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How to Make an Internal Audit Checklist

How to Make an Internal Audit Checklist

Running a company requires regular evaluation of its current performance to ensure it’s on the right track. At the same time, the findings of this evaluation will provide key recommendations that will streamline corporate governance and determine gaps that need attention. This evaluation is what they call an internal audit. The company’s audit department conducts this procedure periodically to optimize and improve business operations. An internal audit also mitigates potential risks across the enterprise and identifies areas of improvement to reach company goals. This article will discuss the importance of an internal audit and how to create an internal audit checklist for your company.

What Is An Internal Audit Checklist?

An internal audit checklist is a tool that guides auditors through the steps of an audit. It’s common in different industries, including manufacturing, service sectors, and more, to assess if the organization’s current performance and processes meet certain requirements. The checklist should meet the specific needs of the company, and it can include items such as reviews of financial reports, interviews with employees, and evaluations of information technology infrastructure.

Why is an Internal Audit Checklist Important?

An internal audit checklist is essential because it helps ensure that all areas of an audit are covered. Furthermore, it can help auditors be more systematic and organized in their approach to audits. Finally, it can also help to improve the quality of audits.

How to Conduct an Internal Audit

Before you or your audit department can create an internal audit checklist, you must first understand how to conduct an internal audit. Here are the basic steps:

  1. Define the audit objectives and scope – This involves determining what you want to achieve through the audit and which areas of the company will be examined.
  2. Identify the key areas of risk – Auditors should identify any company areas that pose a risk to its operations.
  3. Make recommendations – based on the audit findings; auditors should make recommendations for improving the company’s operations.
  4. Follow up – Auditors should follow up on the recommendations to ensure that they are implemented and have the desired effect.

 

Now that you know how to conduct an internal audit, let’s look at the contents of an internal audit checklist.

What to Include In An Internal Audit Checklist Form?

Internal audit checklists can vary depending on the specific needs of the company. This sample content highlights several sections of an internal audit checklist based on the ISO 9001:2015 standard. This checklist is designed to access an organization’s QMS (Quality Management System).

  • Context of the Organization: This section aims to understand its environment, including its size, structure, and products/services.
  • Document Control: this section includes a review of the organization’s quality management system documentation, including procedures and records.
  • Management Responsibility: this section assesses how the top management is responsible for its effectiveness and quality management system. 
  • Resource Planning: This section checks whether risks are identified and planned and allocates the necessary resources.
  • Support: the support section determines if the organization has the necessary resources, including competent and qualified personnel.
  • Operation: This section looks at how the company’s processes are carried out and if they meet standard requirements.
  • Performance Evaluation: This section reviews how the quality management system performs and whether it is effective.

 

How Can You Create an Internal Audit Checklist for Your Company?

Now that you know what contents to include in an internal audit checklist, it’s time to know how to create one. Then, the audit team will need to brainstorm and assess which areas need checking to make their lives easier.

Creating an internal audit checklist is as simple as listing all the essential things you need to check. But if you want your list to be comprehensive, there are several steps that you need to take to create an internal audit checklist for your company:

  1. Review the company’s policies and procedures. This will help you identify the areas that need auditing.
  2. Assess the company’s risk level. This will help you determine which areas need more attention during the audit.
  3. Tailor the checklist to meet the specific needs of the company.
  4. Include all the essential areas that need an audit.
  5. Check the company’s quality management system documentation.
  6. Interview employees to get their insights on the company’s operations.
  7. Evaluate the company’s information technology infrastructure.
  8. Assess how well the company’s processes are being implemented.
  9. Evaluate the company’s performance against the standard.
  10. Make recommendations for improvement.

 

An internal audit checklist is a vital tool to help companies assess their current performance and processes. By using a checklist, companies can ensure that all areas it covers improve the quality of audits.

Why Use DataMyte for Internal Audit?

An internal audit follows a certain procedure to ensure quality and success. You also need to have an internal audit checklist to avoid any delays. Therefore, you need DataMyte and its Digital Clipboard to help you accomplish this task for all of these requirements.

With the DataMyte Digital Clipboard, you can use its features to conduct and complete your internal audit:

  • Workflow Builder: create an internal audit workflow that details the entire process of the job. You can then share this workflow with your internal audit team to have a guide they can review.
  • Checklist Builder: create a comprehensive internal audit checklist that will cover all the areas you need to check. This checklist can be a reference guide for your team to know what to look out for during the audit.
  • Form Builder: create custom forms that will help you gather data and information from employees during the audit. You can then use this data to evaluate the company’s performance against the standard.
  • App Builder: finally, you can also create an internal audit app for your company. That way, your audit department will have an all-in-one app that they can use when conducting internal audits and other related tasks.

 

With the DataMyte Digital Clipboard, you can create an effective internal audit process to help your team conduct a successful audit. Contact us today or check out our website to learn more about our products and how we can help you achieve your goals.

 

Conclusion

An internal audit is a necessary process in improving your company. That’s also why an internal audit checklist is an important tool to ensure that the audit covers all the necessary areas that need checking. Therefore, use this article as a reference to create the ideal checklist for your internal audit. Then, don’t forget to use the DataMyte Digital Clipboard to help make the process easier and more efficient.

 

 

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