The question of the business process audit arises when you have implemented a process management system in your company, but the latter is not effective.
The desired outcome is therefore not on track!
Thus, you notice there are organizational problems, and even bottlenecks in your workflow.
So don’t panic, AirProcess is here!
In this article, you will learn why to conduct a audit, and how to achieve it using the six steps below.
- Development of the audit plan.
- Acquisition and review of information.
- Detection of vulnerabilities and threats.
- Development of recommendations and drafting of reports.
- Verification of the implementation of the recommendations.
- Sharing findings and conclusions.
Soon, you will master the key principles and be able to implement them in your company.
Now, if you agree with the program, let’s get started right away.
Let’s go!
Definition of the term “business process audit”
A business process audit is a methodical and structured approach, with the objective of examining and evaluating a business process within an organization.
This procedure involves a series of steps designed to thoroughly analyze how the concerned process operates.
For example, in the sales department of an insurance company, the handling of claims is carried out according to a well-defined process.
Hence, a business process audit might speed up and optimize the decision‑making process, which would have the effect of increasing customer satisfaction and reducing turnover.
Note: although they are similar in their approaches, “the business process audit” should be distinguished from “the process audit.”
Indeed, the audit of business processes does not include standard certification norms due to its more generalized approach.
This peculiarity makes it accessible to any employee who masters the process in question and has the information necessary to pilot it.
By contrast, the audit of processes is carried out by specially trained legal teams, and they are the only people capable and authorized to do it.
Understanding the nature and the purpose of a business processes audit naturally leads us to question its advantages.
Thus, let’s explore why it is beneficial to undertake such an audit in the current professional context.
Why conduct a business process audit?
The business process audit enables iterative maintenance of quality management, continuous improvement and the creation of added value for the company.
Thus, it helps identify areas of optimization, non-conformities, and establish corrective actions.
a) Here are a few examples where conducting an audit is relevant
1️⃣ The aim to increase efficiency and profitability: a business processes audit aims to implement strategies to strengthen operational efficiency and the company’s profitability.
It may, for example, reveal a skill gap among one of the actors in the task processing.
2️⃣ The need to evaluate alignment with the company’s objectives: the audit allows measuring process effectiveness relative to the initial objective.
It also identifies points of inefficiency that could hinder the organization’s progression.
3️⃣ Identifying improvement points: here, the objective is to detect the main indicators signaling opportunities for continuous improvement.
4️⃣ The need to identify risk areas: the audit can also reveal areas with potential risks, allowing leaders to take preventive measures to avoid disruptions.
5️⃣ Highlighting training needs: it identifies areas where additional training could be necessary to strengthen the teams’ skills.
b) Transforming challenges into opportunities
1️⃣ Through a proactive approach: the business processes audit provides a clear view of the challenges facing the company, thus challenges become real opportunities for improvement.
2️⃣ By identifying dysfunctions: it highlights inefficiencies and dysfunctions, building a solid basis for targeted corrective actions.
3️⃣ Through global optimization: ultimately, the business processes audit is a strategic lever to continually improve performance, ensure compliance, and pilot long-term operational success.
After understanding why a business processes audit is essential for the company’s effectiveness and improvement, the next question is how to effectively implement this audit to obtain the best results.
How to conduct a business process audit?
1) Plan the execution of the audit
– Defining the scope of the audit
The first step in planning a business processes audit is to specify the scope of the audit.
This includes selecting the specific processes to review and setting the objectives. It is utopian and even counterproductive to try to audit all business processes at once: you must move forward.
– Identifying the stakeholders
In this step, a very good practice is to involve all relevant stakeholders.
This ensures that all perspectives and requirements are taken into account, ensuring a comprehensive and balanced evaluation of the process.
– The timing planning
In this step, use common sense by creating a realistic schedule of actions to be taken: work load is often underestimated, and the availability of collaborators is often overestimated.
This involves setting dates for the start and end of the audit, as well as deadlines for the key steps.
2) Acquisition and examination of information
a) Data collection procedure
1️⃣ Data collection method: data collection is carried out through various methods such as interviews with the relevant staff, but also direct observation of processes in action, and in-depth review of documents relating to the processes.
This step is strategic because it allows obtaining an exhaustive understanding of the audited processes.
2️⃣ Diversity of sources: it is essential to collect information from a varied range of sources to ensure an overview and avoid biases. A classic error is to take information from a single user of the process thinking that their colleagues work in the same way.
