For anyone whose business has staff members, operational functions, locations for the organisation, or technical systems that they are not solely responsible for overseeing or operating, your business runs the risk of errors and irregularities. It’s human nature to make mistakes, and we can’t always remember everything we were taught during our company training, especially if that was several months or even years ago.
Regular audits ensure that your company is running to the best of its ability. An audit helps identify weaknesses in your company’s day-to-day running, particularly in any systems that you’re running, or processes that your employees carry out when working. Members of the managerial team who may not be directly involved with the daily company processes don’t usually have the time to check that everything is running smoothly each day, and this is where an audit comes in handy.
An audit can enhance the credibility of a company, which can make your company look more reliable to prospective purchasers. They’re also beneficial if your company is growing, and you’re concerned about the levels of proper business interaction being affected by new, untrained or unexperienced staff members.
One of the most common questions asked by companies is: “Why do we need an audit?” The belief that an audit is only required for larger, more complex companies is untrue. The costs and benefits of an audit will always outweigh any other factors, because audits are necessary to keep business running correctly. Companies often experience a high volume of compliance issues and transactions, even without realising that they’re happening. Management doesn’t oversee every business happening in their company, so they’re likely unware of any mistakes being made in business functions. The role of the audit is to bring these mistakes to light, and advise how best to improve on the situation with as little further damage to the company as possible.
Simply put, the role of an audit is to monitor the control processes in the company, and judge how effective they are. Auditors complete this task using a range of techniques and processes of their own, including risk assessment, and simple company walkthroughs, which allow them to gain an understanding and insight of the procedures that currently exist in the company, and how those procedures are carried out.
Audit reports go directly to management, allowing for proper control of the situation. The process of an audit, and the subsequent results of an audit report, allow the management of the company to identify where the issues are in the company, and assist in making the company more process-dependent. An audit serves as an early warning system against deficiencies that would need to be dealt with much more urgency in the future if they were allowed to continue.
With Audit Nationwide, an auditor, armed with a summary which comprised of a bespoke, tailored checklist of your brand or company’s standards would monitor the range of internal and external checkpoints, and gather the evidence they needed to report back to you.