What
a value-added audit system is, has or does
What a value-added audit system is not, does not have or does not do
You should take a close look at your current audit systems (internal or external) individually. How many of these elements apply to each? This shows its value-added rating.
–
It is a deliberate, systematic and recurring
assessment mandate and process that is willingly
executed and sufficiently funded by the party requiring it;
–
It generates and sustains an
atmosphere of trust, friendly collaboration among all parties that stand to
gain from its outcomes;
–
It is reality-based and therefore
unique for every operation since each operation (even with products similar to
other operations) has unique situations, circumstances, provisions, opportunities,
resourcefulness, work-force, location, etcetera;
–
It employs individuals with relevant
knowledge, positions, expertise and experience;
–
It is conducted by persons who (by
employment or contract) are treated and function as part of the audited party’s
team;
– It is inherently objective and auditors' biases cannot and do not affect its outcome;
– It is inherently objective and auditors' biases cannot and do not affect its outcome;
–
It completely and realistically
identifies potential risks and opportunities and drives continuous improvement;
– It is outcome-based with
inherent flexibility to accept solutions that may fall outside of the scope (i.e. outside of the "prescribed rule) but are effective in leading to (at least) the same desired outcome if not better;
–
It realistically identifies strengths
and weaknesses in the operation for the purpose of capitalizing on what is beneficial
while improving areas of weaknesses;
–
It is efficiently implemented with the
benefits derived outpacing the resources invested;
–
It is self-evaluating and helps with
the expedient elimination of redundant elements in the assessment
process itself.
– It examines all related engagements of the operation such that unnecessary use of resources and unproductive activities are promptly discontinued;
– It examines all related engagements of the operation such that unnecessary use of resources and unproductive activities are promptly discontinued;
–
It provides unmistakable and measurable
success pertaining to what it is both designed and intended to address;
– It streamlines documentation requirements and eliminates excessive paperwork burden;
– It streamlines documentation requirements and eliminates excessive paperwork burden;
What a value-added audit system is not, does not have or does not do
–
It is not mandated or dictated by
parties that do not fund its execution and are external (or viewed as outsiders) to the audited party;
–
It does not generate or sustain an
atmosphere of distrust, uneasiness or animosity between the auditors and the
audited parties;
– It is not subject to requiring extrinsic controls against auditors' biases;
–
It does not employ persons or agencies
with financial interests that compete against or overshadow the intent to efficiently and effectively accomplish its primary purpose;
–
It does not have punitive measures
(e.g. penalties, fines, withdrawn business or career opportunities, or similar punitive consequences) which are imposed by outside parties in ways that encourage the
audited parties to hide things from auditors;
–
It is not constrained by cost
considerations in ways that restrict sufficient time allowance for thorough
investigation of risks and issues;
–
It does not constrain auditors to pre-determined
sets of requirements with meaningless protocols that force auditors to abandon
conventional wisdom;
–
It is not prescriptive and executed in
a way that invariably enforces the examination of the same things from year to year, thereby focusing attention on things that are not of concern while preventing sufficient examination of things that could actually cause problems at the audited facilities;
–
It is not a one-size-fits-all audit to the extent that every facility producing the same type of product anywhere
is audited with the same pre-determined checklist/standard;
–
It is not encumbered by administrative
requirements that are mandated and managed at remote locations by persons who
are not privy to the realities at the audited party’s location;
–
It does not lead to conclusions that
project a false sense of satisfaction in any form whether these are unsubstantiated
claims, slogans, insignia or certificates;
You should take a close look at your current audit systems (internal or external) individually. How many of these elements apply to each? This shows its value-added rating.
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