1. Senthil Kumaran, Lead Consultant
Jai Maaruthi Consultaant
Introduction to Internal
Audit
2. Content
Introduction What is Internal Audit
Internal Auditors Who’ll audit
Auditees Who’ll be audited
Audit Documents What will be audited
Audit Plan / Schedule When will be audited
Audit venue Where will be audited
Audit process How the audit will be conducted
Audit Findings Rating and reporting of audit findings
Q & A
3. Introduction
Process of monitoring effective implementation of management systems.
Part of “Continual Improvement Process” and “Sustainable Development”
Tool to identify “Area for Improvement” and “Weakness of the system”.
Helps to make “Objective Decisions” based on “Representative Sampling”
Helps to prioritise tasks and ensure effective utilisation of resources
4. Internal Auditors
Competent professional, independent of / neutral to process being audited
Trained in auditing skills
Conducts audit through
Document Review / Physical Inspection / Interview Person
Makes “Objective Decisions” based on “Representative Sampling”
5. Auditees
Owners of processes being audited
Eg. Department Managers / Engineers / Supervisors / Workers
6. Audit Documents
Management System procedures and Records relevant to auditees
Customer / vendor provided documents and records
Legal and other requirements relevant to auditees processes
Department KPIs / Objectives
Customer / vendor complaints / Feedback / Audits
Previous audit reports / findings / closures
7. Audit Plan and Schedule
Internal audit
Plan depends on the criticality of process and its performance
Once or twice a year
Schedule - Generally agreed with auditees
Duration depends on requirements, response & findings
1 to 3 hours
External Audit
Once a year – depends on agreement with certification agencies
Same above criteria apply
8. QEHS Management Representative Auditor / Audit Team Auditee / Dept HOD
MANAGEMENT SYSTEM AUDIT PROCESS
Prepare Annual Audit Plan Review & Approve the Audit plan
Acceptable
Prepare Internal Audit Schedule with auditors
Review & Approve the Audit schedule
Acceptable
Prepare audit checklistInform auditors / auditee / company on the schedule
Review and Approve the Audit check list
Acceptable
Conduct the Audit
Provide necessary Support & allow auditor to
review the documents
Report and get concurrence on the audit findings Take corrective & preventive actions and report
Verity the corrective preventive action & close the NCRCollect and Record audit findings and reports
Review and approve audit findings & ReportsPrepare Executive Audit Report
No
Yes
Yes
No
No
Yes
Acceptable
Yes
No
Present Audit report to Top Management and for
Discussion in MRM
9. Audit Venue
Auditees location – across desk or in a meeting room
Workshop / work location (site)
10. Audit Process
DR - Document Review
PI - Physical Inspection
IP - Interview Person
Sampling – Representative, Appropriate and Adequate
Collection of evidences for objective decision making
11. Audit Findings
Findings are reported as
1. Positive Points
2. Opportunity for Improvement
3. Observation
4. Minor non Conformance
5. Major Non Conformance
Item 3 needs to be closed with identified correction and corrective action.
Items 4 & 5 need to be closed with identified root cause, correction,
corrective and preventive action.
Lapse in system implementation
Isolated violations from agreed arrangements
Points that may lead to NC if unattended
Process meets requirement, still can be improved further
Actions to be appreciated
