ENI - IRAQ

ZUBAIR OIL FIELD DEVELOPMENT PROJECT

QUALITY AUDIT PLAN

EX-DE 02 07/07/14 Approved for Design R. Bielma R. Bielma M.T.Suh M.T.Suh D. De Marzo
EX-DE 01 01/07/14 Issued for Design R. Bielma R. Bielma M.T.Suh M.T.Suh D. De Marzo
EX-DE 00 16/06/14 Issued for Design R. Bielma R. Bielma M.T.Suh M.T.Suh D. De Marzo
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Status number Prepared Checked Approved Contractor Company
Date Description
by by by Approval Approval
Revision Index
Company logo and business name Project name Company Document ID
ZUBAIR OIL FIELD 00251210DBQRJA003
DEVELOPMENT
eni iraq b.v. PROJECT Job N.
Contractor logo and business name Contractor Document ID
00251210DBQRJA003

Contract N. 252/2011/DK/ZU
SAMSUNG ENGINEERING
Vendor logo and business name Vendor Document ID

Order N.
Facility Name Location Scale Sheet of Sheets
ZUBAIR – NORTH NEW DEGASSING STATION ONSHORE n.a. 1 of 16

Document Title Supersedes N.

QUALITY AUDIT PLAN – HAMMAR MISHRIF DGS Superseded by N.

Plant Area Plant Unit
n.a. n.a.
Software: Microsoft Word 2007 File No. 00251210DBQRJA003_EXDE02_16

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REVISION HISTORY

Rev. Date Nr. of Description

sheets
EX-DE 00 16/06/2014 16 Issued for Design
EX-DE 01 01/07/2014 16 Issued for Design (comments incorporated)
EX-DE 02 07/07/2014 16 Approved for Design

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INDEX

1 INTRODUCTION .............................................................................................................................. 4
2 DEFINITIONS & ACRONYMS ......................................................................................................... 4
3 SCOPE OF APPLICATION .............................................................................................................. 6
4 NORMATIVE REFERENCES .......................................................................................................... 7
5 RESPONSIBILITIES ........................................................................................................................ 7
5.1 Project Manager ...................................................................................................................... 7
5.2 Quality Assurance (QA) Manager ............................................................................................ 7
5.3 Site Quality Manager ............................................................................................................... 8
5.4 Lead Auditor ............................................................................................................................ 8
5.5 Auditor ..................................................................................................................................... 8
6 QUALITY SURVEILLANCE ............................................................................................................. 9
7 AUDIT SCHEDULE .......................................................................................................................... 9
8 PROCEDURE FOR INITIATING THE AUDIT .................................................................................. 9
8.1 Appointment of an Audit Team ................................................................................................ 9
8.2 Auditor Qualification ............................................................................................................... 10
8.2.1 Education ........................................................................................................................... 10
8.2.2 Experience/Training ........................................................................................................... 10
8.3 Preparation of the Specific Quality Audit Plan ....................................................................... 10
8.4 Audit Checklists ..................................................................................................................... 11
8.5 Audit Notification .................................................................................................................... 12
9 OPENING MEETING ..................................................................................................................... 12
10 CONDUCTING THE AUDIT ........................................................................................................... 12
10.1 Principle ................................................................................................................................. 12
10.2 Audit Interview ....................................................................................................................... 12
10.3 Key Assessment .................................................................................................................... 13
10.3.1 Plans .............................................................................................................................. 13
10.3.2 Procedures .................................................................................................................... 13
10.3.3 Project Management System ......................................................................................... 13
10.4 Collecting and verifying information ....................................................................................... 13
10.5 Generating Audit Findings ..................................................................................................... 14
11 CLOSING MEETING...................................................................................................................... 14
12 REPORTING .................................................................................................................................. 14
12.1 Preparing the Audit Report .................................................................................................... 14
12.2 Distribution ............................................................................................................................. 15
13 CONDUCTING AN AUDIT FOLLOW-UP ...................................................................................... 15
14 CONTROL OF AUDIT RECORDS................................................................................................. 15
14.1 Audit Finding Report (AFR) Log ............................................................................................ 15
14.2 Audit Report Numbering ........................................................................................................ 16
15 ATTACHMENTS ............................................................................................................................ 16
15.1 Attachment 1 – Quality Audit Process Flow Chart ................................................................. 16
15.2 Attachment 2 – Specific Quality Audit Plan Format ............................................................... 16
15.3 Attachment 3 – Quality Audit Report Format ......................................................................... 16
15.4 Attachment 4 – Quality Audit Finding Report Format ............................................................ 16
15.5 Attachment 5 – Quality Audit Finding Report Log .................................................................. 16
15.6 Attachment 6 – Quality Audit Interval Schedule..................................................................... 16

