IMS INTERNAL AUDIT , DANGOTE FERTILIZER & CEMENT.pptx

Integrated management systems audits principles and phases

1. IMS INTERNAL AUDITING:DANGOTE FERTILIZER &CEMENT 1

2. ke e p No smoking Punctuality P a rticipati o n Certificates Doc u men t ation Pho n es Data f o rms

3. Audit Process

4. Fertilizer production flow chart 4

5. Cement production flow chart 5

6. Internal Audit A systematic , independent and documented process for obtaining objective evidence and evaluating it objectively to determine the extent to which the audit criteria are fulfilled. INTERNAL AUDIT

7. Purpose of Internal Audit

8. Types of Audit Internal audits are conducted by, or on behalf of an organization (audit client) itself. External provider audit; Other external interested party audit. Certification and /or accreditation audit; Statutory, regulatory and similar audit.

9. Principles of Auditing Principles relating t o auditor s : E t hical c o ndu c t Fair pre s enta t ion Due profes s ional c a re Confidentiality Principles relating t o audi t : Indepen d en c e Ev idenc e -based approach

10. M a naging an Audit Progr a m Pro c e s s Flow PLAN DO C H ECK ACT A UTH O R I Z E ES T A BL ISH I M P L E M E N T M O N I T O R & R EVIEW I M P R OVE OBJE CT IVES E X T E N T R OLES R ES OURC ES P R O C E DUR ES S CH E DU LE A UD I T S E V AL U A T E A UD I T O R S SELE C T T EA M S D I R E C T A CT IVI T IES M AI N T AIN R E C O RD S M O N I T OR R EVIEW I D E NT I F Y N EED F OR C A/ P A I D E NT I F Y OPPO R TUN I T IES T O I M P R OVE A UD I T OR C O M PE T E NC E & E V A LU Z A T ION SPE C I F IC A UD IT A CT IVI T IES

11. Overview of typical audit activities Initiating the audit Conducting document review Preparing, approving & distributing the audit report Completing the audit Conducting audit follow up 1. Planning for the audit 2. Conducting the audit 3. Reporting the audit 4. Corrective action & follow-up 12 Preparing for the on-site audit activities Conducting on-site audit activities

12. Overview of typical audit activities Initiating the audit Appoint the audit team leader defining audit objectives, scope & criteria determining the feasibility of the audit selecting the audit team establishing initial contact with the auditee Conducting document review reviewing relevant management system documents, including records, and determining their adequacy with respect to audit criteria. Preparing for the on-site audit activities preparing the audit plan assigning work to the audit team preparing work documents Planning the Audit 1 13

13. Overview of typical audit activities Conducting on-site audit activities - conducting opening meeting communication during audit roles and responsibilities of guides and observers collecting and verifying information generating audit findings preparing audit conclusions conducting closing meeting Conducting on-site audit activities 2 14

14. A Value Added Auditor 3 INTEGRATED MANAGEMENT SYSTEM PROCESS BASED INTERNAL AUDITING

15. Personal Attributes Ethical – fair, truthful, sincere, honest and discreet Open minded – willing to consider alternative ideas or points of view Diplomatic – tactful in dealing with people Observant – actively aware of physical surroundings and activities. Perceptive – instinctively aware of and able to understand situations. 16

16. Personal Attributes Versatile – adjust readily to different situations Tenacious – persistent, focused on achieving objectives Decisive – reaches timely conclusions based on logical reasoning and analysis; and Self reliant – acts and functions independently while interacting effectively with others. 17

17. Initiate the Audit Program 4 INTEGRATED MANAGEMENT SYSTEM PROCESS BASED INTERNAL AUDITING

18. Audit Objectives Ensure conformance to the standards and own policies Evaluate the effectiveness of the measures planned Improve the current Integrated Management System Investigate nonconformities including incidents. In Summary: To take an independent and accurate snapshot to see what an organization or process looks like at a point in time . 19

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20. Process Approach to Auditing 7 INTEGRATED MANAGEMENT SYSTEM PROCESS BASED INTERNAL AUDITING

21. What to Look for during Internal Audit? 22 Conformance Effectiveness Improvement 3 key aspects of process

22. Conformance Conformance is the basic principle. Compare the actual activities against the audit criteria. In other words, “do what have written and recorded down what you have done.” 23 What shall be done What is actually done VS

