SOP-1190

Rev: 2
Date: April 18, 1999
Page 1 of 2
1st Assignment to: _____________________ Date: ________________ [ ] Controlled [ ] Uncontrolled

2nd Assignment to: _____________________ Date: ________________ [ ] Controlled [ ] Uncontrolled

QUALITY ASSURANCE AUDITING

Auditing is frequently requested by clients’ to ensure that their or their suppliers’ systems, practices, procedures are
defined, documented, controlled and periodically assessed for effectiveness and compliance. Audits are also
conducted as pre-award surveys of client suppliers’ to assess their capabilities, capacities and qualifications as
needed to meet specific contractual obligations.

Normally, clients will specify a nationally or internationally recognized quality assurance standard to which the
requested audit will be carried out. However, if a specific program has not been requested by the client, then it is
necessary that a recommendation be made to the client detailing the program that you think is most applicable
considering all the circumstances identified by the client.

As such, Moody International has in place, two distinct contract audit programs. One a very thorough plan to
assess all typical quality assurance elements and the second, a condensed version which is more related to
process controls.

Moody Internationals’ two standard audit programs include:

1. MI Systems Audit

Audit Elements: - Quality Policy

- Organization
- Management Review
- Quality System
- Contract Review
- Document and Data Control
- Purchasing (Including Subcontractor Control)
- Control of Customer (Client) Supplied Product
- Product Identification and Traceability
- Process Control
- Inspection and Testing
- Calibration of Inspection, Measuring and Test Equipment
- Inspection and Test Status
- Control of Nonconforming Product
- Corrective and Preventive Actions
- Handling, Storage, Packaging, Preservation and Delivery
- Quality Records
- Internal Quality Audits
- Training and Personnel Qualification
- Use of Statistical Techniques

This document is considered approved by the Corporate Quality Representative by it being placed on the server. All hard copies of this document are uncontrolled.
 Page 2 of 2
SOP-1190 Rev. 2

2. MI Process Control Audit

Audit Elements: - Document and Data Control

- Purchasing (Including Subcontractor Control)
- Control of Customer (Client) Supplied Product
- Product Identification and Traceability
- Process Control
- Inspection and Testing
- Calibration of Inspection, Measuring and Test Equipment
- Inspection and Test Status
- Control of Nonconforming Product
- Corrective and Preventive Actions
- Handling, Storage, Packaging, Preservation and Delivery
- Quality Records
- Use of Statistical Techniques

For those clients wishing for Moody to develop a supplier control or certification program, the Moody “Supplier
Control Program” is available. The program is designed in modules specially designed for individual client needs
and are documented in personalized Program Management Manuals or “PMM’s” for each client. A sample PMM is
detailed in SOP-1191. These audits are commonly placed in two categories: performance based audits and;
supplier operation surveys -

Performance Based Audits Supplier Operation Survey

Detailed review of a specific product to verify Provides an overview of the supplier quality management
quality system is controlling special system.
processes, product
characteristics and workmanship.

• Product verification • Common survey checklist

• Product source inspection / test • New product introduction
• Process control and capability plan • Operational performance
• Gauge R & R • Special Manufacturing techniques
• 1st Article inspection • Manufacturing, mgt. & financial capabilities

Today, most audits are performed to prescriptive programs such as ASME, API, SSPC, NACE, SAE, etc., or to an
international standard such as ISO 9001 or ISO 9002. The difference of course being that the former are relative to
special industry jurisdictions or regulatory programs.

Third-party audits are conducted in accordance with SOP-1192. Terms and definitions are as defined in ISO 8402.
All Technical Specialists will be qualified in accordance to ISO 10011, while those utilized for the more stringent of
audits will frequently be certified to one of several internationally recognized auditor certification programs.

This document is considered approved by the Corporate Quality Representative by it being placed on the server. All hard copies of this document are uncontrolled.