What are audits and what’s their role in an organization?

If you want to know why, you should carry out audits in your company, read on.

What is an audit?

According to the Royal Spanish Academy, an audit is a “systematic review of an activity or a situation to assess compliance with the rules or objective criteria to which they must submit”. That is, it is a process of thorough evaluation of an organization, in order to know its physical characteristics, as well as its strengths and weaknesses.

All audit work, no matter for what purpose, meets certain characteristics:

• You must follow previously established guidelines or criteria.
• The most important action of this work is the observation and measurement of various processes of an organization.
• All the resources that are part of the business activity, materials and non-materials, as well as their productive application and their relevance, must be taken into account.
• It is necessary to analyze the information, gather consistent data and draw conclusions in an audit report.
• Make changes in this regard once the results are obtained.

Audit Types

On the other hand, there are different types of audit, one of the most common classifications is usually given according to who is exercised. They can be carried out by employees of the organization itself or from abroad, thus classifying the audits as external and internal.

Following other criteria, it is possible to find other practices in the field of audits. There are examples such as compliance auditing, management auditing or accounting auditing, among many others.

In this case, we will focus on internal audits, thus explaining what their function is and why you should carry them out in your company.

Internal audit function and its importance

The main purpose of an internal audit is to monitor compliance with internal controls. The main idea is to confirm that everything is being done not only correctly, but to the best of its ability.

The execution of one can add value to an organization, since it will give the opportunity to correct weaknesses or points for improvement, upgrade the efficiency of processes, reduce costs and resources.

The advantage of having observers in our company is indisputable. Large companies usually have structured internal audit departments, however, most SMEs cannot afford to have an independent department to handle this, or at least not at a reasonable price.

Main benefits provided by the execution of internal audits:

With globalization, companies have become more competitive, and the opinion of consumers plays a very important role.

Improving the recognition of the brand and the reputation of the company is a goal that all organizations should have if they want to last over time. As we have said before, adding value to the company will give a better image to it, and therefore more trust from its employees and customers.

A company that follows an internal audit plan:

• Shows integrity.
• Demonstrates commitment to quality and continuous improvement of their work.
• Has the resources it needs.
• It is efficient and does not waste unnecessary resources
• Is proactive and promotes improvements in the organization
• She is future-oriented and independent.
• Communicate effectively with employees and customers.
• It aligns with the strategies, objectives and risks of the organization.
• Provides risk-based security.

How can we help you?

Full Audits is a software for small, medium and large companies.

It is designed to collect consistent data, through the use of checklists.

They can be created in a personalized way or you can consult our free Checklist Library on our website. With these lists you can be present in all the processes of your company.

It will help you organize yourself and standardize operations. Once the observation tasks in which you can add multimedia material is done, it will create reports to identify failed areas and solve problems through action plans.

It is available in both a mobile application and web platforms, and the combination of both provides visibility and information to help raise the safety and quality standards of your organization.

We have previously mentioned that not all companies can afford an audit department, and we bring a solution to that problem.

Because with Full Audits it is not necessary for the people who use the system to have technical training, nor do you need server configurations. And you can integrate the entire team on the same platform, synchronizing the people in charge of the audits with the rest of the company’s areas.

It can be used with or without an internet connection and all the material that is generated and the work, is integrated in one place. Our trusted tool updates in real time as the team completes its work.

• The administrator user is in charge of giving access to the rest of the users.
• You can give access to the desired areas, and the rest may not be visible to those users.
• The administrator can limit the use of each user within each section.

Once the data is collected through the checklists that you can do yourself, all the data will be immediately available and will show valuable information that will allow you to make business decisions.

Enter our website and in addition to much more information, in the Support section you will find the possibility of scheduling a demo so you can see how our system works and find a solution to all your problems.