What Are The Categories Covered In An Audit?
The most common categories in an audit would be management, human resources, operations, and finance. Depending on the particular business or industry, there may be other categories that are particular to that business. We want to be sure that we are covering forecasting in growth and also risk management.
What Is Included In The Management Audit?
The management audit offers strategic planning, goal setting, reviews of prior goals, and assessing the organizational structure of the business. We review which policies and procedures are in place for the management and for replacing outgoing management, or increasing the size of management. We look at corporate governance issues, as far as oversight and control at the very highest levels.
What Is Included In The Human Resources Audit?
The Human Resources audit is probably the most important one, as far as mitigating potential risks. This includes making sure that the company complies with all regulations regarding personnel and hiring. We review or create an employee handbook, look at orientation procedures, and make sure there are clear job descriptions, training, and termination procedures. We analyze the compensation and benefit structures and be sure that there are appropriate performance review protocols in place.
What Is Included In The Operational Audit?
The Operational audit starts with examining production, sales, marketing, forecasting, purchasing methods, inventory control, product or service development, and all the day-to-day operations of the business.
What Is Included In The Financial Audit?
In a Financial audit, we look at the accounting system, reporting of income, goal setting, budgeting, reconciliation, tax planning, cash management, risk management, and insurance.
What Professionals Should I Get To Assist Me In An Audit?
In an audit, you are going to need all of the professionals who help you in your business. Your attorney would probably oversee the entire process and then you would bring in the other professionals to assist in their particular areas. You would need your accountant, your banker, your insurance advisor, your investment advisor, and any other professionals involved in the running of your business.
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