Benefits of an Internal Business Audit

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With limited resources, it can be a daunting challenge to consider an internal audit process in a small business, though this is not an area in which skimping is recommended.

They say when it rains it pours, and an internal audit can help blow the storm clouds clear away from your business!

An internal audit is a balancing act- while you may remove something here, you are usually adding to something over there. While you conduct checks and balances, you are also performing perfunctory operational checks and allowing for identification for constant tweaking and improvement functions.

While an external audit is mostly a financial function, an internal audit allows you to see some of the risks that may be underlying, that don’t relate to money. The consultative process allows for assessment on a more multi-faceted level.

Its most helpful in an internal audit if the auditor has familiarity with the business, is capable of being empathetic to the employees of the business, has a genuinely positive nature and understands the business goals.

Encourage your employee’s to employ self-audit tactics by being a prime example yourself. Evaluations at incremental phases can help when it comes time to unearth the big stuff- by making it far less scary!

Certain scenarios in a small business atmosphere may incline a business owner to conduct an internal audit, such as fraud or suspected theft, regulatory inspections or changes in your industries laws and limitations, low production outputs, slowed sales processes or the simple need for a business loan.

An audit opinion will be submitted and the tidy little package will feel like a mission accomplished. BUT. The internal audit requires one last step- action.

With the recommendations made by the auditor, sit down with the board, with the managers, with the team and get some opinions on how things can be modified.

Take the auditors role seriously- as an impartial third party, they have no agenda other than to provide you with the best assessment of your businesses current systems, processes and operations.

 

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