SA-MAGE-PQP - Internal Audits

PROJECT QUALITY PLAN
MOHAMMED A. AL QURMAN GENERAL CONT. EST. Doc. No.: SA-MAGE-PQP-08
Rev. 00
PROCEDURE FOR:
INTERNAL AUDITS
DOCUMENT NO.:
SA-MAGE-PQP-08
Contents:
1 General……………………..2
2 Procedure .………………..3
3 Surveillance..…………….10
4 Documentation………..11
Internal Audits Page 1 of 21 SA-MAGE-PQP-08

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1.0 GENERAL:
1.1 PURPOSE:
The purpose of Quality Auditing is to periodically review:

▪ The Quality System
▪ Construction activities
▪ Procurement Activities
▪ Engineering and Design Activities
The results of Quality Audits for the basis for Corrective Action and Improvement.
1.2 SCOPE:
Quality Audits are carried out in accordance with approved audit plans based on the contract
documents and cover the following activities and locations:
▪ Head office operation including Engineering, Design, Procurement, and other major functions
▪ Construction sites operations
▪ Vendors and Subcontractors
1.3 ASSOCIATED MATERIALS:
Associated Materials will include but not be limited to the following items:
▪ ISO 9001:2000 Standards

▪ Quality Manuals
▪ Technical Instructions and Procedures
▪ Contract and Specifications
▪ Design Drawings and Shop Drawings
▪ Procurement Records
▪ Manufacturer’s and subcontractors records
▪ Quality records
▪ Codes, Standards, and Government Regulations.
▪ Aramco Engineering Standards applicable to this project and listed in “Schedule B”.
1.4 RESPONSIBLE FUNCTIONS:
The approved quality Auditor has the responsibility for Project Quality/Control System Audits. He
will coordinate System audits including activities at the Construction Site.

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2.0 SCOPE:
2.1 SCHEDULE:
Project Specific Audits will be scheduled by the QC Supervisor / MAGE COMPANY internal auditor
and conducted periodically so that each element of the quality system associated with Project
Management, construction or procurement will be verified at least once a year. Audit schedules
will be submitted to the Saudi Aramco Representative on a quarterly basis.
2.2 AUDIT TEAM SELECTION:
One or more auditors who have been trained in requirements of the QA/QC System will comprise
an audit team. Each Team will be headed by an Audit Team Leader. Personnel having direct
responsibility for the performance of the audited activities will not be involved in the selection of
the audit team. The Audit team will not have direct responsibility in the areas being audited.
2.3 PREPARATION:
A plan for each audit will be developed and documented by the audit team.
The Audit Plan will identify:
a) Audit objectives and scope

b) Individuals having significant direct responsibilities regarding the audited activities
c) References documents, e.g. applicable quality system standards, and quality plan.
d) Audit Team Members
e) Language of audit, e.g English
f) Date and place where the audit will be conducted
g) Activities to be audited
h) Organizational units to be audited
i) Audit schedule, including meetings to be held with audit management.
j) Confidentiality requirements
k) Audit report distribution, including expected date of issue.
2.4 NOTIFICATION:
Audit notification shall be in compliance with “Schedule-Q” requirements.

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Appropriate management personnel of the audited activity will be notified by each audit in a
timely manner, normally at least one week in advance of the audit.
Notification of audits will be documented and include the audit’s scope schedule, and names of
the Audit Team, Leader and other audit team members.
2.5 PERFORMANCE:
2.5.1 Audit Checklist:
At each audit occasion the audit team leader will prepare audit checklist and issue to
the audit team. The check list shall identify the specific requirements to be evaluated
and shall be guided to the continuity and path of the audit. Prior to developing the
checklist, the auditors shall read the relevant documents (e.g. Procedures) thoroughly.
Checklist questions shall address each significant area of the procedure or system and
shall elicit a direct answer that can be sustained by documentary evidence.
Documented evidence of activities shall be examined in accordance with the
requirement of the quality system. However, the auditors shall have the flexibility to
determine whether an activity is acceptable or not, rather than recording a strict “Yes
or No”.
Should a discrepancy to a procedure become apparent during routine operations the

