Audit
Tips for completing an internal audit on your small business
By Elizabeth Ducie
An internal audit is a self-inspection of your business. It is a chance to take a step back from the day to day hurly-burly, and look at what is really happening. You are aiming to answer three sets of questions:
- What should we be doing? What are the internal, national or international requirements that we have to satisfy?
- What are we actually doing? Do our activities comply with those requirements?
- How can we improve things? Is there anything we could do differently, to make it more efficient or more effective?
What to Audit Against
Auditing is about taking a measurement, and there needs to be a benchmark or standard against which to audit. You need to decide what is appropriate. It might be your company’s internal policies and procedures. It might be an international standard such as ISO 9000 for quality management systems or ISO 14000 for environmental quality management systems. It might be a safety system such as HAZOP (Hazard and Operability) or HACCP (Hazard and Critical Control Points). Whatever the standard being used, everyone has to know what it is and what is required.
Who Conducts an Audit?
Auditing is about casting a fresh pair of eyes over the operation. The main auditors should be from a different part of the company, so that they are not “marking their own homework.” However, it also helps to have someone along who knows the area well.
All auditors should be trained in what to do and how. Suitable training courses are available at local business chambers or colleges. Alternatively, the companies that accredit companies against ISO standards also run courses for auditors.
How to Organize an Audit
Plan the audit program a year in advance so that everyone knows what to expect. Spread the activities evenly and avoid busy times when other priorities are likely to get in the way. Prepare an agenda for the audit that is shared with the auditees in advance, and stick to it during the day of the audit.
Make a record of any observations of problems, together with the evidence or the example of that problem. Set up a plan for putting the problem right, with a due date for completion. Follow up to make sure it is achieved on time.
