HALAL INTERNAL AUDIT

FACILITATION
MANAGE AUDIT PROGRAM
What is an audit?

• Evidence gathering process

• Evidence is used to evaluate how well audit criteria are being
met
• Audit must be objective, impartial and independent
• Audit process must be both systematic and documented
• Three types of audits:
- First party audit
- Second party audit
- Third party audit
First Party Audit (Internal Audit)

• Organization audit itself or self-assessment

• To measure the strengths and weaknesses against
requirements and organization’s own standards
• To confirm or improve the effectiveness of Halal
Management Systems
• To ensure that an organization complies with the company
Halal Policy
Second Party Audit

• Commonly known as supplier audit

• To ensure a potential or existing supplier is able to meet the
requirements of the company’s Halal policy
Third Party Audit

• Commonly known as external audits

• Performed by independent organizations such as
certification bodies or regulators
Objective of audit

Examples of audit objectives:

• Determine eligibility for certificate
• Determine suitability for contract shortlist
• Demonstrate improvement in a previously identified weak
area
• Confirm adherence to policy
• Identify areas for potential improvement
Scope and criteria of audit

• Scope: A statement that specifies the focus, extent and

boundary of a particular audit
• Example: the physical location of audit, the organizational
unit that will be examined, or the time that will be covered

• Criteria: the rules and requirements against which the

auditee will be assessed
• Examples: standards, policies and legislation procedures
Audit Master Plan

• An audit plan: the specific guideline to be followed when

conducting an audit
• The audit plan shall be based on the documented
requirements of the HAS

 What are the objectives of the audit?

 Where will the audit be conducted?
 When will the audit(s) occur?
 Who are the auditors?
 How will the audit be implemented?
Audit Master Plan

1. Identify audit frequency and schedule per year

2. Prepare audit schedule
3. Determine assignment of audit team
4. Identify lead auditor and auditor(s) to perform audit
5. Generate audit itinerary/plan
LIAISE WITH AUDITORS AND
AUDITEES
INTRODUCTION

• Audit – not a “surprise attack”

• Audit team works with auditee to help improve operations
and add value to the organization
• HE shall provide notification to auditee as a guide and to
expedite the audit process
Preparation of Audit Correspondence

Format:
• Date and time
• Audit team/auditors formation
• Scope of audit
• Movement of auditors/itinerary
• Other auditing activities
Date and time of audit

• Lead auditor is responsible to plan the schedule

• Ensure all relevant people will be available during the audit
• Date and time of audit must be clearly stated on the
notification
• Auditee will prepare all the necessary things before the audit
process
• Date and time has to be scheduled according to
company/organization plan
Audit team

• Consists of one or more auditors, one of whom is appointed

to be the lead auditor
• For Halal internal audit, the lead auditor must be Muslim
and have knowledge on halal related standards,
requirements and systems
• Auditors must have related knowledge and background e.g.:
a food safety/food science expert to audit a food
manufacturing plant
Roles and responsibility of audit participants

Lead auditor: Auditee

• Organize and manage the audit • Facilitate audit process
process • Provide cooperation during the
• Make final decisions regarding the audit
outcome of the audit
• Report to management on audit
findings

Auditor
• To check on the current compliance
status
• To identify non-compliance
• To carry out any necessary follow
up action including further audits
Scope of audit

Includes:
• Audit objectives
• Nature and extent of auditing procedures performed
• Time period of audit
• Related activities not audited in order to delineate the boundaries
of the audit

Example:
• The purpose of audit is to determine compliance to Halal standard
• The scope of audit shall cover production of [product] from
receiving of raw materials to storage of finished goods
Audit program itinerary

• Consist of date and time, duration/time frame taken

between each audit process, department to be audited and
other related information
Example:
Day 1 [Date]
9.00 a.m. Opening meeting All auditors and auditees

10.00 a.m Document audit Auditor: Mr Ali

Auditee: QA Dept
11.00 a.m On site audit: warehouse Auditor: Ms Rina
Auditee: Procurement Dept.
13.00 – 14.00 pm Lunch

14.00 pm On site audit: production Auditor: Mr Selva

Auditee: Production Dept
THE AUDITING PROCESS
Auditor’s Tools

Checklist Audit Criteria

Camera Measuring
devices
Audit Agenda
Opening
meeting

Audit - document
process - on-site

Auditors’
meeting

Closing
meeting
Opening meeting

• Attended by auditor and auditee

representatives
• Meeting agenda:
- introductions
- briefing on audit scope,
itinerary and guidelines
- discuss audit plan e.g. who will
the auditor meet at each dept.,
any other specific arrangement
etc
 Document Audit
• Halal/HAS Manual
• Procedures and working instructions
• Finished product formulation or specification
• Raw material specification and halal certificate
• Production, storage and distribution records
• Raw material purchasing record (invoice, DO etc)
• Internal audit records
• Relevant personnel records (appointment letters, slaughterman
certificate, typhoid injection records, training records etc.)
On-site Audit

Collect objective evidence:

• Interview with random, selected
workers
• Observation on the production
processes
 Assessment of Audit Findings
Auditor’s meeting:
• Discuss findings and observations
• Identify any non-compliances
• Classify the non-compliances
• Prepare Corrective Action Request (CAR) form
• Prepare closing meeting
Closing meeting

• Lead auditor will begin positively by thanking the auditees

for their cooperation
• Presentation of CARs and signed off by auditees
THE AUDIT CRITERIA
MS 1500:2019 - Content
1. Scope
2. Definitions
3. Requirements
4. Compliance
5. Halal Certificates
6. Halal Certification Mark
1. Scope of MS 1500:2009

 Provides practical guidelines for the

food industry on the preparation and
handling of halal food (including
nutrient supplements)

 Basic requirement for halal food

product and food trade or business in
Malaysia
4. Requirements
3.1 Management responsibility
3.2 Premises
3.3 Devices, utensil, machines, and processing aids
3.4 Hygiene, sanitation and food safety
3.5 Processing of halal food
3.6 Storage, transportation, display, sale and serving
of halal food
3.7 Packaging, labelling and advertising
3.8 Legal requirements
Requirements : Management Responsibility

3.1 Management responsibility

What to look for:
• Internal Halal Committee – comprise of qualified and trained
personnel
• Halal Executive/person in charge of Halal matters – must be
trained in Halal matters
• Adequate resources to implement and maintain Halal system
in terms of:
- availability of trained personnel
- facilities
- financial resources
- infrastructure
• Staff commitment towards upholding halal policy and
preserving the halal integrity
 Requirements : Premises
3.2 Premises
What to look for:
• Prevention of cross contamination of non-halal materials
•Design of premises facilitates cleaning and sanitation process
• Premises are defended against pest ingression
• Availability of sanitary facilities
• Segregated and well-insulated from pig farm or its related
processing activities
•Processing area shall not have any elements of religious
worship
• Muslim praying area is provided and kept well-maintained
• Pets and other animals are prohibited from entering the
premise
Requirements : Premises

3.2.1 Layout of premises

• Proper process flow
• Proper employee flow
• Good hygiene and safety practices
• Protection against pest infestation
• Prevent cross-contamination
 Requirements : Premises

3.2.2 Product process flow from receipt of raw

material to the finished product shall prevent
cross contamination.

3.2.3 The premises shall be designed to facilitate

cleaning and proper supervision of food hygiene
Example of a
premise layout with
the process flow
Preferences for direction of product flow

Poor Poor Better Best Best

 Requirements : Premises

3.2.4 Adequate sanitary facilities shall be provided and

maintained

3.2.5 Loading and uploading bay shall be appropriately

designed to allow effective transfer of perishable
products.
Requirements : Premises

3.2.6 Premises shall be kept in good repair and

condition to prevent pest access and to
eliminate potential breeding sites

3.2.7 The premises shall be effectively separated and

well insulated from pig farm or its processing
activities to prevent cross contamination
through personnel and equipment
 Requirements : Premises
3.2.8 Slaughtering and processing premises shall be dedicated
for halal slaughtering and halal processing only

3.2.9 Processing of carcasses such as deboning, cutting,

packing and storing shall be done in the same premises
as slaughtering or in approved premises by the
competent authority that meets the requirements of this
standard

3.3.10 Pets and other animals shall be refrained from entering

the premises
 Requirements : Devices, utensil,
machine and processing aids

3.3 Devices, utensil, machines and processing aids

3.3.1 Devices, utensil, machines and processing aids used

for processing halal food shall be designed and
constructed to facilitate cleaning and shall not be
made of or contain any materials that are decreed
as najs by Shariah law and shall be used only for
halal food
• Easy to clean
• Not made from najs material
• Used only for halal food
 Requirements : Devices, utensil, machine
and processing aids

3.3.2 Devices, utensil, machines and processing aids which were

previously used or in contact with najs al-mughallazah shall
be washed and ritually cleansed as required by Shariah law

3.3.3 In the case of converting najs al-mughallazah line or

processing line containing najs al-mughallazah into halal
production line, the line shall be washed and ritually
cleansed as required by Shariah law. This procedure shall
be supervised and verified by the competent authority.
Upon conversion, the line shall be operated for halal food
only. Repetition in converting the line to najs al-
mughallazah line and back to halal line, shall not be
permitted.
Ritual cleansing (samak/sertu) needed in case of contamination with
najs al mughallazah
 Requirements : Hygiene, sanitation and
food safety

3.4 Hygiene, sanitation and food safety

3.4.1 Hygiene, sanitation and food safety are

prerequisites in the preparation of halal
food. It includes the various aspects of
personal hygiene, clothing, devices,
utensils, machines, and processing aids
and the premises for processing,
manufacturing and storage of food
Requirements : Hygiene, sanitation
and food safety
3.4.2 Halal food manufacturers shall implement
measures to:

a) Inspect and sort raw material, ingredients and

packaging material before processing

b) Manage waste effectively

c) Store harmful chemical substances

appropriately and away from halal food
Requirements : Hygiene, sanitation and
food safety

d) Prevent contamination of foods by foreign matters such

as plastic, glass or metal shards from machinery, dust,
harmful gas or fumes and unwanted chemicals; and

e) Prevent excessive use of permitted food additives

In manufacturing and processing, suitable detection or

screening devices should be used where necessary.
 Requirements : Hygiene, sanitation
and food safety