23. Conformance Auditing 24 IMS Manual Procedure Activities Records

24. Effectiveness How do we know if a process is effective? Is it … able to maintain ‘mountains’ of documentation? able to follow procedures strictly? able to produce results? 25

25. Effectiveness of a Process Effectiveness of a process is shown by the results it achieved with the delivered output. Hence, auditors shall look at indicators/ measurable metrics to tell whether organization requirements (objectives) are met. 26

26. Process Characteristics Every process has these characteristics: Process owner(s) Process is defined and if appropriate, documented Process linkages/ interfaces are established Process Performance Measurement is defined and monitored Records to show evidence of achievement and control 27

27. Process Analysis 28 Why? (target, measurement & improvement) With Who? (responsibility, competency) OUTPUT INPUT PROCESS HOW? (procedures & methods of controls) With What? (equipment, material resources) 4 Questions about a Process WHO – responsibility, authority and competencies required WHAT – kinds of resources needed to perform the process WHY – objective/target for the process, plus measurement & improvement HOW – controls method to achieve desired results

28. Audit Planning 8 INTEGRATED MANAGEMENT SYSTEM PROCESS BASED INTERNAL AUDITING

29. Preparations for the Audit Select audit team. Assign audit team activities Audit plan. Check-lists Assemble working documents . 30

30. Check-lists Aide memoire Concise Avoid tick sheets or standard Should not take over audits Useful for new auditors Helps in time management Can update or add on during course of audit Can evolve over time. 31

31. Why Use Check-lists? Ensures continuity and depth of audit Ensures all relevant aspects are covered Gives structure to interviews Provides help if stuck More professional. 32

32. Inputs to Check-list Creation ISO 9001, ISO 14001 and OHSAS 18001 Standard Documented Integrated Management Systems (IMS) Regulatory requirements Known or classic problems Knowledge of area/system/process Previous check-lists 33

33. IS O 9001:201 5 ISO 45001 2018 & IS O 14001:201 5 Requirement s Objective Minimu m Expectation Meets Expectations 4. Context of the organization 4.1 Understanding the organization and its context Th e organizatio n mus t determin e externa l an d internal issue s relevan t t o it s purpos e an d strategi c direction tha t ma y affec t it s abilit y t o achiev e intende d outcomes a s wel l a s monito r an d revie w informatio n regarding thes e issues . Ever y locatio n ha s a high-level , conceptual understandin g o f th e importan t issue s tha t ca n affect, eithe r positivel y o r negatively , th e wa y th e organization manage s it s business , fro m a qualit y an d environmental perspectiv e – coverin g al l responsibilities. I s th e scop e documente d fo r qualit y an d environmental? Eve n i n a n integrate d system , thes e ma y differ. Ar e externa l an d interna l issue s defined , s o the y can b e considere d throughou t th e plannin g proces s an d the organizatio n ca n monito r ho w wel l the y ar e addressin g or dealin g wit h th e issues? Ca n T o p Managemen t explai n wha t th e concern s of th e organizatio n ar e fro m a qualit y an d environmental perspective? Doe s T o p managemen t understan d ho w th e management syste m i s a suppor t an d critica l par t o f th e overal l business syste m an d a vehicl e t o hel p achiev e overal l strategi c goals, bot h shor t an d lon g term. 4. 2 Understandin g th e need s and expectation s o f intereste d parties Th e organizatio n ha s determine d it s important stakeholder s an d ha s define d th e Scop e o f th e QMS/ EMS . Th e locatio n understand s wh o th e important interna l an d externa l stakeholder s are , thei r expectations an d whic h o f thes e ar e complianc e obligations. Note : thes e ar e no t necessaril y lega l compliance requirements , bu t ar e QMS/EM S complianc e obligations. Ha s a stakeholde r analysi s bee n complete d an d documented t o determin e ke y stakeholder s who m hav e a n impac t o n the requirement s o f th e IMS? Hav e thes e stakeholders ’ expectation s bee n considere d for incorporatio n int o th e IMS? Ar e expectation s identifie d a s complianc e obligations? 4.3 Determining the scope of the quality/environmental management system Th e organizatio n ha s define d th e scop e o f it s quality/ environmenta l managemen t syste m an d considere d the interna l an d externa l issues , requirement s o f interested partie s an d th e products/service s o f th e organization. Th e scop e need s t o b e documente d an d availabl e to intereste d parties. I s th e documentatio n suitabl e an d appropriate? Ha s a n appropriat e documente d syste m bee n established, wit h procedures , instructions , permit s etc . i n plac e where required?

