2. Material Adopted From: “The Internal Auditing Pocket Guide” --- J.P. Russell

3. So, you think you might want to be an internal auditor… Principles for conducting an Internal Assessment ContractorSelf-Assessment(CSA) THIRTEENTWENTY

4. Initiating or Even updating A CSA process At your Facility

5. Can Generate A whole host Of different Responses

13. 13

14. CONTRACTOR FOR CONDUCTING CLASS WORLD 13 SELF-ASSESSMENT

15. BE HONEST And IMPARTIAL CONFLICTS of BY AVOIDING INTEREST

16. Due to the Inherent NatureOf AUDITS Internal

17. IT IS Nearly Impossible All To eliminate Conflicts of interest

18. ASK Yourself: Are You Potential Interest? Free Of Any Conflict Of

19. You should be On guard Potential BIASES forAny That could cloud your judgment

20. Potential Conflicts of interest BAD Blood with personnel in the area being audited Doing work for the area you are auditing Close Friend works in the area Lack of Budget/ High Cost Time Restraints Previously worked in the area Auditing your Past work

21. WHEN an UNETHICAL Activity is observed, VERIFY IT, RECORD IT, AND REPORT IT 2

22. CHECKING PERFORMANCE Records is one WAY TO VERIFY

23. PEOPLE DON’T FALSIFY NORMALLY RECORDS

24. Ensure Resources Are available And Auditors are SUFFICIENT Assigned, 3 Competent & Qualified

25. Does your Auditing group? Company Have an internal

26. Are you A New CSA Standing up Team at your site?

27. Are you Available For the audit? (Yes or No)

28. Are you ANY CONFLICT Free of Of interest? (YES or NO)

29. Do you feel COMPETENT You can do a Job? YES or NO

30. AuditPlan AuditReports Meetings

31. The GOAL Internal Audits Is to ensure Are Objective & Impartial

32. Agreed upon Information To auditee 4 Communicate

33. Such as: 1)Audit time 2)Purpose 3)Area of Audit 4)Scope

35. There should be an Audit Plan FOR EVERY AUDIT

36. Follow up with The Auditee BY Issuing: 1)The Audit Plan 2)Notification

37. THINK Of THIS AS A Contract With the auditee It Spells out the parameters for the audit being performed

38. The level of formality DEPENDS Upon Your organization’s situation and Culture

39. MAKE A LIST BEFORE You start Auditing 1)Documents 2)Records 3)Procedures etc. Of items you will need.

40. Verify CONFORMANCE to agreed upon Verify CONFORMANCE to agreed upon Requirements (THE RULES) 5

41. DETERMINE AUDITORS DON’T AUDITEEREQUIREMENTS

42. Two Primary Objectives Audit

43. 1) Are the controls ADEQUATE To meet Requirements?

44. Requirements Many different Come from Sources

45. Has the auditee addressed External Requirements?

46. 2) Are the controls Effectively Implemented And Maintained?