These sources include operational data, feedback from teams, and management documents.
b) Analysis of collected data
1️⃣ Compliance assessment: once the data is collected, the auditors analyze them to assess the compliance of the processes relative to the reference standards.
2️⃣ Measurement of effectiveness and efficiency:
The analysis also focuses on evaluating the effectiveness and the efficiency of the processes.
This involves examining how resources are used, identifying bottlenecks and evaluating performance against the set objectives.
3️⃣ Identification of optimization opportunities: ultimately, the objective of this analysis is to identify areas where improvements can be made.
This may include the optimization of workflows, cost reduction, quality improvement or speeding up production lead times.
c) The content of the result of the analysis
1️⃣ A detailed report: the results of the analysis are compiled into a detailed report that presents findings, assesses the gaps against the established standards, and proposes recommendations for corrective actions.
2️⃣ A solid basis for continuous improvement: this report serves as a basis for continuous improvement, highlighting the strengths and the weaknesses of current processes and proposing concrete avenues for their optimization.
3) Detection of vulnerabilities and threats
a) Detection of vulnerabilities
1️⃣ Evaluation of qualitative gaps: one of the major benefits of the business process audit is to identify gaps relative to the standards established beforehand.
It includes the evaluation of processes to detect any deviation from quality standards and compliance requirements.
2️⃣ Review of internal controls: the success of this step includes a thorough examination of internal controls.
Thus, these controls allow verifying whether the current control mechanisms are adequate to manage and minimize operational risks.
b) Identification of risks
Operational risk analysis: identifying operational risks plays a key role in the audit of business processes.
This analysis helps anticipate potential difficulties that could negatively affect the organization’s performance and efficiency.
c) Result of identification
Report of weaknesses and risks: the results of this identification are recorded in a detailed report, highlighting the vulnerability areas and risks associated with the business processes.
4) Elaboration of recommendations and drafting of reports
a) Formulation of recommendations
1️⃣ Improvement of processes: after identifying the weaknesses and risks, the auditors develop strategic recommendations.
2️⃣ Strengthening controls: the auditors also propose measures to strengthen internal controls.
This may include the implementation of new monitoring systems, improvement of existing procedures, or training of teams on critical aspects of risk management.
b) Writing the audit report
1️⃣ Documentation of findings: the audit report documents in detail the findings made during the audit.
It presents a clear analysis of the gaps, of the weaknesses, and of the risks identified in the audited processes.
2️⃣ Presentation of recommendations: the report also includes the recommendations formulated by the auditors.
These recommendations are based on the findings and aim to guide the organization toward tangible improvements.
3️⃣ The corrective actions plan: a part of the report is dedicated to the corrective actions plan.
This plan details the steps to follow to address the problems identified, with clearly defined deadlines and responsibilities.
c) The importance of the Audit report
1️⃣ The strategic governance tool: the audit report serves as a governance tool for management and operational teams.
It provides a basis for informed decision-making and the implementation of continuous improvement strategies.
2️⃣ Monitoring and accountability: the report also facilitates monitoring of corrective actions and ensures accountability in their implementation.
It thus becomes a reference framework to assess progress and the effectiveness of the improvements made.
5) Verifying the implementation of the suggestions
a) Implementation of corrective actions
1️⃣ The importance of monitoring: post-audit monitoring is a key process to ensure that the corrective actions recommended are actually implemented.
This step allows verifying the application of improvements and evaluating their impact on the business processes.
2️⃣ The monitoring process: the auditors organize periodic monitoring sessions, which may include progress report reviews, meetings with the responsible teams, and on-site evaluations to observe the changes made.
b) Evaluation of the effectiveness of the measures taken
1️⃣ Analysis of results: the objective of monitoring is also to evaluate the effectiveness of the corrective actions.
This involves an analysis of the performance of processes post-implementation, comparing the results to the initially set objectives.
2️⃣ Confirmation of improvements: monitoring helps confirm whether the necessary improvements have been made and whether they meet expectations in terms of quality, efficiency and conformity.
c) The ongoing role of the auditors
1️⃣ Continuous guidance: the auditors play an important role in advising and guiding to ensure a continuous improvement.
Their expertise remains available to help refine and adjust processes if necessary.
2️⃣ Ensuring the sustainability of changes: finally, regular follow-up by the auditors helps ensure that changes made are sustainable and effectively integrated into the company’s operational practices.
6) Sharing findings and conclusions
a) Dissemination of information to stakeholders
1️⃣ Targeting recipients: the results of the audit must be effectively communicated to stakeholders.
Therefore, the people concerned are: the company’s management, the owners of the audited processes, and the employees directly or indirectly involved in these processes.
