Audits are an independent review of a company's operational or financial information. Companies use internal audits conducted by their own employees to provide a review for internal management purposes. External audits are typically conducted by third parties to fulfill industry regulations or meet other external requirements. Record management audits are an objective review of a company's client or business records management process. These audits are meant to discover weaknesses in the records management process, give the company an opportunity to correct these issues and ensure the corrections provide an effective and risk-free records management process.
Planning the Audit
Auditors usually spend some time meeting with company management and discussing the records management audit process. This meeting helps auditors determine any areas in the records management process that present significant risks to the company. Significant risk areas, such as the protection of sensitive customer information or timely paperwork filing with government agencies, are given special attention by auditors since the company may face a higher probability of legal or financial damage from these risks. Once the auditors have developed a plan and met with managers, they will begin the fieldwork phase of the audit.
Fieldwork
The fieldwork phase is where the bulk of the auditing process takes place. Auditors meet with individual employees responsible for handling sensitive client records and ensure these individuals are following the company's standard operating procedures. A review of the company's security systems used to protect paper or electronic records is another important step in the audit process. If federal, state or local government entities require companies to follow certain procedures when handling sensitive information or individual records, auditors will test the company's procedures and records management process against these regulations. As auditors go through the fieldwork phase, they will note any variations found during the records management audit process. Auditors may review a second sample of information in the company's record management process to determine how pervasive any variations are in the company's process.
Final Meeting
Once auditors complete the fieldwork phase, they will have a final review meeting with management. During this meeting, the auditors will discuss any issues found in the company's processes and describe the material significance of these issues in terms of government regulations or standard operating procedures. If a company has too many errors or significant material weaknesses in the records management process, auditors may suggest the company undergo a remedial audit. A remedial audit serves as a double check for the company; auditors will come back after a certain period of time has elapsed and test the areas where the company failed the initial audit.
