Introduction
Different types of audits are capable of addressing the varying needs of an organization. In particular, horizontal and vertical audits exist to perform their unique types of analysis, capable of supporting a company in its growth and sustainable development. Vertical and horizontal analysis complement each other, allowing managers to examine how each process works and interacts with others on an in-depth level. To understand how this division is capable of assisting organizations, it is necessary to define the two different types of audits.
A horizontal audit focuses on examining one singular process in an organization, as it is spread across departments or sectors of a company. For example, understanding how well new hires are trained in every department can be seen as a type of horizontal audit. This evaluation provides a deeper look into how each system works (Trident QMS, 2021). Comparatively, a vertical audit sees all work processes in conjunction with each other, evaluating systems (Trident QMS, 2021). In the process of auditing multiple processes, the scope of analysis becomes more narrow, usually focusing on a single part of an organization. Combining the unique qualities of the two audit types, it is possible to support the organization on its road to reliable, high-quality project outcomes.
Customer and Stakeholder Benefits of Conducting Audits
Audits provide invaluable information about an organization and invoke change. By conducting an audit, the company gains the ability to analyze its strengths, weaknesses, and opportunities. This analysis exposes flaws in process implementation or highlights the inability of certain systems to function together. As a result, audits are often a driver of change. When an organization works to benefit from the results of its audit, both the consumers and stakeholders can benefit. Stakeholders, such as investors and leaders can derive better profits from an organization since strategic improvement positively affects productivity (“Value of audit,” 2022). Similarly, customers can expect a better standard of service, quality, and further satisfaction.
The Necessity of Physical Audits
A physical audit is a necessary process for any organization. Compared to other audit processes, it may not be immediately obvious why a physical audit plays a vital role in the longevity of a company. However, its presence can be extremely important to corporate security. The presence of a physical audit can account for risks and vulnerabilities other types of audits are unable to detect (Twinstate Technologies, 2020). Access to data and protection are both important considerations that are covered by a physical audit.
Conclusion
To create an effective and helpful audit, it may be necessary to involve different parts of an organization. The type of audit is often a determining factor in who can engage with the audit process. For a horizontal audit process, where a single process is involved, it is necessary to engage professionals that are responsible for this process. If a training procedures audit is conducted, for example, an auditor would do well in engaging the company’s educators and training managers. A vertical audit, by comparison, warrants a different approach. With the need to examine a company systematically and see the interaction between different levels of an organization, the involvement of managers becomes invaluable (Abate, 2018). Management professionals can assess corporate performance on a larger scale, reporting on the capacity of various parts of a company to function well together. As a result, their input will be necessary to create a helpful and poignant vertical audit.
References
Abate, T. (2018). How management contributes to audit quality. IFAC.
Trident QMS. (2021). What Are the Differences Between Horizontal and Vertical ISO 9001 Audits?
Twinstate Technologies. (2020). The importance of conducting a physical security audit. Twinstate Blog – Cloud Communications, Cybersecurity, and Business Productivity Content.
Value of audit. (2022). KPMG.