3f 1 Why Iso For Internal Audit

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3f 1 Why Iso For Internal Audit

  1. 1. “ Why ISO for Internal Audit…” 1/25
  2. 2. Scheme of Presentation <ul><li>Need for certification </li></ul><ul><li>Facilitating features </li></ul><ul><li>Overall frame work </li></ul><ul><li>IA - Functional organisation - Our Model </li></ul><ul><li>Methodology - Some insight </li></ul><ul><li>ISO elements </li></ul><ul><li>Automated Assignment Execution & </li></ul><ul><li>Quality Forms </li></ul>2/25
  3. 3. <ul><li>Greater visibility </li></ul><ul><li>Documented Audit Process frame work </li></ul><ul><li>Internal work discipline </li></ul>Audit Methodology - the ISO way 3/25
  4. 4. Need for Quality Certification <ul><li>More internal driven than external </li></ul><ul><li>Development of Vision, Mission, Policies & Procedure </li></ul><ul><li>Manuals for Audit </li></ul><ul><li>Standardisation / formal structure for the Management </li></ul><ul><li>Audit Process </li></ul><ul><li>Process documentation discipline as a culture </li></ul><ul><li>Achieving objectives through commitments to </li></ul><ul><li>Board Audit Sub-Committee & Company’s Balance </li></ul><ul><li>Score Card </li></ul>4/25
  5. 5. <ul><li>Consistent Maintenance of ‘Standards’ and </li></ul><ul><li>improvements there on through Surveillance Audits </li></ul><ul><li>and internal reviews </li></ul><ul><li>Commitment to Internal Customers on ‘Quality Systems’ </li></ul><ul><li>IIA’s Professional Practices Framework - 1300 - Quality </li></ul><ul><li>Assurance and Improvement Program </li></ul><ul><li>Management Audit to be part of the Business Value </li></ul><ul><li>Creation efforts of the Group by focussing on intangible </li></ul><ul><li>assets. </li></ul>Need for Quality Certification... 5/25
  6. 6. <ul><li>How ISO requirements address these? </li></ul><ul><li>Audit Plan acceptance by the </li></ul><ul><li>customer / Customer Feed back </li></ul><ul><li>systems </li></ul><ul><li>Quality Policy focussing on </li></ul><ul><li>continuous upgradation of </li></ul><ul><li>knowledge & skills of Audit Team </li></ul><ul><li>Members </li></ul><ul><li>EIDP Management Audit - A </li></ul><ul><li>Brand Building </li></ul>Need for Quality Certification... <ul><li>Intangible Assets </li></ul><ul><li>of the Organistion </li></ul><ul><li>Customer relationship </li></ul><ul><li>Knowledge </li></ul><ul><li>Brand </li></ul>6/ 25
  7. 7. <ul><li>How ISO requirements </li></ul><ul><li>address these? </li></ul><ul><li>Reputation through certified </li></ul><ul><li>Quality Systems & Value </li></ul><ul><li>Addition to the Organisation </li></ul><ul><li>Structured and defined audit </li></ul><ul><li>processes </li></ul><ul><li>Emphasis and commitments </li></ul><ul><li>on Team Members’ Training </li></ul><ul><li>Net working with audit customers </li></ul><ul><li>effective use of Information </li></ul><ul><li>Technology (WEBMARS) </li></ul>Need for Quality Certification <ul><li>Intangible Assets </li></ul><ul><li>of the Organistion </li></ul><ul><li>Reputation </li></ul><ul><li>Processes </li></ul><ul><li>Employee morale / </li></ul><ul><li>Development </li></ul><ul><li>Net working & </li></ul><ul><li>Technology </li></ul>7/ 25
  8. 8. <ul><li>Well defined responsibilities for individual Audit Team </li></ul><ul><li>Members </li></ul><ul><li>Adopting a Responsibility Matrix (Primary / Secondary) </li></ul><ul><li>Audit Planning Processes (Contract Review) </li></ul><ul><li>Quality of Services from Support Auditors (Purchasing </li></ul><ul><li>Activity) </li></ul><ul><li>Audit Execution Process Controls </li></ul>Facilitating Features of ISO - Quality Systems 8/ 25
  9. 9. <ul><li>Continuous Process Review </li></ul><ul><ul><ul><li>Control on non-conformances through periodical </li></ul></ul></ul><ul><ul><ul><li>Internal Audits (Corrective / Preventive Controls) </li></ul></ul></ul><ul><ul><ul><li>Closer follow up through Management Review </li></ul></ul></ul><ul><ul><ul><li>Meetings </li></ul></ul></ul><ul><ul><ul><li>Yearly surveillance audits by the Certification Agency </li></ul></ul></ul><ul><ul><ul><li>Structured Training schedules for Audit Team </li></ul></ul></ul><ul><ul><ul><li>Members </li></ul></ul></ul><ul><ul><ul><li>Continual improvement efforts in the Audit Processes </li></ul></ul></ul><ul><li>Good Customer Focus </li></ul><ul><li>IAs as ‘ISO - Quality System Auditors for all Business </li></ul><ul><li>Groups </li></ul>Facilitating Features of ISO - Quality Systems 9/ 25
  10. 10. Quality Policy <ul><ul><ul><li>“ We, at Management Audit Division of </li></ul></ul></ul><ul><ul><ul><li>E I D Parry (India) Limited are committed to </li></ul></ul></ul><ul><ul><ul><li>provide total customer satisfaction through </li></ul></ul></ul><ul><ul><ul><li>our Quality Services by continuous upgradation of Activities, Knowledge and Skills.” </li></ul></ul></ul>10/ 25
