Any organization worth its salt needs to undergo auditing- be it external or internal. An audit can be defined as an official inspection of an organization’s accounts which may typically be carried out by and independent body. Auditing makes sure that everything is being correctly implemented in a way that is efficient and effective, therefore audit management is responsible for ensuring that board-approved audit directives are implemented. Audit management helps simplify and well-organise the work flow and collaboration process of compiling audits.
Most audit teams heavily rely on email and shared drive for sharing information between each other. Typically, tasks such as submitting client request, sender reminder and following up on findings are all done from using broad tools.
A set of tools, technique and planning help an organized examination of whether a certain activity or process or object meets the predefined requirements.
Management of audits includes recruiting, training and overseeing the audit staff, whether internal or external, and running the auditing program.
Let us now see how internal and external audit management is carried out and how they differ.
Internal audit management usually includes a set of auditing processes which an organization sets up so as to protect itself from fraudulent activities and ensures that everything in the organization functions properly and the company performs to its optimum limit. Internal auditors should be objective, neutral and any issues should be reported only to the highest executives in the organization.
External audit management is carried out by an external entity, as suggested by its name. it determines whether the documentations filed are accurate and meet the required standards set by the organization or meets the government laid rules and regulations. The auditor is independent of the firm and hence can use the discretion in reporting to the concerned authorities in case of a breach or non-compliance.
In case of a third party audit, it gives feedback to important documents and processes including quality manuals or performance development plan, records including instructing, organisational charts, and examination of the processes within the extent of the audit. A third party audit is conducted by an audit organisation that doesn’t have the traditional customer-supplier relationship and does not carry any conflict of interest. Institutions such as registrars (certification bodies) or legislature are usually the types of organisations that perform these types of audit.
There are six steps to the audit management process-
- Requesting documents
- Preparing an audit plan
- Schedule and open meeting
- Conducting fieldwork
- Drafting a report
- Setting up a closed meeting
To read up more on these steps, click here.
Since auditing is usually a time consuming process, investing in the right software could help save time, reduce errors and save on resources. Software tools like VComply allow you to add auditors into the system and the constant tracking process makes sure that all employees are fulfilling their goals and deadlines.
Auditing is an extremely crucial part of any organization and managing the audits need to be given serious thought as well. In conclusion, audit management helps to make sure that your organization is performing well, and correctly.
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