Audit Vs Inspection:
At high level Audit means “Check” and Inspection means “Do”. Inspection means something that a site is required to do by a compliance obligation while audit is the process of checking that compliance obligations have been met or not. Also including to check that the required inspections have been done or not.
Audit is the checking of books of accounts of an entity to look for any error in rules and regulations. Audit is performed for the entity by internal auditors or external auditors. The audit which the internal auditors perform is usually referred to as pre audit. Audit is performed in financial organizations on monthly, quarterly or annual basis.
Inspection is done for the organization by its managers. Inspection is quite different from the Audit. There is no specific time for the inspection. Inspection means to check the organization, its techniques, its work environment and look for any deficiencies if present. Inspection is used to strengthen the organization.
Main Difference between Audit and Inspection:
The following are some of the major differences between audit and inspection.
- Audit mainly focuses on the management system of the firm whereas on the other hand inspection mainly focuses on workplace, work equipment and also the work activities of the specific firm.
- Audit contains a visual and observational aspect and gather its data from documents and staff interviews while inspection is purely based on visual capability and observational capability.
- Audit is used to evaluate the efficiency and effectiveness of the management system of the organization while Inspection checks for unsafe acts and conditions which are present within the organization.
- Audit can be performed by internal or external professional auditors whereas inspection is only performed by the managers of the firm in order to strengthen their weak points.