Periodic Business Audits
Audit the whole business periodically. Is everything proceeding according to plan?
In simple terms, auditing is an activity with two main parts:
Part one: Check whether the business has addressed all the principles and rules mentioned, or still to be mentioned, in this series of articles and has planned their implementation.
Part two: Check whether the business is following these requirements, principles, and rules.
How Is an Audit Conducted?
An audit must be carried out by people who are impartial toward the area being audited. Employees of a department cannot audit themselves.
Example: Suppose a shoe workshop has design, cutting, stitching, assembly, packaging, purchasing, and marketing and sales departments.
An audit of this workshop might be arranged so that someone from the cutting workshop audits the design department, someone from marketing and sales audits assembly, and so on.
An audit is no place for catching people out, taking sides, settling personal scores, or similar behavior!
The purpose is to establish, in a calm and friendly atmosphere, whether we have planned and implemented what was required.
How Often Is an Audit Conducted?
That depends on the size and complexity of the business and the sensitivity of its products.
Audits should normally be carried out at intervals of three to six months.
What Are the Results of an Audit, and What Are They Used For?
Audit results are reports on the extent to which principles and requirements are covered and implemented in the business.
The problems and deficiencies in each area must be given to the person responsible for that area so they can be corrected within a defined period.
The auditor must confirm that the problem has been corrected.
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