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AUDITING

AUDITING. Audit Definition & Objectives. AUDIT is “An unbiased examination and verification of a company's corresponding records and supporting documents, externally or internally”

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AUDITING

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  1. AUDITING

  2. Audit Definition & Objectives AUDIT is “An unbiased examination and verification of a company's corresponding records and supporting documents, externally or internally” While QUALITY AUDIT means the process of systematic examination of a quality system carried out by an internal or external quality auditor or an audit team. It is an important part of organization's quality management system. It is a fact finding practice which is different from inspection which is mainly a defect finding activity.

  3. Purpose of Audit The purpose of audit is to help determine if the organization complies with the defined quality system processes and it is done by collecting objective evidence of processes, assessing how successfully processes have been implemented and judging the effectiveness of achieving any defined target levels. Characteristics of an Audit • Systematic • Independent • Documented process • Obtaining audit evidences

  4. Audit Criteria • Set of policies, procedures and requirements • It is used as a reference against which audit evidence is compared Audit Evidence • Records, statements of facts or other information, which are relevant to the audit criteria and verifiable. • For and instance: training records, Supplier evaluation records, signed contracts and email communication for information sharing Audit Findings & Conclusion • Results of evaluation of the collected evidences against criteria. • Outcome of audit, provided by audit team. Audit Scope • Boundaries of audit including physical locations, units, activities and processes etc.

  5. Types of Audit Types of 3rd Party Audit • Desktop/ Adequacy/ Documentation Audit • Compliance/ Implementation Audit • Surveillance Audit

  6. Roles and Responsibilities • Client: • Defining the audit objective • Finalizing the audit scope & audit criteria • Providing resources for audit • Furnishing all relevant information and evidences • Auditor: • Audit planning • Finalizing audit team • Audit execution • Documenting audit findings, conclusion and reporting • Follow up and verification of corrective actions on non-conformances

  7. Audit Activities

  8. Audit Process 3. Audit Reporting 1. Audit Planning 2. Audit Performing 4. Audit Follow-up

  9. Audit Planning • Define audit objective, scope and criteria • Establish the audit team • Prepare the Audit Plan • Conduct Document Review • Prepare Audit Checklist

  10. Audit Plan

  11. Audit Performance • Conduct Opening Meeting • Audit team introduction • Verification of audit plan • Audit scope is verified • Required support solicited • Time of closing meeting shared • Execute Audit • Conducting interviews • Checking records • Conduct Closing Meeting • Final report shared • List of non-conformances • Follow-up audit tentative plan sharing

  12. Evidence Collection Reviewing documents and instructions EVIDENCE COLLECTION Conducting interviews Checking Records Observing work activities

  13. Questioning Technique • Open-ended Questions • Closed-end Questions

  14. Auditor’s points to remember • Keep in mind that audit is an interviewing session not an interrogation. • Investigate a claim and admit acceptance. • Keep neutral; do not disagree and argue. • Nod in agreement to maintain dialogue. • Do not be sarcastic and critical. • Be specific and to-the-point

  15. Types of Non-conformances- NCs MAJOR NCs - Systematic absence of a complete requirement of standard in documentation or implementation - A number of minor deviations from same element of a standard MINOR NCs - Are isolated incidences of a lapse or slippages on documentation or implementation of standard requirements OBSERVATIONS Findings which cannot be related to the requirements of the standards regarding a nonconformance and does not warrant even a minor deficiency. For example, auditee’s attitude, employee’s motivation and HSE issues etc.

  16. Audit Reporting • Executive Summary • Approach and Methodology • Audit Findings • List of Non-conformances (Major, Minor and Observations) • Recommendations (CARs) • Follow-up Audit Plan

  17. Corrective Action Request

  18. Corrective Action Request AVOID STATEMENTS BLAMING PEOPLE; BLAME THE SYSTEM !! • Workshop Engineer did not know how to repair the generator set” OR • “The operator was not trained”

  19. Follow-up Audit • Conducted on planned intervals • Verification on sampling basis • Progress on highlighted CARs • CARs closure

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