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Audit Report Writing

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Audit Report Writing

  1. 1. Report Writing Training MYANUAR SYNERGY SDN. BHD. / +60173167960 1
  2. 2. Introduction • This session we will cover introduction of: • The Trainer • The Delegate(s) • Training Objective • Methods of Delivery 2
  3. 3. Time Table • Introduction & Timetable • ISO9001 requirements on the audit report • Audit Checklist Preparation using process and PDCA approach • NCR writing methodology • Audit Finding Judgment Assignment 3
  5. 5. Initiating the Audit Preparing for Audit Conducting audit Preparing Audit Report Audit Follow up Agoodinternalaudit programcanbeinitiated throughaproperDocumented Procedure • A systematic procedure shall cover: 5
  6. 6. ISO 9001 Requirements • Summary of Requirements • Audit report shall comprises the following:- • Audit Plan • Records of Audits • Audit Results • NCR shall address:- • Corrections • Corrective actions • Verification results 6
  8. 8. Audit Checklist • Audit Checklist should includes:- • Audit trails and Audit Checkpoints • Purpose of Audit Checklist:- • Help to keep you on track • Ensure process is audited from start to end • 5 W 1 H • Ensure all aspects are addressed • Help to prompt the auditor 8
  9. 9. Audit Checklist • Sources for the Audit Checklist:- • ISO9000 Series • Organization’s QMS documents • Critical success factors of the process • Ideas from others • Knowledge of industry • Previous audit checklist 9
  10. 10. Typical (Materials) Audit Trail • Follow process from start to finish • You see what really happens - not what procedure says should happen • You keep on track • Less likely to miss stages • Audit is more systematic/logical • Can look at overall process, i.e. • Interfaces • Targets • Measures/Controls • Effectiveness • Improvement 10
  11. 11. Example Audit Trail 11 Raising Purchase Orders Evaluation of Subcontractors Goods Inwards Stores Parts Kitting
  12. 12. Process-Based Auditing • CHECK: • Audit plan includes all activities to the scope of audit and the audit standard (e.g., ISO 9001 or the contract.) • Audit trails are established from top level policy to all relevant functions and levels in the organization. • Audit plan enables links between policy, objectives, targets, monitoring and continual improvement to be established. • Audit plan reflects the structure, sequence and interrelationship of processes in the organization. • Audit plan is sufficiently flexible and enables objective evidence to be gathered to verify activities and results. • Audit plan reflects the organization’s goals and priorities. 12
  13. 13. Benefits & Limitations of Process Management Based Checklist • Benefits • Look at ‘Business’ & not just isolated requirements • See how processes interact • Can look at performance measures/effectiveness • Auditors can each get parts of the ‘jigsaw’ which add towards ‘big picture’ of organization • Seen by Auditee as more useful exercise • Limitations • ‘Hard Work’ to fully understand a process • Time consuming • Requires a large amount of preparation 13
  14. 14. Checklists and the ‘Process-Based Approach’ • Look at Business Process Map • Look at: • Inputs • Outputs • Feedback • Measurements • Remember ‘cascade’ of objectives: • Follow logical trails • Look for interaction between processes 14 Quality Policy Quality Objectives Department Objectives Process Objectives
  15. 15. 15 The PDCA or ‘Deming’ Cycle
  16. 16. The Audit Operation • All or any of these methods will assist in seeking out evidence of the existence of a satisfactory system and the verification of compliance with it. In achieving those objectives an auditor may only use objective evidence. • Audit Path/ Trail • Auditors should choose a correct audit/trail depending on the audit objective. This will ensure that the continuity process in seeking the objective evidence. • There are several audit path/trail mainly:- see next 16
  17. 17. The Audit Path/Trail Horizontal approach • This approach designs the audit plan to audit each clause of the standard in turn right across the organization. Vertical approach • This approach designs the audit plan based on department turns against the relevant clause of the standard. 17
  18. 18. The Audit Path/Trail 18 Contract approach • This method follow through a project/contract and tracking down the activities Product approach • This method tracks down from the product onwards. • However, most organization adopts the horizontal approach whilst seeking certification and eventually using the vertical approach to look for continual improvement.
  19. 19. Check records (activity) • Ask non-destructive test inspector how he carries out a certain test. • Auditor examine and check : i. Work instructions ii. Test procedures requirements iii. Statutory requirement (e.g. MS, BS, ASME etc. ) iv. Recorded results of tests v. Equipment for suitability and calibration vi. Check operator’s qualifications. • Ask to see the files of drawings used by Purchasing department in placing sub-contract orders. • Auditor select, examine and check : i. The issue numbers (check with drawing register) ii. Signatures of draughts man, checker and approver and cross iii. check with list of approved personnel. iv. Check distribution information. 19
  20. 20. Auditing Tools – Operation Analysis 20 Men • Competent • Trained • Right attributes Machine • Type • Capability • Location • Environment Methods • Procedures • Instruction • Control (edition) • Identified Materials • Correct type • Certified (quality) • Identified • Quantity Output/Product • Correct type • Approved • Quantity • Identified OPERATION UNDER AUDIT