2️⃣ Content of the communication: the communication should cover the main findings, the recommendations from the audit, and the suggested action plans to rectify identified gaps.
b) Awareness and knowledge sharing
1️⃣ The importance of the audit: it is essential to emphasize the importance of the audit for the company’s performance and compliance.
2️⃣ Encouraging engagement: sharing the results and recommendations of the audit promotes engagement and accountability among teams.
This encourages a culture of continuous improvement and quality within the organization.
c) An effective communication method
1️⃣ Organizing meetings and presentations: organizing meetings or presentations with stakeholders to discuss the results of the audit allows direct interaction and the opportunity to respond to questions or concerns.
2️⃣ Drafting written documentation: providing written reports or summaries of the audit results helps ensure that the information is available for later reference and for those who could not attend the meetings.
d) The consequences of communication
1️⃣ A better understanding of processes: effective communication helps a better understanding of processes within the company and their impact on overall performance.
2️⃣ Fostering positive change: by sharing results and recommendations, the organization can better mobilize to implement the necessary changes.
Having explored the key steps to carry out an effective audit, it becomes relevant to ask when is the optimal time to initiate such an audit in the company.
When to conduct a business process audit in a company?
a) The ideal context for an audit
1️⃣ In case of organizational changes: a business process audit is particularly relevant during major organizational changes.
Thus, this change can include restructurings, mergers, acquisitions, or the launch of new products or services.
2️⃣ The introduction of new technologies in the company: the integration of new technologies or information systems is also an ideal time to perform a audit.
This moment ensures that the business processes are aligned with the new technological solutions and that they maximize their benefits.
3️⃣ During a period of growth or expansion: periods of rapid growth or expansion into new markets often require reevaluating processes to guarantee that they effectively support the company’s evolution.
b) Specific situations requiring an audit
1️⃣ In case of non-conformity or performance defects: if performance defects of processes are observed, an audit can help diagnose and fix these problems.
2️⃣ When receiving negative feedback from customers or employees: negative feedback from customers or employees on certain aspects of the company’s operations can also signal to initiate a business processes audit.
c) The frequency of the audit
1️⃣ Perform regular audits: even in the absence of obvious problems, it is advisable to carry out business process audits periodically.
2️⃣ Adaptation to market developments: audits should also be considered in response to changes in the market environment or sector regulations, ensuring an agile and compliant adaptation of the company’s processes.
After determining the opportune moments to conduct a business process audit, it is now time to look at the various actors who play a key role in the effective realization of this audit.
Who are the actors participating in the realization of the business process audit?
1. The internal auditor
1️⃣ Their main role: Internal auditors are often the main players in carrying out the business process audit.
They have in-depth knowledge of the company’s internal processes and are trained to identify inefficiencies and non-conformities.
In SMEs, the internal auditor is often a person who understands the company’s activity in a cross-functional way: this could be the CEO, the CFO, or the CIO.
However, due to lack of time, the auditor is often an external provider, and this falls into AirProcess’s area of activity.
2️⃣ Their responsibilities: they are responsible for planning the audit, data collection and analysis, and drafting the audit reports.
2. The top management
1️⃣ Strategic involvement: the top management, including the CEO and other senior executives, plays a big role in defining the audit objectives and in approving the plans.
2️⃣ Support and resources: they provide the support and resources necessary to carry out the audit and are often the primary recipients of the audit results.
3. Process owners
1️⃣ Operational knowledge: the owners of the audited processes are essential to provide detailed information on the operational processes on a daily basis.
2️⃣ Cooperation for the audit: they collaborate with the auditors by providing data, participating in interviews, and facilitating access to the necessary information.
4. Operational employees
1️⃣ Source of information: the employees who work directly with the business processes are vital information sources.
They can provide practical insights and details on the daily operation of the processes.
2️⃣ Contribution to the audit: their participation may include interviews, questionnaires, and direct observations of their work.
5. External auditors or consultants
1️⃣ External expertise: in some cases, external auditors or specialized consultants are engaged to bring independent and objective expertise.
2️⃣ Analysis and recommendations: they can help carry out more complex audits, providing in-depth analysis and recommendations based on industry best practices.
6. The Internal Audit Department
1️⃣ The coordination of the audit: the internal audit department, if it exists, coordinates the entire audit process, from planning to execution and follow-up of the recommendations.
2️⃣ A supervisory role: They supervise the process to ensure its conformity with the standards of internal and external audits.
