A Business Owner’s Guide to 10 Different Types of Audits
Completing regular business and organizational audits is an important part of keeping a business running smoothly.
It’s a sure-fire way to uncover any errors and nip them in the bud before they spiral out of control. There are a number of different types of audits you might want to undertake at your business.
In this article, we outline ten key types of audits you need to know about. Read on to find out more about important audits for small businesses.
1. Internal Audits
These types of audits help your shareholders by providing an overview of where the company is at as a whole. They are commissioned from within the business.
Internal audits explore things like finances, reporting, and effectiveness.
2. External Audits
These are controlled from outside the business. Third parties conduct them.
Sometimes they are commissioned by higher-ups, sometimes outside agencies like the government. They are often more official than internal audits.
3. Finance Audits
Audits on finance are focused on the spending of a company. They compile information about assets, investing, and revenue.
Most companies try hard to do well on financial audits. A good finance portfolio gives potential shareholders impetus to invest in a company.
4. Tax Audits
Conducted to measure the accuracy of your tax record, these audits come from the IRS.
Agents must access all of your tax records. They will check through, ensure that all your taxes have been paid properly, and record any tax liabilities.
5. Payroll Audits
These audits are often internal. They can be conducted by the in-house HR team.
Payroll audits are used to check that the wages system is up to scratch. They check up on employee personal information, tax information, and wage records.
6. Operations Audits
Operational audits can help a business streamline its processes. They examine policies and procedures to see if they are effective.
These audits can also focus on the culture of a workplace and ways to make it more motivating for employees. This can drive a business to higher productivity.
7. IT Audits
Inefficient IT systems can be the downfall of a business. That’s why IT audits are conducted.
Experts can trial and examine your technology to make sure it’s up to the job. This ensures your company doesn’t fall foul of laggy systems and slow computers.
8. Telecom Audits
A telecom audit ensures that resources, rates, and billing on your telecom system are all top-notch. This can save money for your business.
It can also improve customer and staff experiences. Making your telecom system easier to use is good for everyone.
9. Specialist Audits
Specialist audits are required when a company has complex processes in its field of work. This includes working in areas like shipping, manufacture, or construction.
Ensuring that key specialist processes are being undertaken properly means these businesses can keep working. These can be authorized by owners or managers.
10. Statutory Audits
These audits are conducted at banks, public companies, investment firms, and insurance firms. They ensure that these businesses are complying with their legal responsibilities.
Audits of this nature often involve checking client numbers, earnings, and bank statements. The results can be made available to the public to increase transparency.
These Different Types of Audits Are All Useful
Knowing about different types of audits means you can always be ready for them. Whatever audits you prepare for, making sure your processes are running smoothly at all times will be of huge benefit to your business.
If you’d like to find out more about ways to streamline your business, you’re in the right place. Check out our latest blog posts for up-to-date information.