The first time you embark on the implementation of a Management System such as ISO 9001, ISO 14001 you will discover the need to perform an internal audit on your business. This poses questions for many organisations – many of whom have never undertaken an internal audit – and it can be daunting for those involved. This is especially true for individuals granted the task of choosing the auditor or performing the audit, both of which require a great deal of thought and certain character traits that will be discussed within the article.
It is imperative your audits are performed well from the outset, and that means making sure the right people are chosen for the job. Used as part of your business management systems, well-executed audits can help organisations to find out what aspects of the business are working and areas where improvement can be made. Undertaking business audits requires a range of decisions to be made; these include careful consideration over who will perform the task, any training that needs to be undertaken, and processes that require completion.
In many cases, internal auditing responsibilities are added on to the job description of a member of staff who has no prior experience in the role. In this situation, a training course is essential to help the individual feel comfortable performing his or her new duties.
What is an audit?
Audits are the act of undertaking a systematic , independent and documented process in order to obtain audit evidence, then evaluating the information objectively to find out whether a business’ audit criteria are satisfied and to what extent. The audit should be systematic, meaning it is repeatable in the way in which it is carried out, so when later audits are performed they are all undertaken in the same way – even if they are performed by a different person. Auditors should not be linked directly with the area that they are assessing, in order to maintain complete independence. Independence in an audit is vital as it ensures the judgements are fair and unbiased. It is imperative your audit is well documented from the planning stage until the steps suggested by the audit have been implemented and reviewed. Any evidence uncovered by the audit should be further evaluated by an objective party to ensure criteria have been met.
This is why the decision of who should undertake the audit of your business is an important one. Basically, your internal auditor is put in a position of incredible responsibility – assessing the business and making evidential suggestions based in order to improve the organisation.
Tips regarding how to execute an audit
Performed well and in the right way, an audit allows you to find out how well your business is running. However, if an audit is performed poorly, it can cause problems within the organisation. One of the key aspects to focus on when setting up an audit is to ensure you have a comprehensible vision and plan of the process before you begin. This involves ensuring your auditor has a crystal clear understanding regarding what they are going to assess, so businesses should take the time to go through the scope of the project and answer any enquiries the auditor has.
In order to ensure pertinent questions are answered, the individual chosen to undertake the auditor’s role should be confident and self-assured enough to be able to ask questions of people in the business who may be of a senior position. The individual must also be intelligent enough to judge the business’ responses and measure then against the audit criteria.
The auditor – hints and tips
Asking questions
If you are an auditor who is asking questions, you should not be put off by periods of silence. It is important you are able to ask the question and then await the response patiently, without suggesting potential answers in the silence.
Questioning should be undertaken in manner that is both clear and non confrontational in order to get the most insightful answers from the auditee.
Auditors should also ensure the questions are asked clearly, in several different ways if necessary. You should not feel inclined to move on to the next question without having gleaned a response which meets the specified criteria.
As an auditor, it is your job to ensure the individual being questioned thoroughly understands the question to avoid confusion in the answers. As an auditor, you need to possess the tact to ask questions in the right way to gain the answers you require.
Sampling
During an audit, activities must be sampled; however the boundaries used to assess the sample activity should be fair. In essence, this means auditors should not extend a session of sampling under the assumption that something will go wrong at some point. This level of understanding comes with expertise, so new auditors should make a good effort to consider whether they need to sample any more of an activity before forming an opinion.
Communication
Misunderstanding on the part of both the auditor and auditee can cause difficulties which result in non-conformities within the audit. In order to prevent problems of this sort, good communication is essential. It is the auditor’s responsibility to ensure the individual he or she is questioning understands exactly what information the auditor is attempting to glean – and if this means repeating the same question in several different ways then so be it.
This is why it is vital, as an internal auditor, you watch and listen to the auditee very closely during the process. By doing this, you will be able to gauge when the individual is struggling to answer questions. You should not mark this down as a failure to answer.
Commitment and corrective action
The role of the auditor requires commitment to both the process and in undertaking the appropriate action afterwards. If curative action is required, parties should agree on the path which should be taken before the audit is completed.
Audits typically require reviews of the situation, ensuring the appropriate action is undertaken in a timely manner. This means auditors should endeavour to adhere to a schedule of re-assessment, which takes place in advance of the next audit – as this could be many months into the future.
Auditors of management systems
In organisations, the role of an internal auditor is often overlooked; however it is vital that the most competent individual is hired for the role, particularly when assessing the competencies required by ISO 9001 and ISO 19011. It is imperative the auditor possesses the confidence of character, tolerance, negotiation, tact and decisive qualities that allow the audit to be successfully managed. Professional training is an essential part of the role that ensures individuals are completely ready for the challenge of auditing. However, it is essential that businesses choose the best possible training course to meet a new auditor’s requirements.
Training
Before sending your new auditor off on a useless training course – or worse, one that leaves them feeling baffled, overwhelmed and discouraged – businesses should consult with the training provider regarding the business’ needs. Here, for example, the size, scale and make-up of the business can play a part in dictating the auditor’s training requirements. Businesses need to make sure that the trainer is clear about what it is the auditor needs to get out of the course before investing in it. It is also ideal that an the auditor be certified by the IRCA – whether he or she is an internal or external auditor – as this professional approval allows individuals to benefit and learn from ongoing practice.
Professional and effective audits
In essence, businesses should ensure that they have the best person for the job carrying out their business audits – whether they are undertaken by an internal or external auditor. Businesses also need to make it sparklingly clear exactly what they want to achieve from the business audits – for example, exactly what they are assessing.
Auditing is an essential part of ensuring a business is running at its fullest potential, and finding areas for improvement to help achieve the preset goals. Organisations need to take their audits very seriously because if they ensure they are well executed from the very beginning, it will help to eliminate problems further down the line.
Internal auditors should be chosen for their skill sets and qualities as much as what they know. If they have the right outlook and the most suitable training for the job they are more likely to succeed. Experience, on the other hand, can be gained over time and skills can be highlighted and honed.
Batalas offer a wide variety of training course for auditors:
