What Is an Audit and How To Conduct It?

If you have a business that has been in the market for years or you are just starting one, the fact of doing audits is just as relevant. Through audits, you can find opportunities for growth of your company, whether in terms of productivity, achievement of results or process optimization. Therefore, auditing is a great ally to know where to adjust in order to maximize results.

What Does Audit Management Involve?

Auditing is a method that companies take advantage of with the objective of evaluating the resources available and how functional the structure is. In addition, this evaluation allows to determine the degree of profitability that can be aimed at with this form of use.

Importance of the Audit

Regarding the importance of the audit, there are several aspects to contemplate and some of them are:

Make a More Efficient Use of Resources

Auditing helps organizations to take advantage of the resources they have at their disposal to make a profit. This means that in order for a company to be more efficient, it has to implement audits with a certain frequency.

Contribute with Improvements

All this with the goal of achieving greater profit or profitability and contributing with improvements aimed at strategic planning and the achievement of the planned objectives.

Key Points of an Audit

In addition to knowing what an audit implies and the importance of it, a series of elements and instances must be taken into account that allow to obtain the best of the implementation of this method in companies:

1. Planning

Like any activity, auditing requires planning and order. What does this mean? Employees should be aware of when they will be audited. Because, in general, “surprise” audits are not viewed favorably by staff and can generate rejection, as well as resistance to collaborate with the necessary information.
So good planning allows the audit to be perceived for what it is: a great opportunity for teams and the organization as a whole to grow. But this is not the only point that has to be kept in mind.
Also, it requires to bear in mind the importance of doing a review of previous audits, elaborating a previous situation’s status as background and being clear about what the objectives are.

2. Use various sources of information

Another key point of an audit is not just sticking to employee interviews. There are many other sources on which a good volume of information can be obtained. Such is the case of records, area or department reports, statistical software, tools, data analysis…

3. Take advantage of checklists

Now, checklists are a key resource. By the way, we had already told you in another article about what checklists are and which are the main examples of their implementation in companies.

4. Prepare relevant audit reports

In this regard, audit reports should not only reflect which processes are less efficient or that can be easily removed, but they should also provide positive aspects that can still be worked on to make the business more productive.

5. Do not forget the opportunities for improvement

Audits are imperative for teams to detect where they can make adjustments, in order to grow and keep the business growing. In this way, one of the objectives of any audit report is to account for opportunities for improvement, to save time and resources and, therefore, to obtain better results.

Types of Audits

Although there are many types of audits, here we will tell you about the main ones with a basic classification:

According to Who Performs It

Audits can be performed by internal staff as well as external resources.

1. Internal audit

An Internal audit is carried out by the employees themselves, in accordance with the interests and requirements of the company. Its purpose is to find opportunities to optimize internal processes – make them more efficient – and prepare reports that account for growth opportunities and alert about irregularities.

2. External audit

On the other hand, an external audit is carried out by an entity or professional in the field that is external to the company in question. Its purpose usually is, for example, to provide as much information as possible to potential investors or to respond to the concerns of government or state entities.
Would you like to know more about the difference between internal and external audits? Then visit this article!

According to the Objective

Another way to classify audits is according to what is required to be analyzed. For example:

1. Administrative audit

An administrative audit aims to find weaknesses in different areas of the company, in order to correct them as soon as possible through action plans. In this sense, functions are analyzed, new organizational schemes are proposed and the company’s offer is diagnosed in pursuit of customer satisfaction.

2. Financial audit

When it comes to controlling that the accounts and finances of a company are in order, we are talking about financial auditing.

3. Legal audit

A legal audit is an evaluation that is carried out by a legal request, in order to verify the patrimonial status of an organization and its operations.

4. Environmental audit

This audit focuses on the verification of a company’s compliance with the environmental regulations that govern the country.

5. Marketing audit

Audits are also carried out in the marketing world. This way, marketing strategies and processes can be evaluated, based on the objectives and actions implemented, to find areas for improvement that could contribute to a superior performance.

6. Human resources audit

When it comes to evaluating talent management, auditing is an excellent tool. Thus, analyses can be made about the policies implemented with the staff, in addition to addressing other aspects related to capacity-building and training to improve the performance of the teams.
And these are not the only audits that can be conducted in an organization. Discover what type of audit is right for your company.

Related Questions

What Is an Audit and What Does It Consist Of?