34. 4. 4 Quality/Environmental /OH & S managemen t syste m an d its processes Senio r managemen t ha s define d an d communicated it s Qualit y an d Environmenta l Polic y an d demonstrates commitmen t t o it . Th e organization’ s qualit y and environmenta l polic y establishe s th e framewor k upon whic h objective s an d target s ar e set. Ar e th e require d element s fro m th e qualit y and environmenta l polic y readil y identifiabl e (e.g . preventing pollutio n o r ensurin g custome r satisfaction) ? Eve n i n an integrate d system , th e polic y fo r qualit y ma y b e separat e from environmental. IS O 9001:201 5 & IS O 14001:201 5 Requirement s Objective Minimu m Expectation Meets Expectations

35. IS O 9001:201 5 & IS O 14001:201 5 Requirement s Objective Minimu m Expectation Meets Expectations 5. Leadership 5.1 Leadership and commitment Senio r managemen t demonstrate s it s commitmen t to th e QMS/EM S wit h action s an d behavior s an d takes responsibilit y fo r it s implementatio n an d continual improvement. Intervie w managemen t representative s i n variou s level s to verif y ho w an d whe n the y demonstrat e thei r commitment Intervie w employee s an d revie w meetin g minute s o f strategic an d tactica l teams . I s leadershi p perceive d t o b e visibl e o n the floo r o n behal f o f quality , environmental , healt h an d safety issue s o r events , an d involve d i n ke y decision s an d interacts wit h groups? 5. 2 Policy T o p managemen t ha s establishe d a n environmenta l and qualit y polic y an d communicate d th e polic y t o th e entire organization . Th e polic y shal l b e appropriat e t o the purpos e an d contex t o f th e organizatio n an d provid e a framewor k fo r settin g objectives. Th e organization’ s intention s an d principle s fo r the implementatio n an d continua l improvemen t o f the managemen t syste m ar e formall y state d i n th e policy . The polic y i s periodicall y reviewe d an d revise d t o ensur e its continuin g adequac y an d effectiveness. I s th e QMS/EM S polic y i s posted , readil y accessibl e and communicate d t o employees , contractor s an d othe r interested stakeholders? Whil e ther e i s n o define d requiremen t fo r senior managemen t t o personall y sig n an d endors e th e policy , i t is considere d bes t practice. Intervie w a representativ e numbe r o f employee s i n all level s o f th e organization , includin g contractors . Have eemployee s see n an d understan d th e QMS/EM S polic y an d the organization’ s expectation s concernin g th e policy? Revie w th e facility’ s record s associate d wit h th e IM S policy. I s th e polic y periodicall y reviewe d an d revise d a s neede d to ensur e it s continuin g adequac y an d effectiveness? 5.3 Organizational roles, responsibilities and authorities Senio r managemen t ensure s responsibilitie s an d relevant role s ar e assigned , communicate d an d understoo d within th e organization. Ca n senio r managemen t explai n ho w the y kee p abreast o f qualit y an d environmenta l managemen t syste m needs, ho w the y ensur e th e need s ar e met , an d thei r method s of communicatin g durin g a n intervie w i n th e audit?

