My definition:

Audit – A word that brings fear to every person and organization.

For a citizen that pays taxes from every pay cheque, to get a letter from the CRA will still make us nervous; even if we did nothing wrong.

Similarly, organizations are alike in this respect. To analyze current processes, ensure governance and compliance that are current is not only stressful but time consuming. It costs every company, large or small, thousands of dollars to ensure compliance with current regulations. If it’s utilizing house lawyers/process practitioners or hiring outside Consultants that specialize in audit preparation is extremely expensive. To analyze, review, and change processes in any organization creates cultural shocks and requires change management and follow up.

Although what is this all for:

Not to sound patronizing, this is to ensure that organizations are up to code with current legislations. At the end of the day, it is to protect the Consumer and the Government where private companies have greater accountability.

Also, an audit forces any given organization to review their current processes and determine loop holes or short comings that can be avoided. It forces change that can shake up organizations cultural behaviour however in the long run, can make an organization more efficient.

How does an audit affect a VMS?

While facilitating the administration for Independent Contractors and their Agencies, where Contractors’ payments are involved, deserves to be looked at. An audit can also boost the credibility of the VMS in terms of recording spend management that today is looked at with a magnifying glass.

So YES, it is a pain, a large pain, although the end result could be one of two:

1) You pass and use this to your credibility

2) You fail and forced to change processes that can in turn, benefit the organization.

Your thoughts are encouraged as always.

Happy Blogging,

Neha