What are audits and what are they for?

by Aaa Cas Auditors & Business Consultant in Dubai

Audits are inspection processes that assess whether activities and operations in general are in accordance with what has been previously established. Although they are widely used in order to obtain quality stamps, they are essential to optimize everyday life. Check out everything about them in this article!

 

The auditing process is an essential activity for companies of any profile. This is because, through it, it is possible to determine if the activities are being carried out as planned . And more: if they were implemented effectively, that is, aligned with the company's goals.

 

If you are wondering what auditing is and what it is for, continue with us. For we will clarify these and other doubts on the subject. Come on

 

What are audits?

 

Auditing is a process that involves the inspection and analysis of activities developed by the company . Its intention is to assess whether such tasks are in accordance with what was previously established. And yet, they offer the desired effectiveness.

 

Due to these objectives, we can say that it is used to offer more transparency to the business . After all, it prevents important information from the operation from being hidden or manipulated.

 

There are two types of audits:

 

·         Internal: It is performed by the company itself, by a specific sector, to check for flaws or non-conformities . When internal auditing is used, it allows managers to have greater control over tasks and act in a preventive manner;

·         External: Promoted by another company or independent professionals. As it has no connection with the business, it offers more exempt results. However, it requires more time and insertions in the processes for a better understanding.

 

Whatever the type of audit adopted, it must be performed by a qualified professional. After all, he needs to find fault quickly, aiming at its correction.

 

In addition, it is essential that you have the ability to develop action plans , in order to standardize all the changes promoted.

 

What do audits do?

 

In summary, the audit performs a thorough and systematic analysis of a company's processes, activities, operations and procedures .

 

It can be adopted in specific cases, such as to evaluate a task that is undergoing modifications, for example. Or else in the sectors in general, in order to promote an assessment of the scenario as a whole.

 

Through it, it is possible to find flaws and, thus, indicate alternatives to correct and optimize them.

 

 large companies must undergo external and independent audits. In this case, the obligation falls on financial matters. To ensure that what has been declared is in line with reality.

 

The same applies to financial institutions, such as banks, and publicly traded companies.

 

Main benefits of the audit process

Do you want to better understand why conducting this type of analysis is important for your business? So, check out its advantages:

 

Improves internal control

 

As mentioned, the audit assesses the internal processes in order to detect failures and, thus, solve them. This directly contributes to improving internal control . After all, it allows monitoring performance, correcting inefficient strategies and promoting continuous improvements.

 

Reduces failures and deviations

 

No one is entirely exempt from making a mistake. However, if it is possible to avoid them, the better for the business. It is in this scenario that the audit gains a lot of strength. When evaluating processes periodically, it allows improvements to be made to contain the occurrence of failures .

 

Financial deviations also tend to decrease considerably. After all, it is necessary to prove the expenses and match what was declared.

 

Encourages good practices

 

The audit promotes a more transparent environment . As a result, employees themselves are motivated to take more ethical actions. After all, they will be following the same line of action as the business.

 

Step by step to prepare for audits

 

Many are mistaken in thinking that an audit is just a one-time procedure, which occurs once a year. The company must always follow standards and work hard to comply with the standards. And, thus, really having feedback to face the procedure.

 

Therefore, it is essential that the company is always prepared. Check out some tips that will help in this process:

 

1. Create an annual plan for audits

 

The ideal is for the organization to follow the procedures throughout the year, in order to maintain its proper routine and aligned with the business objectives. However, as there are many details observed during the audit, departments must be mobilized.

 

But how to do that? It is necessary to structure action plans containing all the steps and work that must be done. In order to align the production of activities.

 

For this, it is necessary to prepare an official plan that integrates all departments to be audited. Stipulate what needs to be done, by whom and what the deadlines will be. Also, set up meetings to evaluate the development of the plan and check the results.

 

2. Inform teams about the procedures

 

Quality standards guide a company. Therefore, in order for them, in fact, to be employed at the time of the audit, all employees must be on the same wavelength.

 

Such involvement should not be put into practice just around the evaluation period. Everyone should be aware of the procedures and know the importance of applying them on a daily basis.

 

However, when the institution is going to go through a process of such importance, these efforts need to be maximized. Thus, it is necessary to inform employees about the event that will take place, creating measures to encourage them to dedicate themselves so that everything happens properly.

 

An efficient way to do this is to hold meetings, at which the entire team receives information about:

 

·         Preparation progress;

·         What needs to be done;

·         How each employee can help.

 

3. Know which sectors will be audited

 

Generally, specific sectors are audited each year. Knowing what they will be and focusing efforts to improve them is a way of ensuring that there are no inadequacies in the inspection.

 

Check all the processes relevant to these departments and understand how they can be operated optimally. Also, identify possible failures and look for ways to remedy them.

 

Based on this analysis, it is possible to gather managers to develop and improve the sectors, ensuring the best performance during the audit.

 

4. Map and standardize internal processes

 

One of the great pillars of quality management is process mapping. In other words, professionals who have this control need to standardize internal processes .

 

This is done in partnership with HR managers, allowing the departments to be structured and, thus, guaranteeing the fulfillment of functions. If you don't know how to do this, follow these steps:

 

·         Write a manual containing the purpose of the processes and how each function should be performed in order to be optimized. It is worth mentioning that it is essential to observe the process first. Although the manual is a documentation of what is ideal, it needs to be guided by the real way in which the activities are developed;

·         Follow the executors of each department. In this way, you can help them to apply, in practice, what was defined in the company's quality manual;

·         Identify errors and promote improvements so that standards are integrated. So that there are no differences, do not forget that it is necessary that the entire manual can be followed during the routines.

 

5. Structure and follow an action schedule

 

The organization is essential to maintain quality management and, thus, prepare for the Auditors in Dubai. Therefore, to ensure that teams deliver all necessary tasks on time, follow a timetable. It is also important for better viewing of event dates.

 

To structure a good schedule, consider:

 

·         The date and time when the audit will take place;

·         The processes and tasks that need to be analyzed for the event;

·         Who are responsible and what are the deadlines for carrying out each activity.

 

Knowing what actions are to be taken, it is possible to better manage time and monitor the development of activities.

 

Bonus tip: make a checklist with the items to be audited

 

We mentioned the importance of all employees being engaged for the audit, right? A great way to integrate the teams and also check the deadlines correctly is using a checklist .

 

This tool allows you to write down and make available information about the items that must be up to date. In addition to encouraging engagement, a checklist prevents activities from being carried out due to forgetfulness . Not to mention that it helps managers to monitor the progress of processes more efficiently.

 

Through the checklist it is possible to:

 

·         Monitor the progress of the work being carried out;

·         Predict results;

·         Anticipate actions;

·         Expand internal control.

 

That is, the checklist can become a great ally in the company's good administration .

 

Use technology as your partner

 

Are you finding it complicated to organize your ideas on paper? You started to remember important details, wrote it down somewhere, but don't know where you kept it? How about betting on a technological solution to help you in this task?

 

There are software on the market that allow the customization of checklists according to the needs of each one, making it easier to perform operational checks in companies, field research and audits.

 

In addition, the online checklist allows the generation of management reports . They assist in the internal control of the company, enable a more effective analysis of results and can serve as a basis for future Auditors in UAE.

 

Therefore, it is possible to rely on this type of technology in your favor and make the checklist part of your operational routine in an easy and safe way.

 

Now that you know more about the audit process and its importance, be sure to do it in your company. With it, you will not only guarantee a seal of quality, but promote improvements that will be beneficial to your business.

 

 

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Created on Jan 27th 2021 13:36. Viewed 148 times.

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