Ins and Outs of Internal Auditing
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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
Ice breaker!
List three things that you did to be able to
attend this meeting
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
Stayed overnight in the area
Attended a previous meeting to know what to expect
What is an Internal Audit?
Definition of Internal Auditing
Internal Auditing is the practice of verifying
that actions or outputs conform to meet
established expectations and reflect truth.
Established expectations are simply documented
processes and procedures
Truth will be in the evidence presented at time of
audit
Types of Audits
Process Audits
Financial Audits
Review of general ledger transactions
Quality Audits
Trace steps of process flows
Quality checkpoints exists in practices
Calibrated Audits
Readings indicating mechanical performance
Recap
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)
Determine strategic objectives and related
processes/procedures
Prepare Audit Schedule
Should reflect a year and chart results by
week, month, quarter
Prepare Audit Scopes
Divide objectives into units, teams, etc.
Design scopes that correlate to objectives
Prepare Audit Notices
Do (D)
Simply – Conduct the Audits
Be committed to following the schedule and
reporting findings
Have trained internal auditors
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)
Check on the findings
Check how well the audit was conducted
Determine how they coincide with the overall
strategic plan
Audits and Auditors need to be “audited”
Keep checking the Audit Schedule
Try to stay on track and make adjustments
where necessary
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
What Auditing Yields - ROI
There is a return on your investment
Audit results will provide input for:
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
Internal Auditing does not require
CMMI
Malcolm Baldrige
ISO
itel
Place your company’s name here
Recap
To effectively execute,
you will need
A plan
Resources
Intelligence
Document management
capability
The commitment to
change
Look for Kaizen or
Breakthroughs
Sample Documents
Action Plans
Audit Notification Forms
Audit Reports
Supplemental forms
Control Charts
Corrective and Preventive Action Requests or
Nonconformance
Capture performance outputs
Depository for metrics
Thank you!