Why is root cause analysis so important?
When you go to a doctor, do you want him to tell you what is wrong with you so that you can begin treating the disease? Or are you satisfied that the doctor only treats the symptoms and does not diagnose the actual disease? Of course not. Well, it’s the same with audit findings.
Too often, an internal audit can identify areas of concern such as control weaknesses, failure conditions, process failures, risks that are not adequately managed, and more. The audit can also suggest recommendations for corrective action. But what if the underlying reasons that cause the condition to exist go much deeper? Without a root cause analysis, the reason for the condition could be misreported and the recommendations offered would not really address the real problems.
Read more about root cause analysis and how to get to the source during an audit, in this article by Internal Audit 360°.