47. An Auditor Never Should Make up the rules

48. All Audit Requirements to a source Must be traceable

49. EnsureSUFFICIENT (Records, Interviews etc.) To MATCH the audits Are Conducted Purpose and Scope 6

50. You should During the audit Determine what You need to see

51. A Checklist will Accurately Greatly Enhance Your ability to Gather Data

52. Checklist: 1. Prepare… 2. Link… 3. Leave…

53. A Checklist: 1. Provides… 2. Assures… 3. Provides… 4. Is a place... 5. Is a time…

54. A Checklist: Needs to be Maintained on File as objective Evidence

55. A Sampling What Samples Plan specifies how Many and To look at

56. Stay Within the AGREED UPON Unless the degree of SCOPE Risk Necessitates other actions 7

57. Once the SCOPE of The Audit Has been set YOU SHOULD STAY WITHIN THE SCOPE

58. USE YOUR JUDGEMENT When problems ARE FOUND OUTSIDE THE SCOPE

59. Finding issues OUTSIDE THE SCOPE That requires your immediate attention is unusual

60. SAMPLES MUST BE And representative RANDOM Unless SPECIFIED OBJECTIVES require otherwise 8

61. Auditors must RANDOMLY select their Samples—Unless

62. The rationale for your sample Size should be Documented

63. RESULTS Must be AND VERIFIABLE TRACEABLE 9 To requirements

64. There should Evidence to be VERIFY Compliance or noncompliance

65. 4 types of Evidence

66. 2) Interviews 3) Physical 4) Observations 1) Documents & Records

67. Datum is Objective Considered Evidence if:

68. It can be TRUE and Proven Is free of BIAS

69. Matchwith Audit evidence Requirements

70. COMPLY With RULES AUDITEE e.g. Safety, Health 10 Environment etc.

71. NormallyAccessibility IS NOT AN Issue with Internal Audits

72. SAFETY Restrictions ARE Common

73. Personal Protective Equipment (PPE) Check for signs in the area that define what is required: –Safety glasses –Ear Plugs –Steel toed boots –Etc.

74. Keep the INFORMED AUDITEE OF THE AUDIT 11 PROGRESS

75. At the end of MEETING The Opening

76. The Auditor QUESTIONS Should ask if There are any

77. IF THE AUDIT THAN ONE LASTS MORE DAY

79. REPORT Truthfully RESULTS CLEARLY 12 CONCISELY Correctly and Completely and Completely

80. ReportingSERIOUS Results is always Business

81. It is good INFORMED Practice to keep The Auditee

82. Of any PROBLEM Significant Areas

83. So that the Will not be AUDIT Conclusion A surprise

85. BLAH

86. Put the Noncompliance's importance In order of

87. Communicate Importance of Noncompliance's The

88. ThingsAVOID To

89. EmotionalWordsOR Phrases

90. Using words Appearance Of Bias That create the

91. ReportingImperfections Minor

92. ReportingNames Of Individuals

94. DO NOT Take Ownership Of the 13 Problems Found Found

95. What about Making Recommendations? Suggestions or

96. MAKINGRecommendations The following: Can result in

97. MaliciousCompliance

98. Auditor’sKnowledge Lack of process May become an issue

99. Auditeedefensive May become

100. AuditorBias

101. CompromisedObjectivity

102. AUDITING Can be hard work In summary,

103. WhenRIGHT Done

104. WhenWRONG Done

107. 1.Be honest and impartial; avoid conflicts of interest 2.When an unethical activity is observed, verify it, record it and report it 3.Resources-Available, Assigned, Competent and Qualified 4.Communicate to the auditee 5.Verify conformance to the requirements 6.Ensure data review is sufficient to cover the scope and purpose of the audit 7.Stay within the scope 8.Random samples 9.Verifiable and traceable results 10.Comply with auditee rules 11.Keep auditee informed of the progress 12.Report results 13.Do not take ownership of the problems

109. CSA Development In order to bring lasting change, we must first prioritize the things that will bring about the maximum impact Then we must organize schedules and resources that will support the priorities Finally, we need to mobilize people to be able to take action and bring about that change

110. CSA maximum impact support the priorities Development In order to bring lastingchange, we must firstprioritize the things that will bring about the Then we mustorganizeschedules and resources that will about that change Finally, we need tomobilizepeople to be able to takeaction and bring

111. mobilize support the priorities Then we mustschedules and resources that will organize prioritizeorganize CSA maximum impact Development In order to bring lastingchange, we must first the things that will bring about the about that change Finally, we need topeople to be able to takeaction and bring prioritize

112. mobilizeprioritizeorganize

113. ITSDUA UDITSUDITSUDITSUDITS NCOVERNCOVERNCOVERNCOVER EFECTSEFECTSEFECTSEFECTSN HEHEHEHE YSTEMYSTEMYSTEMYSTEM

115. Contact Information: