What are the Steps and Stages to Conduct an Effective Internal or External Audit?

In this opportunity, we will talk about What are the steps and stages to carry out an effective internal or external audit? First we have to know What is an audit? An audit is known as a thorough evaluation in a company, with the objective of knowing in a specific way each characteristic of this, having a better perspective of the strengths and weaknesses of the company.

On the other hand, audits have 2 types, which vary depending on whether the auditor is internal to the company, or if it is external to it, having the Internal Audit and the External Audit.

  • Internal audit is based on the internal control of a company, in search of an improvement in it. This is achieved through self-evaluation, giving a clearer picture to take in the business plan of the company, in the decisions that are made in the future, ect. This type of audit is usually to achieve results in the short and medium term.
  • The external audit, unlike the internal one, in this type of audit, the personnel in charge of auditing the company come from an outside environment. This service is offered by auditing companies that analyze other companies that hire them. External auditors make their conclusions in an audit report, which summarizes the good and bad points of the company.

Knowing these concepts of the types of audit, we can delve into the subject that concerns us in this article, which are the steps and stages of conducting an audit, either internally or externally effectively. Next, we will mention and explain each of these stages. It should be noted that they serve both internal and external audits alike.

Plan ahead for the audit

This point is essential when it comes to effectively conducting an audit, being of utmost importance for its proper application. Part of planning ahead is knowing what steps to take when doing it, the scope that is desired, the departments that will be taken into account for the audit, the people that will be interviewed, etc.

noting in calendar, planning

Correct preparation of the audit

So that auditors can delve into company documents, It is necessary that the members of the audit team have an orientation, which is achieved with a checklist, stating that no details were left without evaluation by the auditors.

Correct audit procedure in your work

This execution is given by a set of information obtained, which concludes which area of ​​the company has quality procedures, taking into account the parameters of the company.

During this stage, the audit team is in charge of conducting interviews taking notes, to later with the information acquired from this audit, present the final data of this process.

Do an analysis with the collected data

After the audit is completed, an analysis of collected data has to be done, which will be included in the company’s audit report. At this stage, the auditors review the problems that the company presents, the strengths it has, and find a recommendation to correct these problems. All this data are the audit report.

computer on report table

In the highest positions of the business structure, this report is used, since has great benefits for decision making in the company, publicizing the state in which the company is, showing the strengths and weaknesses that it has, this to mention a few examples.

We hope this article has been useful to you, that can be applied as a checklist, to know what is needed in a good audit process, before, during and after it. Since we know that it is a beneficial process for small companies or large companies, publicizing the health in the economy of the company.

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