Explain the Term Audit and Outline the Main Points of an Auditing Process.

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According to a publication by N. Chesworth; the purpose of an audit is to assess if the business is physically capable of producing a safe product which is consistently high in quality and safety. It is also used to check legal constraints are met to an acceptable level using effective control methods ensuring consistent performance. Another constructive way the audit is used is to ensure certain measures are present to support due diligence defence. Audits are usually carried out continuously to highlight any problems or issues that the business needs to deal with. Chesworth also highlights; there are three main types of audits which follow the same basic steps. The first type of audit is a Vetting Audit; this is usually used as an initial assessment for an accreditation scheme. The auditors will cover in depth all aspects of the operation, audits undertaken can usually vary in length depending on the complexity of the process. The second type of audit is a Monitoring Audit; this is when the business has matured and the product is being supplied on a regular basis, it looks in more closely into any potential or existing problems. Troubleshooting Audit is the third type of audit and is used when a business or a specific product is declining in performance to an unacceptable standard.

There are six basic steps to carry out a basic audit. The first is pre-audit preparation, this uses a lot of valuable time and money. This is invested to maximise the benefits at the end. Auditors may request information which can be used to determine the areas of the business which may require particular attention. The second step is a pre-audit meeting; this is when the auditor will meet the manager or duty manager, to clarify the purpose of the audit. The actual audit can then be carried out; the type of audit will be determined by how much detail the auditor wishes to go into. The auditor should always take notice of what is actually happening in the business rather than...
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