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Internal Audit: What It Is, Why You Run One, and Internal vs External Audit

An internal audit is a check an organization runs on itself, to see whether its own processes and records actually meet the standard before anyone from outside examines them. It is the rehearsal for the external audit. The value is in finding the gaps while you still have time and control to fix them.

Why does an internal audit matter? 

An internal audit is the cheapest place to find a problem, because the organization catches it before a customer, regulator or external auditor does. Skip it and nonconformities surface during the external audit or in the field, where they cost far more and can put certification at risk. It also gives management real evidence that the quality system works as intended.

Why run an internal audit

It is the cheapest place to find a problem, because you find it before anyone outside does:

  • You catch nonconformities before an external auditor, a customer or a regulator does.
  • You test whether the documented process is the process people actually follow.
  • You give management real evidence, rather than an assumption, that the system works.
  • You build a track record of findings and fixes that certification schemes expect.
  • You rehearse, so the external audit holds no surprises.

How does an internal audit differ from an external audit

It comes down to who runs it, and what the result is for. An internal audit is run by the organization on itself, to improve. An external audit is run by an independent body, to verify and certify. Internal auditors know the business and can dig into causes; external auditors bring the independence that makes a certificate mean something. Run the internal one well and the external audit becomes a formality.

Internal vs external audit at a glance

The rehearsal against the real thing.

 
AspectInternal AuditExternal Audit
Who runs itThe organization itselfIndependent outside body
Main purposeFind and fix earlyVerify and certify
IndependencePartialFull
Result is forManagementCustomers, regulators
FrequencySet by the organizationScheduled by the scheme

Free Internal Audit Checklist

It covers each clause or process area, records whether it conforms, and logs every finding with an owner and a due date, so nothing carries over to the external audit. Download the checklist (PDF). You can also complete the checklist digitally in flowdit on your phone, tablet or PC.

Related Terms

Further Reading

Running internal audits on paper checklists?
Digitize audits, findings, and corrective actions end to end.

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