Transcript Ins and Outs of Internal Auditing

Ins and Outs of Internal
Auditing
Presented to ASQ 509
April 19, 2007
Presented by: Felicia L. Reed
Introduction
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Ice breaker!
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List three things that you did to be able to
attend this meeting
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Worked from home
Prepared material in advance
Worked with meeting coordinator, Karen, to know
attendees and dynamics
List at least one thing you could have done
better
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Stayed overnight in the area
Attended a previous meeting to know what to expect
What is an Internal Audit?
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Definition of Internal Auditing
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Internal Auditing is the practice of verifying
that actions or outputs conform to meet
established expectations and reflect truth.
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Established expectations are simply documented
processes and procedures
Truth will be in the evidence presented at time of
audit
Types of Audits
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Process Audits
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Financial Audits
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Review of general ledger transactions
Quality Audits
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Trace steps of process flows
Quality checkpoints exists in practices
Calibrated Audits
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Readings indicating mechanical performance
Recap
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Internal Auditing is done to make sure
things are going as planned and to look
for ways to improve!
Starting Point for Audits
Plan (P)
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Determine strategic objectives and related
processes/procedures
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Prepare Audit Schedule
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Should reflect a year and chart results by
week, month, quarter
Prepare Audit Scopes
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Divide objectives into units, teams, etc.
Design scopes that correlate to objectives
Prepare Audit Notices
Do (D)
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Simply – Conduct the Audits
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Be committed to following the schedule and
reporting findings
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Have trained internal auditors
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Metrics should tie back to the strategic objective
Knowledgeable about audit practices
Possesses knowledge of strategic goals
Access to documented process/procedures
Do the Audit Report and attach it the
Notice when complete
Check (C)
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Check on the findings
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Check how well the audit was conducted
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Determine how they coincide with the overall
strategic plan
Audits and Auditors need to be “audited”
Keep checking the Audit Schedule
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Try to stay on track and make adjustments
where necessary
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Create an Audit Log
Act (A)
Act on Audit Results
 Act on Metrics from audits
 Act on how well monitoring and measuring
was performed
 Act on educating and sharing info from
audits
 Act – Be prepared to make enhancements
to continually improve
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What Auditing Yields - ROI
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There is a return on your investment
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Audit results will provide input for:
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Balanced Scorecards
Performance Metrics
Strategic Plan Enhancements
Gap Analysis
Identify process performance deficiencies
Better grasp personnel and staffing needs
Increase customer confidence
More educated work force
Certification is not Required
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Internal Auditing does not require
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CMMI
Malcolm Baldrige
ISO
itel
Place your company’s name here
Recap
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To effectively execute,
you will need
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A plan
Resources
Intelligence
Document management
capability
The commitment to
change
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Look for Kaizen or
Breakthroughs
Sample Documents
Action Plans
 Audit Notification Forms
 Audit Reports
 Supplemental forms
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Control Charts
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Corrective and Preventive Action Requests or
Nonconformance
Capture performance outputs
Depository for metrics
Thank you!