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Auditing and Being Audited
Slide 190,  Rendered: 2/13/04
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Types of Audits
∞Internal Audit
•An audit of internal systems and/or procedures. An internal audit is most often performed by people how directly work for the company. Many companies hire outside firms (see third party below) to perform the audits.
∞External Audit
•Customer Audits
F Customer audits are those where a customer (or a customer representative) performs the audit. A customer audit is not objective because the customer is intimately involved with your company (the supplier to the customer). This involvement can BIAS the audit.
∞Third Party Audits
• Third party audits are like those you think of when you think of bank audits. Banks (and other financial institutions) must hire a company or person to audit their books and procedures. The company or person hired to do the audit cannot have an interest in the business it is auditing. This is known as an Independent Audit. This is the type of audit the registration audit is!
You can use this slide to explain to your employees what the different types of audits are - assuming you plan to prep everyone. Some companies have been through many, many audits and explanations may not be necessary. But if your company has never gone through a major audit before, you might want to prep them with some general information.