QC Supervisor will initiate an unscheduled audit. When completed the Unscheduled
audit shall also be shown on the audit schedule as having taken place.
As per Schedule “Q”-7.2.6, the ARAMCO Representative or his nominee shall be invited
to participate in all audits. QC Supervisor or his nominee will submit Audit notification
and agenda to the ARAMCO Rep. fourteen (14) calendar days in advance.
2.5.2 Opening Meeting:
2.5.2.1 The Lead Audit shall convene a brief meeting between the audit team and
appropriate representatives of the Auditee’s Management.
2.5.2.2 The purpose of the meeting shall be to:

▪ Effect introduction
▪ Circulate an attendance sheet

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▪ Investigate all outstanding actions from previous audits and secure

their close out ( where applicable)
▪ Discuss briefly the scope and purpose of the audit
▪ Confirm the audit timetable and work program
▪ Establish the sequence of events and individuals involved
▪ Arrange for the audit team and use of an office for audit team meeting
▪ Establish a provisional time for the exit meeting and invite the
Auditee’s Management to attend.
2.5.3 Execution of the Audit:
2.5.3.1 Audit shall be conducted using the prepared checklist. The checklist shall
assure thoroughness and continuity during the audit. The checklist shall be
used only as a guide, and will be expanded, if additional questions arise.
Objective evidence which is usually in the form of documents shall be
examined and essential information recorded.
2.5.3.2 In completing the audit checklist under the heading “Activity Compliance”, the
auditor shall state “Yes” “Acceptable” “Not Acceptable” (NA) or “See
Comment”. The “Comment/ Remarks” column shall be used to expand on the
activity or to refer nonconformities and objective evidence so that an overall
view of the Auditee’s QA/QC performance is readily seen.
2.5.3.3 Whenever possible, auditors shall obtain auditee’s agreement that significant
nonconformities exit at the time they are discovered. Auditors shall not
however tell the auditee that Corrective Action Request (Form # QP-IA8-
QA/002) will be issued before the Audit team has had an opportunity to
discuss all the audit findings.
2.5.4 Post Audit Meeting:
2.5.4.1 Upon completion of the Audit investigation and prior to exit meeting, the audit
team shall meet together to check and evaluate their findings and complete
corrective action request (CAR’s).
2.5.4.2 Objective evidence of a deviation from approved procedures, quality plans

and/or other applicable documents shall be considered as valid justification
for the preparation of a CAR.

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2.5.5 Corrective Action Request (CAR’s):
2.5.5.1 CAR’s shall be raised (using the form # QP-IA8-QA/00), after the discussion
and agreement at the exit meeting.
2.5.5.2 CAR’s shall be numbered sequentially i.e. for Audit no. 2. CAR2/1. CAR 2/2 etc.
2.5.5.3 CAR’s shall define precisely what was identified, the time and location, and
procedure reference. However, auditors should avoid naming those involved
and should preferably use job titles.
2.5.5.4 The auditors shall complete the CAR only as far as the nonconformity section,
and both auditor and auditee shall sign it to confirm that the nonconformity is
recorded correctly.
2.5.5.5 All findings shall be reviewed and provisionally categorized as follows:
Category 1: Non-compliance of major significance requiring “stop work”

recommendation and the institution of agreed corrective action measures
during the audit.
Guide: The non-compliance can be system or procedure which has not been
adequately documented or implemented such that the item or service has a
major non-compliance, or is reasonably suspected. Closed-out of the findings
shall be by re-audit. The QC Supervisor shall be advised and his authority is
required to recommend, “Stop work”. The QC Supervisor shall consult with the
appropriate department and others as necessary in MAGE Company and notify
the Project Manager without delay.
Category 2: Non-compliance of major significance which requires corrective

action measures to be taken in a meaningful timescale so as to be effective for
the relevant contract.
Guide: As for category 1 with the exception that no major non-compliance has
been found in the item or service or is reasonably suspected. Closed-out of the
finding shall be re-audit. Where there are several related category 2 findings
so that collectively the conditions of category 1 exist, then a category 2 finding
shall be additionally raised.

