Audit Process

Source of
Sampling
information

Audit Audit
Evaluation
Evidence Criteria

Audit
Reviewing Outcome
Findings

Session 11 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

 Collecting and Verifying Information
 During the audit, information relevant to the audit objectives, scope and criteria,
including information relating to interface between functions, activities and
processes, should be collected by means of appropriate sampling and should be
verified. Audit evidences leading to audit findings should be recorded
 If during the audit and collection of evidences, the audit team becomes aware of
any new or changed circumstances or risks, these should be addressed by the
team accordingly as they are given decision making authority by audit leader
 Interview
 Observation

Session 11 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

 Generating Audit Findings
 Audit findings are either conformity or
nonconformity, compliance or noncompliance
 Nonconformities with audit evidence
constitute audit finding
 Nonconformities may be graded as
major/minor
 Efforts shall be made to satisfy diverging
opinion about nonconformity and its grading
 Audit findings shall be reviewed by the audit
team at appropriate stage

Session 11 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

 Sampling -Why

 When it is practically not possible to

audit the whole population

 When cost effectiveness is desired by

the client

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 Sampling- Judgement-based
Judgment is based on the knowledge, skills and
experience of the audit team; the following to be
considered:
 Previous audit experience within the audit scope.
 Complexity of the requirements, including legal, in-
order to achieve objectives.
 Complexity and interaction of the processes.
 Changes in technology, humans and management.
 Previously identified risks areas.
 Output from the management review report.

Session 11 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

 Sampling- Statistical Sampling

 Statistical sampling is based is on the

characteristics of the overall
population from which samples are to
be taken
 Attributes-based (sample outcome is
either correct or incorrect/Pass or Fail)
 Variable-based (the outcome of the
sample is in a variable range)

Session 11 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

 Selecting Source of Information
The scope and complexity of the audit context determine the
source of information for collecting the audit evidence:
 Interviews- employees, management, suppliers, customers
 Observation of activities and the surrounding work environment.
 Documented information, policies. Objectives, plans,
procedures, standards, instructions, specifications, drawings,
contracts
 Documented information, audit, management review, corrective
actions, inspections, minutes of meetings, results of tests.
 Data summaries, analysis and performance indicators
 Sampling plans
 Customer feedback, external audit reports, suppliers' ratings
 Websites
 Simulation and modeling

Session 11 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

Guidance on Visiting Auditee’s Premises
Ask Ask for permission and access if controlled.

Provide adequate information to the auditors about security requirements, safety

Provide requirements, cultural issues, any vaccination requirements, and other clearances.

Seek Seek information about PPE who will provide and what type.

Inform Inform the concerned people about the visit.

Session 11 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

Guidance while Performing on-site Activities
during Audit Do not disturb Do not disturb operations.

Ensure Ensure safety.

Communicate Communicate emergency procedures.

Communicate Communicate properly.

Ensure Ensure guide is with you.

Do not touch Do not touch any equipment.

Case In case an incident took place, take it up with auditee.

Take Take permission to take photographs.

Take Seek permission to keep the documented information or record.

Do not collect Do not collect personal data.

Session 11 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

Conducting Interview
 Explain the reason for the interview.
 Put the person at ease.
 Ask simple and to-the-point
questions.
 Summarize the interview and review
with the person interviewed.
 The interview shall be held with the
appropriate person.
 Conduct interview during work hours.

Session 11 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

 Questioning Techniques: 5W’s &1H

How?

What?

Where?

When?

Why?

Session 11 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

 Site Visit
 The site visit comprises of a detailed walk-around
of the area(s) to be audited, with a significant
emphasis on the largest energy-consuming
assets or SEUs.

 Typically, this involves reviewing energy and

utility systems with the respective area
supervisors and discussing the current
operations, maintenance and control regimes of
each energy-using piece of equipment.

 The discussions should cover various

improvement categories. Use a camera to
record, for example, settings or condition of
insulation, if allowed.
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 Assess Energy Management
 The assessment of the client organisation’s
overall approach to energy management
should be carried out with senior
management in order to determine what
they could do to embed energy
management principles further within the
organization structure.

 Specifically, the assessment should be used

to determine current practice, and the
progress and achievements made to date.

