What are the key risks and controls in your business process design?

1 Define the objectives and scope

The first step in creating a process audit checklist is to define the objectives and scope of the audit. What are you trying to achieve with the audit? What are the expected benefits and outcomes? How will you measure the success of the audit? The objectives and scope should be aligned with the strategic goals and priorities of your organization, and should be clear, specific, and realistic. You should also determine the scope of the audit, which is the extent and boundaries of the process that will be audited. The scope should be defined in terms of the process inputs, outputs, activities, resources, and stakeholders.

2 Identify the risks and controls

The next step in creating a process audit checklist is to identify the risks and controls of the process. Risks are the potential events or situations that could negatively affect the process performance or quality, such as errors, delays, defects, or non-compliance. Controls are the measures or actions that are implemented to prevent, detect, or mitigate the risks, such as policies, procedures, standards, or tools. You should conduct a risk assessment to identify the sources, likelihood, and impact of the risks, and to evaluate the effectiveness and efficiency of the controls. You should also prioritize the risks and controls based on their significance and urgency.

5 Prepare the audit plan and checklist

The fifth step in creating a process audit checklist is to prepare the audit plan and checklist. The audit plan is a document that outlines the objectives, scope, methodology, schedule, and resources of the audit. It also specifies the audit criteria, which are the standards or benchmarks that will be used to evaluate the process performance or quality. The audit checklist is a tool that helps you to organize and conduct the audit activities, and to record and report the audit findings. It consists of a list of questions or items that cover the key aspects of the process design, such as the objectives, risks, controls, flow, roles, and responsibilities. You should also include any relevant documents or evidence that support your audit questions or items.

6 Conduct the audit and report the results

The final step in creating a process audit checklist is to conduct the audit and report the results. The audit should be conducted according to the audit plan and checklist, using appropriate techniques and methods, such as interviews, observations, surveys, or tests. The audit should also be conducted in a professional and ethical manner, respecting the confidentiality and integrity of the audit information and evidence. The audit results should be documented and reported in a clear and concise manner, using factual and objective language. The audit report should include the audit objectives, scope, methodology, criteria, findings, conclusions, recommendations, and action plans.