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1 INTRODUCTION
The audit program defines the minimum requirements for planning internal audits
and surveillances to determine whether the Quality Management System
conforms to the established requirements of the Project’s established Quality
Management System, the requirements set in the Project Quality Plan and
COMPANY’s requirements and specifications.

Such verification is for determining the effective implementation and verification of

the aforementioned requirements for the successful execution of the Project.

2 DEFINITIONS & ACRONYMS

For the purpose of this Quality Audit Plan, the following definitions and acronyms
shall be applicable and have the meaning herewith described, in addition to those
definitions described in the Contract, General Conditions Section 1 Definitions and
Interpretation, and ISO 9000:2005 - Definitions.

 Audit Systematic, independent and documented process

for obtaining audit evidence and evaluating it
objectively to determine the extent to which audit
criteria are fulfilled (ISO 9000:2005), (ISO
19011:2011)

 Audit Criteria Set of policies, procedures or requirements (ISO

9000:2005), (ISO 19011:2011) applicable to the
Project.

 Audit Evidence Records, statements of fact or other information

which are relevant to the audit criteria and verifiable
(ISO 9000:2005), (ISO 19011:2011).

 Audit Finding Results of the evaluation of the collected audit

evidence against audit criteria (ISO 9000:2005),
(ISO 19011:2011).

 Audit Finding Report (AFR); is the report generated for “findings” or “non-
conformances” spotted during the audit. The audit
finding report describes only the deficiencies that
require corrective actions.

 Audit Report (AR): is the report used for recording the overall
activities executed during the audit, including
positive outcomes such as best practices.

 Audit Plan Description of the activities and arrangements for an

audit (ISO 9000:2005), (ISO 19011:2011).

 Auditor It refers to the person who is qualified to perform

quality audits as per CONTRACTOR’s standard
Instruction for Quality/Environmental Audit
Personnel Qualification (SPQ0018ENN). An auditor
is the person with the demonstrated personal
attributes and competence to conduct and audit
(ISO 9000:2005), (ISO 19011:2011).

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 Auditor, Lead The designated auditor who is qualified to lead the

audit team in accordance with CONTRACTOR’s
standard Instruction for Quality/Environmental Audit
Personnel Qualification (SPQ0018ENN).

 CAR Corrective Action Request; it’s a written document

or report issued to an organization for correcting
audit findings.

 CONTRACT Binding agreement composed by the documents

listed in the Form of Agreement (with contract
number 252/2011/DK/ZU) and any amendments.

 Corrective Action Action to eliminate the cause of a detected finding

or other undesirable situation (ISO 9000:2005)

 COMPANY Eni Iraq B.V. (Operator), Occidental, Korea Gas and

Missan Oil Company (or as defined in the Form of
Agreement and Contract conditions).

 CONTRACTOR Samsung Engineering Co. Ltd.

 Preventive Action Action to eliminate the cause of a potential

nonconformity or other undesirable potential
situation (ISO 9000:2005).

 Procedure Specific (and sequential) way to carry out an activity

or a process (ISO 9000:2005).

 Process Set of interrelated or interacting activities which

transform inputs into outputs (ISO 9000:2005).

 Project, the New North (Hammar Mishirif) Degassing Station,

Zubair Project, Iraq.

 QA Quality Assurance, Part of quality management

focused on providing confidence that quality
requirements shall be fulfilled (ISO 9000:2005)

 QC Quality Control, Part of quality management focused

on fulfilling quality requirements (ISO 9000:2005)

 QMS Quality Management System, set of processes and

activities of the performing organization that
determine quality policies, objectives, and
responsibilities so that the project shall satisfy the
needs for which it was undertaken.

 Quality Surveillance It refers to the continual monitoring and verification

of the status of an entity and the analysis of records
in order to ensure that specified requirements are
being fulfilled. Quality surveillances are unscheduled
and they focus only on specific areas of the
management system and / or final products.

