10 Most Common Problems with Inmternal Auditing
Rate your internal audit progarmme against the 10 most common problems using a 5 point scale from 1- 5; where 1 = Not done at all and 5 = Consistently Done Well.
# / Problem Description / Rating between 1 - 5
1 / Linking with KPI’s and quality measurement.
2 / Priorities for auditing the right things
3 / Internal audit tools don’t align with Policy and Procedure.
4 / Lack of Independence.
5 / Lack of depth for the audit sample.
6 / Sample sizes and techniques.
7 / Identifying Corrective Actions and closing them out.
8 / Re-auditing when identified (adding to the schedule).
9 / No adjustments to new goals/strategy.
10 / Lack of understanding of assessing skills and methods.
ADD UP YOUR TOTAL SCORE
Total Score Action Plan
Score / Recommendation
< 30 / Take action NOW to review and update your approach
31 - 40 / Next opportunity to review your audit programme for “doing the right things right”
41 - 50 / Well done – aim for continual alignment of internal audits to goals and objectives
My very next action is to:
______/ The 10 Most Common Problems
That Impact on
Results
From Poor Internal Auditing
(October 2014)
Internal audits done poorly result in wasted time
and potentially compliance, risk, or quality issues.
Introduction: Quality and risk management systems include internal audits to assess compliance against policy, procedures, systems and processes. The aim is to identify gaps between what is expected versus what is actually occurring so that quality improvements occur. From our experience of reviewing many quality systems and implementation of internal audit programmes we have identified the ten most common problems with internal auditing.
Common Problem #1) Linking with KPI’s and quality measurement. Quality plans often identify and link to internal auditing as part of the monitoring process. Key performance indicators are often established for internal audit results, however results of internal audits are often never compared with the KPI’s or reviewed as part of the annual quality review.
Common Problem #2) Priorities for auditing the right things. Annual Audit plans or schedules shouldn’t remain stagnant. Are 30 - 40 internal audits necessary or is a smaller scope with greater depth that covers key areas of service delivery more effective? It is important that the internal audits support the organisation’s purpose/direction.
Common Problem #3) Internal audit tools don’t align with Policy and Procedure. Many times you will see audit tools being developed that assess areas such as medication management and documentation requirements. However the criterion being measured in the audit tools do not always align with documented procedure.
Common Problem #4) Lack of Independence. Using an example from aged care, one often sees the cook completing an internal audit on the kitchen and the registered nurse completing an internal audit on care plans. However, internal audits should be completed by independent staff wherever possible.
Common Problem #5) Lack of depth for the audit sample. Many audit tools developed are basic, generally lacking in scope or depth. Some tools consistently get a 100% result when completed and often this perfect result is due to an audit tool that lacks depth rather than the service being perfect. If you find that your audit results are consistently perfect or 100%, maybe the scope of the tool needs to be reviewed. Or perhaps this area of the service isn’t really a priority for audit. Internal audit tools should be aiming for a high standard of service delivery. / Common Problem #6) Sample sizes and techniques. Internal audits require clear guidelines on how to complete the audit tool. This should include the required sample size i.e.: how many client files to review when completing a documentation audit and techniques required when undertaking the audit; i.e.: observation, documentation review, staff interview. Key skills include how to determine sample sizes and having audit tools provide that direction so that the resulting report shows evidence of the sample.
Common Problem #7) Identifying Corrective Actions and closing them out. Many audits are completed as per the schedule and this becomes routine. Often areas of non-compliance are identified and then what happens may be unclear. Many internal audit tools do not have an area for follow-on such as a corrective action table (or equivalent) that identifies the areas needing action and an area to sign these out when completed.
Common Problem #8) Re-auditing when identified (adding to the schedule). Often an internal audit that has achieved a low compliance is required to be re-audited and this needs to be followed through.
Common Problem #9) No adjustments to new goals/strategy. Audit plans should be reviewed to determine whether they are achieving your current goals or objectives. Also, that current practices are changed when identified through audits. Audit tools should also be reviewed to determine their relevance, effectiveness and whether they achieve their purpose.
Common Problem #10) Lack of understanding of assessing skills and methods. Internal auditing requires an understanding of knowledge and skills to be effective. Auditors should be trained so that you know they are completing the audit schedule correctively.
Conclusion: I’m sure that you or your organisation has considered many of those listed above. Wouldn’t it be great to address those 10 most common problems and anymore obstacles or concerns that you may have about internal auditing and learn to implement an effective and time-efficient internal auditing programme in your organisation that achieves its purpose?
Turn over to rate your internal audit programme