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Category 3: Non-compliance of minor significance:
Guide: System or procedures not adequately documented or implemented but

which have little effect on the quality of the item or service; or a minor,
isolated product non-compliance of a disciplinary nature. Close-out by follow
up and verification. A category 2 finding shall be additionally raised where
several related category 2 condition.
Category 4: Observation:
Observation are general remarks or comments that may be incorporated into

a system for improving the Quality Program performance and are not
obligatory.
2.5.6 Closing Meeting:
2.5.6.1 Following the Post-Audit Meeting, the Lead auditor shall convene the Exit
Meeting with Management attendance sheet names of those present. At the
meeting, the Lead Auditor shall:
▪ Present an objective summary of the audit

▪ Discuss audit findings and ensure that they are understood by then
auditee.
▪ Obtain signature of the auditee representative on CAR’s (if any) (the
auditee signs to indicate that he understands and acknowledges the
non-conformity being described)
▪ Give the auditee copies of acknowledged CAR’s
▪ State the intended issue date for the formal audit report and agree
▪ Corrective actions or the date by which the auditee will respond with
his proposed corrective actions
▪ Thank the auditees as appropriate for their co-operation.
2.5.7 Audit Reporting:
Following the completion of the audit, the Lead Auditor with the assistance of other
members of the audit team shall prepare the format Report.
The audit Report shall comprise the following:
▪ Audit Report
▪ Corrective Action Request

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2.5.7.1 The results of the audits shall be summarized and any audit findings (CAR’s)
shall be itemized.
2.5.7.2 The audit shall be reported on the reports sheets and shall include some or all
of the following:
▪ The auditee names and internal department

▪ The location at which the audit was performed
▪ The contract number and Title
▪ The scope of the audit
▪ Pre-audit activities (e.g. the audit arrangement record)
▪ Audit team members
▪ Persons contacted during the Entry meeting and Exit meeting; and
individuals participating in the audit process
▪ Summary of audit results including an evaluation statement regarding
the effectiveness of the elements audited
▪ Specific finding of non-conformance
▪ Entry and Exit meeting
▪ General observations
▪ CAR’s issued
2.5.7.3 Audit report shall be numbered consecutively.
2.5.7.4 Before the formal audit report is released and distributed the entire audit
team shall review it to check that the statements made are fair, complete and
true.
2.5.7.5 After this review, the designated Lead Auditor or Internal Auditor shall sign
the completed Audit Report on the cover sheet on behalf of the entire Audit
Team and shall forwarded the report to the QC Supervisor for review. After the
report has been reviewed and the contents are acceptable, the QC Supervisor
will sign off the Reports, and forwarded to the General Manager/ Project
Manager for his consent.
2.5.7.6 The original of the audit report and audit checklist shall be filed by the QC
Supervisor. This will enable further copies to be produced at a later date if they
are needed.

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2.5.7.7 The original of any corrective action request raised as a result of the audit
shall accompany the copy of the audit report sent to the Auditee.
2.5.7.8 The QC Supervisor shall ensure that a copy of the completed Audit Report is
issued to the Auditee under a covering memorandum within seven days of the
final date of the audit. The internal memorandum shall identify the final date
by which responses are required for any Corrective Action Request.
2.5.7.9 One copy of Audit report will be forwarded to Saudi Aramco Representative
after 2 weeks of completing the Audit.
2.5.7.10 When audit report has been issued and copies distributed as specified by the
QC Supervisor, he shall complete the following:
▪ Audit report status log

▪ Audit schedule
2.5.8 Audit Follow-up & Close out:
2.5.8.1 The audited area/discipline shall be permitted seven days to respond to any
outstanding findings where corrective actions have not been agreed at the
closing meeting. The response shall include the proposed corrective action and
anticipated dates when such action will have been executed.
2.5.8.2 The Lead Auditor shall evaluate the response and if acceptable, he shall signify
agreement to the auditee immediate. If the response is unacceptable, the
auditee shall be notified to that effect with specific reason. The matter shall be
promptly discussed and resolved.
2.5.8.3 When eventually acceptable, the Lead Auditor shall complete the “ Proposed
Follow-up Date” section on the returned corrective Action Request Form.
2.5.8.4 On the “Proposed Follow-up Date” and in accordance with the requirements of
this procedure, re-audit shall be undertaken to verify the implementation and
effectiveness of the corrective action taken by the auditee.
2.5.8.5 If the follow-up audits indicate that the action taken has corrected the
deficiency, then the CAR can be closed-out and this shall be stated in the last
section of the CAR form.