 An example on the following slide

illustrates the potential status of the
organization.
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Example: Assessment of Current EnMS
Example: Improvement Opportunities
 Technical Areas to Consider
A number of technical areas must be considered when carrying out an energy audit.
Depending on the organization being audited, certain areas will require a technical
assessment in order to identify opportunities for energy efficiency improvements.

Areas that may require examination include, but are not limited to, the following:

Buildings and Heating, controls and

Lighting HVAC
building fabric boilers

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 Pumps Refrigeration Industrial Processes Transport fleet

Wastewater Compressed air Renewable energy

treatment plants
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 Audit Findings

 When determining audit finds give due

consideration to the following;
 Follow up on the previous audit’s
documented information outcomes.
 Requirements of the audit client.
 Opportunities for improvements.
 Sample size.
 Categorization of audit finding if any.

Session 11 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

 Recording Nonconformities

When recording nonconformities, consider the

following:
 Identification of criteria against which
conformity was noted
 Description of non-conformity and criteria
 Classification of non-conformity.
 Non-conformity declaration
 Audit evidences to some degree
 Related audit findings, if applicable

Session 11 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

 Determining Audit Outcome
Audit outcome: Address the following issues:

 The effective implementation,

maintenance, and improvement of MSS
 The capability of the management review
process to ensure continuing SAEEI
(Suitability, Adequacy, Effectiveness,
Efficiency, Improvement) of MSS
 Achievement of the audit scope, objectives,
criteria
 Extent of conformity

Session 11 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

 Correction

 Take actions to eliminate

non-conformity

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 Classification of Non-Conformities

Corrective Action
Minor Non
Major Non conformity
 Perform root cause analysis conformity (Minor NC)
Opportunity for
improvement
 Take actions (Major NC)
(OFI)
• Minor lapse
 Verify effectiveness of • Major which may
• Recommenda
corrective actions deviation or lead to a
tion for
collapse in the problem in
 Available & documented system future if not
improvement
addressed
 Pre-closing Meeting
The audit team should confer prior to
the closing meeting in order to:
 Review audit findings
 Agree on outcome
 Prepare recommendations
 Discuss audit follow up
 Grading of findings (Major/Minor)

Session 11 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

 Closing Meeting

Responsibility: Team leader should chair Purpose:

 Advising that the audit findings are
Who should attend? based on sampling
a) Audit team  Method of reporting
b) auditee team with their management  Explanation of findings and their
c) audit client consequences and outcome
d) any other interested party  Post audit plan
Note: any diverging opinion if not
resolved shall be recorded

Session 11 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

 Closing Meeting Approach
 Present all findings and evidence carefully
and precisely

 Be prepared to support and justify findings

 Do not be drawn into argument

 If an error transpires, apologize; alter or

withdraw, if necessary

 Do not accept a "quick fix" to CARs

Session 11 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

 Closing Meeting Activities
 Describe the purpose, scope and
objectives of the audit
 Describe the strengths and weakness
of the auditee
 Explain what is CAR & OFI’s
 Distribute CAR Forms
 Explain the process of the closeout of
corrective actions
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 Explain all audit findings including,
CARs and OFI’s
 State final decision and outcome
 Inform submission date of the Audit
Report
 Explain the audit follow-up process
 Express gratitude to the client
 “Audit Report is a summary of the audit
conclusion, findings and other activities
performed during the audit”

 Audit Report must provide a clear,

concise, complete and accurate record
of the actual audit

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 Preparing Audit Report

Responsibility: Team leader

The team leader shall provide a complete,

accurate, concise, and clear record of the
audit, and should include the content in
the following slide and send it to the
program manager.

Session 12 50001:18-LA-SL Rev.00 Rev Date: Jan 2019

 Audit Report Contents
 Audit objectives
 Audit scope and criteria
 Auditee/client info
 Audit team members & participants
 Audit date and location
 Executive summary
 A statement about the degree on
fulfillment of the audit criteria
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 Reference standards & documented
information
 Any exclusions or areas not covered
during the audit
 Distribution list of the audit report.
 Opening & closing meetings’ details
 Audit Report Contents (cont’d)

 Strengths & weaknesses

 Audit findings
 Audit evidence
 Non-conformities
 Opportunities for improvements
 Audit outcome
 Agreed on Follow-up plans

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 Distributing Audit Report
The audit report should be issued with an
agreed period of time. If delayed, reasons
shall be communicated to the auditee and
the program manager. The report should
be dated, reviewed and approved, as
appropriate, in accordance with the audit
program procedure

