AUDITING

THE AUDIT PROGRAM

DEFINED

“Do Unto Yourself What Others Will Do Unto You”

Find Your Problems Before The Customer Does

IMPORTANT INTERNAL AUDIT CONCEPTS

AUDITOR’S MISSION STATEMENT:

To Provide Evaluations That Are:

• Independent

• Uniform

• Consistent

To an Agreed Upon Standard

&

CLEARLY ESTABLISHED CRITERIA

Everyone Should Know The Standard Against Which The Audit Will Be Conducted• ISO 9000 - 1994• ISO 9000 - 2000• QS 9000• ISO 9000 Plus• Product Specification• Product Drawings• Military Standards, Handbooks, Publications, etc.

NO SURPRISES!!

A PUBLISHED SCHEDULE

Quality System Requirements - Annual Schedule Will Work

Production Audit - 1st Week Of Production (Before Customer Arrives)

Follow-Up Audits - An established time period plus notification well prior to audit.

NO SURPRISES !!!

THE AUDITING GROUP

Independent Of Groups Being Audited - If Possible

Well Trained And Knowledgeable

Can Be A Full Time Job

Must Have Full Support Of Management

Somebody Must Audit The Audit Group

PROGRAM OBJECTIVE

To Obtain Sufficient Evidence

To Evaluate Compliance

With a Standard

PURPOSE OF AN AUDIT

A Management Tool

To Make Improvements

An Audit Can Determine:

• Future Purchases

• Certify the Organization

• Register the Organization

DEFINITIONAn Audit Is:• A Planned Systemic Process Performed

by Independent, Trained Personnel In Accordance With Previously Prepared “Game Plan”

• Results Are Documented

• Corrective Actions Are Taken

• Top Management

• Auditor

• Auditee

ELEMENTS OF AN AUDIT

• PROCESS

• PRODUCT

• QUALITY SYSTEMS

CLASSES OF AUDITS

CLASSES OF AUDITS(CONTINUED)

• PROCESS

• PRODUCT

• QUALITY SYSTEMS

CLASSES OF AUDITS(CONTINUED)

• Process

• Product

• QUALITY SYSTEMS

• ORGANIZATION

• LEAD AUDITOR

• SUBJECT MATTER EXPERTS

• Team Members

ORGANIZATION OF AN AUDIT TEAM

ORGANIZATION OF AN AUDIT TEAM

(continued)

• Organization

• Lead Auditor

• Subject Matter Experts

• TEAM MEMBERS

DUTIES

• Team Members* Objectivity

* Analysis

* Alertness

* Ethics

• Lead Auditor* Responsibility

* Management

* Decision Making

AUDITOR CONDUCT AND SKILLS

• Technical Knowledge

• Audit Training

• Good Communication Skills

• Attitude of Helpfulness

AUDITOR CONDUCT AND SKILLS

• Technical Knowledge

• Audit Training

•Good Communication Skills

•Attitude of Helpfulness

AUDIT IMPLEMENTATION

• Audit Initiation• Preliminary Meeting• Audit Planning• Pre-Audit Review• Performing the Audit• Reporting Results• Audit Conclusion, Including

* Follow-Up* Corrective Action

AUDIT INITIATION

• Purpose & Location

• Reference Standards

• Schedule

• Guidelines

• Report Distribution

• REGULATORY

• STANDARDS

• Internal Documents

REFERENCE STANDARDS

REFERENCE STANDARDS(CONTINUED)

•Regulatory

•Standards

• INTERNAL DOCUMENTS

• IDENTIFICATION OF TEAM MEMBERS

• DATES AND LOCATIONS OF THE AUDIT

• Schedule and Assignments

• Meetings

• Report Distribution

• Escorts

• Necessary Documents

SPECIFIC AREAS TO ADDRESS

SPECIFIC AREAS TO ADDRESS(CONTINUED)

• Identification of Team Members

• Dates and Locations of the Audit

• SCHEDULE AND ASSIGNMENTS

• MEETINGS

• Report Distribution

• Escorts

• Necessary Documents

SPECIFIC AREAS TO ADDRESS(CONTINUED)

• Identification of Team Members

• Dates and Locations of the Audit

• Schedule and Assignments

• Meetings

• REPORT DISTRIBUTION

• Escorts

• Necessary Documents

SPECIFIC AREAS TO ADDRESS(CONTINUED)

• Identification of Team Members

• Dates and Locations of the Audit

• Schedule and Assignments

• Meetings

• Report Distribution

• ESCORTS

• NECESSARY DOCUMENTS

COMMITMENT TO:

• Facilities

• Documents

• Personnel

• Top Management

• Corrective Actions Taken

• Preventive Actions Taken

AUDIT PLANNING

• Brief the Audit Team

* Audit Scope

* Identification of Auditors and Auditee

* Schedule

* Standards and Procedures

• Initiate Working Papers

• Brief the Audit Team

• Initiate Working Papers

AUDIT PLANNING(CONTINUED)

