Internal Audit Beyond Processes Checklist

Conducting an internal audit involves more than simply reviewing records and observing employees; it should also reveal ineffective processes and suggest potential improvements for improvement.

Make your next audit more effective with this internal audit beyond processes checklist! Ensure all required areas are covered.

Objectives

An internal audit beyond processes checklist can assist your organization by providing tangible proof of which processes are not producing, with suggestions on how they could be enhanced or optimized more efficiently, saving both resources and maximizing efficiency of usage.

An internal audit is conducted when auditors interview employees and inspect records and documents pertaining to a process, including financial statements, organizational charts, process diagrams, policies and past reports.

Quality managers can utilize an internal audit checklist to conduct performance audits. This type of inspection focuses less on each department individually but more on overall business performance – meeting goals and objectives while meeting stakeholder needs. Resultant analyses may then be presented to management for review by key stakeholders. Typically this type of internal audit follows its own unique format with similar main headings.

Scope

Internal auditing procedures vary based on the nature and purpose of your company. For instance, audits in medical device manufacturing often differ significantly from audits in food processing facilities.

Process audits focus on assessing how well departmental processes are operating as expected, by inspecting documentation such as process flow charts and quality plans, as well as scrutinizing processes to make sure they follow PDCA (plan-do-check-act) cycles that include steps for improvement.

Process audit checklists offer similar information as supplier audit checklists; however, in addition they include an OFI box for you to suggest ways in which your company’s processes could be enhanced.

Risks

As well as ensuring audit staff have access to adequate resources, it’s also essential they understand their professional responsibilities and what’s expected of them. You can accomplish this through training programs or regular status meetings.

Process audits can reveal problems such as lack of control, inefficient use of resources and misalignment between internal policies and processes. This information can help your organization assess risks to the business as well as create a plan to remedy those areas.

As with any audit, one of the greatest threats of an internal audit is nitpicking or fault finding. Spending too much time addressing minor issues can diminish resources available for dealing with major risks; your internal audit should instead concentrate on identifying problems and offering potential paths towards improvement.

Observations

Mistakenly viewing internal auditing as just another procedural requirement and going through the motions can be detrimental. Instead, companies should treat internal audits as opportunities to enhance business operations and grow.

An internal auditor at a gaming operation should conduct observations and document examinations in all departments, such as bingo; pull tabs; card games; keno; pari-mutual wagering; casino tables; cage and credit procedures; and IT functions. Where possible, observations should take place unannounced without employees becoming aware that their activities are being observed.

Documenting observations and findings is at the core of internal auditing, providing evidence for future improvements and completion of inspections by USFDA, MHRA, WHO, TGA, KFDA and PMDA regulatory inspection bodies. Experienced Quality Audior Seetharam Kandarpa has helped his company prepare audit plans that meet each regulatory inspection standard with extensive regulatory experience from USFDA, MHRA WHO TGA KFDA PMDA inspection bodies while offering coursework training mentorship as part of his services to pharmaceutical clients.

Evidence

As the audit progresses, valuable evidence emerges. This data allows auditors to better assess whether the system of controls is operating as intended and also help establish future audit scope.

Internal auditors may review procedures that provide direct evidence, such as verifying accounts receivable or inventory counts. Sometimes an audit committee or board of directors can limit detection risk by excluding these processes from evaluation of internal audit activity.

An effective internal audit checklist is crucial when conducting quality audits. A well-crafted list ensures all necessary areas are covered during the process while helping maintain focus and maintain an integrated approach throughout.