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 Recognized Entity Recognized entities are those entities well known in

the industry for providing specific services and that
are either governmental or private. Examples of
recognized entities in the industry include:
International Register of Certified Auditors (IRCA),
Lloyds Register, TÜ V SÜ D, Bureu Veritas, etc.

 Record Document stating results achieved or providing

evidence of activities performed (ISO 9000:2005).

 Site Location where the construction activities are

executed as defined in the Scope of Work for the
EPC for North (Hammar Mishirif) Degassing Station.

 Specification Document stating requirements (ISO 9000:2005).

 Special Process A process where the conformity of the resulting

product cannot be readily or economically verified
(ISO 9000:2005)

 Sub-Contractor While the term subcontractor refers to both vendor

and supplier in accordance with the Contract, for
purposes of differentiation between manufacturing /
vendor subcontractors and construction, the term
“sub-contractor” in this Quality Audit Plan shall refer
to those companies entering into a sub-contract
agreement with CONTRACTOR for ‘construction’
related activities only.

 Vendor It refers to those companies entering into a sub-

contract agreement with CONTRACTOR for the
supply or manufacturing of equipment and materials
during the procurement stage. Thus, the term
Vendor refers to equipment suppliers or
manufacturers and fabricators.

 Work All activities performed for the Project throughout

the Project execution.

3 SCOPE OF APPLICATION
This Quality Audit Plan is intended to provide guidance for planning, conducting
and reviewing quality audits on the Project performed by CONTRACTOR.

The key aspects of the assessment execution process include:

1) Detailed planning of assessments.
2) Execution and reporting of assessments.
3) Follow-up and closeout of assessment findings.

The document is applicable to quality audits conducted by CONTRACTOR during

the Project. Audits will be carried out to make sure that CONTRACTOR’s
engineering, procurement and construction processes are acceptable, functioning
and effective as stipulated in plans and procedures.

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The overall process for conducting audits, from the initiation until completion and
close out of audit findings (if any) is best described in the quality audit process
flow chart included in Attachment 1 of this Quality Audit Plan.

4 NORMATIVE REFERENCES
The following references shall govern the Quality Audit procedure and are
applicable to the Contract:

 Appendix “F” Quality Requirements (SGI-QUAL-014).

 00251210DBQAJA001 Project Quality Plan
 ISO 9000:2005 Quality Management Systems – Fundamentals
and Vocabulary
 ISO 9001:2008 Quality Management Systems – Requirements.
 ISO 19011:2011 Guidelines for quality for auditing management
systems.
 SMQ0001E CONTRACTOR’s QMS Quality Management
Manual.
 SPQ0016ENN CONTRACTOR’s standard “Internal Quality Audit
Procedure”.
 SPQ0018ENN CONTRACTOR’s standard “Instruction for
Quality / Environmental Audit Personnel
Qualification”.

5 RESPONSIBILITIES

5.1 Project Manager

CONTRACTOR’s Project Manager has the responsibility and authority for the
following:

1) Ensuring the implementation of quality audits in the Project.

2) Verifying that corrective and preventive actions have been implemented
on a timely manner.
3) Maintaining an optimum quality level in the Project.

5.2 Quality Assurance (QA) Manager

CONTRACTOR’s Quality Assurance Manager has the responsibility and authority

for the following:

1) Requesting the designation of an Audit Team to CONTRACTOR’s

Corporate Quality Management Team.
2) Establishing the overall Project quality audit plan and schedule.
3) Performing unscheduled surveillances and audits when required.
4) Performing scheduled audits and / or participating in the audits performed
by an independent audit team.
5) Reviewing the audit plans and audit reports, and
6) Monitoring the implementation of corrective actions, and verifying that
such corrective actions are taken.
7) Notification to COMPANY of scheduled quality audits.
8) Reporting to COMPANY and CONTRACTOR’s Project Manager of the
results from the audits and surveillances performed.
9) Verifying that corrective and preventive actions are taken.
10) Maintaining the audit schedule, rescheduling of audits if necessary, and
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reporting and notifying to CONTRACTOR’s audit team and COMPANY of

the audit schedule.
11) Maintaining audit records and relevant information.