36. IS O 9001:201 5 ISO 45001 2018 & IS O 14001:201 5 Requirement s Objective Minimu m Expectation Meets Expectations 5.4 Consultation and participation of Workers Have processes for consultation and participation of workers been established and implemented? Documented statement under 5.4 of the IMS manual or individual plan communication or Supporting Communication and consultation procedure covering all modes of communication covering Internal and external communication Evidence of minutes Prestart, toolbox , project meetings and client meetings. Workers rep elected and active in workroup Any counselling support is in place for worker support

37. IS O 9001:201 5 & IS O 14001:201 5 Requirement s Objective Minimu m Expectation Meets Expectations 6. Planning 6.1 Actions to address risks and opportunities Th e organizatio n need s t o conside r th e scope , a s wel l as issue s (4.1 ) an d requirement s (4.2) , whe n plannin g fo r the managemen t syste m an d risk s an d opportunitie s should b e define d an d addressed. Whil e environmenta l aspect s an d impacts , and complianc e obligations , ma y b e identifie d an d managed b y th e sam e proces s use d t o determin e busines s risk s and opportunities , the y ar e normall y kep t separate . Business risk s an d opportunitie s ma y b e identifie d b y management discussio n an d brainstorming , whil e a forma l FMEA-type proces s i s applie d t o aspect s an d impacts. Se e Anne x A6.1. 1 fo r mor e information. Ar e customer s an d othe r intereste d parties ’ expectations define d an d linke d t o busines s issues? Note : Th e large r o r mor e comple x a n organization , th e more probabl e thi s proces s wil l b e documented . A forma l risk analysi s proces s i s no t require d t o defin e thes e issue s under 4.1 Ar e aspect s an d impact s define d i n relatio n t o compliance obligation s wit h a ris k assessmen t methodolog y fo r us e in prioritizin g aspects? 6.2 Quality/Environmental objectives and planning to achieve them Th e organizatio n need s t o establis h objective s a t relevant functions , level s an d processe s neede d fo r th e integrated managemen t syste m an d pla n action s t o achieve thes e objectives . Thi s include s considerin g risk s and opportunitie s associate d wit h environmenta l aspect s and impact s a s wel l a s associate d complianc e obligations. Ar e objective s se t base d o n dat a collecte d an d analyze d in relatio n t o customers ’ need s an d satisfaction , marke t changes, environmenta l performance , bes t practices , change s in regulations , etc.? Ar e objective s meaningful , realistic , achievabl e and measurable , an d mos t importantly , d o the y hav e a positive impac t o n th e business? Ar e objective s dynami c an d eas y t o change/updat e to kee p curren t t o th e organizatio n need s an d ever-changing environmen t th e organizatio n operat e in? 6.3 Planning of changes An y change s neede d fro m th e managemen t system shoul d b e planne d wit h consideratio n give n t o availability o f resource s a s wel l a s th e potentia l consequence s and integrit y o f th e integrate d managemen t system. Ho w i s th e managemen t o f chang e defined , manage d and measure d fo r succes s an d ca n yo u ensur e lesson s learne d are incorporate d int o futur e actions? D o processe s define d identif y an d pla n fo r change s related t o customers , products , ne w equipment , ne w processes , new materials , change d equipment , amende d processes , ne w uses applie d t o curren t materials , ne w complianc e obligations, change s i n personne l responsible , etc . tha t ca n impac t quality o r environmental?

38. IS O 9001:201 5 & IS O 14001:201 5 Requirement s Objective Minimu m Expectation Meets Expectations 7 . Support 7 .1 Resources Th e organizatio n mus t determin e an d provid e resources neede d fo r th e establishment , implementation, maintenanc e an d continua l improvemen t o f the integrate d managemen t system . Thi s include s determining an d providin g th e necessar y people , infrastructure, environment , monitoring/measuremen t resources , and organizationa l knowledg e require d fo r operations. Ar e ke y role s withi n th e managemen t syste m define d and dutie s assigned? I s require d trainin g identifie d b y position? Ar e successio n plan s identifie d fo r ke y resources/positions? Ar e calibratio n need s fo r bot h qualit y an d environmental purpose s mus t b e identifie d an d defined ? Criteri a ma y not b e th e same , bu t wil l tak e int o accoun t industry-standard calibratio n processes , IS O standar d requirements , regulatory requirements , an d custome r requirement s a s applicable. 7 .2 Competence Th e organizatio n mus t firs t determin e th e necessary competenc e an d ensur e tha t th e relevan t peopl e have prope r trainin g an d experienc e an d tha t ther e i s proper documentatio n a s evidence. I s criteri a fo r competenc e define d b y responsibilities? I s ther e a proces s fo r trackin g trainin g an d development? Doe s th e proces s fo r competenc y ensur e consistenc y and effectivenes s i n evaluatio n o f competency? 7 .3 Awareness Peopl e workin g fo r th e organizatio n nee d t o b e awar e of th e polic y an d objective s a s wel l a s thei r contributio n to th e effectivenes s o f th e integrate d managemen t system an d th e implication s o f no t conformin g t o requirements. Ca n yo u defin e wha t i s neede d fro m person s workin g fo r the organization? Hav e yo u determine d potentia l fo r impactin g qualit y o r the environment.? Hav e yo u determine d wha t need s t o b e communicate d in orde r t o avoi d negativ e impacts? 7 .4 Communication Relevan t interna l an d externa l communication s nee d t o be established , implemente d an d maintained , includin g what wil l b e communicate d a s wel l a s timing , audience , method an d wh o wil l delive r th e message. I s th e proces s define d an d responsibilit y fo r communication assigned? Doe s th e proces s defin e documente d evidenc e of communication s required , wher e appropriate? 7 . 5 Documente d information Th e managemen t syste m mus t includ e documented informatio n require d b y th e standard s a s wel l a s any necessar y informatio n contributin g t o th e effectiveness o f th e integrate d managemen t system . Thi s information shoul d b e controlle d t o ensur e availability , usabilit y and protection. I s ther e evidenc e tha t th e location s hav e reviewe d regulatory, corporat e o r othe r externa l requirement s t o identify documentatio n tha t i s require d t o b e par t o f th e management system?

39. IS O 9001:201 5 & IS O 14001:201 5 Requirement s Objective Minimu m Expectation Meets Expectations 8. Operation 8.1 Operational planning and control Necessary processes need to be established, implemented, controlled and maintained to meet system requirements. Actions identified in 6.1 and 6.2 need to be implemented by establishing operational criteria and implementing control of processes. Have you defined critical control points in operations from both a quality and environmental perspective? Is control criteria established? After implementation of the control process, use monitoring or the audit process to ensure it is maintained, and is adequate and effective in achieving customer satisfaction and preventing of pollution/consumption of nonrenewable resources 8.2 Requirements for products and services (ISO 9001:2015) 8.2 Emergency preparedness and response (ISO 14001:2015) 8.2 Requirements for products and services lends itself to integration. 8.2 Emergency preparedness and response will remain separate due to legal implications. Implement and plan the criteria for products and services to meet standard and customer requirements. Analyze the established criteria to determine in which areas risk of material use and disposal could lead to environmental impacts that must be controlled, and add these controls to the process, in support of 8.1. 8.3 Design and development of products and services (ISO 9001:2015) Gathe r al l th e informatio n neede d t o ensur e products an d service s ar e understoo d an d properl y planned, includin g communicatio n wit h th e clien t t o ensur e their expectation s ar e met. Establis h th e desig n criteri a pe r th e IS O 9001:201 5 standard, determin e th e proces s required , ensurin g al l standar d and custome r requirement s ar e met. I f environmenta l criteri a withi n th e desig n wer e no t se t b y the client , determin e th e environmenta l control s you r organization wishe s t o establis h fo r th e desig n criteri a an d proces s and establis h the m withi n th e qualit y process. Establis h a proces s t o ensur e th e qualit y an d environmental criteri a wil l b e considere d i n eac h produc t o r proces s change goin g forward , i f suc h criteri a ha s bee n established. Note : Loo k a t 8. 1 o f 1400 1 fo r lif e cycl e perspectiv e an d the impac t o f desig n o n tha t lif e cycle. 8.4 Control of externally provided processes, products and services (ISO 9001:2015) Thi s ma y b e exclude d fro m th e integratio n process. Shoul d thi s b e a consideration , selectio n o f contracte d services ma y includ e environmenta l considerations , o r contractor’s environmenta l performance , a s a criteria. 8.5 Production and service provision (ISO 9001:2015) Thes e requirement s ma y b e integrate d wit h environmental criteria , i f th e provision s o f 8. 3 hav e bee n integrated. Ensur e define d proces s t o contro l qualit y an d environmental criteri a i s considere d i n eac h produc t desig n o r process chang e goin g forward , i f suc h criteri a ha s bee n established.

40. IS O 9001:201 5 & IS O 14001:201 5 Requirement s Objective Minimu m Expectation Meets Expectations 8. Operation (continued) 8.6 Release of products and services (ISO 9001:2015) Thes e requirement s ma y b e integrate d wit h environmental criteria , suc h a s packaging , i f th e provision s o f 8. 3 have bee n integrated. Ensur e define d proces s t o contro l qualit y an d environmental criteri a i s considere d i n eac h produc t design , desig n change, o r proces s chang e goin g forward , i f suc h criteri a ha s been established. 8.7 Control of nonconforming outputs (ISO 9001:2015) Se e 8.6 Se e 8.6 9. Performance evaluation 9.1 Monitoring, measurement, analysis and evaluation Th e organizatio n mus t determin e wha t need s t o be monitore d an d measure d a s wel l a s th e criteria , method an d timin g fo r analysis . Thi s include s monitoring custome r satisfactio n a s wel l a s evaluatin g performance, effectivenes s an d complianc e o f th e integrated managemen t system. Ar e critica l contro l point s determine d i n operation , regulatory requirement s fo r monitoring , weaknesse s identifie d through custome r feedback , an d syste m requirement s fo r monitoring i n bot h qualit y an d environmental? Establis h acceptabl e criteri a parameters , wher e applicable. Ar e monitorin g requirement s define d i n relatio n t o method an d timing? Analyz e an d ensur e sufficien t informatio n i s capture d and provide d fo r Managemen t Revie w t o determin e adequacy, suitabilit y an d effectivenes s o f th e system. 9. 2 Interna l audit Interna l audit s nee d t o b e planne d regularl y t o provide informatio n o n th e integrate d managemen t system’s conformanc e an d effectiveness. I s ris k considere d whe n determinin g th e audi t pla n frequency an d content/processe s fo r bot h qualit y an d environmental? Whil e ther e i s a n expectatio n tha t individual s wil l not audi t wor k fo r whic h the y ar e responsible , individual s with specialize d skil l ca n b e utilize d a s “consultants ” i n area s for whic h the y ar e responsibl e t o ensur e th e competenc y o f the auditor s i s sufficien t t o provid e dept h an d breadt h o f audit. 9.3 Management review Th e integrate d managemen t syste m need s t o b e reviewed a t planne d interval s and , i f needed , actio n shoul d be take n t o ensur e it s continuin g suitability , adequacy, effectivenes s an d alignmen t wit h th e strategi c directio n of th e organization. I s managemen t provide d wit h sufficien t dat a t o ensure decision s mad e i n revie w ar e satisfactory ? The y must understan d result s o f custome r satisfactio n measurements, progres s o n objectives , trend s i n interna l audi t findings, an d curren t regulator y complianc e statu s fo r qualit y and environmenta l befor e the y ca n mak e decision s o n suitability, adequac y an d effectivenes s o f th e managemen t system , and whethe r th e organizatio n i s performin g a s expected.

41. IS O 9001:201 5 & IS O 14001:201 5 Requirement s Objective Minimu m Expectation Meets Expectations 10. Improvement 10.1 General Opportunitie s fo r improvemen t nee d t o b e identified an d necessar y action s shoul d b e implemente d to mee t custome r requirement s an d enhanc e customer satisfaction. • Wha t ar e th e processe s fo r gatherin g informatio n on opportunities ? Thes e ar e critica l t o ensur e goo d inpu t – for qualit y an d environmenta l management. 10.2 Nonconformity and corrective action An y nonconformit y shoul d b e deal t wit h b y takin g action t o correc t an d contro l i t an d evaluate d t o determine an d eliminat e roo t cause . Thi s wil l ensur e tha t the nonconformit y doe s no t recu r o r occu r elsewher e i n the system. I s containmen t o f an y conditio n o f nonconformit y handled immediately? Withou t caus e analysis , yo u canno t determin e th e issu e or issue s tha t le d t o th e nonconformin g condition. Onc e determine d an d implemented , i s correctiv e action verifie d t o ensur e i t no t onl y eliminate d th e nonconforming condition , bu t tha t i t didn’ t caus e anothe r issue? Ar e custome r complaints , agenc y notice s o f violation , process condition s tha t caus e wor k stoppages , incidents , etc . all condition s o f nonconformity , an d requir e analysis , correction an d correctiv e action? 10.3 Continual improvement Th e organizatio n need s t o conside r th e evaluatio n and managemen t revie w t o determin e an y action s needed t o continuall y improv e th e suitability , adequac y and effectivenes s o f th e integrate d managemen t system. I s continua l improvemen t expecte d throughou t the organization’ s proces s – fro m produc t improvement s t o capitol improvement s – fo r qualit y an d environmental? Note : dat a analyze d fo r continua l improvemen t ca n be quantitativ e o r qualitative , bu t mus t demonstrat e target s have bee n met.

