INTERNAL AUDIT MECHANISM- E.A.R.S MODEL

What is internal audit?

The role of internal audit is to provide independent assurance that an organization's risk management, consistency of Product and internal control processes are operating effectively.

What is its Value & Objective to the organization?

• Internal auditors/ Training Dept. deal with issues that are fundamentally important to the survival and prosperity of any organization. Unlike external auditors, they look beyond financial risks and statements to consider wider issues such as the organization's reputation, growth, its impact on the environment and the way it treats its employees.

• Internal auditors help organizations to succeed. It is done through a combination of checks with Scoring pattern. The assurance part involves telling managers how well the systems and processes designed to keep the organization on track are working. Action Planning helps to improve those systems and processes where necessary.

Impact of Audits on the 3 P’s• Internal Audits are done based on monthly schedule for all departments of the

Destination.

• Audit assessment sheet are sent to the concerned dept. after audit with Scoring is done.

• A tracking mechanism helps us strengthen the product, process and people capability and hence helps us know where are we going wrong and what can be done to rectify that particular complaint or process along with a dead line to take a follow up on the same.

• We use E.A.R.S. Model for making an Action Plan for internal Audits which needs to be sent back to the training dept. within 24 hrs of receiving the Audit assessment sheet.

• This E.A.R.S Model has a column of Lost points which helps us in identifying the key problem area and in turn helps us improving people productivity, product delivery and stronger processes .

E.A.R.S. MODEL USED FOR MAKING AN ACTION PLAN FOR INTERNAL AUDIT

• The best way to manage problems is to prevent them from occurring. By developing your team and providing ongoing coaching, should be able to avoid or greatly reduce many types of personnel challenges and problems.

• However, situations will arise that require you to discipline the staff working with you.

EXPLORE (E)

Identify the gap in performance by observation, asking questions and listening attentively.

ANALYSE (A)

Identify the root cause of the problem:

• Ask questions to determine the facts• Determine accountability• Follow documentation guidelines

RESPOND (R)

Decide on action to take:

• Additional training• Informal coaching• Verbal warning• Written warning and gain commitment

MAKE IT STICK (S)

Taking follow-up, monitor progress and acknowledge progress & efforts.

The person responsible is identified with the date by which a follow up can be taken by the Training Dept.

SPECIMEN COPY OF E.A.R.S ACTION PLAN

IMPORTANCE OF RIGHT EXECUTION:

Failure to address situations requiring counseling can negatively affect team morale and customer service, which ultimately impact the departments sales and profits.

When counseling your team using the E.A.R.S. model you will follow these 5 steps for conducting a discussion:

LETS PONDER….

BIG QUESTION:

IS IT REQUIRED OR NOT???

Introduction of Vigilance Audit- “LETS TAKE THE OWNWERSHIP”

Any EXCOMM Member, Internal Auditor, HOD or Supervisor who feels something not being right or finds a lapse in a Process or Product shall mark a mail to the General Manager within 24 hrs of finding as Vigilance Audit.

THANK YOU…