This document summarizes the process undertaken by the Management Audit division of EID Parry (India) Limited to achieve ISO 9002 quality certification for their internal audit processes. It provides background on the need for certification to bring standardization and process discipline. It outlines their approach of consulting other organizations, developing quality manuals based on Institute of Internal Auditors frameworks, and working with consultants. It describes achieving certification in 2001 and future plans to upgrade to ISO 9002:2000 and internal IIA standards. The certification process and requirements facilitated defining responsibilities, audit planning, training, and process reviews.

1. EIDP - MANAGEMENT AUDIT
ISO 9002 (1994) CERTIFICATION
(A Presentation by M Rajeshwaron)

2. Background & Need for Quality Certification
More internal driven than external
Standardisation / formal structure for Management
Audit Process
Process documentation discipline as a culture
Development of Policy / Procedure Manuals
Achieving objectives through commitments to
Board Audit Sub-Committee & Company’s Balance
Score Card

3. Background & Need for Quality Certification
Documentation of Internal Audit Vision, Mission and
Motto
Bringing visibility to Internal Audit Charter, Authority
and Responsibility
Consistent Maintenance of ‘Standards’ and
improvements there on through Surveillance Audits
and internal reviews
Commitment to Internal Customers on ‘Quality Systems’

4. Background & Need for Quality Certification
Step towards achieving the function’s long term
objective of focussing on internal consultant’s role
leading to value addition within the Group.
Management Audit to be part of the Business Value
Creation efforts of the Group by focussing on intangible
assets such as,

5. Background & Need for Quality Certification
Intangible Assets
Customer relationship
How ISO requirements focus on these
- Audit Plan acceptance / Customer
Feed back requirements
Knowledge
- Quality Policy focussing on
continuous upgradation of
knowledge & skills
Brand
- EID Management Audit - Brand
Building

6. Background & Need for Quality Certification
Intangible Assets
Reputation
How ISO requirements
focus on these
- Reputation through Quality
Systems & Value Addition
Processes
- Structured and defined processes
Employees
- Emphasis and commitments on
Team Members’ Training
Net working & Technology - Net working with audit customers
through effective use of Information
Technology (WEBMARS)

7. Approach
Consultation with those very few Companies who had
gone through this Quality Certification Process
Frame work on Quality Manuals from the Institute of
Internal Auditors, USA
Identification of the appropriate Certification /
Accreditation Agencies (KPMG - RvA of Netherlands)
Put into Practice requirements of standards well before
certification stage

8. Approach
Formal training of Team Members with the help of
Consultants
Well planned Final Certification Audit
1994 version - focus on documentation / processes
2000 version - focus on continuous improvements in the
Quality systems and evaluation of customer feed back
Decided to first go in for 1994 version and thereafter
Go to slide 28
upgrade for 2000 version within the next one year

9. Internal Audit
Vision
"PROVIDE WORLD CLASS
INTERNAL AUDIT SERVICES"

10. Internal Audit
Mission
Management audit team will play an effective role in
the organisation as internal consultants, guided by
the philosophy of adding value to improve the
operations of the organisation.
Management audit will, on a continuous basis
evaluate the internal controls operating in various
business operations of the organisation based on
proper risk analysis and also review the effectiveness
of the governing processes.

11. Internal Audit
Mission
Management audit will assist the line management
in translating the agreed recommendations into
results by extending support through collaborative
efforts. Management audit will endeavour to
continuously assess and improve the quality of
people, process and deliverables to achieve its
objectives.

12. Internal Audit
Quality Policy
“We, at Management Audit Division of
E I D Parry (India) Limited are committed to
provide total customer satisfaction through
our Quality Services by continuous upgradation
of Activities, Knowledge and Skills.”

13. Facilitating Features of ISO - Quality Systems
Well defined responsibilities for individual Audit Team
Members
Adopting a Responsibility Matrix (Primary / Secondary)
Audit Planning Processes (Contract Review)
Quality of Services from Support Auditors (Purchasing
Activity)
Audit Execution Process Controls

14. Facilitating Features of ISO - Quality Systems
Continuous Process Review
Control on non-conformances through periodical Internal
Audits
Closer follow up through Management Review Meetings
Yearly surveillance audits by the Certification Agency
Structured Training schedules for Audit Team Members

15. Additional Benefits
Training for Audit Team Members on “Internal audit of
ISO Quality Systems”
(Will facilitate taking up Internal Quality audits for all the
Business Groups both before Certification and during
surveillance)

16. Quality Journey - Events & Mile stones
2000-01
Conceptualisation & Meetings with Other
Organisations
Shaping the Audit Processes, Introduction of
Standard Formats
April 2001
Formal introduction & practice of requirements of
Standards
April to July 2001 (Intermittent)
Training for Audit Team Members

17. Quality Journey - Events & Mile stones
May 2001
Designating “Management Representative” for
anchoring the Quality Process
“Apex Quality Manual” finalisation and putting
into use.
Oct / Nov 2001
Finalisation of “Procedures Manual” based on Apex
Manual
Pre-Audit of Quality Systems
Management Review Meetings

18. Quality Journey - Events & Mile stones
Nov 30, 2001
Final Certification Audit by KPMG - the
Certification Agency
Dec 2001
Receipt of Quality Certification document from
KPMG (Valid till Dec 2003)

19. Quality Journey - Events & Mile stones
Future Milestones
Nov 2002
Quality System upgradation to ISO 9002 - 2000
version
Surveillance Audit completion
Nov 2003
Achievement of improvements by adopting IIA’s Internal Auditing Standards

20. Cost
KPMG
Registration assessment
Including Documentation Review Rs. 28,000/Surveillance Assessment
Rs. 28,000/-*
(*Payable at the end of first year)
RvA accreditation Fee
Rs. 10,000/-
Administration Fee
Rs. 5,000/-
Creative Management Consultants
Training & Pre-audit
assistance
Rs. 15,000/Total
Rs. 86,000/-

22. Thank You