{"id":99933,"date":"2025-02-20T18:30:06","date_gmt":"2025-02-20T18:30:06","guid":{"rendered":"https:\/\/peraltafinancing.com\/accounting\/how-to-prepare-your-company-for-an-audit-of-your-internal-processes\/"},"modified":"2025-02-20T18:30:06","modified_gmt":"2025-02-20T18:30:06","slug":"how-to-prepare-your-company-for-an-audit-of-your-internal-processes","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=99933","title":{"rendered":"How to Prepare your Company for an Audit of your Internal Processes"},"content":{"rendered":"


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In company operations\u2014whether related to finances, internal systems, or other key processes\u2014aligning with the standards set by the ISO is essential for maintaining efficiency and credibility. Engaging independent third-party assessors to conduct a comprehensive evaluation ensures that business processes meet globally recognized benchmarks. Because of this, global organizations such as private companies pursue ISO certification to demonstrate their commitment to quality, efficiency, and compliance with best practices.<\/span>\u00a0<\/span><\/p>\n

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In this article, we will be tackling company audits with regard to internal processes and systems in place and the role that the International Standard Organization (ISO) plays in a successful audit.\u00a0<\/span>\u00a0<\/span><\/p>\n

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The Role of the ISO in Your Audit Preparation\u00a0<\/span><\/h2>\n

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The <\/span>ISO<\/span><\/a>, which began in 1947, is an independent and non-government organization that creates international standards for companies to adhere to when it comes to designing and implementing their internal systems. To ensure that they encompass and consider localized regulations, most countries — the Philippines included — have representatives in the ISO, helping the ISO create the standards in which to assess international companies by.\u00a0<\/span>\u00a0<\/span><\/p>\n

For companies who wish to become ISO certified, an external audit by the ISO accredited certification bodies is done as they assess your internal systems through your documentation, your risk assessments, internal controls and your employees\u2019 knowledge of your systems. Before this happens, most companies take it upon themselves to have a company-wide internal preparation, simulating what happens during an external audit with their own quality assurance or management team acting as the auditors \u2013 this is what we call an internal audit.\u00a0<\/span>\u00a0<\/span><\/p>\n

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Difference of an ISO Certification Internal and External Audit\u00a0<\/span><\/h2>\n

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In essence, the internal and external audit are the same \u2013 specifically since the internal audit is supposed to act as a simulation of an external audit. With this, as said above, the main difference lies in the auditors. <\/span>\u00a0
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<\/span>For an external audit of your internal systems, representatives from ISO request your company\u2019s internal documentation \u2013 from your standard operation procedures, business continuity procedures and workflow processes of every department. This is submitted to them ahead of time before they perform an audit check and interview your employees.<\/span>\u00a0
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<\/span>Once they have had the time to look into your internal systems and processes, they then interview your management team, department heads and random employees to assess whether your internal processes are followed based on the company set standards and in accordance with the requirements of the ISO. Once you\u2019ve completed this part of the audit and you comply with their requirements and pass their standards, your company is then issued with an ISO 9001:2015 certification.<\/span>\u00a0<\/span><\/p>\n

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<\/span>But what is the importance of becoming ISO certified? <\/span>\u00a0<\/span><\/p>\n


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<\/span>The Importance of an ISO Certification<\/span>\u00a0<\/span><\/h2>\n

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Obtaining ISO certification adds credibility to your organization and secures client trust. As an internationally acclaimed organization, the ISO sets a gold standard for internal systems that demonstrate your company\u2019s commitment to quality and compliance. This helps strengthen partnerships with clients, assures them of your operational efficiency, and positions your company as a reliable and trustworthy partner in the market.<\/span>\u00a0<\/span><\/p>\n

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The Role You Play in Audit Preparation<\/span>\u00a0<\/span><\/h2>\n

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As you prepare for your internal audit, everyone in the company has a role to play. From the start, management must make it clear the audit preparation efforts should be prioritized to ensure that teams are aligned in achieving a common goal \u2013 to receive ISO certification.\u00a0<\/span>\u00a0<\/span><\/p>\n

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Management or Executives<\/span>\u00a0<\/span><\/h3>\n

The goal to become ISO certified first and foremost starts with management. Depending on the company\u2019s growth over the years, they can determine whether or not it is time for the company to apply for ISO certification and trigger the necessary preparation for it.<\/span>\u00a0
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<\/span>Once preparations begin, all initiatives must come from management \u2013 ensuring that they provide all the necessary information, tools and resources that employees would need to be able to comply with the internal and external audit requirements. Management\u2019s outlook during this preparation would set the tone for the entire company, encouraging employees to treat the audit with utmost importance.\u00a0<\/span>\u00a0<\/span><\/p>\n

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Read: <\/span>Spearheading Change: How to Direct your Company\u2019s Growth<\/span><\/a>\u00a0<\/span><\/h3>\n

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Team Leads and Managers<\/span>\u00a0<\/span><\/h3>\n

Once management sets the tone for the audit preparation, it becomes the team leads and managers\u2019 responsibility to trickle down all the information \u2013 ensuring that their team members understand the expectations from them during the audit and supervise the proper implementation of the department\u2019s internal processes leading up to the audit date. <\/span>\u00a0
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<\/span>Aside from this, managers are also encouraged to take a proactive role in their employees\u2019 preparation, giving their teams access to all the resources and training required for the audit and building a channel of communication wherein employees can approach them for help when needed.\u00a0<\/span>\u00a0<\/span><\/p>\n

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Employees<\/span>\u00a0<\/span><\/h3>\n

Employees who work under different managers and departments now become the frontlines of the process. With the resources and information made available to them, it becomes their responsibility to utilize it \u2013 understanding and adhering to company standards and ensuring their daily work complies with the standards. During the audit proper, they must be able to demonstrate the knowledge of these processes to show auditors that they are in compliance.\u00a0<\/span>\u00a0<\/span><\/p>\n

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Auditors<\/span>\u00a0<\/span><\/h3>\n

During an internal audit, your auditors would most likely come from your Quality <\/span>Management<\/span> or Internal Audit Team. For the audit preparation and audit proper, these employees must be unbiased and objective as possible \u2013 acting as third-party investigators all throughout. Their role is to thoroughly assess the company\u2019s internal processes, identify areas of improvement, and provide actionable feedback. By simulating the external audit process, internal auditors help the company refine its systems and improve its chances of passing the external ISO audit.<\/span>\u00a0<\/span><\/p>\n

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What to Expect During the Internal Audit Proper\u00a0<\/span><\/h2>\n

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The internal audit is a critical step in preparing your company for the ISO certification process. We conduct internal audits to ensure compliance with our standards as a commitment to continuously improving our system while preparing the company for the external audit. Treating the internal audit with the same seriousness as the external audit ensures a smoother process and reduces the risk of non-compliance when the ISO auditors arrive.<\/span>\u00a0<\/span><\/p>\n

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Treating the Internal Audit Like the Real Thing\u00a0<\/span><\/h2>\n

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Employees must approach the internal audit with the same professionalism and preparation they would exert during an external audit done by the ISO. <\/span>\u00a0
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<\/span>During the audit proper, make sure you and your employees understand the purpose of the audit, are prepared for the interviews and have all the necessary documentation formatted according to ISO standards. Treat the internal audit as an opportunity to identify potential issues, address them proactively, and build confidence in your company\u2019s systems even before an external audit \u2013 ensuring that findings are positive once the real thing comes.\u00a0<\/span>\u00a0<\/span><\/p>\n

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The Interview Process<\/span>\u00a0<\/span><\/h3>\n

Once your company\u2019s documents and processes are submitted to your internal auditors, interviews for every department head and random members of every department come next.<\/span>\u00a0
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<\/span>During this phase, employees at random are invited into interviews to simulate the external audit process as employees must demonstrate their knowledge of the internal processes applicable to their daily duties and responsibilities as well as the company values and procedures that act as the overarching objectives of all departments.<\/span>\u00a0<\/span><\/p>\n

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Employees should:<\/span>\u00a0<\/span><\/p>\n