42. Information Gathering Understand the area/processes assigned; Understand customer, industry and sectoral requirements/expectations; Compliance requirements; Review previous audit information; Product/service information; Company specific information.

43. Process Approach to Checklist Creation Consider the applicable requirements from the standards Look at: Input Output Interface (i.e. supporting processes) The 4 basic questions from process analysis i.e. Who (responsibility & competency) What (resources) How (controls and methods) Why (objectives/goals & measures) Applicable regulatory requirements or code of practice. 44

44. Typical Questions … Who is the process owner? What is the purpose of your process? Why did you set this as your performance indicator? What are the inputs to your process? What are your process outputs? What are the process parameters? How do you control your process? What do you do with these measurements? 45

45. Conducting the On-site Audits 9 INTEGRATED MANAGEMENT SYSTEM PROCESS BASED INTERNAL AUDITING

46. Internal Auditing Techniques Audit Methods

47. The Audit Triangle 48 Observe (See what they actually do) Question (Ask them what they do) Check (Confirm evidence of conduct)

48. Asking Questions – Filter Funnel Open questions Encourage auditees to talk freely Use What, Where, When, Why, How and Who? Probing questions? Follow-up or focus on more precise details Closed questions Used where you want a clear ‘Yes’ or ‘No’ answer Don’t forget the ‘Please Show Me’! 49

49. Key Points for Interview Who do we audit? The person responsible for the activity to be audited How to begin? Ask the auditee to explain / describe the activity When? Normal working hours 50

50. Audit Process Introduce yourself Explain purpose of audit Ask open question(s) Use probing questions for details Follow “audit triangle” & look for evidence Where nonconformities are detected, confirm with auditee to ensure not mistaken Thank auditee & move on to next 51

51. Auditors Should . . . Avoid ‘nit-picking’ Take good points into account Be punctual Avoid arguments Audit against specifications Respect confidentiality Audit the system not the individual 52

52. Internal auditing techniques Forward Trace Audit Findings Audit Findings Backward Trace

53. Auditing Process – Techniques to Obtain Audit Evidence Interview: Personnel that manage, perform, and verify activities; Also ensure they are responsible for the activity being audited; Listen carefully to responses. Ob s erve: Identi t y, s t at u s, condi t ion, pr o ce s ses, e quipmen t , ac t i v ities, environme n t, and peo p le . Listen: Information from relevant authority and that it is verifiable.

54. Interviews Techniques Be courteous at all times (never act superior) Ask auditee to explain tasks Match questions to levels of responsibility - Management/ Executive Officer – about policy, management structure, support, etc. - Operators – about areas of operation, specific controls, tasks Use appropriate language for questioning (tone or level)

55. Techniques Listen carefully to what is said. Allow time for auditee to think Use open-ended questions. Avoid closed, direct or leading questions Follow a “trail of questioning” Validate (please show me) Interviews

56. Techniques Remember alternative situations (what happens if) Use the “silent question” where appropriate Be systematic (summarize to show understanding) Feedback results Thank the auditee Interviews

57. Types of Questioning Leading question [ I am sure that you have a procedure for operating your forklift? ] Closed question [ Do you have a procedure for operating your forklift? ] Open question [ Could you explain to me your procedure for operating the forklift? ]

58. Controlling the Audit Auditor Should Remain assertive Avoid lengthy discussion or observation Keep track of schedule – not to be led or misled Be thorough and efficient Avoid becoming sidetracked or bogged down Do not antagonize or dictate

59. Basic Rules Establish that relevant documents are of correct issue Do not let only one person do all the talking Observe work progression when necessary Evaluate physical evidence and controls Make comprehensive notes Seek verification Do not assume people will lie but need to verify statement, if necessary Controlling the Audit