The audit report should be distributed to

the participants as defined in the audit
plan

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 Completing the Audit
 The audit is completed when all the audit
activities are completed
 Documented information pertaining to the
audit should be retained or destroyed after the
agreement between the participating parties
and in accordance with the audit program
procedures and applicable requirements
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 Unless required by law, the audit team and
program manager should not disclose the
contents of the documented information, any
other information obtained during the audit, or
the audit report to any other party without the
explicit approval of the audit client and, where
appropriate, the approval of auditee. If
disclosure of contents of an audit document is
required, the audit client and auditee should be
informed as soon as possible.
 Lesson learned from the audit should be
entered into the continual improvement
processes of the management system of the
audited organization.
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 Conducting Audit Follow-up
The outcomes of the audit can, depending on the
audit objectives, indicate the need for corrections,
corrective actions, preventive actions or
improvement actions. Such actions are usually
decided and undertaken by the auditee within an
agreed timeframe. As appropriate, the auditee
should keep the person managing the audit
program and audit team informed of the status of
these actions.

The completion and effectiveness of these actions

should be verified. This verification may be part of
a subsequent audit.
Session 12 50001:18-LA-SL Rev.00 Rev Date: Jan 2019
 Audit Finding Closeout Cycle (Major Non-conformity)

Auditor Auditor raises

closes the finding nonconformity

Auditor verifies
effectiveness of the Auditee analyses
corrective action on site nonconformity

Auditee confirms on site Auditee investigates

verification visit date to
the auditor the root cause

Auditee takes correction &

corrective actions

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 Audit Finding Closeout Cycle (Minor Non-conformity)

Auditor Auditor raises

closes the finding nonconformity

Auditor verifies
Auditee analyses
effectiveness
nonconformity

Auditee submits
Auditee investigates
corrective actions to
the Auditor the root cause

Auditee takes correction

and corrective actions

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 Audit Report
A key element of the energy audit is the
compilation of a clear and concise report. It needs
to convey the depth and breadth of the appraisal
carried out, and it should clearly outline the
opportunities for improvement.

It will be used by the organization for a number

of years as a reference for improvements that
could be made. As a result, it should contain
sufficient information on the background of the
existing equipment and practices as well as clear
descriptions of the opportunities for improvement,
with associated energy saving calculations.

As the audit report is the main output from the

audit, it must be comprehensive.
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 Audit Report
The audit report should contain the following items:

Executive Summary Introduction

The executive summary should be a succinct summary of
the energy audit and it should summarize the most The introduction should give a brief outline
important information resulting from the audit, of the scope of the audit, the activities
including: covered by the energy audit, an overview
of the client organization and its day-to-day
 Energy consumption and costs. operations.
 Comparison of performance is against known
benchmarks/EnPIs. It may also include information about the
 Most significant opportunities for improvement. organizational activities, its current and
 Assessment of current energy management practices. future energy performance statistics.
 Recommended next steps.
 It should also convey the key messages and
recommendations from the auditor in order to enable
senior management to implement the report
recommendations and improve the organization’s
energy performance.
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 SEUs Energy Usage Recommendations

This section should outline the energy consumption
of the various sources, including macro
consumption data. This should include, monthly
consumption and load profiles of the energy
sources, energy drivers for the energy sources and
benchmarks of organizational performance or
energy performance indicators.
In addition, all significant energy-using equipment
should be identified in this section.
For each significant energy user, the
following information should be provided:
 Process descriptions.
 Description of current state and
opportunities for improvement.
 Engineering calculations and financial
calculations as appropriate.
Based on the information provided in the
significant energy users section of the
report, the opportunities for improvement
should be assessed and prioritized in order
to determine the most appropriate ones.
This section of the report will recommend
the most beneficial actions with financial
assessments that the organisation could
take.

Metering Requirements Renewable Energy Technology

Measurement and monitoring of energy Depending on the scope of the audit,

users is a key output of the energy audit.
This section of the report should
document the current measurement
systems in place and the recommended
metering required in order to accurately
measure the energy performance of the
organization through active energy
management.
Session 12
renewable energy technologies may be
included in the energy audit.
If included, this section of the energy audit
report should discuss the various
renewable energy technologies assessed
as part of the audit.
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