  21. 21. Objective Evidence • DEFINITION • Evidence should be collected through interviews, examination of documents/records, observation of activities and condition of the area under audit. • Evidence is the facts or information used to prove or disapprove a proposition. • Objective Evidence is :- i. Evidence that exists; ii. Not influenced by emotion or prejudice; iii. Can be documented; iv. Is about quality; v. Can be quantitative; vi. Can be verified; 21
  22. 22. Objective Evidence • Evidence must be related to reality Analytical Evidence • Coming to a conclusion of an objective evidence is determined by the types of evidence obtained. Direct Evidence • There are many times when it is impossible to come to a conclusion of an objective evidence without building up a case through many pieces or circumstances of evidence. Indirect Evidence 22
  24. 24. “Good Quality” Non-Conformance • “Good Quality” Non-conformance comprises: 24 Date of Non- conformance Location of Non- conformance Nature of Non- conformance (Fact) Evidence of Non- conformance Charge of Non- conformance
  25. 25. Nonconformities Categories MINOR • Either a failure to meet one requirement of a sub-clause of ISO 9001or a single observed lapse in implementing one requirement of Company Quality Management System Procedures. MAJOR • Absence, or total failure, of a process to meet the requirements of a complete sub- clause of ISO 9001, resulting in an actual or potential adverse effect on customer satisfaction with the product. A number of minor nonconformities against one sub-clause of ISO 9001 which when acting together reduce the effectiveness of a process to the extent that there is an actual or potential adverse effect on customer satisfaction can represent a major nonconformity. 25
  26. 26. Criteria of Corrective Action The Internal Auditor should review Corrective Action before acceptance • Corrective Action should address: • Fix the symptoms/Rectification • Fix the root cause/Corrective Action • Completion date of Corrective Action should be reasonable 26
  27. 27. Corrective Action • Must address nonconformity • Must address root cause(s) • Should prevent re-occurrence • Should help to improve Quality Management System • Must be timely corrected • Auditee best placed to outline Corrective Action • Timescales must be realistic • Actions may be in three stages: • Initial Corrective Action • Longer term preventative action • Continuous improvement plans • The process of submission, evaluation and verification is known as 'Follow-Up' 27
  28. 28. How and When to Follow Up Finding • Auditee’s management to decide and take action to the audit findings. • Follow up finding base on agreed completion date • Verify evidence with reference to corrective action proposed • Record evidence of corrective action taken • Submit report to QMR/Responsible person • Identify any improvement or preventive action to be taken. • Report the result to management 28
  29. 29. When and How to Wrap up Findings? • Do not raise non-conformities in front of staff • Wrap up your findings with Head of Department • Resolve discrepancy during wrap up session • Seek verbal agreement on the findings 29
  30. 30. Audit Finding Judgment Assignment 30
  31. 31. Listing of Corrective Action Requests • Log of Corrective Actions to be performed • Helps monitor and control closure of Corrective Actions • Assists in analyzing trends 31
  32. 32. Audit Follow Up • Auditee’s management to decide and take action to the audit findings. • Management / auditor to verify the action taken. • Identify any improvement or preventive action to be taken. • Report the result to management. 32
  33. 33. Checking Corrective Action • Auditor will initially evaluate proposals to check if they are suitable / effective • Must be timely corrected - (not too long / short a time) • Corrective action must ensure problem is solved at root cause • Minor nonconformities can initially be cleared by post / email, etc., or on next routine visit • Major nonconformities may require a special visit to clear • Objective evidence will always be required to clear a ‘nonconformity’ 33
  34. 34. 34 Audit Report Writing Training Kuala Lumpur, Malaysia Contact us for the training date: +60173167960 /

Editor's Notes

  • The audit trail follows a sequence of events (part of the operational process) through. In this case the example selected covers the trail of material from order to issue from stores.
    The auditor should take care to select purchase orders raised on critical materials or services and ensure that the order is complete in order to follow through. If there are a number of buyers then a representative sample of buyers should be involved in the audit.
    A simpler trail would be to follow through all stages of manufacture, (starting at production control) or alternatively following through a design project from start to finish.

    There are two possible disadvantages to auditing by ‘procedure rather than process’
    1. The audit may be steered by the contents of the procedure and any stage not mentioned in the procedure may be missed. This blinkered approach can mean that a completely different route from that actually used by the organisation may be followed.
    2. It is less likely that the effectiveness of the procedure will be measured.
    It is, therefore, preferable to follow the route of what actually happens and then check whether this corresponds with the procedure(s).
  • (12-4a)
  • (13-4)
  • Remember the Standard is Process-Based. This is an integral part of the Course.
    Please refer to Section 10 where all the Process-Based Information has been pulled together.

    Also look at sample checklists at back of this section to see how ‘flow’ is built in.