An audit is an inspection and questioning by an independent person of a report, a process or a system to see how well that report, process or system meets an agreed predetermined standard. This usually requires inspection of the internal control systems that produced the report.
An audit can address any activity or report, not just finances, e.g.
- Are our Health and Safety systems and practices up to the standard required by law or to the higher standard we have set?
- Are our teaching methods and results up to Ministry of Education's (MoE’s) or other standards?
- Do we systematically look at future risks our business might face and plan now to avoid or reduce them?
These kinds of audits are not currently required by the MoE but they are clearly useful for good management of a business. Many directors, owners, or head offices undertake or hire others to undertake internal audits of many of their service’s activities.
Some businesses reciprocally audit aspects of each others’ services for mutual support.
Two kinds of Audit
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