7. The Audit or Risk Management Committee
1️⃣ Oversight and governance: an audit committee or a risk management committee, often composed of directors and sometimes external members, oversees the audit to ensure it meets the company’s strategic objectives.
2️⃣ Evaluation of results: they evaluate the audit reports and participate in decision-making on actions to undertake following the audit recommendations.
Now that we have identified the key actors in carrying out an audit, we can deepen our understanding by examining practical cases and real-life case studies, illustrating how these audits unfold in various business situations.
Practical cases and case studies for the business process audit
Let’s now study, together, two practical cases where a audit would be necessary.
These examples illustrate the effectiveness of different audit techniques and show how they can lead to improvements.
Example 1: a process audit in a large manufacturing company may help detect inefficiencies in the production line.
Following the audit, adjustments can be made, which would reduce production lead times and improve the quality of finished products.
Example 2: another case could be applied to a public service which, after a business processes audit, reorganizes its internal services, resulting in better resource allocation and increased customer satisfaction.
These practical cases illustrate how the business processes audit can lead to operational and strategic improvements for an organization.
They also illustrate the importance of a methodical and rigorous approach to the audit to effectively identify and implement changes.
We have seen concrete examples of business process audits and their positive impacts.
For what follows, let us focus on post-audit change management, a fundamental aspect to capitalize on the identified improvements and ensure effective implementation of the recommendations.
Post-audit change management
Effective post-audit change management is a key element to maximize the added value of the audit recommendations.
Here are some tips for a successful implementation :
1. Transparent communication with the teams
Inform all stakeholders of the audit results and the measures to be taken.
This ensures alignment and understanding of the targeted objectives.
2. Strategic planning
Develop a detailed action plan to implement the recommendations.
This plan should include deadlines, clear responsibilities, and necessary resources.
3. Training and awareness for employees
Offer training and awareness sessions for employees to facilitate adaptation to the new processes or systems.
4. Monitoring and evaluation
Set up a monitoring system to evaluate progress and the effectiveness of the changes.
Use performance indicators to measure the impact of the adjustments.
5. Continuous review and adjustment
Be prepared to review and adjust plans based on feedback and results.
Flexibility is essential to adapt to potential operational constraints.
With a thorough understanding of post-audit change management, we can now turn to the skills that auditors must possess to carry out these processes.
This leads us to explore the training and skills required for professionals involved in the audit of business processes.
Training and skills required for auditors
The training and skills required for business process auditors are guarantees of conducting effective and relevant audits.
Here is an overview of key skills :
1. Technical knowledge
A deep understanding of operational and management processes, with the ability to map and analyze them.
2. Analytical skills
The ability to identify weaknesses and risks in business processes, and to propose corrective actions.
3. Good communication
Aptitude to clearly communicate audit results and recommendations, and to work effectively in a team.
4. Strong training
A background in internal auditing or quality management, ideally complemented by a certification such as a certified internal auditor or quality auditor.
Future trends in process auditing
Future trends in business process audit, in the era of digitalization and globalization, point to several innovative directions:
1. Technological integration
The growth of automation and the use of digital tools, such as ERP systems and Business Process Management (BPM) solutions like AirProcess, for faster and more precise analysis.
2. A global approach
Adapting to international standards and varying compliance requirements due to globalization, necessitating a broader view of business processes.
3. Data analytics and artificial intelligence
Increased use of data analysis and AI to identify trends, predict risks and optimize processes.
4. Cybersecurity
Integrating cybersecurity into process audits to protect data and information systems against threats.
Thus, these evolutions transform the way audits are conducted, delivering greater efficiency, precision and a better ability to manage risks in an increasingly digitized and globalized environment.
Foire aux questions
Who conducts the business process audit?
The internal audit in a company is usually entrusted to one or two people, qualified in audit techniques, or to an external partner such as AirProcess.
They carry out their mission with full autonomy, possessing the specific skills necessary to conduct the audit effectively.
What is the purpose of a business process audit?
The main objective of the audit is to measure the gaps between the practices observed in the company and the established standards.
What is the difference between a process and a procedure?
The process: a culinary metaphor.
Imagine making a cake: the process represents the set of concrete actions to make the cake, akin to a business activity such as Recruitment of a new employee.
The procedure: The recipe for success.
On the other hand, the procedure is comparable to a cooking recipe: it details the specific steps and methods to follow to accomplish the process, i.e., how to proceed concretely to carry out the activity in question.
What is a business process analysis?
The analysis of business processes (BPA) is a method for in-depth examination of processes within a company. This process involves carefully evaluating how tasks and activities are carried out.