60. Audit Reporting 10 INTEGRATED MANAGEMENT SYSTEM PROCESS BASED INTERNAL AUDITING

61. Nonconformities Must Be Factual/objective Clear & concise Define the exact instance Give reference (to ISO 9001, ISO 14001 and ISO 45001 / documented IMS) Locatable Acknowledged 62

62. NON CONFORMITY Non-ful f illment of a s p e c if i ed requi r eme n t: Not doing it P artially doing it Doing i t the w r ong way Specified requi r emen t : OH&S standard (I S O 45 001 : 201 8 ) OH&S manag e ment system S t atu t ory or r e g u lato r y requi r eme n ts

63. Non-Conformance Definitions Audit findings No-conformance vs. Non-conformance Non-conformity NC Requires Documented Request for Action Documented as Corrective/Preventive Action Request ( CPAR ) Non-conformance Report (NCR) Finding Statement

64. Requirements Non-conformance should be raised clearly against audit criteria State clearly the nature of non-conformance - Absence of documentation - Inadequate documentation - Lack of implementation - Inadequate implementation - Lack of evidence Non-Conformance

65. Classification Major – (System Breakdown) total failure to fulfill a specified requirement of the standard that is applicable to the organization Absence of documented procedure required by the standard Non-implementation of the entire procedure Absence of documentation to demonstrate conformance to the system requirements of the standard Aggregation of minor non-conformances Non-Conformance

66. Classification Major When a non-conformance is directly related to a significant and immediate hazard to the organization’s ESH performance. When a non-conformance is directly related to a failure to report a legal non-compliance to an enforcement authority where required to do so by a license condition, authorization, etc. Non-Conformance

67. Classification Major When a non-conformance is directly related to a failure to recognize and record when an objective or target is not met. When a non-conformance has led to, or is a failure of a procedure to identify and/or evaluate a hazard or which is obviously and highly significant. When a non-conformance is failure to act, either by means of setting of an objective or applying operational control, or monitoring related parameter in instances where ESH risks is identified and evaluated as highly significant. Non-Conformance

68. Classification Minor –lapse in the system that has limited effect on the integrity of ESHMS - Part of a procedure not implemented - Missing records, data, document Observation – potential source of a non-conformance - Trivial lapse in the system - No direct evidence of failure - Suspect in terms of a long-term sustainability of the system - Action taken is not mandatory but encourage Non-Conformance

69. Documenting the Finding Should include - Q ESHMS documents or clause of the standard not being complied - Area/ Function where the NC was found - Audit evidence - Classification (where applicable) - Name of auditor, date of audit and agreed close-out date Non-Conformance

70. CLEAR CONCISE SUPPORTED BY EVIDENCE BASED ON FACTS Non-Conformance

71. Finding statement System-Based The current method of handling, storage and disposing hazardous wastes is inadequate against the requirements of DAO 29, as evidenced by: WTP sludge is not secured and labeled Contaminated materials are mixed and disposed with ordinary wastes, Storage area is accessible to everybody Non-Conformance (Finding Statement)

72. Documentation of audit findings Audit Execution – Audit Findings Positive finding Observation Nonconformity Minor nonconformity Major nonconformity

73. Audit Reporting Audit Execution – Audit Findings Audit Finding Audit findings must be recorded so that are reproduceable and should include objective evidence to support findings. Recording Non Conformance Factual observation (What) Identified location (Where) Established criteria (Why & how) Person involved (where unavoidable) Who?

74. How To Get The Most Out Of Internal Audit Must be a ‘ no-blame’ culture Auditor and Auditee should work in partnership. Encourage staff to reveal problem areas Both Auditor and Auditee should look for improvements Audits must be seen as essential part of business Positive terms can be used (e.g. ‘finding’ not ‘nonconformity ’) ‘Findings’ or ‘nonconformities’ should be seen as ‘opportunity to improve’ Must be adequate time and resources for Auditee /Auditor to perform audit 75

75. Summary of successful internal audits

76. AUDIT ASSIGNMENTS 78

77. Practice of Closing Meeting

78. end INTEGRATED MANAGEMENT SYSTEM PROCESS BASED INTERNAL AUDITING