An Inner Management audit refers to an examination of the Inner Knowledge of a company. IM Audits are conducted to provide investors and other stakeholders with confidence that the company’s Knowledge is managed properly and that there is an optimized level of efficiency, motivation and wellbeing within the company.
After an audit, the IMI auditor will provide an opinion on how the company's Knowledge can be optimized through a number of strategies.
How It Works
An Inner Management audit refers to an examination of the Inner Knowledge of a company. IMI Audits are conducted to provide investors and other stakeholders with confidence that the company’s Knowledge is managed properly and that there is an optimized level of efficiency, motivation and wellbeing within the company.
After an audit, the IMI auditor will provide an opinion on how the company´s Knowledge can be optimized through a number of strategies.
The IMI audit provides stakeholders and employees with information on how knowledge is created, communicated, transformed and managed throughout the company´s processes. Depending on the size of the company, an IMI audit can span a few days to an entire month. At the end of the engagement, the auditor provides a professional opinion on the accuracy of the Inner Knowledge reporting done.
The IMI audits tend to focus less on the financial statements, and greater emphasis is placed on a company’s operations and corporate governance values providing an overview of the organization’s performance across different areas. The areas can include governance, administration & HR, production, sales, marketing, accountancy & finances, R&D and compliance.
Stages of an Audit
How an audit is conducted can differ depending on the size of the corporation and the complexity of the case. However, an IMI audit usually has four main stages:
• The first stage is the planning stage. In this stage, a corporation engages with the auditing firm to establish details, such as the level of engagement, procedures, and objectives.
• The second stage is the internal controls stage. In this stage, IMI auditors gather knowledge records and any other information necessary to conduct their audits. The information is necessary to evaluate the accuracy of the knowledge management (KM) processes.
• The third stage is the testing stage. In this stage, auditors examine the accuracy of the KM statements using various tests. It may involve verifying transactions, overseeing procedures, or requesting more information.
• The fourth stage is the reporting stage. After completing all the tests, the auditors prepare a report that expresses an opinion on the accuracy of the KM statement.
