Cairo Audit

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Cairo Audit

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  • Cairo Audit

    1. 1. AUDITING
    2. 2. THE AUDIT PROGRAM DEFINED
    3. 3. “ Do Unto Yourself What Others Will Do Unto You” Find Your Problems Before The Customer Does IMPORTANT INTERNAL AUDIT CONCEPTS
    4. 4. AUDITOR’S MISSION STATEMENT : To Provide Evaluations That Are: <ul><li>Independent </li></ul><ul><ul><li>Uniform </li></ul></ul><ul><ul><ul><li>Consistent </li></ul></ul></ul>To an Agreed Upon Standard &
    5. 5. CLEARLY ESTABLISHED CRITERIA <ul><li>Everyone Should Know The Standard Against </li></ul><ul><li>Which The Audit Will Be Conducted </li></ul><ul><li>ISO 9000 - 1994 </li></ul><ul><li>ISO 9000 - 2000 </li></ul><ul><li>QS 9000 </li></ul><ul><li>ISO 9000 Plus </li></ul><ul><li>Product Specification </li></ul><ul><li>Product Drawings </li></ul><ul><li>Military Standards, Handbooks, Publications, etc. </li></ul>NO SURPRISES!!
    6. 6. 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 !!!
    7. 7. 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
    8. 8. PROGRAM OBJECTIVE To Obtain Sufficient Evidence To Evaluate Compliance With a Standard
    9. 9. <ul><li>PURPOSE OF AN AUDIT </li></ul><ul><li>A Management Tool </li></ul><ul><li>To Make Improvements </li></ul><ul><ul><ul><li>An Audit Can Determine: </li></ul></ul></ul><ul><ul><ul><ul><ul><li>Future Purchases </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Certify the Organization </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Register the Organization </li></ul></ul></ul></ul></ul>
    10. 10. <ul><li>DEFINITION </li></ul><ul><li>An Audit Is: </li></ul><ul><li>A Planned Systemic Process Performed by Independent, Trained Personnel </li></ul><ul><li>In Accordance With Previously </li></ul><ul><li>Prepared “Game Plan” </li></ul><ul><li>Results Are Documented </li></ul><ul><li>Corrective Actions Are Taken </li></ul>
    11. 11. <ul><li>Top Management </li></ul><ul><li>Auditor </li></ul><ul><li>Auditee </li></ul>ELEMENTS OF AN AUDIT
    12. 12. <ul><li>PROCESS </li></ul><ul><li>PRODUCT </li></ul><ul><li>QUALITY SYSTEMS </li></ul>CLASSES OF AUDITS
    13. 13. CLASSES OF AUDITS (CONTINUED) <ul><li>PROCESS </li></ul><ul><li>PRODUCT </li></ul><ul><li>QUALITY SYSTEMS </li></ul>
    14. 14. CLASSES OF AUDITS (CONTINUED) <ul><li>Process </li></ul><ul><li>Product </li></ul><ul><li>QUALITY SYSTEMS </li></ul>
    15. 15. <ul><li>ORGANIZATION </li></ul><ul><li>LEAD AUDITOR </li></ul><ul><li>SUBJECT MATTER EXPERTS </li></ul><ul><li>Team Members </li></ul>ORGANIZATION OF AN AUDIT TEAM
    16. 16. ORGANIZATION OF AN AUDIT TEAM (continued) <ul><li>Organization </li></ul><ul><li>Lead Auditor </li></ul><ul><li>Subject Matter Experts </li></ul><ul><li>TEAM MEMBERS </li></ul>
    17. 17. DUTIES <ul><ul><li>Team Members </li></ul></ul><ul><ul><ul><ul><ul><li>Objectivity </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Analysis </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Alertness </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Ethics </li></ul></ul></ul></ul></ul><ul><ul><li>Lead Auditor </li></ul></ul><ul><ul><ul><ul><ul><li>Responsibility </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Management </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Decision Making </li></ul></ul></ul></ul></ul>
    18. 18. AUDITOR CONDUCT AND SKILLS <ul><li>Technical Knowledge </li></ul><ul><li>Audit Training </li></ul><ul><li>Good Communication Skills </li></ul><ul><li>Attitude of Helpfulness </li></ul>
    19. 19. AUDITOR CONDUCT AND SKILLS <ul><li>Technical Knowledge </li></ul><ul><li>Audit Training </li></ul><ul><ul><li>Good Communication Skills </li></ul></ul><ul><ul><li>Attitude of Helpfulness </li></ul></ul>
