6 Steps To Conduct An Internal Audit

 

When I started working in compliance, one of the most important things I learned was to know why we need period audits or reviews and gap analysis processes conducted within a company from time to time. So, what exactly is an internal audit? Internal audits are essential for establishing that an organisation complying with its regulatory requirements. A company’s procedures, guidelines, and systems are reviewed during an internal audit to ensure sure they are consistent with all applicable laws and regulations. Let’s look at the steps required for performing an internal audit in today’s post.

Step 1: Establish the audit’s objectives.
Establishing the scope of the audit is the first step in performing an internal audit. This involves identifying the areas of the business that will be reviewed, the regulations that will be taken into account, and the audit’s schedule. To ensure that all pertinent areas are included and that the audit is executed effectively, the scope of the audit should be thoroughly established in advance.

Step 2: Determine the appropriate compliance requirements
Identifying the compliance standards that will be assessed during the audit is the next phase. This involves monitoring the company’s compliance with all applicable laws, rules, and standards of the industry. To guarantee that the audit is thorough and precise, it is necessary to stay updated on any revisions to these standards.

Step 3: Create an audit strategy.
The next step is to create a strategy for the audit once the audit’s objectives and compliance requirements have been determined. The details of the procedures that will be employed to evaluate compliance with each requirement, the resources that will be looked at, and the individuals who will answer any queries regarding the existing compliance system during the audit ought to all be laid out in this strategy.

Step 4: Perform the audit
To ensure that processes comply with applicable regulations, the audit entails evaluating documents, interviewing employees, and testing any technical solutions used. During the audit, it is essential to maintain objectivity and impartiality and accurately record every outcome.

Step 5: Analyse facts and prepare a report.
The outcomes of the audit must be investigated, and a report should be put together. An overview of the audit strategies, the conclusions, and suggestions for improvements should all be included in this report. It’s imperative to notify all relevant stakeholders of the findings and formulate a strategy for addressing any compliance issues that may arise.

Step 6: Implement suggested improvements
Implementing any proposed changes is the ultimate step of conducting an internal audit. To ensure compliance with relevant regulations, this could involve amending policies and procedures, providing employees further training and guidance, or redesigning operations. To make sure that the organisation conforms with every relevant regulation and law, it is important to continuously monitor performance and  conduct assessments.

Organisations can stay on top of regulatory changes and avoid hefty fines and penalties for violation by conducting regular internal audits and ensure they are fulfilling their compliance obligations by following these steps. 

Please note that all opinions on this blog should be treated as a guide, not legal advice.