| |
Internal Auditing Tips
On this page we will be adding tips to assist you in your
auditing efforts. Feel free to contact us with your tips. We will not
only post them, but we will make sure you get the credit.
As always...Good Auditing!
Free Tip #1:
Contact auditees at least four times about their scheduled audit.
The first contact would come when the annual audit schedule is
generated. The second should be about one month prior to the audit.
This allows the auditee time to prepare for any additional resources
necessary (They shouldn't need extra time to "get their areas
squared away".). The third contact should be about a week
before the audit. At this time, you can give the auditee a detailed
schedule about exact times, and locations of audit activities.
For example, you will be auditing receiving inspection at 10:45.
Each of these contacts should be in writing (email is just as good).
The day before the audit, place a quick phone call (or voicemail) to
verify the audit.
Of course, you still need to have an opening meeting, and that is
in addition to the above. The reason for the multiple contacts is
simply, we tend to forget things due to our work load. Audits should
never be a surprise, this ensures the auditee has every chance to
prepare. |
Free Tip #2:
When preparing the audit schedule take into account such things as:
- Available resources
- Audit Scope
- Sample Size
The key is not to bite off more than your auditors can chew
[Translation: Don't over-commit your resources]. Smaller, but more
frequent audits may be better than comprehensive three-day audits.
Inadequate resources may indicate lace of Executive Management commitment.
You can get more information on the above from November's and December's
newsletters.
Tip added 12/01/99 |
Free Tip #3:
One of the hardest things to do is get a quick turn-around time on corrective actions.
Auditors are frequently frustrated by lower and mid-management's foot dragging on
responding to audit findings. One way to get faster action is to have executive
management place effective corrective action turn-around time in management's performance
appraisals. By tying in corrective actions to performance appraisals, bonuses, etc.,
you virtually force management into timely, effective corrective actions. This could
also work with audits completed on time, etc. It also shows lower and mid-management
that executive management is committed to the process.
Tip takes from December's issue
Tip added 04/14/00
|
Free Tip #4:
If you company has email…try to set up a paperless audit system where the only thing you
would need to "print out" and hand write would by your audit worksheet, which you take
withy you to collect your evidence/samples. We have a paperless system here - we are
able to email out notification forms and audit summaries without ever printing a sheet.
It works EXCELLENTLY! We even File our paperless paperwork electronically for when our
third -party auditors come to audit!
Write your procedures in Flowchart style. This helps to make the workflows appear that
much clearer for new and veteran auditors alike. By having all of our procedures in
flowchart style, we have cut down on our audit time by half and increased audit accuracy
tremendously!
Jill Chavanne, Internal Audit Program Manager, Weiss-aug. Co
Tip added 04/14/00
|
Free Tip #5:
Auditors are frequently frustrated by lower and mid-management's foot
dragging on responding to audit findings. One way to improve the timeliness
of audit finding responses is to issue reminder notifications. Our audit
finding response due dates are normally two weeks from the issue date of the
finding. I typically issue two "Reminder of Approaching due date"
notifications, one at 50% of allotted response time and the other at 75%.
This method can be modified to fit your particular system, i.e. issuing only
one notice for lessor response time allotments. This documentation can be in
the form of a manual memorandum/form or the more efficient e-mailed
memorandum/form. Issuing reminder notifications demonstrates a monitored
system and can also prove useful if elevation of the finding becomes
necessary.
David A. Wimer, BAE SYSTEMS
Tip added 08/31/00
|
Free Tip #6:
"Be sure to follow-up on corrective actions from
previous audits: don't only audit to see the corrective actions have
been implemented. Make sure the corrective action corrected the problem
that caused the corrective action in the first place."
Betsy Hsiao, Quest Analytical Tip
added 02/04/01
Editor's note: One theme
Internal-Auditor.com has pushed over and over again is the output of
audit nonconformances should be effective corrective actions. My good
friend Betsy is absolutely correct. This is one area where many internal
audit programs are weak. We don't want to upset the auditee when the
corrective action is ineffective, so we overlook the situation. Read
the observation again, study it, and do it!
|
Free Tip #7:
In order to have an effective Corrective Action,
Nonconformities must have three attributes:
- They must be Understandable: If the
auditee does not understand the nonconformity, they
will not know how to deal with it.
- They must be Actionable: If there is
no action that can be taken, the Corrective Action
cannot be achieved.
- They must be Unarguable (that is not
a word, but it fits): If an auditee can argue ANY
part of a nonconformity, they will argue rather than
correct.
Tip added 01/19/08
|
Free Tip #8:
Auditing is all about asking questions. As an
auditor, you have to make sure you ask the right person,
the right question. You also have to make sure YOU
understand the question you are about to ask. If you
don't understand the question, how can you expect to
understand the answer. You must also ask questions in a
manner that the auditee will understand them.
Tip added 01/19/08
|
| |
|
