We plan to write a series of articles on this topic and combine them into a single guide.
Share on Facebook A strategic audit evaluates how appropriate your business strategy is and how well you are positioned to execute it. Particularly for a small business, periodic strategic audits can mean the difference between a road map to success and a drift into financial struggles caused by a poorly thought-out or outdated plan that doesn't reflect changing market conditions.
Ask the Right Questions A strategic audit answers basic questions about the future of your business, both in the near term and the extended future. Some of the questions might seem basic.
If you ask yourself "what business am I in? If you have a small clothing store, "selling affordable vintage clothing to teenage girls" is a different business than "selling prom dresses and formal apparel to high-schoolers.
If you're selling prom dresses in a market without a lot of teens, you probably need to reassess your strategy. Assessing Current Strategy Strategic audits start by assessing your current strategy. Look at how your business sees itself in relation to the marketplace.
Conduct a SWOT analysis to reassess the strengths, weaknesses, opportunities and threats to anchor both internal and external factors influencing success. Compare that to the strategic vision for your company. This offers an opportunity to map a path forward while simultaneously assessing whether you might be better off making an adjustment to increase your chances of success.
Identify Strategic Risks Businesses can go under because they fail to anticipate strategic risks. These are factors that rarely come up in a traditional audit but have massive repercussions if they occur.
Risks might include a decline in demand for your core offerings or a critical manager departing for a competitor. A strategic audit brings these dangers to light and allows you to assess which ones are the most critical. It promotes proactively acting to avoid what could otherwise be a critical situation down the road.
Resource Adjustment A strategic audit allows you to map your goals to your resources and see where discrepancies lie. When the two don't match, either the goals need to be adjusted or the resources must be changed.
If you want to add two new stores in the next calendar year but have a negative cash flow at your existing location, you have to ask yourself whether that goal is affordable and realistic.
Implementation The strategic audit not only requires implementation, it requires a method for performance evaluation and control. Develop a measure-of-effectiveness plan to determine whether the implementation works as intended.
Note who is accountable for each task and what metrics will be tracked.A systematic and structured process can be used to develop the internal audit strategic plan, helping to enable the internal audit activity to achieve its vision and mission.
This Practice Guide discusses critical steps necessary to develop a comprehensive internal audit strategic plan, including. The first step in planning and then conducting an IT strategic audit is to define and evaluate an organization’s objectives, strategies, underlying business model, and .
The audit of the business management environment starts with investigating the foundation of any organization – strategic planning. Business strategic planning identifies what goals the organization is supposed to achieve and determines how it should act to reach the destination. Internal Audit Strategic Plan.
The mission of the OBM Office of Internal Audit (OIA) is to provide independent, objective assurance and consulting activities designed to improve management practices, identify operational improvement, and reduce agency risk exposure.
Our strategic plan includes auditing compliance and controls over grants throughout the institution. We believe this is critical to address the compliance.
Office of Internal Audit Strategic Plan FYFY19 Page 2 Version January 23, To the staff of Internal Audit: This document, the Office of Internal Audit’s Six Year Strategic Plan, is the roadmap that will assist us in achieving our goal of being the preeminent provider of.