You have probably heard the term “inc Authority” review a million times before when looking at audit documentation. The fact of the matter is that an audit committee, which meets only once a year, has more time to come up with a reasonable set of supervisory standards for the company than you or me! An audit plan template can help the audit committee to focus its attention on those matters that are of utmost importance to the company.
An audit is primarily a risk management activity. The objective of an audit is to detect weaknesses that could lead to financial harm to the company in the future. An audit will typically uncover areas of internal control risk or areas that require changes to internal control methods. It may also reveal areas of weak strategic leadership and management supervision. The key is to identify the areas that need to be improved so that weaknesses do not exist and leadership and supervision is strong and effective. The areas that an audit focuses on can be anything from internal controls to the boardroom.
One of the primary tasks of the audit function is to develop a management plan to address the risks identified during the review. Internal controls are designed to achieve the desired goals of the management plan. Auditors will closely monitor and report on the controls implemented by management. If management is unable to demonstrate that all risk areas have been effectively and efficiently controlled, then the audit function can recommend changes in management policy or procedure. If management is able to successfully demonstrate that all risks are being managed, then the audit is successful! Visit Incauthority review to understand what chances you have.
Internal controls can include all areas of the business that deal with the customer, including sales, manufacturing, shipping, receiving, etc. Customer safety is of great concern to most clients. An auditor will perform an inspection of all controls in place to ensure that these risks are appropriately being controlled. Auditors will also consider how well the client adheres to recommended policies and procedures to mitigate risks to the company. If the client is not doing a good job in any of these areas an audit can be recommended.
The third area an audit focuses on is that of the control of manufacturing hazards. If a manufacturing facility is found to be dangerous or unsafe, an audit can suggest corrective action and instruct the company as to how they can correct the problems. This corrective action could be as simple as a single personnel change, a new training program, or a series of safety improvements to the facility. If the review indicates that the client does not follow safety procedures required by their own company, then corrective action may need to be taken. Again, the company needs to demonstrate that the corrective actions were followed.
An Inc Authority Review typically occurs for one of two reasons: if a company is involved in an audit or control case and a defective product is suspected, or if a control case is inadequate and the deficiencies are not evident to anyone other than the responsible party. Inc Authority reviews are usually performed by independent outside auditors, who are highly trained and experienced in the area of manufacturing health and safety, or industrial operations. In the first case, an outside auditor will visit the facility or work center to perform an inspection. Then they will document their findings and present them to the client for follow up. In the second case, an internal audit team may perform the inspection. Either way, an Inc Authority Review is often used to find problems that an audit failed to identify.