Internal Quality Audits – What is an Audit?
Posted on April 25, 2011 | No Comments
Gino Marcelo asked:
I couldn’t blame you if you will think outright that audit has something to do with financial audit. For many years, most people believed that audit is only associated with matters related to money. While it may be true in principle, however, we will broaden the concept of audit by taking the same principle in a different application – quality system audit.
Auditing is a means of gathering evidence about compliance with certain requirements. These requirements can be anything like applicable procedures, standards or agreements where an organization subscribes. However, these requirements may also involve laws and regulations including requirements of other external parties, who may have business relations and interest to the organization. Thus, as a party who has interest in the organization, they need to ensure that every aspect of the organization’s processes conform to its quality management system. And managing the system of quality is therefore one of the organization’s businesses.
Internal Quality Management System Audit
Every organization must ensure that their quality management system is implemented all throughout that is why the need to ensure such is by means of a quality management system audit. Audits are carried out by auditors selected within the organization (internal audit) but who are independent of the area or function being audited. However, audits are not only limited to internal but may also be done externally.
Three Types of Audit:
1. First Party Audit
2. Second Party Audit
3. Third Party Audit
First Party Audit is an audit conducted by the auditors selected within the organization (internal audit) but who are independent of the area or function being audited. The Second Party Audit is carried out by external parties who have business relations interest with the organization normally, customer. Third Party Audit is carried out by agencies independent of both organization and customer. This Third Party Audit can reduce or completely eliminate the need for a Second Party Audit (if gained certification).
There are ways of conducting an audit. This is either by Vertical Approach or Horizontal. Vertical audit is one approach of audit where one department or function is audited against all elements of standards or procedure. Horizontal audit is another audit approach, where all departments are audited against one element of the standard or procedure.
Internal Quality Audit Structure
A typical Internal Quality Audit Structure (as required by ISO 9001) is composed of:
1 Management Representative
2 Internal Quality Auditors
3 Management Review Body
The structure needs the support of corrective action system in order to be effective.
Management Representative
The Management Representative (also known as MR), is appointed by the organization’s top management with the responsibility of day-to-day running of the quality management system. The MR is also responsible for selecting, training & managing auditors, scheduling and monitoring internal audits. He is the link between the operating quality system and the company management thru management review function. The MR Bring to the attention of the management recurring problems and those persistent problems or those cannot be dealt at any level, and may hold other, but not conflicting roles.
Auditor
Auditor comes from the root-word “audio” which means “to hear” or “to listen.” Auditor therefore means “hearer” or “listener.” As much as possible, auditors must be selected from the function covered by the quality management system. This is to maintain certain level of auditor’s interest and ownership of the auditing process. Auditor must be independent of the function audited to avoid biased judgment.
Trivia Question:
What is the minimum number of auditor that an organization must have? (Answer can be found at the end of this article)
Management Review Body
The Review Body is composed of Top Management, Management Representative and head of various departments. The Body has a responsibility to discuss internal audit outcomes during management review. They must also review regularly the performance and the continuing relevance of the quality management system. Without review at this level, quality system becomes irrelevant to the business, inflexible and bureaucratic.
Auditing Techniques
During audit, always used open questions such as; Who? What? When? Where? Why? How? This type of questions keeps you auditee talking. Avoid using closed-questions. Closed questions are inquiries answerable only by either “Yes” or “No.” These questions have their place in audit but don’t rely on them. However, the most effective question that will seal everything is the “Show Me” question.
Answer to Trivia Question:
As a minimum, an organization must have 2 auditors to ensure that one can audit the other and vice-versa.
Watch out for the next article titled: “Why the Need to Audit?”
Website content
I couldn’t blame you if you will think outright that audit has something to do with financial audit. For many years, most people believed that audit is only associated with matters related to money. While it may be true in principle, however, we will broaden the concept of audit by taking the same principle in a different application – quality system audit.
Auditing is a means of gathering evidence about compliance with certain requirements. These requirements can be anything like applicable procedures, standards or agreements where an organization subscribes. However, these requirements may also involve laws and regulations including requirements of other external parties, who may have business relations and interest to the organization. Thus, as a party who has interest in the organization, they need to ensure that every aspect of the organization’s processes conform to its quality management system. And managing the system of quality is therefore one of the organization’s businesses.
Internal Quality Management System Audit
Every organization must ensure that their quality management system is implemented all throughout that is why the need to ensure such is by means of a quality management system audit. Audits are carried out by auditors selected within the organization (internal audit) but who are independent of the area or function being audited. However, audits are not only limited to internal but may also be done externally.
Three Types of Audit:
1. First Party Audit
2. Second Party Audit
3. Third Party Audit
First Party Audit is an audit conducted by the auditors selected within the organization (internal audit) but who are independent of the area or function being audited. The Second Party Audit is carried out by external parties who have business relations interest with the organization normally, customer. Third Party Audit is carried out by agencies independent of both organization and customer. This Third Party Audit can reduce or completely eliminate the need for a Second Party Audit (if gained certification).
There are ways of conducting an audit. This is either by Vertical Approach or Horizontal. Vertical audit is one approach of audit where one department or function is audited against all elements of standards or procedure. Horizontal audit is another audit approach, where all departments are audited against one element of the standard or procedure.
Internal Quality Audit Structure
A typical Internal Quality Audit Structure (as required by ISO 9001) is composed of:
1 Management Representative
2 Internal Quality Auditors
3 Management Review Body
The structure needs the support of corrective action system in order to be effective.
Management Representative
The Management Representative (also known as MR), is appointed by the organization’s top management with the responsibility of day-to-day running of the quality management system. The MR is also responsible for selecting, training & managing auditors, scheduling and monitoring internal audits. He is the link between the operating quality system and the company management thru management review function. The MR Bring to the attention of the management recurring problems and those persistent problems or those cannot be dealt at any level, and may hold other, but not conflicting roles.
Auditor
Auditor comes from the root-word “audio” which means “to hear” or “to listen.” Auditor therefore means “hearer” or “listener.” As much as possible, auditors must be selected from the function covered by the quality management system. This is to maintain certain level of auditor’s interest and ownership of the auditing process. Auditor must be independent of the function audited to avoid biased judgment.
Trivia Question:
What is the minimum number of auditor that an organization must have? (Answer can be found at the end of this article)
Management Review Body
The Review Body is composed of Top Management, Management Representative and head of various departments. The Body has a responsibility to discuss internal audit outcomes during management review. They must also review regularly the performance and the continuing relevance of the quality management system. Without review at this level, quality system becomes irrelevant to the business, inflexible and bureaucratic.
Auditing Techniques
During audit, always used open questions such as; Who? What? When? Where? Why? How? This type of questions keeps you auditee talking. Avoid using closed-questions. Closed questions are inquiries answerable only by either “Yes” or “No.” These questions have their place in audit but don’t rely on them. However, the most effective question that will seal everything is the “Show Me” question.
Answer to Trivia Question:
As a minimum, an organization must have 2 auditors to ensure that one can audit the other and vice-versa.
Watch out for the next article titled: “Why the Need to Audit?”
Website content