5.3 Site Quality Manager

CONTRACTOR’s Site Quality Manager has the responsibility and authority for the
following:

1) Performing Quality Audits on construction subcontractors during the

construction stage.
2) Establishing the Site quality audit plan and schedule.
3) Performing unscheduled surveillances and audits on construction
subcontractors if may be required.
4) Performing scheduled audits on construction Subcontractors and
participating in the audits performed by the independent audit team from
Home Office.
5) Preparing the relevant audit plans and audit reports for Audits conducted
during the construction stage, and
6) Monitoring the implementation of corrective actions by the relevant
construction disciplines, and verifying that such corrective actions are
taken.
7) Notification to COMPANY of scheduled quality audits.
8) Reporting to COMPANY and CONTRACTOR’s Site Manager of the
results from the audits and surveillances performed.
9) Verifying that corrective and preventive actions are taken.
10) Maintaining the audit schedule, rescheduling of audits if necessary, and
reporting and notifying to construction Subcontractors and COMPANY of
the audit schedule.
11) Maintaining audit records and relevant information.

5.4 Lead Auditor

CONTRACTOR’s Quality Lead Auditor has the responsibility and authority for the
following:
1) Overall responsibility and authority for the performance of the audit
including the preparation of the specific quality audit plan, managing the
audit and preparing the final audit report.
2) Organizing and orienting the audit team
3) Preparation of the specific Audit Plan and Audit checklists
4) Leading the opening and closing meetings with the auditee senior
management
5) Reviewing the Project specific documentation and relevant information
6) Reviewing the audit results and preparation of the audit report
7) Approval of the corrective action planned for audit findings
8) Perform follow-ups on the audit results

5.5 Auditor

CONTRACTOR’s Quality Auditor has the responsibility and authority for the
following:
1) Carrying out assigned audit tasks
2) Determining whether the Quality Policy and the system procedures are
being followed, and objectives being achieved,
3) Performing the scheduled quality audits under the guidance of the Lead
Auditor.
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4) Recording the quality audit findings and collecting the relevant evidence.
5) Evaluating the Project’s quality system
6) Reporting the audit conclusion and preparation of the preliminary audit
report and audit finding reports
7) Verification of corrective and preventive actions taken.
8) Maintaining the audit documents, records and evidences.

6 QUALITY SURVEILLANCE
1) CONTRACTOR’s QA Manager / Site Quality Manager will perform Quality
Surveillances as per the planned schedule and, as minimum, according
to the following guidelines:
2) The quality surveillance scope and objectives have to be informed to
each designated Team before surveillance takes place, in order to have a
better assistance from the organization under surveillance. Random
surveillances may be planned as well at the discretion of CONTRACTOR
and / or COMPANY, when applicable.
3) QA manager / Site Quality Manager shall submit the Quality Surveillance
Report to COMPANY for its information.
4) When a potential non conforming situation is detected, a Preventive
Action Request (PAR) shall be issued to the organization responsible.
5) When a non conformance occurs, the QA Manager / Site Quality
Manager shall issue a Non Conformance Report, as per the approved
Non Conformance Procedure and / or a Corrective Action Request.
6) Each preventive action request or no conformance shall be analyzed and
a corrective and preventive action should be taken under the approval of
each relevant team or the QA Manager / Site Quality Manager.
7) The QA Manager / Site Quality Manager shall review the effectiveness
and suitability of the corrective action plans and verify and confirm their
implementation.

7 AUDIT SCHEDULE
Quality Audits will be performed at intervals depending on the progress schedule
or milestones. Attachment 6 includes the quality audit intervals at which
throughout audits will be performed. The QA Manager / Site Quality Manager will
control the audit schedule separately and may revise it in order to reflect the
Project’s conditions if required.

Unscheduled audits will be implemented on the following cases:

1) Changes in the CONTRACTOR’s organization (key personnel) and work

processes.
2) Observation of significant or repeated non-conformances on the Project
or work process.
3) Repeated COMPANY’s complaints
4) Situations where the Project QA Manager / Site Quality Manager or
CONTRACTOR’s Corporate Quality Management Team judges that an
audit is necessary.

8 PROCEDURE FOR INITIATING THE AUDIT

8.1 Appointment of an Audit Team

CONTRACTOR’s Corporate Quality Management Team will select the Audit

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Team for the Project. The Audit team may be composed of one or more qualified
auditors who are not directly involved in the Project. When the audit team is
composed only of one auditor, the auditor shall be a qualified Lead Auditor. In any
case, the Project QA Manager will participate along with the Audit Team in the
audit process.

8.2 Auditor Qualification

All audits shall be carried out by Quality Assurance personnel who are not directly
involved in the area to be audited. Audits shall be performed in accordance with
this Quality Audit Plan, and check lists.

In order to be designated as Auditor and/or Lead Auditor, the person shall be

qualified in accordance with CONTRACTOR’s standard Instruction for
Quality/Environmental Audit Personnel Qualification (SPQ0018ENN).

8.2.1 Education

Auditors shall have completed at least a high school education with an Audit
experience of over 4 years, or shall have completed University or College
education with at least 2 years of audit experience.

Lead auditors education shall be the same as the education requirements for
Auditors.

8.2.2 Experience/Training

1) Auditors shall have a minimum of four years of practical experience (not

including training). Two out of those four years shall be in a quality related
activity, such as, engineering, procurement and construction, etc.;
2) Auditors shall have participated as Auditors in a minimum of four audits
(either performing document reviews, actual audit activities, or audit
reporting); and
3) Participated in CONTRACTOR Quality Audit or Training Course
certificate and, or participated in external Audit Training Course.
4) Lead Auditors shall meet the Auditors experience/training requirements,
as well as he/she shall have participated in at least three complete audits.
Additionally lead auditors shall have taken a lead auditor’s course and
shall be recognized as such either from CONTRACTOR or by a
recognized entity.

Exceptions to the above experience / training requirements are personnel who

possess current Auditor or Lead Auditor qualifications from a recognized entity
(such as IRCA, TUV, Lloyds, etc).

Personnel who possess a current Auditor or Lead Auditor qualifications from

another company may be qualified based on the verification of objective evidence
for the qualification by the CONTRACTOR’s Corporate Quality Management
Team.

8.3 Preparation of the Specific Quality Audit Plan

Specific Audit plans will be prepared prior to conducting the audit, which will be
submitted to COMPANY and the audited organization along with the audit
notification.

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While the Quality Audit Plan (this document) sets the general guidelines and the
steps to be taken for performing audits along with the planned intervals in which
quality audits will be performed throughout the Project, the Specific Audit Plans
will contain detailed information as to when the audit will be performed, the names
of the appointed auditors, which organizations will be audited and a preliminary
checklist of the items to be verified if necessary.

The Lead Auditor shall establish and document the specific Audit Plan before
conducting the audit in order to provide the basis of the audit and consensus
between the audited organization and the audit team. The Specific Audit Plan is
aimed at facilitating an organized audit process, proper scheduling and
coordination of the audit activities.

The Audit Plan shall cover the following:

1) The audit objectives for that particular audit.

2) The audit criteria and any reference documents.
3) The audit scope, including identification of the organizational and
functional units and processes to be audited.
4) The dates, time and places where the audit activities are to be conducted.
5) The expected time and duration of audit activities, including the opening
meetings, meetings with the auditee’s management, close out meetings
and any other meeting that may be required.
6) A draft check-list summarizing the items to be addressed at the Quality
Audit.
7) Audit team members, and
8) Previous audit findings to be verified (if any)

The Specific Audit Plan format is included in Attachment 2 – Specific Quality

Audit Plan Format.

8.4 Audit Checklists

Audit Checklists shall be developed from the documents listed on the specific
audit plan or from the COMPANY’s standards. The audit checklists are intended
to be used as a guide and should not restrict the audit investigation when
concerns raise further questions that are not specifically included in the checklists.

Completed audit checklists will include:

1) Audit checklist number

2) Audited organization (team, group or company)
3) Reference document (if any)
4) Requirement to be audited (paraphrased or quoted)
5) Space for documenting the objective evidence reviewed and the results
obtained.

The basis for developing quality audit checklists will be the applicable regulations,
the Contract, COMPANY approved plans, procedures and the ISO 9001:2008
requirements.

Areas that may not be part of the checklists can be investigated during the audit.
These areas and the relevant observations or remarks shall be documented.

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8.5 Audit Notification

Notification of audit shall be given to COMPANY and the Project organization

along with the Specific Audit Plan fourteen (14) days before carrying out the audit.

9 OPENING MEETING
Effective communication between the audit team and the assessed organization's
personnel is an essential prerequisite for successful audit outcomes and for
understanding the audit process. As such, Lead Engineers and / or key personnel
of the organization shall attend the opening meeting prior to commencement of
the audit.

The purpose of the Opening Meeting is to:

1) Confirm the audit plan;

2) Meet and greet the auditee and auditors, as well as for confirmation of the
personnel that will be interacting during the audit.
3) Provide a short summary of how the audit activities will be undertaken;
4) Remind all attendees of the objectives and scope of the Audit;
5) Confirm the interview schedule of each person and sequence;
6) Ask them for advanced preparation of the documentation to be presented
as necessary for the Internal Audit; and
7) Provide an opportunity to the auditee to ask questions related to the audit
in general.
8) Scheduling the closing meeting

10 CONDUCTING THE AUDIT

10.1 Principle

The Audit team members (auditor, lead auditor), working under the direction of
CONTRACTOR’s Quality Management Team, will assess the suitability and
effectiveness of the organization's management and execution of the subject
scope through a combination of interviews, observations and review of processes
and their associated input and output records.

10.2 Audit Interview

The audit assessment will be performed by having one to one interviews with
Lead Engineers or key representatives of each discipline to be audited, as well as
with any other personnel responsible or involved in the relevant process under
audit.

The auditee shall supply documented evidence of adherence (or non-adherence,

if is the case) to the established processes relevant to the Project.

The auditor shall take notes of the results with sufficient details to substantiate
objective evidence of the audit results.

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10.3 Key Assessment

10.3.1 Plans

The Audit Team will assess that Plans and / or procedures relevant to the Project
and in accordance with COMPANY’s requirements are developed and
documented at the commencement of the Project detailing how the
CONTRACTOR’s work processes will be adapted to meet the Contract
requirements.

In addition, CONTRACTOR will assess that each discipline Lead Engineer or Key
Personnel develops and documents its relevant execution plan which shall include
as a minimum the following specified job requirements contents:

1) The requirements, which have been agreed between COMPANY and

CONTRACTOR
2) Deliverable list and approval criteria;
3) Schedule of deliverables;
4) Relevant organization (including any staff assisting on the works);
5) Any control plans and procedures;
6) Related documents list (contract, estimate data and ITB etc.)

10.3.2 Procedures

This assessment is to check that the CONTRACTOR’s processes are acceptable

and functioning as stated in established plans and procedures.

As mentioned earlier, the purpose of this assessment is to assess the adequacy

and effectiveness of the executing organization (engineering, procurement,
construction teams, subcontractors, etc) work processes, and subsequently to
ensure that it is complying with these work processes.

10.3.3 Project Management System

Apart from the established plans and procedures, the following Project matters
shall be reviewed and investigated in order to evaluate:

1) Compliance with the planned arrangements between CONTRACTOR and

COMPANY, as well as the statutory and regulatory requirements.
2) Conformance to the ISO 9001 requirements
3) Work processes that need to be identified and applied effectively
4) Identification of the needs of the Project
5) Verification of the utilization of the resources and information technology
set for the Project, as well as the implementation of CONTRACTOR’s
rule and processes.
6) Suitability of the established objectives and performance measurement
7) Compliance with the baseline schedule.
8) Any other relevant issue that may affect the Project negatively.

10.4 Collecting and verifying information

During the audit, information relevant to the audit objectives, scope and criteria,
including information relating to interfaces between functions, activities and
processes, should be collected by appropriate sampling and should be verified by
Auditor and be recorded.

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The audit evidence is based on samples of the available information. Therefore

there is an element of uncertainty in auditing, and those acting upon the audit
conclusions should be aware of this uncertainty.

10.5 Generating Audit Findings

Audit evidence should be evaluated against the Audit Criteria to generate the
audit findings. Audit findings can indicate nonconformity to Audit Criteria.

Nonconformities and their supporting audit evidence should be recorded. They

should be reviewed with the auditee to obtain acknowledgement that the audit
evidence is accurate, and that the nonconformities are understood. An audit
finding will generate a corrective action. Quality Audit findings will be recorded in
the Audit Finding Report format provided in Attachment 4, and will be issued to
the organization incurring in the finding for its resolution.

Items or actions which may not be considered as Audit Findings but that may be
required to be improved in order to avoid issues in the future may be regarded as
‘Recommendations’ by the Audit Team.

11 CLOSING MEETING
Audit evidence should be evaluated against the Audit Criteria to generate the
audit findings. Audit findings may indicate a nonconformance to Audit Criteria.
These will be summarized briefly in the Audit Finding Report.

