A process audit is an inspection that is highly focused on internal systems, processes, and organizations. Process audits are more than just product tracking, sampling, and measurements. The purpose of process audits is to limit the evaluation focus to procedures, routines, or specifications used in a designated business area, unit, or department.
Why process auditing?
ü Evaluate control systems;
ü Verify that the company's control rules and procedures are in operation;
ü Prevent losses;
ü Improve operational performance;
ü Advise senior management in decision-making.
To truly obtain the desired effect, process auditing must be programmed and structured, so that the results reflect reality. Process Analysis is a methodical approach to enhance the understanding and redesign of the organization's workflow. It acts as a tool to maintain and improve business processes and also helps to obtain the incremental benefits for transformation, such as cost reduction, optimal resource utilization, effective human resource allocation, and process efficiency. The following are the main steps for analyzing the processes:
ü Know the resource providers;
ü Identify the main resource inputs;
ü Know how these resources are processed;
ü Specify the outputs of the process;
ü Detect which are the key clients of the process.
While business risks are uncertainties, opportunities arise from managing those risks. Risk management is the process of identifying, evaluating, and controlling threats to an organization's capital and earnings. These threats, or risks, can stem from a wide variety of sources, including financial uncertainty, legal liabilities, strategic management errors, accidents, and natural disasters. IT security threats and risks related to data and risk management strategies to alleviate them have become one of the top priorities of digitized companies. As a result, a risk management plan increasingly includes companies' processes for identifying and controlling threats to their digital assets, including proprietary corporate data, a customer's personal information, and intellectual property. To map risks and opportunities, it is necessary to ensure the objectives set, identify and value positive effects, and curb, reduce and prevent negative effects.
Process Management aligns processes with an organization's strategic objectives, designing and implementing process architectures, establishing process measurement systems that align with organizational objectives, and educating and organizing managers to effectively manage processes. It also needs appropriate practices such as establishing and disclosing success factors, automating control procedures, evaluating performance, and establishing routines for training and continuous improvement.
A process audit should be seen as an element of assistance and support to managers, bringing benefits as always having current and reliable information about how the processes are being executed. That is why there is a recommendation that an audit of the business process be carried out continuously or, at least, that certain periods be established to be carried out. But, nevertheless, the auditing process cannot be neglected. All companies can benefit from process auditing and can:
ü Certify the effectiveness of current controls;
ü Identify improvements to existing processes;
ü Support the creation of new processes;
ü Prevent losses, with the early detection of problems;
ü Increase the company's reliability.
Do you want to know other benefits? Our team will be pleased to serve you!
Contact TATICCA — ALLINIAL GLOBAL, which provides integrated auditing, accounting, tax, corporate finance, financial advisory, risk advisory, technology, business consulting and training services. For more information, visit www.taticca.com.br or email taticca@taticca.com.br. Our company has professionals with extensive experience in the market and has certified methodologies for carrying out activities.
