This document outlines 7 keys to an effective internal audit program: 1) Define the purpose of audits as assessing compliance to standards and raising performance. 2) Ensure documentation like policies, procedures and work instructions are in place. 3) Develop checklists to systematically assess processes against criteria. 4) Prepare auditors by understanding objectives and processes. 5) Conduct audits with management support and focus on continuous improvement. 6) Ensure corrective actions are addressed promptly. 7) Use audit findings in management reviews to guide strategy and system effectiveness.

1. 7 KEYS TO AN EFFECTIVE AUDIT PROGRAMME
WEBINAR: 17 FEBRUARY 2015 11:00 NZDT

2. Presenters
Craig Thornton
– Chief Marketing Officer, Mango Limited
– craig@mangolive.com
– New Zealand
– +64 29 377 5444
– @mangolimited
– LinkedIn
– Blog – www.mangolive.com

3. Presenters
Michael Voss
– Owner, PYXIS.co.nz
– michael@pyxis.co.nz
– New Zealand
– +64 274 433 908
– LinkedIn
– www.pyxis.co.nz

4. © PYXIS.CO.NZ 2015
Training and Consultancy
Visioning, Strategic and Business planning
New Product and Technology planning
Integrated management systems
• AS/NZS 4801 health and safety management
• ISO 9001 quality management
• ISO 14001 environmental management
Criteria for Performance Excellence
• high performance growth
• sustainable business
© PYXIS.CO.NZ 2015
M I C H A E L V O S S

5. © PYXIS.CO.NZ 2015
Customised Internal Audit training
1-day, 2-day, or 3-day Internal Audit training options – in-house
Customisations typically include
• Briefing on standards e.g. AS/NZS 4801, ISO 9001, ISO 14001
• Introduction to your organisation’s Management System
• How to audit – follows ISO 19011 auditing guidance standard
• Complete first internal audit – facilitated
Briefing to top management – how to get the best out of internal audits
© PYXIS.CO.NZ 2015

6. © PYXIS.CO.NZ 2015
Examples of companies trained by Michael Voss
in conducting Internal Audits
Air New Zealand
AuCom Electronics Limited
Axiam Group
Bay of Plenty Polytechnic
Carter Holt Harvey Woodproducts
Child Youth and Family
City Parks Auckland
CTC Aviation
Davin Industries Limited
Evonik Degussa Peroxide
Firenzo
McConnell Dowell
MSD Animal Health
New Zealand Defence
New Zealand Organisation for Quality
New Zealand Steel
Ordnance Developments Limited
Refining New Zealand
RML Engineering
Site Safe New Zealand
Waikato District Council
Wind Flow Technologies Limited
© PYXIS.CO.NZ 2015

7. © PYXIS.CO.NZ 2015
Internal audit
‘…internal audits …are conducted at planned intervals to determine
whether …management system conforms to planned arrangements,
and has been properly implemented and is maintained…’
‘…provide information on audit results to management.’
Auditors
Competent
Impartial and objective
‘Auditors shall not audit their own work’ – ISO 9001
‘…free from responsibility for activity being audited’ – ISO 14001
ISO
ISO 9001 8.2.2 Internal Audit
Also ISO 19011 Guidelines for auditing
management systems
Also ISO 14001 clause 4.5.5*
* Used with permission – Licence 781

8. © PYXIS.CO.NZ 2015
1. Purpose of internal audit programme
• Compliance – ISO standard, SOP, Process
• Raising performance
TYPE?
CRITERIA
FRAMEWORK
STANDARD
OPERATING
PROCEDURESISO
STANDARD
FOCUS

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Traditional Organisations
QUALITY
POLICY
OPERATING PROCEDURES
STANDARD OPERATING PROCEDURES/
WORK INSTRUCTIONS
MACHINE/EQUIPMENT INSTRUCTIONS
STANDARD OPERATING PROCEDURES/
WORK INSTRUCTIONS
MACHINE/EQUIPMENT INSTRUCTIONS
H&S Manager
Health and Safety
Management System
Quality
Management System
Integration
Quality Manager
HEALTH AND SAFETY
POLICY
OPERATING PROCEDURES

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2. Management system documentation
POLICY
OPERATING PROCEDURES
STANDARD OPERATING PROCEDURES
WORK INSTRUCTIONS
MACHINE/EQUIPMENT INSTRUCTIONS
Organisation
Department
Area/Asset/
Project
(1 - few)
(few 10’s)
(100’s +)

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3. Audit checklist
Capture essential points to cover
Process guide
Space to capture observations, time taken
Helps future planning
Use to prepare Audit Report
Use to assess/update Auditor competence

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Checklist preparation tips
Compliance
– Yes/pass
– No/fail
‘DIME’
– Documented – what, where?
– Implemented – how, why?
– Monitored – when, by whom?
– Effective – performance OK?

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Help engage people in the business
Recognise when people do things well
Search out innovative approaches
4. Auditor preparation and objectives

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5. Internal audit process
Top Management and Auditors involved:
Top Management
– Understand the value of the audit process
– Authorise the audit function
– Support auditors
Auditor
– Competent and well prepared
– Professional
– Schedule and plan the audit
– Provide an accurate assessment of the systems
– Promote audits as a means of continuous improvement
– Focus on the processes, not people

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6. Corrective action
Process owner/Manager follow up:
Cooperate with the auditors
Address audit findings speedily
Focus on the processes, not people
Corrective action – highest priority
Improvement – lower priority

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7. Management Review
Top Management:
Support auditors in conducting internal audits
Set priorities based on audit report findings
Make sure audit findings are addressed speedily
Use audits to provide insight into the effectiveness of management system
Consider when setting future strategy, objectives and targets
Establish internal audit schedule for next year

18. Electronic systems simplify audits
© PYXIS.CO.NZ 2015

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Final points: Effective audit programme
The 7 keys to running an effective audit programme
Minimise costs of inspections and audits
Take strategic approach to scheduling audits
Prepare audit programme based on risk
Move focus from ‘compliance’ to ‘improvement’
Integrate audit activity – QHSE
Use electronic systems to simplify your audit programme

20. © PYXIS.CO.NZ 2015
Thank you for your participation
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Contact me at michael@pyxis.co.nz