Equipment Management Bandit on the Loose: Never Audit
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WANTED: Never Audit, AKA “Sly Temptress.” Part of the Equipment Management Bandit Gang, a notorious group of hardened criminals whose agenda is to wreak havoc with business inventories everywhere, Never Audit is known for using her almost inescapable allure to slip inventory out the back door without anyone ever discovering where it is. Inventory auditing takes a tremendous amount of time and resources, requiring the company to shut down a particular work area while people crawl under desks to find IT equipment. Never Audit knows you really detest the chore of auditing and does everything she can to keep you from doing it.
Never Audit’s most recent victim was Tribble Inc, a web-hosting company. Tribble Inc. had never conducted an audit, thanks to the work of Never Audit, and did not have any idea what kind of equipment they had available. They had valuable equipment like servers and laptops crammed into every closet and spare rack in their facilities. Because Never Audit had prevented them from assessing their inventory and providing accurate inventory reporting, every time they needed more server space or equipment for new employees, they bought new equipment instead of using one of the 10 servers and 25 laptops hidden in their maintenance closest. The cost of buying new equipment and paying for utilities to operate underutilized servers led the company wasting a lot of money and nearing the edge of bankruptcy.
Never Audit on the Loose!
Taking advantage of overburdened teams who know the credibility of data requires a full audit for verification; Never Audit lives to throw off equipment management procedures. She knows that auditing fixed assets can cause a major work disruption and tempts teams to skip the process, costing millions annually and making her an especially dangerous member of the Equipment Management Bandit gang. She further complicates equipment management by ensuring that there are no clearly documented auditing policies. If Never Audit is on the loose in your company, proceed with caution.
Never Audit Strikes When You Least Expect
Never Audit knows that no one looks forward to an inventory audit. It’s expensive to hire an auditor to conduct an audit for the company, but the level of difficulty, amount of time required, and lack of established processes in most organizations make Never Audit’s job easy. Auditing is the job no one wants to do. It’s hard to find volunteers for this task! She feeds off the knowledge that most organizations are not even aware that they should have policies that include regular audits and an established methodology that is used to conduct an audit.
A close friend of Noncompliance, Never Audit gets her kicks by throwing off equipment management procedures and inventories. She likes to see people lose their jobs when they’ve discovered she’s let Noncompliance in. Never Audit lurks in warehouses and waits until no one is looking to throw companies into disarray by hiding equipment, throwing off repair schedules, and costing time and money when employees are stuck tracking down what happened to inventory. Creating an environment with loose physical inventory management policies leads to a dangerous situation in which employee theft is common and costs increase because you order equipment you didn’t realize you already had.
Never Audit Increases Cost, Risk, and Non-Compliance
Never Audit is responsible for cost overages, underinsured equipment issues, and when she really gets going, shutdowns resulting from inaccurate inventories of raw materials. This nasty Equipment Management Bandit uses her charm to make teams forget how critical audits are. More than just improving operations, audits provide time and money savings by ensuring equipment maintenance schedules are followed and that inventories are effectively managed.
If You See Never Audit Coming, Proceed with Caution
Take caution! Never Audit won’t settle for just create small variance issues; she sticks around until issues are so severe that your business is crippled. The general rule is to do a physical audit once a year. Never Audit can often be found high-fiving her buddy Noncompliance after a particularly successful effort. Most managers assume they have to conduct wall to wall auditing, but there are other methodologies that make this easier.
If Never Audit has infiltrated your organization, your best course of action is to stop everything and establish specific audit processes. A wall to wall inventory is not necessary when a 10% sample will do, or when you have a record of using a piece of equipment for the previous six months. If Never Audit is loose in your office and you need help getting her under control, be sure to contact E-ISG for help rounding up this armed and dangerous Equipment Management Bandit! Visual Asset Manager was developed using ASTM.org standards for monitoring and managing inventory.