Tips to make internal auditing a value addition to the organisation.

1. Internal Auditing – How to
Benefit from it
Brought to you
By
QualMan Consulting
January 30, 2015 1http://www.qualman.co.in

2. Internal auditing
Why you require it?
The Main purpose of carrying out an internal
auditing is because the standards require it as
a mandatory process, and no one wants to
earn suspension of their certificate by not
fulfilling this requirement.
January 30, 2015 2http://www.qualman.co.in

3. Internal auditing
The response?
It becomes a task to be completed – a ritual to be
done.
The result?
It turns out as an extra burden for the organisation,
which attempts just to complete the formalities
by preparing the required documents.
January 30, 2015 3http://www.qualman.co.in

4. Internal auditing
How to turn auditing cost into investment?
The auditors should concentrate more on the following:
1. Organisation’s policies,
2. Procedures,
3. Objectives,
4. Working results,
5. Wastages, Rework, and Rejections,
6. Delays,
7. Deviations,
8. Customer complaints and suggestions,
9. Root cause analysis and Corrective action
10.Comparison between the Best practices and benchmarks within the
industry and the organisation
January 30, 2015 4http://www.qualman.co.in

5. Internal auditing
Should the auditors audit the fulfillment of
clauses of the concerned standard?
Not necessarily, that is the duty of the external
auditors. Internal auditors should not waste
time on such activities, because by addressing
the foregoing activities, the auditors will
nevertheless comment on the documentation
and record keeping.
January 30, 2015 5http://www.qualman.co.in

6. Internal auditing
How the findings should be classified?
Unlike the external auditors’ findings, the
internal auditors’ findings need not be
classified as Major and Minor.
Instead, all findings should be considered as
nonconformity and must be viewed seriously.
January 30, 2015 6http://www.qualman.co.in

7. Internal auditing
Who should audit whom?
The standards say that the auditors should not audit their
own activities. It is based on a strong footing – ensuring
independence of auditing.
In an internal auditing, the organisation can ensure this
requirement by enabling the customers audit the suppliers.
It is also based on a strong reasoning – The customer
knows what is pinching him. So he is the right person to
audit the suppliers processes and procedures and together
both of them to come out with a solution.
January 30, 2015 7http://www.qualman.co.in

8. Internal auditing
How to deal with the Internal audit findings?
All audit findings are only the symptoms of a
deeper malaise. To strengthen the system
and to avoid recurrence of such problems, the
root cause of every finding should be carried
out and the corrective action should be
addressed to the root cause so found.
January 30, 2015 8http://www.qualman.co.in

9. Internal auditing
The Corrective action must then be
implemented, and its effectiveness monitored
through subsequent follow up audits.
Tip 1– To ensure that the corrective action is
actually benefitting the organisation, it should
be continuously monitored through follow up
audits for a reasonable length of time.
January 30, 2015 9http://www.qualman.co.in

10. Internal auditing
Tip 2- Once the corrective action is found effective,
the same should be incorporated in to the
concerned process through document revision.
Tip 3- Details of all nonconformities, method of
their root cause analysis and selection of
corrective action may be documented and made
available to all concerned as a part of Knowledge
Bank.
January 30, 2015 10http://www.qualman.co.in

11. A word about us
QualMan Consulting is a multi-disciplinary management
consulting firm dedicated to serve the MSME segment
by finding their actual problems and addressing
targeted solutions.
QualMan Consulting also helps the MSME segments to
profit from International Standards through
appropriate integration, training and handholding
support through out the process – and thereafter too!
To know more about us, visit: www.qualman.co.in and
www.eduservetech.com
January 30, 2015 11http://www.qualman.co.in

12. Thank you
For downloading this primary on Internal
auditing. We, at QualMan Consulting, are
concerned about your success.
We will appreciate if you take a few minutes of
your time off and let us know what you feel
about this initiative. You can send us your
views through email at:
feedback@qualman.co.in
January 30, 2015 12http://www.qualman.co.in