3.4.3 Halal food shall be processed, packed and distributed under

hygienic condition in premises licensed in accordance with good
hygiene practices (GHP), & good manufacturing practices (GMP)
OBTAIN HALAL AUDIT REPORT
Understanding Non Conformance

• Non conformance is an evidence of a failure or non

fulfillment of specified requirements. The are raised in the
event of:
• Not meeting a specified clause/s of a standard e.g MS 1500:2004,
MPPHM, Halal Assurance Management System
• Not meeting a part of a procedure
• Not meeting other recognized specification or regulation
• The main source of information for a non conformity
statement is the completed checklist
• Non conformances will be recorded whenever the auditor
discovers that the Halal requirements are inadequate or they
are adequate but are not being followed correctly
• Minor non-conformance (no non-halal risk)
• This occurs in the following circumstances
• Cleanliness issues
• Hygiene issues

• Major non conformance

• This could lead to a non halal risk if not controlled. Any condition or
situation rated major requires of a plan or program for rapid
improvement. Repetitive or cumulative major ratings can lead to a
seriously situation. This occurs in the following circumstances:
• Utensils used for non halal can be ritually cleaned (sertu/samak) once only
• No segregration between halal and non halal product in the storage area
• Serious non-conformance
• Are unacceptable or critical situations representing a non halal risk.
Any serious rating requires immediate response and corrective
action. This occurs in the following circumstances:
• Ingredients containing pig derivatives
• Product containing alcoholic beverages such as wine
Presentation of audit findings

• Recording/raising of non conformance report

• Any non-conformity must be formally presented to the auditee in
order to initiate corrective action. The normal approach is by raising
the non-conformance report (NCR) which includes the followings:
• Date of the audit
• Details of the non-conformance
• The facts, requirements and nature of non conformity precisely stated, may include data (if
any)
• This section of the record should carry sufficient detail about each non conformance to
answer the questions; what, where, when, why, who and how. It should also list the evidence
found to substantiate the non-conformances in terms of records or documents seen,
activities observed, or staff spoken to. This section is then signed and dated by the auditor
once the details of the non conformances have been discussed and agreed at the closing
meeting
 • Clause of the standard
• Site or department audited
• Auditee witnessing the non conformance
• A corrective action plan and date of completion of the non
conformance
• The result of the Halal audit must be documented in a
formal manner and presented to the management at the
end of the audit
• Audit report is document that gives a summarization of the
audit findings. The report will also highlight the audit team’s
opinion, facts and views presented at the closing meeting,
comments expressed by the auditee and positive aspects
found during the audit
• A verbal audit report should be done at the end of the audit
session (closing meeting). The audit report format should
capture all the vital information and straight forward to write
and easy to understand. The auditor should write the draft
audit report as soon as possible after performing the audit
• A compliance audit report is produced after every
compliance audit whether or not any non conformances
have been discovered. The purpose of this report is to:
• Record the key reference data relating to the halal auditing such
as date, scope, area assessed, name of audit team etc
• Summarise the main findings of the audit and refer to any non
conformances identified
• Document suggestions for any corrective action including target
dates to rectify any non conformances found
• Record the nature and timescale of any agreed follow up visits
• A formal record of what areas of the organization that appear to
comply with the requirements of Halal
• A suggested program of corrective action including target dates
to rectify any non conformances found
Content of audit report
• Introduction
• Company name & address, dates of audit
• Name of auditors
• Reference documents against which the audit was conducted
• Objectives and scope of the audit
• The name of areas, functions or departments visited and
the processes audited
• Total number of major and minor non conformances
raised and number of observations recorded
• Identifies the auditee
• Distribution list for reports
• Summary
• An overview of the audit including comments on the significant
trend or feature found during the audit
• It is also very important to ensure that the summary is as
evaluative as possible and not merely descriptive
• The summary should be factual and fair
• Opening meeting
• Record of attendance and if a problem became apparent how it is
resolved
• Closing meeting
• Record of attendance and details of any problem arise
• Non-conformances
• Brief description of non conformances found
• Result of the audit
• Summary of corrective action
• The non conformance reference number
• Who is responsible for carrying out the corrective action
• The agreed corrective action to be taken
• The date when the corrective action will be completed
• Agreed follow up audit
• The agreed follow up action in terms of its scope and
timescales
Signatories of auditors and date

• Audit report distribution

• Once the compliance audit report and any associated non
conformances records and/or observation notes have been signed
off, they should be provided to the auditee so that they can proceed
with the corrective action programme
• Audit with no non conformances
• If no Non conformances are found during an audit then the summary
of agreed corrective actions and the agreed audit follow up sections
of the compliance audit report should be left blank. The audit can
that be completed by the Auditor and auditee signing off the audit
closed section of the compliance audit report during the closing
meeting
THANK YOU