  11. 11. “ Management Audit the Driving Force” Visible Top Management Support Effective Business Group Management Support Co-operative Operating Team Efficient & Contributing Suport Audit Teams Structured Audit Administration Well informed Audit Sub-Committee Management Audit – the driving force Overall Framework 11/ 25
  12. 12. Effectiveness & Efficiency of operations Cost Saving Potentials Achievement of Business Plan Objectives Effectiveness of Internal Controls & Systems Transactional discrepancies having material financial impact Effectiveness of Financial reporting Processes Safe guarding of Company Assets Effectiveness of Compliances (Internal / External) Management Audit Focus Eight elements of effective Audit <ul><li>Apply to all Operational areas - Projects, Procurement, Production Processes, Despatch, Marketing & Selling & Support Services (Inbound -- Operations --Outbound) </li></ul>Overall Framework
  13. 13. Overall Framework Consultancy Focus (Technical Audit as an effective Wheel) Partnership with Customers Support / Guidance from External Specialists MEASURE BENEFIT EXPLORE, STUDY & RECOMMEND FACILITATE IMPLEMENTATION INNOVATE CREATE AWARENESS 13/ 25
  14. 14. Assurance Focus (General / Operational Audit Wheel) Best Practices / Manuals Standards & Audit Tools Provide Education & training to people Review Risks, Controls & Governing Processes Provide Continuous Assurance to Management Create Awareness and facilitate putting systems & controls Facilitate Self Audits, Review effectiveness Overall Framework 14/ 25
  15. 15. Systems Focus Information Systems Audit & Control Global Best Practices ‘ COBIT’, IS Standards, ‘CAATS’ Review IS Policies on Security / Controls & Practices Review Risks, Controls & recommended measures to address control weaknesses Continuous feedback to Management on IS Status Create Awareness and facilitate institutionalising IS Control Systems Review IS Resource Utilisation & facilitate optimising IS Potentials Overall Framework 15/25
  16. 16. IA Organisation 16/ 25
  17. 17. Methodology - Some insights 17/ 25
  18. 18. Methodology - Some insights Audit Execution - Process Flow 18/25
  19. 19. <ul><li>Charter </li></ul><ul><li>Positionwise Responsibility Statements </li></ul><ul><li>Contract Review (Annual Audit Plan) </li></ul><ul><li>Purchasing (Outsourced audits) </li></ul><ul><li>Process Control / Document & Data Control Standardised </li></ul><ul><li>Formats) </li></ul><ul><li>Inspection and Test Status (MAP-EMS / WEBMARS) </li></ul><ul><li>Control of non-conforming products (Report finalisation) </li></ul>ISO Elements 19/ 25
  20. 20. ISO Elements <ul><li>Corrective and preventive action (PDCA) </li></ul><ul><li>Customer feed back / evaluation </li></ul><ul><li>Continuous improvements </li></ul><ul><li>Team Members - Training </li></ul><ul><li>Internal Quality Audits (Review) </li></ul><ul><li>Management Review Meeting </li></ul><ul><li>Control of Quality Records (Flawless execution) </li></ul><ul><li>Use of Statistical / other audit techniques (Tools / Techniques) </li></ul>20/ 25
  21. 21. Assignment Execution & Control <ul><li>Introduction </li></ul><ul><li>Responsibilities </li></ul><ul><li>Procedure </li></ul><ul><ul><li>Audit Identification and Traceability </li></ul></ul><ul><ul><li>Audit Report Numbering </li></ul></ul><ul><ul><li>Planning </li></ul></ul><ul><ul><li>Audit Plan Review </li></ul></ul><ul><ul><li>Team Selection </li></ul></ul><ul><ul><li>Audit Date Confirmation </li></ul></ul><ul><ul><li>Preparation for the Assignment </li></ul></ul>21/ 25
  22. 22. Assignment Execution & Control <ul><ul><li>Pre-Audit Meeting </li></ul></ul><ul><ul><li>Assignment Resource allocation meeting </li></ul></ul><ul><ul><li>Audit Process </li></ul></ul><ul><ul><li>Assignment Sign off meeting </li></ul></ul><ul><ul><li>Post Audit Presentation </li></ul></ul><ul><ul><li>Draft Audit Report </li></ul></ul><ul><ul><li>Draft Report circulation </li></ul></ul><ul><ul><li>Feedback from the Auditee </li></ul></ul><ul><ul><li>Final Audit Report </li></ul></ul>22/ 25
  23. 23. Assignment Execution & Control <ul><ul><li>Handling over of the Report </li></ul></ul><ul><ul><li>Follow up on Audit Observation </li></ul></ul><ul><ul><li>Filing of Audit Assignment Documents </li></ul></ul><ul><ul><li>Retention Period </li></ul></ul><ul><li>Quality Forms </li></ul>23/ 25
  24. 24. Quality Forms <ul><li>Intimation to Auditee to commence audit </li></ul><ul><li>Audit Engagement Note </li></ul><ul><li>Resource Allocation Sheet </li></ul><ul><li>Travel Advance Requisition - Support Auditors </li></ul><ul><li>Pre-Audit Meeting Sheet </li></ul><ul><li>Mid Audit Review Report </li></ul><ul><li>Audit Report - Draft for comments </li></ul><ul><li>Audit Report Presentation </li></ul><ul><li>Audit Assignment Completion Note </li></ul><ul><li>Webmars Placement Report </li></ul><ul><li>Auditee Feedback Form </li></ul><ul><li>Self Assessment Sheet </li></ul>24/ 25
  25. 25. 25/25 Thank You

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