    20. 20. <ul><li>AUDIT IMPLEMENTATION </li></ul><ul><ul><ul><ul><li>Audit Initiation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Preliminary Meeting </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Audit Planning </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Pre-Audit Review </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Performing the Audit </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Report ing Results </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Audit Conclusion, Including </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Follow-Up </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Corrective Action </li></ul></ul></ul></ul></ul>
    21. 21. <ul><li> AUDIT INITIATION </li></ul><ul><ul><ul><ul><ul><li>Purpose & Location </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Reference Standards </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Schedule </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Guidelines </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Report Distribution </li></ul></ul></ul></ul></ul>
    22. 22. <ul><ul><li>REGULATORY </li></ul></ul><ul><ul><li>STANDARDS </li></ul></ul><ul><ul><ul><ul><ul><li>Internal Documents </li></ul></ul></ul></ul></ul>REFERENCE STANDARDS
    23. 23. <ul><li>REFERENCE STANDARDS </li></ul><ul><li>(CONTINUED) </li></ul><ul><ul><ul><li>Regulatory </li></ul></ul></ul><ul><ul><ul><li>Standards </li></ul></ul></ul><ul><ul><ul><ul><ul><li>INTERNAL DOCUMENTS </li></ul></ul></ul></ul></ul>
    24. 24. <ul><li>IDENTIFICATION OF TEAM MEMBERS </li></ul><ul><li>DATES AND LOCATIONS OF THE AUDIT </li></ul><ul><li>Schedule and Assignments </li></ul><ul><li>Meetings </li></ul><ul><li>Report Distribution </li></ul><ul><li>Escorts </li></ul><ul><li>Necessary Documents </li></ul>SPECIFIC AREAS TO ADDRESS
    25. 25. <ul><li>SPECIFIC AREAS TO ADDRESS </li></ul><ul><li>(CONTINUED) </li></ul><ul><ul><ul><li>Identification of Team Members </li></ul></ul></ul><ul><ul><ul><li>Dates and Locations of the Audit </li></ul></ul></ul><ul><ul><ul><li>SCHEDULE AND ASSIGNMENTS </li></ul></ul></ul><ul><ul><ul><li>MEETINGS </li></ul></ul></ul><ul><ul><ul><li>Report Distribution </li></ul></ul></ul><ul><ul><ul><li>Escorts </li></ul></ul></ul><ul><ul><ul><li>Necessary Documents </li></ul></ul></ul>
    26. 26. <ul><li>SPECIFIC AREAS TO ADDRESS </li></ul><ul><li>(CONTINUED) </li></ul><ul><ul><ul><li>Identification of Team Members </li></ul></ul></ul><ul><ul><ul><li>Dates and Locations of the Audit </li></ul></ul></ul><ul><ul><ul><li>Schedule and Assignments </li></ul></ul></ul><ul><ul><ul><li>Meetings </li></ul></ul></ul><ul><ul><ul><li>REPORT DISTRIBUTION </li></ul></ul></ul><ul><ul><ul><li>Escorts </li></ul></ul></ul><ul><ul><ul><li>Necessary Documents </li></ul></ul></ul>
    27. 27. <ul><li>SPECIFIC AREAS TO ADDRESS </li></ul><ul><li>(CONTINUED) </li></ul><ul><ul><ul><li>Identification of Team Members </li></ul></ul></ul><ul><ul><ul><li>Dates and Locations of the Audit </li></ul></ul></ul><ul><ul><ul><li>Schedule and Assignments </li></ul></ul></ul><ul><ul><ul><li>Meetings </li></ul></ul></ul><ul><ul><ul><li>Report Distribution </li></ul></ul></ul><ul><ul><ul><li>ESCORTS </li></ul></ul></ul><ul><ul><ul><li>NECESSARY DOCUMENTS </li></ul></ul></ul>
    28. 28. <ul><li> COMMITMENT TO: </li></ul><ul><ul><li>Facilities </li></ul></ul><ul><ul><li>Documents </li></ul></ul><ul><ul><li>Personnel </li></ul></ul><ul><ul><li>Top Management </li></ul></ul><ul><ul><ul><ul><ul><li>Corrective Actions Taken </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Preventive Actions Taken </li></ul></ul></ul></ul></ul>
    29. 29. <ul><li>AUDIT PLANNING </li></ul><ul><ul><li>Brief the Audit Team </li></ul></ul><ul><ul><ul><li>Audit Scope </li></ul></ul></ul><ul><ul><ul><li>Identification of Auditors and Auditee </li></ul></ul></ul><ul><ul><ul><li>Schedule </li></ul></ul></ul><ul><ul><ul><li>Standards and Procedures </li></ul></ul></ul><ul><ul><li>Initiate Working Papers </li></ul></ul>
    30. 30. <ul><ul><ul><ul><li>Brief the Audit Team </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Initiate Working Papers </li></ul></ul></ul></ul>AUDIT PLANNING (CONTINUED)
