Audits are broadly classified as either internal or external. This article delves deeper into internal audits. What exactly do we mean? What do they entail? And what are the advantages for your company?
Continue reading to find out the answers to all of these questions.
What is an internal audit?
Internal audits are inspections or assessments carried out within an organization to determine how well or reliably its operational processes and procedures are functioning.
What are the benefits?
For starters, internal audits allow you to improve your operational processes. Additional quality control inspections provide you with a new perspective on how to improve your operations or strategy. Smoother processes, higher productivity, and lower costs could all be advantages.
Internal audits also increase transparency and reduce the likelihood of serious incidents occurring, which improves your company's image and reputation. When stakeholders see that you are constantly inspecting and improving your operational processes and quality standards, they will have more trust in your organization.
Planning an audit step by step
Although each internal audit is unique, you will notice that most follow a set of pre-determined steps. Let's take a closer look at the 5 Ps, which are common to most internal audits:
- Plan
- Prepare
- Perform
- Publish
- Pursue
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