A closing meeting, chaired by the Lead Auditor, should be held to present the
Audit Findings and conclusions in such a manner that they are understood and
acknowledged and agreed by the auditee. Participants in the closing meeting
should include the auditee, key personnel and any other parties, including
COMPANY.

If specified by the audit objectives, recommendations for improvements should be

presented. It should be emphasized that recommendations are not binding.
Additionally, best practices shall be highlighted during the closing meeting and the
good efforts of personnel shall be recognized.

12 REPORTING

12.1 Preparing the Audit Report

The Lead Auditor is responsible for the preparation of the Audit Report which shall
be issued within two (2) weeks after completion of the actual audit activities. The
Audit Report will be dated, reviewed and approved by Quality Management Dept.
Manager and will be provided to COMPANY for information.

The Audit Report should include the following as a minimum:

1) Audit objectives and scope
2) Organization audited
3) Audit team leader and members
4) Dates and places where activities were conducted
5) Audit criteria
6) Audit conclusions
7) Audit recommendations

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The quality audit report format has been included in Attachment 3 for reference.

12.2 Distribution

The approved Audit Report shall be distributed to COMPANY, Project Team

(including the Project Manager), the audited organization and shall contain the
Audit Finding Report (if any) as well as the Corrective Action Request (if any)
within two weeks of completion of the Audit.

13 CONDUCTING AN AUDIT FOLLOW-UP

CONTRACTOR’s QA Manager / Site Quality Manager and / or Auditors will issue
the Audit Finding Report (AFR) based on objective evidences detected during the
audit activities to relevant organizations for its correction.

The organization concerned with the AFR shall provide a response indicating the
corrective action and a root cause analysis for the finding. In addition, the
organization responsible for correcting such findings shall identify the scheduled
completion date.

Completion dates for audit findings shall be within 15 days of the notification of the
Audit Finding Report unless that, due to the nature of the finding, the completion
date may be set for later. In such cases in which the completion date goes
beyond 15 days, the reason shall be clearly stated and agreed.

Such actions are usually decided and undertaken by the auditee within an agreed
timeframe and are not considered to be part of the audit.

14 CONTROL OF AUDIT RECORDS

14.1 Audit Finding Report (AFR) Log

CONTRACTOR’s QA Manager / Site Quality Manager shall record the issued

AFR’s on the AFR log. The AFR log shall be maintained in order to provide
tracking of the status of the Audit Findings until these are closed out.

A sample audit finding report log is included in Attachment 5 for reference.

The organization responsible for taking corrective actions on the AFR shall
provide a response indicating the corrective action taken and a root cause
analysis indicating the scheduled completion date on the requested response due
date.

The organization responsible for taking corrective actions on the Audit Finding
Report shall notify to the Quality Audit Team and / or the QA Manager / Site
Quality Manager once the corrective actions are completed. The QA Manager /
Site Quality Manager and / Auditors shall verify the corrective actions taking by
assuring that the noted condition has been rectified as per the corrective action
plan, and that satisfactory results have been obtained. A copy of the corrective
action taken shall be maintained.

Confirmation and follow up by the Audit Team on the corrective actions taken
shall be reviewed on the following scheduled audit. Whereas Non Conformances
have been found, which may hinder the progress or quality of the Works, an

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additional unscheduled audit (spot check) will take place before the following
scheduled audit in order to verify that the corresponding corrective action takes
place, and that non conformances are closed out.

14.2 Audit Report Numbering

The audit report and plans prepared will include the following document
numbering scheme, which is CONTRACTOR’s standard numbering system for
audits:

XXXX - XX - XXXX - XXX

Serial No. (001, 002…)

CONTRACTOR’s Job No. (SU2745)

AP: Audit Plan

AC: Audit Checklist
AR: Audit Report
AFR: Audit Finding Report

Year of Performed Audit

15 ATTACHMENTS

15.1 Attachment 1 – Quality Audit Process Flow Chart

15.2 Attachment 2 – Specific Quality Audit Plan Format

15.3 Attachment 3 – Quality Audit Report Format

15.4 Attachment 4 – Quality Audit Finding Report Format

15.5 Attachment 5 – Quality Audit Finding Report Log

15.6 Attachment 6 – Quality Audit Interval Schedule

This document is property of eni Iraq B.V.

It shall neither be shown to Third Parties not used for purposes other than those for which it has been sent.