QUALITY AUDIT

B. Bharathie
22MBA020
 Auditing
Audit is the process of systematic examination of a quality
system carried out by an internal or external quality auditor
or an audit team.

• Examination of documents.
• Observation of activities.
• Follow up on non compliance items from previous audits.

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Examination of documents
This includes examination of memoranda, confirmations,
correspondence, schedules, audit programs and letters of
representation. Audit documentation maybe in the form of paper,
electronic files or other media.
Observation of Activities
In this process they observe whether there is lack of reconciliation
procedures, absence of adequate supporting documents.
Follow up of previous audits
It is a process where reviewing and evaluating the corrective
action to be taken from the previous audits.

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 Quality Audit
• “Quality audit is the process of systematic examination of a quality
system carried out by an internal or external quality auditor or an
audit team”.
• It is an important part of organization's quality management system and is
a key element in the ISO quality system standard.
• Performed at predefined time intervals
• Ensures that the institution has clearly defined internal system monitoring
procedures linked to effective action.
• This can help determine if the organization complies with the defined
quality system processes and can involve procedural or results-based
assessment criteria.
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 The Quality Audit system

Complianc
ewith
professiona
l standards

Engagement
Schedule &
Quality ,
deadline Audit performance
Requirement and
s judgement

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1. Compliance with Professional Standards
A firm has a responsibility to ensure that its personnel comply with the professional
standards applicable to its accounting and auditing practice.

2. Schedule & deadline Requirements

Audits should usually be scheduled at least once per year and should cover all of the
activities you undertake – especially if they are relevant to your Management System.
Depending on the process being audited, it may be necessary to change this frequency.

3. Engagement, Performance and Judgement

In an audit engagement, the engagement quality reviewer should evaluate the
significant judgments made by the engagement team and the related conclusions reached
in forming the overall conclusion on the engagement and in preparing the engagement
report.

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 Audit Schedule

Preparation and Organization

Audit Execution

Follow ups Summarize Results

Preparation of report

Remedial Actions Corrective Action

Fig.2. An Internal Audit Programme

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 • Audit Schedule
Primarily conducted at the beginning of audit process to ensure that
appropriate attention is devoted to important areas, potential problems are
promptly identified.
• Preparation and Organization
Preparation including reviews of documentation, the programmes and
working documents.
• Summarize results
Collective summarization of the results of the conducted audit.
• Preparation of report
Preparing a report on the audit including preparation, content and
distribution.

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 • Corrective actions
Correcting identified deficiencies to produce recommended improvements,
demonstrating that audit findings are either invalid or do not warrant auditee
action.
• Remedial Actions
Steps taken to remediate or reduce the impact of control weakness or non
conformity.
• Follow ups
Once the quality audit is completed, It is time to take real action. This
implies meetings and discussions between the auditors with your company’s
management leaders to review the key problem in the audit report.

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