An audit consists of the evaluation of a company, either at all operational levels or in a certain area of work, to detect what its strengths and weaknesses are.

What Is the Role of an Audit?

The role of an audit in an organization is to ensure compliance with internal controls, as well as external ones (for example, in case of a legal request). Therefore, an analysis is conducted to see if the operations of an organization are carried out efficiently and according to the parameters provided by it (and the regulations in force).

What Is Audited in Companies?

Through an audit, you can verify how a company operates, how efficient the processes are, if the conditions or requirements established internally and externally are met (for example, in terms of laws), if there are irregularities in financial operations, among others.

What Are the 3 Standards of an Audit?

There are 3 basic rules in an audit. These are:

  1. General rules: they serve to define the behavior of the auditor in his activity, such as professional capacity and independence.
  2. Rules on the execution of the audit: the means by which the auditor carries out his work are established, such as planning, gathering information and evaluating.
  3. Rules on the preparation of reports: with the report, the auditor mentions his opinion on the matter.

Do you want to conduct a complete audit in your workspace? You can use audit checklists to detect the areas for improvement that your company needs in order to grow and solve the most frequent and/or complicated problems of your company.
The best thing is that you can save 60% of the time of the audit process due to the implementation of the right software. Access the free trial now!


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FAQs Full Audits

Full Audits has two platforms, the WEB allows the User to perform complex configurations  such as configuring users, stores organization, customizing forms, executing desktop audits, viewing reports and analytics. The MOBILE platform is separated to be able to work OFFLINE, allowing Users to continue working even without having a Wi-Fi signal or mobile connection.

Yes. We have a YouTube channel with the explanation of each of the sections of the App and its possible uses. https://www.youtube.com/channel/UCKY959rrtOIZQ5jBAxoCJJA

The same access information is used for both platforms. To access the WEB platform you must enter www.fullaudits.com and click on “Login”, where you will load your username and password. To access the Mobile platform you must download it from Google Play: https://play.google.com/store/apps/details?id=com.fullaudits.app&hl=es_419&gl=US.

At Full Audits we take the security and confidentiality of information as a very important issue. First of all, the Client always has the possibility to download the information to his computer. If you require information in database format to be able to migrate to another system, it will be delivered within a period of between 1 to 30 days from the request in the database format used by Full Audits. In the event that the Client does not make a request for information, the information will be deleted from our servers within a period of 90 days.

Our service is in the Cloud. The information is stored in Google Cloud (United States), recognized worldwide for its Quality and Security in the service (They have global clients such as Spotify, Snapchat, HSBC, SonyMusic, Mercado Libre, Almundo, Philips, Coca-Cola, among others), Google Cloud has ISO 27001 certification, among other certifications that can be verified at this link: https://cloud.google.com/security/compliance/

Recommended hardware: The system can be used through: Computers (desktop or laptop): You need internet access through the following browsers: Google Chrome (v33 or higher), Mozilla Firefox (v29 or higher), Internet Explorer (v12 or higher) or Safari (v7.1 or higher) Smartphones and Tablets (Android – IOS version in development): Android version 6.0 or higher. 2Gb RAM memory or higher, 1.4GHz processor or higher. 4-inch screen or higher.

At this moment we only have the Android version available. We are working on delivering a new version for iOS as soon as possible.

Yes. It can be used on any Android device.

You can use the Mobile APP since it works OFFLINE. Connection is needed only to upload a completed inspection. To use the WEB APP you need an internet connection since it works in a browser.

You will be able to attach images, take photos and edit them, record videos, attach files (PDF, Excel, Word, etc).

Forms or Checklists are templates that you can create and configure to measure in the “Forms / Checklists” section. The Audits will be executed based on those pre-loaded forms.

The platform will allow you to create questionnaires and custom forms, configuring the types of response for each item or question. You will be able to load as many forms as you want and of all kinds of Norm that adapts to our Forms format.

Yes. With the Super Administrator User from the Users section you can set up Teams and configure access permissions, being able to restrict or limit the information that each User can create, view and / or edit.

English, Spanish and Portuguese.

We have a Business Intelligence module. You will be able to analyze statistical data of all the information that you generate in the System, both Audits and Incidents (Non-compliants), filtering by dates, users, statuses and more. You can export the reports to spreadsheets, excel, CVS.

Yes. By extracting CSV files.

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