A Foodstuff processing company with may factories in different locations

1. Discuss why internal auditing is needed in your company

2. Design the annual audit plan for your company (refer to Chapter 3)
3. Select a process in the annual audit plan and develop the engagement (audit) plan for that
process (refer to Chapter 5). With the (audit) tests selected in the engagement plan, specify
the audit objectives (assertions)

1.
- Retailers want to be sure that the products they are selling to consumers,
particularly those own-label products which bear the retailer brand, are of a
particular standard and meet specified quality and safety criteria. They need food
to be traceable and to be sure that the ingredients listed on the packaging match
what’s inside.
- Internal audits give you the chance to put things right before a HACCP (Hazard
Analysis and Critical Control Point) audit. You will be able to ensure that all
paperwork relating to HACCP and other standard operating procedures (SOPs)
are present and up-to-date and that all employees are competent and have been
trained in the delivery of those procedures.
-

2. … The importance of internal audit in general

- Internal auditors refer to the department that monitors the effectiveness of its processes
and controls. Their task is to objectively examine the company’s financial documents and
review the operating procedures independently from management. So, an internal audit
focusses on organization risk management functions, security processes and regulatory
compliance among other departments. - Internal auditors look for inconsistency between
operational processes and what those processes were designed to do. And if such
inconsistencies are found, they advise senior management the implementation of certain
processes for the sake of improvement. - So, an internal audit is essentially a preventative
exercise to maintain operational efficiency and financial reliability, and to safeguard
assets. It provides assurance that an organization’s risk management, governance and
internal control processes are operating effectively. The Value of An Internal Audit for A
Company - Increase In Productivity - Confidence To Stakeholders - Detection Of Frauds
- Quality Control - Good Corporate Governance

3. Design the annual audit plan for your company (refer to Chapter 3)
Once a food safety auditor begins an on-site visit, there are five
different phases they must carry out before they leave:

1. Allocating roles and notifying participants – Upon arrival, the

auditor identifies the parties responsible for supervising their
visit and providing access to the information, plant areas,
documents and any people necessary to the audit. Additional
observers from the food manufacturing company may also be
present for the audit. These roles should be allocated in such
 a way that they do not influence the audit and all parties
should be expressly notified of their role.
2. Opening discussion – The auditor briefly informs all involved
parties about the goal of their visit, the methods they will be
using to audit the facility and any preconditions for a
successful audit.
3. Gathering information – The auditor collects information about
compliance and food safety culture at this facility thru various
methods including: on-site observation, randomised tests,
process simulations, interviews with employees and reviewing
documents.
4. Evaluating information – The auditor compares the information
gathered with the food safety criteria laid out in the certification
programme to evaluate whether the facility conforms with
these requirements. They then draft their findings and
determine which, if any, steps must be taken to achieve
compliance.
5. Closing discussion – The auditor presents a summary of their
findings to the responsible parties. They also provide the food
manufacturer with an opportunity to ask questions as well as
recommendations for how to proceed.