    31. 31. <ul><li> PRE-AUDIT REVIEW </li></ul><ul><li>Review Documents </li></ul><ul><li>Continue Preparation of Working Papers </li></ul>
    32. 32. <ul><ul><ul><ul><li>Management in-Brief </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Plant Tour </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Operational Meeting </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Audit Operations </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Daily Written Records </li></ul></ul></ul></ul>PERFORMING THE AUDIT
    33. 33. <ul><li>PERFORMING THE AUDIT </li></ul><ul><ul><li>(CONTINUED) </li></ul></ul><ul><ul><ul><ul><li>Management in-Brief </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Plant Tour </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Operational Meeting </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Audit Operations </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Daily Written Records </li></ul></ul></ul></ul>
    34. 34. <ul><li>PERFORMING THE AUDIT </li></ul><ul><ul><ul><ul><ul><li>Management in-Brief </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Plant Tour </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Operational Meeting </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Audit Operations </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Daily Written Records </li></ul></ul></ul></ul></ul>
    35. 35. <ul><ul><ul><li>PUT PERSON AT EASE </li></ul></ul></ul><ul><ul><ul><li>EXPLAIN WHY HE IS BEING QUESTIONED </li></ul></ul></ul><ul><ul><ul><li>Learn What He Does </li></ul></ul></ul><ul><ul><ul><li>Analyze What He Does </li></ul></ul></ul><ul><ul><ul><li>Determine a Tentative Conclusion </li></ul></ul></ul><ul><ul><ul><li>Explain the Next Step </li></ul></ul></ul>INTERVIEWS
    36. 36. <ul><li> INTERVIEWS </li></ul><ul><li> (CONTINUED) </li></ul><ul><ul><ul><ul><li>Put Person at Ease </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Explain Why He Is Being Questioned </li></ul></ul></ul></ul><ul><ul><ul><ul><li>LEARN WHAT HE DOES </li></ul></ul></ul></ul><ul><ul><ul><ul><li>ANALYZE WHAT HE DOES </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Determine a Tentative Conclusion </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Explain the Next Step </li></ul></ul></ul></ul>
    37. 37. <ul><ul><ul><ul><li>Put Person at Ease </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Explain Why He Is Being Questioned </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Learn What He Does </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Analyze What He Does </li></ul></ul></ul></ul><ul><ul><ul><ul><li>DETERMINE A TENTATIVE CONCLUSION </li></ul></ul></ul></ul><ul><ul><ul><ul><li>EXPLAIN THE NEXT STEP </li></ul></ul></ul></ul>INTERVIEWS (CONTINUED)
    38. 38. TYPES OF FINDINGS <ul><ul><li>Findings or Observations </li></ul></ul><ul><ul><li>Systemic or Isolated Problems </li></ul></ul>
    39. 39. <ul><li>DETERMINING ACCEPTABILITY </li></ul><ul><ul><ul><ul><ul><li>Unconditional Approval </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Conditional Approval </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Conditional Nonapproval </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Unconditional Nonapproval </li></ul></ul></ul></ul></ul>
    40. 40. <ul><li>FINAL OUTBRIEF </li></ul><ul><ul><ul><li>Last Opportunity to Dispute Findings </li></ul></ul></ul><ul><ul><ul><li>Senior Management Present </li></ul></ul></ul><ul><ul><ul><li>No Surprises </li></ul></ul></ul>
    41. 41. <ul><ul><li>Purpose and Scope </li></ul></ul><ul><ul><li>Applicable Game Plan Details </li></ul></ul><ul><ul><li>Referenced Documents </li></ul></ul><ul><ul><li>Audit Findings and Observations </li></ul></ul><ul><ul><li>Recommendations (Internal Audit Only) </li></ul></ul><ul><ul><li>Corrective Actions </li></ul></ul>FINAL WRITTEN REPORT
