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Auditing Case Study

2075 words - 9 pages


ACCT: 407-01
The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. Audits are performed to ascertain the validity[->0] and reliability[->1] of information; also to provide an assessment of a system's internal control[->2]. The goal of an audit is to express an opinion on the person / organization/system (etc) in question, under evaluation based on work done on a test basis. Due to practical constraints, an audit seeks to provide only reasonable assurance that the statements are free from material error. Hence, statistical sampling is often adopted in audits. In the case of ...view middle of the document...

Quality audits are performed to verify the effectiveness of a quality management system. This is part of certifications such as ISO 9001[->10]. Quality audits are essential to verify the existence of objective evidence of processes, to assess how successfully processes have been implemented, for judging the effectiveness of achieving any defined target levels, providing evidence concerning reduction and elimination of problem areas and are a hands-on management tool for achieving continual improvement in an organization.
To benefit the organization, quality auditing should not only report non-conformances and corrective actions but also highlight areas of good practice. In this way, other departments may share information and amend their working practices as a result, also enhancing continual improvement.
Process audits are highly focused, but their effective techniques are not always understood. Because there is no sanctioned process audit standard, anyone can claim to be doing process audits. Also, the use of process auditing techniques such as tracing is not limited to process audits or process based management systems.
A process audit may check conformance to defined requirements such as time, accuracy, temperature, pressure, composition, responsiveness, amperage and component mixture. It may involve special processes such as heat treating, soldering, plating, encapsulation, welding and nondestructive examination.
A process audit examines the resources (equipment, materials and people) used to transform the inputs into outputs, the environment, the methods (procedures and instructions) followed and the measures collected to determine process performance. A process audit checks the adequacy and effectiveness of the process controls established by procedures, work instructions, flowcharts, training and process specifications.1
A process audit is an evaluation of the sequential steps and interactions of a process within a system. The term is also used to describe techniques used when conducting an audit. For example, an auditor may use process audit techniques during a management system audit.
By its very nature, process auditing implies an action such as transforming inputs into outputs. Dennis Arter, quality auditor and consultant, has always linked process auditing to an action verb such as filling, stamping, purchasing, reacting or cutting.2 Process auditing is evaluating the steps and activities that create the action or transform the inputs into outputs. This is a very useful approach because it focuses on the work cycle and deliverables instead of isolated requirements/controls.

Auditing status will change in each organization often. Being that Auditing play a huge role in every business there is today, changes are required to keep the businesses functioning properly and effectively. Auditing serves as an objective assurance and consulting activity to evaluate and improve the effectiveness of risk management within a...

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