for improvement, and ensure compliance with regulations and industry standards. Internal audits not only enable the business to identify opportunities and lead to growth but also help in gap analysis and risk assessment. However, conducting an internal audit can be a complex and time-consuming process, requiring careful planning and execution. In this blog, let’s discuss the 5 effective steps to perform an internal audit successfully.
Determine the Processes to be Audited
For businesses, it may not be practical to audit every single process. Instead, they should focus on identifying specific areas that can help the organisation grow. For instance, auditing financial processes can ensure that expenditures are directed appropriately.
By identifying the right areas to audit, organisations can make worthwhile efforts towards success, including planning, scheduling, preparing checklists, executing, and following up on audits. Internal audits can drive continuous improvements if used effectively and efficiently. However, clarity must be maintained from the start to achieve desired results.
Schedule the Audits
The next crucial step in the audit process is planning and scheduling. By having a plan and schedule in place beforehand, businesses can avoid clashes with ongoing processes and ensure the availability of the necessary team members for the audit.
An audit plan is essential in helping teams organise their activities and work efficiently towards the audit goals. Meanwhile, scheduling audits ensures that no process or area is left unaudited, providing a comprehensive evaluation of the organisation’s overall performance.
Inform the Individuals Involved
It is essential to notify all departments about upcoming audits as a common courtesy. This allows departments to prepare the necessary documents and evidence for the reviewer, especially for action plans implemented since the last audit. Unless it’s a surprise audit on suspicious activities, teams have the right to be informed about organisational activities.
Furthermore, no department should feel afraid of audits or auditors. Informing teams about upcoming audits can help them understand the value of the audit process in ensuring the continued success of the organisation.
Prepare Audit Checklist and Execute Audit
Preparing an audit checklist is a crucial task for auditors, as it ensures that the right questions are asked to the appropriate people at the appropriate time. The checklist typically includes process-related questions, ensuring that all team members involved are on the same page in terms of maintaining quality and brand reputation.
To execute a successful internal audit process, the auditor must follow the checklist diligently and document their findings accurately. This documentation provides a record of the audit process and can serve as a reference for future audits. By executing the audit according to the checklist, the auditor can ensure that all necessary areas have been thoroughly evaluated and any potential issues have been identified. By executing the audit diligently and documenting findings accurately, auditors can provide a comprehensive evaluation of the organisation’s performance and identify areas for improvement.
Conduct Audit Follow-Ups
Conducting an effectiveness review and audit follow-up is crucial to assess the success of an action plan and address any urgent audit activities. Along with scheduling and performing audits, these steps are essential for ensuring consistent product and process quality while maintaining compliance with industry standards.
Internal audit services in Dubai
Internal audits are an essential process for evaluating a company’s internal controls, such as corporate governance and accounting processes. They help to ensure compliance with laws and regulations, as well as maintain accurate and timely financial reporting and data collection. As a top accounting and auditing company in Dubai, TCA provides world-class internal audit services, using the best practices that we have helped shape for the profession.
