A Detailed Overview of the QMS Internal Audit Procedure Word Template

by Sneha Naskar

What is Internal Auditing?

The process of auditing involves someone from within an organization examining financial records and the operations of the organization. Auditing's goal is to verify that the information in documents, reports, and statements are accurate, and make recommendations for improvements if necessary.

Internal Audits are performed to protect your company's assets. This is one of the main reasons why companies perform an internal audit. QMS internal audit procedure Protecting your company's assets is important. Internal audits ensure that employees only have access to the right information and resources. They can also be used to identify areas that are susceptible to fraud or theft.

QMS internal auditing is a consulting, assurance and objective activity that adds value to an organization and helps it improve its operations. Internal auditors are able to help an organization achieve its goals by using a disciplined and systematic approach in evaluating and improving the effectiveness of their risk management.

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Internal Audit vs. External Audit

Internal and external audits are very different but often misunderstood. A QMS audit is performed by employees of the company under audit, while an external audit is done by an independent third-party. Each type of audit has a different purpose: external audits verify financial statements, and ensure compliance with laws and regulations. QMS internal audits improve efficiency and effectiveness.

  • Companies use a QMS Internal Audit procedure to evaluate and improve operations. An internal audit procedure is designed to help identify issues and find the best way to resolve them. Internal audits are performed by employees that have been specially trained for this task.
  • An external audit occurs when an organization engages an independent party for the purpose of assessing and evaluating its operations. The audit includes reviewing financial reports, interviewing staff, and evaluating the company's controls and systems. A third-party audit is intended to give a perspective on the performance of a company, identify areas of weakness and make recommendations for improvements.
QMS Internal Audit Procedure Word Template

Characteristics of QMS Internal Audit:

QMS Internal Audit Procedure is an independent and systematic examination of financial and operation information in order to ensure that the organization's governance and risk management processes, as well as internal control, are effective. It is a method that helps organizations achieve their goals by using a disciplined and objective approach in evaluating and improving risk management, governance, and control processes.

  • Independent The internal audit procedure for the QMS should be independent from management and directly report to the board. Internal auditors can provide objective assurance services and consulting through their independence. Internal Audit should be independent from management and directly report to the Board of Directors.
  • Objectivity Internal audit procedure is objective. It provides a unbiased view of the risk and control process. When conducting audits, internal auditors shouldn't be influenced either by their own biases or financial interests.
  • Competence: internal auditors procedure should be competent and have all the resources necessary to conduct an audit.
  • Authority Internal auditors must have the authority to ask questions of management and to request documents related to the audit.
  • Timeliness Audits must be performed on time, and findings should be reported to the management and board of directors promptly.
QMS Internal Audit Procedure Word Template

What is an Audit Report?

Depending on the type of audit, different groups receive the report.
internal audits are reported to the Board of Directors, the management and the shareholders of the company. external auditors are reported to members and shareholders outside of the organization. The Audit will cover different areas depending on if it's an internal or an external audit.

What is covered by the QMS internal audit procedure?

QMS Internal Audit Procedure focuses on internal controls related governance, risk management and process improvement. External audits are focused on financial reporting and internal controls related financial reporting.

Why Audit is Performed?

A financial audit is the process of examining and assessing the company's statements. An audit's goal is to verify that financial statements are reliable and accurate. An audit can be conducted for many reasons, such as to ensure compliance with laws, regulations and company policies, identify potential fraud or assess the financial health.

An audit's purpose is to assure that financial statements are accurate and that systems and operations of the organization are efficient and practical. Audits come in many forms, but all of them have the same purpose: to make sure that business operations are smooth and efficient.

Internal Audit Process

The Internal Auditing Procedure is the process of evaluating independently the effectiveness of risk control, governance, and management processes within an organisation. Internal auditing is aimed at improving these processes to help the organization achieve its goals efficiently and effectively. Internal auditors use a process or procedure to evaluate risks and controls.

  • Internal Audit Planning: Risk Assessment is the first step of the internal auditing procedure. Internal auditors assess and identify the risks that may affect an organization's ability achieve its goals. This is done by analyzing the business environment, systems, and operations.
  • Nominating Internal AuditorsAppointing QMS Internal Audit internal auditors is a way to offer an objective, independent assurance and consultation service that will add value and improve the operations of your organization. Appointing internal auditors has the primary goal of helping management to carry out their responsibilities efficiently and effectively by providing reasonable assurance regarding the effectiveness of governance, risk management and control processes. Internal auditors help organizations comply with their obligations including Sarbanes Oxley and other regulations.
  • Internal Audit ReportInternal Audit Reports are used in the internal audit procedure to provide an objective evaluation of the effectiveness and adequacy of risk management processes, controls, and governance. Information should be provided to identify areas of improvement or deficiencies. Businesses should have a system that allows them to report regularly on the effectiveness their internal controls. 
    Management and the Board of Directors should review the Internal Audit Procedure report to ensure they are taking appropriate actions to correct any deficiencies identified. The Report should also be used to improve your control, governance, and risk management processes.
  • Follow-up ActivitiesTwo reasons make the follow-up an essential part of internal audit procedure. It allows you to check that the recommendations in the Final Report have been implemented. It is important because it allows the organization to take corrective actions and improve its operations. The second benefit of the follow-up is that it allows you to monitor the progress made by disciplinary actions.

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