AUDITING
THE AUDIT PROGRAM
DEFINED
“Do Unto Yourself What Others Will Do Unto You”
Find Your Problems Before The Customer Does
IMPORTANT INTERNAL AUDIT CONCEPTS
AUDITOR’S MISSION STATEMENT:
To Provide Evaluations That Are:
• Independent
• Uniform
• Consistent
To an Agreed Upon Standard
&
CLEARLY ESTABLISHED CRITERIA
Everyone Should Know The Standard Against Which The Audit Will Be Conducted• ISO 9000 - 1994• ISO 9000 - 2000• QS 9000• ISO 9000 Plus• Product Specification• Product Drawings• Military Standards, Handbooks, Publications, etc.
NO SURPRISES!!
A PUBLISHED SCHEDULE
Quality System Requirements - Annual Schedule Will Work
Production Audit - 1st Week Of Production (Before Customer Arrives)
Follow-Up Audits - An established time period plus notification well prior to audit.
NO SURPRISES !!!
THE AUDITING GROUP
Independent Of Groups Being Audited - If Possible
Well Trained And Knowledgeable
Can Be A Full Time Job
Must Have Full Support Of Management
Somebody Must Audit The Audit Group
PROGRAM OBJECTIVE
To Obtain Sufficient Evidence
To Evaluate Compliance
With a Standard
PURPOSE OF AN AUDIT
A Management Tool
To Make Improvements
An Audit Can Determine:
• Future Purchases
• Certify the Organization
• Register the Organization
DEFINITIONAn Audit Is:• A Planned Systemic Process Performed
by Independent, Trained Personnel In Accordance With Previously Prepared “Game Plan”
• Results Are Documented
• Corrective Actions Are Taken
• Top Management
• Auditor
• Auditee
ELEMENTS OF AN AUDIT
• PROCESS
• PRODUCT
• QUALITY SYSTEMS
CLASSES OF AUDITS
CLASSES OF AUDITS(CONTINUED)
• PROCESS
• PRODUCT
• QUALITY SYSTEMS
CLASSES OF AUDITS(CONTINUED)
• Process
• Product
• QUALITY SYSTEMS
• ORGANIZATION
• LEAD AUDITOR
• SUBJECT MATTER EXPERTS
• Team Members
ORGANIZATION OF AN AUDIT TEAM
ORGANIZATION OF AN AUDIT TEAM
(continued)
• Organization
• Lead Auditor
• Subject Matter Experts
• TEAM MEMBERS
DUTIES
• Team Members* Objectivity
* Analysis
* Alertness
* Ethics
• Lead Auditor* Responsibility
* Management
* Decision Making
AUDITOR CONDUCT AND SKILLS
• Technical Knowledge
• Audit Training
• Good Communication Skills
• Attitude of Helpfulness
AUDITOR CONDUCT AND SKILLS
• Technical Knowledge
• Audit Training
•Good Communication Skills
•Attitude of Helpfulness
AUDIT IMPLEMENTATION
• Audit Initiation• Preliminary Meeting• Audit Planning• Pre-Audit Review• Performing the Audit• Reporting Results• Audit Conclusion, Including
* Follow-Up* Corrective Action
AUDIT INITIATION
• Purpose & Location
• Reference Standards
• Schedule
• Guidelines
• Report Distribution
• REGULATORY
• STANDARDS
• Internal Documents
REFERENCE STANDARDS
REFERENCE STANDARDS(CONTINUED)
•Regulatory
•Standards
• INTERNAL DOCUMENTS
• IDENTIFICATION OF TEAM MEMBERS
• DATES AND LOCATIONS OF THE AUDIT
• Schedule and Assignments
• Meetings
• Report Distribution
• Escorts
• Necessary Documents
SPECIFIC AREAS TO ADDRESS
SPECIFIC AREAS TO ADDRESS(CONTINUED)
• Identification of Team Members
• Dates and Locations of the Audit
• SCHEDULE AND ASSIGNMENTS
• MEETINGS
• Report Distribution
• Escorts
• Necessary Documents
SPECIFIC AREAS TO ADDRESS(CONTINUED)
• Identification of Team Members
• Dates and Locations of the Audit
• Schedule and Assignments
• Meetings
• REPORT DISTRIBUTION
• Escorts
• Necessary Documents
SPECIFIC AREAS TO ADDRESS(CONTINUED)
• Identification of Team Members
• Dates and Locations of the Audit
• Schedule and Assignments
• Meetings
• Report Distribution
• ESCORTS
• NECESSARY DOCUMENTS
COMMITMENT TO:
• Facilities
• Documents
• Personnel
• Top Management
• Corrective Actions Taken
• Preventive Actions Taken
AUDIT PLANNING
• Brief the Audit Team
* Audit Scope
* Identification of Auditors and Auditee
* Schedule
* Standards and Procedures
• Initiate Working Papers
• Brief the Audit Team
• Initiate Working Papers