    42. 42. <ul><ul><ul><ul><li>CORRECTIVE ACTION REQUESTS </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Follow-up (Corrective Action) Audits </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Close-Out </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Records </li></ul></ul></ul></ul>FOLLOW-UP ACTIONS
    43. 43. <ul><ul><ul><ul><li>Corrective Action Requests </li></ul></ul></ul></ul><ul><ul><ul><ul><li>FOLLOW-UP (CORRECTIVE ACTION) AUDITS </li></ul></ul></ul></ul><ul><ul><ul><ul><li>CLOSE-OUT </li></ul></ul></ul></ul><ul><ul><ul><ul><li>RECORDS </li></ul></ul></ul></ul>FOLLOW-UP ACTIONS
    44. 44. CORRECTIVE ACTION EVALUATION <ul><ul><ul><li>Correct the Problem </li></ul></ul></ul><ul><ul><ul><li>Determine Its Affect on Past Performance </li></ul></ul></ul><ul><ul><ul><li>Take Immediate Temporary Corrective Actions </li></ul></ul></ul><ul><ul><ul><li>Take Permanent Action to Prevent Recurrence </li></ul></ul></ul>
    45. 45. 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
    46. 46. AUDITOR TECHNICAL TRAINING <ul><li>Nondestructive Inspection & Test Training </li></ul><ul><li>* 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 </li></ul><ul><li>Quality Assurance </li></ul><ul><li>* Software Quality Assurance (32 hours) </li></ul><ul><li>* Geometric Dimensioning and Tolerancing (40 hr.) </li></ul><ul><li>* Weibull Risk and Uncertainty Analysis (24 hrs) </li></ul><ul><li>* Principles of Metrology (40 hrs) </li></ul><ul><li>* Statistical Process Control, (24 hrs) </li></ul>
    47. 47. AUDITOR TECHNICAL TRAINING (Continuing) <ul><li>Configuration Management </li></ul><ul><ul><li>Configuration Management (40 hrs) </li></ul></ul><ul><ul><li>Material Review Board Procedures (4 hrs) </li></ul></ul><ul><li>Procurement </li></ul><ul><ul><li>Defense Contracting for Technical Personnel (40 hrs) </li></ul></ul><ul><ul><li>Procurement Integrity (8 hrs) </li></ul></ul><ul><ul><li>Government Contract Law (24 hrs) </li></ul></ul>
    48. 48. AUDITOR TECHNICAL TRAINING (Continuing) <ul><li>Design Control </li></ul><ul><ul><li>* Design Review (24 hrs) </li></ul></ul><ul><ul><li>* Reliability by Design (40 hrs) </li></ul></ul><ul><li>General </li></ul><ul><ul><li>* Report Writing (24 hrs) </li></ul></ul><ul><ul><li>* Basics of Explosive Safety (24 hrs) </li></ul></ul><ul><ul><li>* Effective Written Communication (15 hrs) </li></ul></ul><ul><ul><li>* Safe Assembly of Component Explosives (32 hrs) </li></ul></ul><ul><ul><li>* Hazardous Waste Training (8 hrs) </li></ul></ul>
    49. 49. <ul><li> MEETINGS </li></ul><ul><ul><ul><ul><li>Nightly Team Meetings </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Inform Auditors </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Share Information and Findings </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Change Audit Schedule </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Morning Reviews With Auditee </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Keep the Auditee Informed </li></ul></ul></ul></ul>
    50. 50. <ul><li>PRELIMINARY MEETING </li></ul><ul><ul><ul><ul><li>Initiated by Correspondence </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Between Lead Auditor and Auditee </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Define Responsibilities </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Identify Requirements </li></ul></ul></ul></ul>
    51. 51. PRELIMINARY MEETING (CONTINUED) <ul><ul><ul><ul><li>Initiated by Correspondence </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Between Lead Auditor and Auditee </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Define Responsibilities </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Identify Requirements </li></ul></ul></ul></ul>
    52. 52. <ul><li>AUDIT TYPES </li></ul><ul><ul><li>Internal - First Party </li></ul></ul><ul><ul><ul><ul><ul><li>External - Second Party </li></ul></ul></ul></ul></ul><ul><li> - Third Party </li></ul>

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