What is a Procedure?

A procedure is a regimented set of steps that are to be taken to complete a task. Procedures are useful for the more repetitive or complex tasks, so that the tasks can be completed in a consistent manner, time after time. New employees typically receive training in how to complete procedures, to minimize any variation in the outcomes of tasks.

Procedures are formally documented and approved, and may be aggregated into an organizational procedures manual. The presence of a procedures manual, supported by evidence that employees consistently follow the stated procedures, can be used by auditors in their assessment of a client's system of controls. Procedures are not usually constructed for tasks that occur infrequently, unless the tasks involve significant amounts of risk to the business if they are performed incorrectly.

The Difference Between a Process and a Procedure

A procedure is a specific set of steps that are required for the completion of a task, while a process is a higher-level approach to achieving a desired outcome. There are a number of differences between the two concepts, which are as follows:

Scope. A process is broader in scope, encompassing multiple procedures and tasks. A procedure is narrower in scope, focused on the specific actions required to complete a task.
Focus. A process focuses on the overall flow and objectives, while a process focuses on specific steps to be followed.
Purpose. A process ensures that activities are aligned with organizational goals and deliver desired outcomes, while a procedure provides a standardized way to perform a task consistently and correctly.
Components. A process includes inputs, activities, outputs, and feedback loops, while a procedure includes detailed instructions, guidelines, and sometimes checklists.
Flexibility. A process is typically more flexible and adaptable to changes in requirements or conditions, while a procedure is rigid and specific, designed to ensure consistency and minimize variation.
Level of detail. A process is higher-level, emphasizing relationships between activities, while a procedure is detailed and granular, emphasizing specific actions and rules.
Ownership. A process is often owned by cross-functional teams or management, while a procedure is often owned by specific departments or individuals performing the task.
Documentation style. A process is documented with flowcharts, diagrams, or descriptions of stages, while a procedure is documented with written steps, checklists, or manuals.