AUDIT PLANNING(CONTINUED)
PRE-AUDIT REVIEW
• Review Documents
• Continue Preparation of Working Papers
• Management in-Brief
• Plant Tour
• Operational Meeting
• Audit Operations
• Daily Written Records
PERFORMING THE AUDIT
PERFORMING THE AUDIT(CONTINUED)
• Management in-Brief
• Plant Tour
• Operational Meeting
• Audit Operations
• Daily Written Records
PERFORMING THE AUDIT
• Management in-Brief
• Plant Tour
• Operational Meeting
• Audit Operations
• Daily Written Records
• PUT PERSON AT EASE
• EXPLAIN WHY HE IS BEING QUESTIONED
• Learn What He Does
• Analyze What He Does
• Determine a Tentative Conclusion
• Explain the Next Step
INTERVIEWS
INTERVIEWS (CONTINUED)
• Put Person at Ease
• Explain Why He Is Being Questioned
• LEARN WHAT HE DOES
• ANALYZE WHAT HE DOES
• Determine a Tentative Conclusion
• Explain the Next Step
• Put Person at Ease
• Explain Why He Is Being Questioned
• Learn What He Does
• Analyze What He Does
• DETERMINE A TENTATIVE CONCLUSION
• EXPLAIN THE NEXT STEP
INTERVIEWS (CONTINUED)
TYPES OF FINDINGS
• Findings or Observations
• Systemic or Isolated Problems
DETERMINING ACCEPTABILITY
• Unconditional Approval
• Conditional Approval
• Conditional Nonapproval
• Unconditional Nonapproval
FINAL OUTBRIEF
• Last Opportunity to Dispute Findings
• Senior Management Present
• No Surprises
• Purpose and Scope
• Applicable Game Plan Details
• Referenced Documents
• Audit Findings and Observations
• Recommendations (Internal Audit Only)
• Corrective Actions
FINAL WRITTEN REPORT
• CORRECTIVE ACTION REQUESTS
• Follow-up (Corrective Action) Audits
• Close-Out
• Records
FOLLOW-UP ACTIONS
• Corrective Action Requests
• FOLLOW-UP (CORRECTIVE ACTION) AUDITS
• CLOSE-OUT
• RECORDS
FOLLOW-UP ACTIONS
CORRECTIVE ACTION EVALUATION
• Correct the Problem
• Determine Its Affect on Past Performance
• Take Immediate Temporary Corrective Actions
• Take Permanent Action to Prevent Recurrence
AUDITOR REQUIREMENTS AND QUALIFICATIONS
* Communicate * Plan * Control * Gain Cooperation * Lead
*Administer * Work Independently * Good Attitude * Reach Decisions * Adaptable * Good Impression* Intelligent * Emotionally Stable* Good Character * Technical Training in Area of Expertise
AUDITOR TECHNICAL TRAINING
• Nondestructive Inspection & Test Training
* Eddy Current Testing * Heat Treatment Processes * Liquid Penetrant Testing * Welding Inspection
* Magnetic Particle Test Methods * Soldering Inspection * Radiographic Test Methods * Ultrasonic Test Methods * Drawing & Blueprint Reading
• Quality Assurance* Software Quality Assurance (32 hours)* Geometric Dimensioning and Tolerancing (40 hr.)* Weibull Risk and Uncertainty Analysis (24 hrs)* Principles of Metrology (40 hrs)* Statistical Process Control, (24 hrs)
AUDITOR TECHNICAL TRAINING (Continuing)
• Configuration Management* Configuration Management (40 hrs)* Material Review Board Procedures (4 hrs)
• Procurement* Defense Contracting for Technical Personnel (40 hrs)* Procurement Integrity (8 hrs)* Government Contract Law (24 hrs)
AUDITOR TECHNICAL TRAINING (Continuing)
• Design Control* Design Review (24 hrs)* Reliability by Design (40 hrs)
• General* Report Writing (24 hrs)* Basics of Explosive Safety (24 hrs)* Effective Written Communication (15 hrs)* Safe Assembly of Component Explosives (32 hrs)* Hazardous Waste Training (8 hrs)
MEETINGS
• Nightly Team Meetings
• Inform Auditors
• Share Information and Findings
• Change Audit Schedule
• Morning Reviews With Auditee
• Keep the Auditee Informed
PRELIMINARY MEETING
• Initiated by Correspondence
• Between Lead Auditor and Auditee
• Define Responsibilities
• Identify Requirements
PRELIMINARY MEETING(CONTINUED)
• Initiated by Correspondence
• Between Lead Auditor and Auditee • Define Responsibilities
• Identify Requirements
AUDIT TYPES
•Internal - First Party
• External - Second Party
- Third Party