PRE-AUDIT REVIEW

• Review Documents

• Continue Preparation of Working Papers

• Management in-Brief

• Plant Tour

• Operational Meeting

• Audit Operations

• Daily Written Records

PERFORMING THE AUDIT

PERFORMING THE AUDIT(CONTINUED)

• Management in-Brief

• Plant Tour

• Operational Meeting

• Audit Operations

• Daily Written Records

PERFORMING THE AUDIT

• Management in-Brief

• Plant Tour

• Operational Meeting

• Audit Operations

• Daily Written Records

• PUT PERSON AT EASE

• EXPLAIN WHY HE IS BEING QUESTIONED

• Learn What He Does

• Analyze What He Does

• Determine a Tentative Conclusion

• Explain the Next Step

INTERVIEWS

INTERVIEWS (CONTINUED)

• Put Person at Ease

• Explain Why He Is Being Questioned

• LEARN WHAT HE DOES

• ANALYZE WHAT HE DOES

• Determine a Tentative Conclusion

• Explain the Next Step

• Put Person at Ease

• Explain Why He Is Being Questioned

• Learn What He Does

• Analyze What He Does

• DETERMINE A TENTATIVE CONCLUSION

• EXPLAIN THE NEXT STEP

INTERVIEWS (CONTINUED)

TYPES OF FINDINGS

• Findings or Observations

• Systemic or Isolated Problems

DETERMINING ACCEPTABILITY

• Unconditional Approval

• Conditional Approval

• Conditional Nonapproval

• Unconditional Nonapproval

FINAL OUTBRIEF

• Last Opportunity to Dispute Findings

• Senior Management Present

• No Surprises

• Purpose and Scope

• Applicable Game Plan Details

• Referenced Documents

• Audit Findings and Observations

• Recommendations (Internal Audit Only)

• Corrective Actions

FINAL WRITTEN REPORT

• CORRECTIVE ACTION REQUESTS

• Follow-up (Corrective Action) Audits

• Close-Out

• Records

FOLLOW-UP ACTIONS

• Corrective Action Requests

• FOLLOW-UP (CORRECTIVE ACTION) AUDITS

• CLOSE-OUT

• RECORDS

FOLLOW-UP ACTIONS

CORRECTIVE ACTION EVALUATION

• Correct the Problem

• Determine Its Affect on Past Performance

• Take Immediate Temporary Corrective Actions

• Take Permanent Action to Prevent Recurrence

AUDITOR REQUIREMENTS AND QUALIFICATIONS

* Communicate * Plan * Control * Gain Cooperation * Lead

*Administer * Work Independently * Good Attitude * Reach Decisions * Adaptable * Good Impression* Intelligent * Emotionally Stable* Good Character * Technical Training in Area of Expertise

AUDITOR TECHNICAL TRAINING

• Nondestructive Inspection & Test Training

* Eddy Current Testing * Heat Treatment Processes * Liquid Penetrant Testing * Welding Inspection

* Magnetic Particle Test Methods * Soldering Inspection * Radiographic Test Methods * Ultrasonic Test Methods * Drawing & Blueprint Reading

• Quality Assurance* Software Quality Assurance (32 hours)* Geometric Dimensioning and Tolerancing (40 hr.)* Weibull Risk and Uncertainty Analysis (24 hrs)* Principles of Metrology (40 hrs)* Statistical Process Control, (24 hrs)

AUDITOR TECHNICAL TRAINING (Continuing)

• Configuration Management* Configuration Management (40 hrs)* Material Review Board Procedures (4 hrs)

• Procurement* Defense Contracting for Technical Personnel (40 hrs)* Procurement Integrity (8 hrs)* Government Contract Law (24 hrs)

AUDITOR TECHNICAL TRAINING (Continuing)

• Design Control* Design Review (24 hrs)* Reliability by Design (40 hrs)

• General* Report Writing (24 hrs)* Basics of Explosive Safety (24 hrs)* Effective Written Communication (15 hrs)* Safe Assembly of Component Explosives (32 hrs)* Hazardous Waste Training (8 hrs)

MEETINGS

• Nightly Team Meetings

• Inform Auditors

• Share Information and Findings

• Change Audit Schedule

• Morning Reviews With Auditee

• Keep the Auditee Informed

PRELIMINARY MEETING

• Initiated by Correspondence

• Between Lead Auditor and Auditee

• Define Responsibilities

• Identify Requirements

PRELIMINARY MEETING(CONTINUED)

• Initiated by Correspondence

• Between Lead Auditor and Auditee • Define Responsibilities

• Identify Requirements

AUDIT TYPES

•Internal - First Party

• External - Second Party

- Third Party