UNDERSTANDING AUDITING
How Effective Auditing Can Boost Company Performance
Effective management systems auditing is essential for any organisation aiming for excellence in areas like quality management, occupational health and safety, or environmental sustainability.
Thorough auditing ensures that systems are not only compliant with international standards but also optimised for operational performance. This article explains how diligent auditing improves management systems and contributes to the overall success of a company, as well as the role a qualified Lead Auditor plays in this process.
Why Management Systems Auditing Matters
Management systems auditing is the process of systematically examining an organisation’s processes and practices to ensure they meet the requirements of international standards such as ISO 9001, ISO 45001, and ISO 14001.
Effective auditing ensures compliance with industry standards and regulations, minimising legal risks. It improves efficiency by identifying and addressing inefficiencies, leading to streamlined processes and enhanced productivity. Audits enhance the organisation’s credibility by demonstrating a commitment to quality, safety, and environmental impact, which is valued by clients and stakeholders. Moreover, effective audits engage employees, increasing their awareness and dedication to company goals. Regular audits provide ongoing feedback, driving continuous improvement and long-term success for the company.
How Effective Auditing Improves Company Performance
Effective auditing improves company performance by identifying and mitigating potential risks early, allowing companies to address these issues proactively and maintain smooth operations. It enhances process efficiency by evaluating current procedures and suggesting improvements, leading to streamlined operations, cost savings, and higher productivity.
Compliance with ISO standards through auditing often results in improved product quality and service delivery, which strengthens customer satisfaction and loyalty. Additionally, regular audits foster a culture of continuous improvement, encouraging employees to actively engage in enhancing the organisation’s performance and meeting its goals.
The Role of a Lead Auditor
The Lead Auditor plays a critical role in planning, executing, communicating, and reporting on an audit to ensure the organisation meets the required standards, or to provide the basis for an ISO certification decision. They perform the following tasks:
Opening Meeting: The Lead Auditor conducts a formal meeting with the client’s management to explain the audit process and set expectations using a checklist from the Audit Pack.
Communication: Throughout the audit, the Lead Auditor periodically communicates with the audit team and the client, reassesses and reallocates tasks, and addresses any concerns or unattainable objectives.
Collecting and Verifying Information: The Lead Auditor oversees the collection and verification of information relevant to the audit objectives through interviews, observations, and document reviews. They ensure a balanced approach between documentation and on-site verification.
Compliance with Standards & Schemes: The Lead Auditor ensures that all key processes and specific requirements of standards (for example QMS, OHS and EMS) are reviewed and commented on.
Audit Findings and Classification: Audit findings are recorded, summarising conformity and detailing non-conformity with supporting evidence. The Lead Auditor classifies findings as major non-conformities, minor non-conformities, observations, or opportunities for improvement and discusses these with the client.
Audit Conclusions: Prior to the closing meeting, the Lead Auditor reviews and agrees on audit conclusions with the team, identifying follow-up actions and confirming the audit program’s appropriateness.
Closing Meeting: The Lead Auditor conducts the closing meeting, presenting audit conclusions and non-conformities, ensuring they are understood by the client and agreeing on response timeframes.
Reporting: The Lead Auditor completes the audit report, ensuring it is detailed, clear, and concise, including both conformance and non-conformance evidence. They avoid directive, subjective, or emotive language and ensure all necessary documents are included to support any outcomes, such as a certification decision.
Managing Non-Conformances: Finally, the Lead Auditor ensures non-conformances are closed out within agreed timeframes, and justifies any extensions if necessary.