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There is no legal requirement demanding the need for internal audits, but there are a number of benefits to taking part in one – aside from part of an ISO management system implementation.
Internal audits identify all issues within a business, from management to the processes and information flows, taking responsibility for risk control and management. Stakeholders confidence can be increased when they see a business is handling its own problems correctly and efficiently, proving the business can cope with the demands placed upon it. If during the audit an auditor identifies any issues, then it is the auditor’s responsibility to provide resolutions.
Having a clear, and understandable, path of communication between management and staff make implementing lean management, or ISOs, far easier. An internal audit will assess the lines of communication and the flow of information both up and down. Audits will also recognize an individual’s area of responsibility, which some staff members may not be clear on, and identify this to everyone assisting in the information flows and understanding of processes.
Even where a business knows about problems with its products or processes, it can be difficult to discover the exact root cause. Internal audits will work through a problem to discover the root and advise on solutions. This is a topic I touch on in my CA+ Workshops (more details below).
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Furthermore internal audits are a costing reduction exercise. Rather than rely on external institutions – such as the government or external auditors – to make decisions about the way a business operates, an internal audit will make it possible to control the costs within the business and make its own decisions. Regular internal audits will track the spending of departments, and where there may be leaks of cash within the business – whether it is from regular use of sub par materials, or messy processes resulting in faulty products. Reducing these costs will benefit the whole of the business and provide an edge over competitors. Your business will be flexible to the demands of the economy and able to weather rocky financial situations.
In summary, internal audits can benefit both internal and external reputation of a business with stakeholder. They will assist with the growth of the business and the efficient operation of the business – all to ensure the business achieves its primary objectives.
I am currently offering to teach Internal Auditors, either brand new or those requiring re-certification, at a select number of workshops in the upcoming months. If you want to learn more about being an internal auditor and tools to improve your abilities, then take part in our next available workshop on December 7th – 8th, 2017 in Chicago, Illinois. I will be teaching the Root Cause Analysis, and the additional CA+ steps to assure you permanently solve any issues you may come across. Combining current tools, with a new way of thinking to drastically reduce the risks, improve opportunities, and increase the success of implementing corrective measures.
If you would love to join us then please do choose a date on the CA+ Workshop page. I will be visiting:
- San Francisco, CA – SOLD OUT
- Chicago, IL
- Newark, NJ
All workshops last 2 days and you will be provided lunch, drinks, and an intimate classroom setting, walking you through example situations and how to approach them.
I look forward to seeing you there.