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2.5.8.6 If however, the follow up indicates that action taken does not correct the
deficiency or the CAR(s) has not been implemented within the agreed
timescale, the lead auditor shall state this on the CAR form and re-identify the
deficiency using a revision to the CAR and agree with the auditee a new
timescale. The lead auditor shall notify the QC Supervisor of all outstanding
CAR’s.
2.5.8.7 If the CAR is not closed out at the second follow up date, the lead auditor shall
discuss the matter with the QC Supervisor to seek agreement to all in support
from senior Management.
3.0 SURVEILLANCE:
Routine Quality Surveillance of areas of concern will be conducted in addition
to the scheduled Audits.
4.0 DOCUMENTATION:
• Audit Arrangement Record (attachments No. 4.1 Form No. QP-IA8-QA/001)

• Corrective Action Request (attachments No. 4.2 Form No. QP-IA8-QA/002)
• Attendance Sheet (attachments No. 4.3 Form No. QP-IA8-QA/003)
• Audit Report Lead Sheet (attachments No. 4.4 Form No. QP-IA8-QA/004)
• Audit Report Continuation Sheet (attachments No. 4.5 Form No. QP-IA8-QA/005)
• Observation Sheet (attachments No. 4.6 Form No. QP-IA8-QA/006)
• Audit Schedule (attachments No. 4.7 Form No. QP-IA8-QA/007)
• Audit Report Status Log (attachments No. 4.8 Form No. QP-IA8-QA/008)
• Internal Audit Checklist (attachments No. 4.9 Form No. QP-IA8-QA/009)
• CAR Status Log (attachments No. 4.10 Form No. QP-IA8-QA/010)

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Attachment No. 4.1 Form No. QP-IA8-QA/001
AUDIT ARRANGEMENT RECORD

AUDIT ARRANGEMENT RECORD
To:
Department:
Project Date:
Date:
Reference No.:
Proposed nature of Audit: Areas to be examined and agenda

Scope of Audit:
Date:
Time:
Duration:
Referenced Documents
Audit Team and their Allocation
Lead Auditor:
Auditor:
Observer:
Special Notes
Please sign this document to signify your agreement and return it to Quality Control/Assurance
Group.
Agreed:
Signature:
Name:
Date:
For ______________________________ For ______________________________

(Quality Control Department) (Department Group Audited)

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CORRECTIVE ACTION REQUEST
Project / Area Audited: __________________________ CAR No.: ____________________

Auditee: ______________________________________ Auditor: ____________________
Nonconformity:
Signature of Auditor: ____________________________ Date: ___________________________
Signature of Auditee: ____________________________ Date: ___________________________
Proposed Corrective Action:
Date of Completion of Corrective Action: ______________________________________

Signature: __________________________________________ Date _______________
Corrective Action taken and Action to Prevent Recurrence:
Signature : _________________________________ Date: ______________________________

(Project /Area Representative)
Proposed Follow up date:

Follow up details:
Signature of Auditor: _____________________________ Close Out Date: ________________________

Rev. 00
ATTENDANCE SHEET
INTERNAL QUALITY AUDIT MAGE COMPANY
Project: ________________________________ File Reference: ________________________
Audit No.: ______________________________ Date of Audit: _________________________
Type of Audit: __________________________
Name Position Signature

Rev. 00
AUDIT REPORT LEAD SHEET
Internal Quality Audit MAGE Company
Project: _________________________________ File Reference: ___________________________
Audit No: _______________________________ Date of Audit: ____________________________
Type of Audit: ___________________________ Report No: _______________________________
Page ______ of __________
Area Location Observation Made Remarks
Signature of Lead Auditor Signature of QC Department
Date: Date:

Rev. 00
AUDIT REPORT
(Continuation Sheet)
Report No: __________________
AUDIT NO:
Page ________ of ____________

Rev. 00
OBSERVATION
COMPANY/ PROJECT AREA/ DISCIPLINE Observation No.: _____________________

Auditor: ____________________________
Audit Report No.: ____________________
Description of
Item / Activity:
Location:
Summary:
Full Description:
Originator’s Signature: ____________________________ Date ______________________
QC Supervisor’s Signature: __________________________ Date ______________________
Forward Response to QC Group by:
Recipient Response :
Name: _______________________________ Signature: ____________________ Date: _______________

QC Supervisor Comments:

Verification of Completion (by QC Supervisor):

Rev. 00
Quality Audit Schedule

2016 2017
First Half Second Half First Half Second Half
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov. Dec. Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov. Dec.
A. Internal Audit
a.1 Procurement
a.2 Construction
B. Management
Review
meeting
C. External Audit
D. Other form of
Audit (if
required)
Legend: Planned
Complete
Prepared by: _______________ Review by: ____________ Checked/ Verified by: _____________
QC Department QC Department QC Department
Approved by: _______________
Project Manager

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AUDIT REPORTS STATUS LOG
Audit Audit Lead Audit date Project/ Procedures/ Project Date CAR’s
Report Type Auditor Area/ Criteria No. Audit Issued
No. Discipline Audited Report
Issued

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INTERNAL AUDIT CHECKLIST
Location Audited: Audit No.:
Contact: Date of Audit:
Lead Auditor: Auditors:
Item Subject / Requirement Document Activity Comments/ CAR

No. Source Compliance Remarks

Rev. 00
CORRECTIVE ACTION REQUEST STATUS LOG

Audit CAR no. Agreed Findings Target Revised Date Verified
Report Corrective Completion Completion CAR By
Action Date Date Date Closed

Rev. 00

SA-MAGE-PQP - Internal Audits

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PROJECT QUALITY PLAN

MOHAMMED A. AL QURMAN GENERAL CONT. EST. Doc. No.: SA-MAGE-PQP-08

Internal Audits Page 1 of 21 SA-MAGE-PQP-08

MOHAMMED A. AL QURMAN GENERAL CONT. EST. Doc. No.: SA-MAGE-PQP-08

The purpose of Quality Auditing is to periodically review:

1.3 ASSOCIATED MATERIALS:

▪ ISO 9001:2000 Standards

1.4 RESPONSIBLE FUNCTIONS:

Internal Audits Page 2 of 21 SA-MAGE-PQP-08

MOHAMMED A. AL QURMAN GENERAL CONT. EST. Doc. No.: SA-MAGE-PQP-08

2.2 AUDIT TEAM SELECTION:

a) Audit objectives and scope

Audit notification shall be in compliance with “Schedule-Q” requirements.

Internal Audits Page 3 of 21 SA-MAGE-PQP-08

MOHAMMED A. AL QURMAN GENERAL CONT. EST. Doc. No.: SA-MAGE-PQP-08

2.5.1 Audit Checklist:

Should a discrepancy to a procedure become apparent during routine operations the

2.5.2 Opening Meeting:

2.5.2.2 The purpose of the meeting shall be to:

Internal Audits Page 4 of 21 SA-MAGE-PQP-08

MOHAMMED A. AL QURMAN GENERAL CONT. EST. Doc. No.: SA-MAGE-PQP-08

▪ Investigate all outstanding actions from previous audits and secure

2.5.3 Execution of the Audit:

2.5.4 Post Audit Meeting:

2.5.4.2 Objective evidence of a deviation from approved procedures, quality plans

Internal Audits Page 5 of 21 SA-MAGE-PQP-08

MOHAMMED A. AL QURMAN GENERAL CONT. EST. Doc. No.: SA-MAGE-PQP-08

2.5.5 Corrective Action Request (CAR’s):

2.5.5.5 All findings shall be reviewed and provisionally categorized as follows:

Category 1: Non-compliance of major significance requiring “stop work”

Category 2: Non-compliance of major significance which requires corrective

Internal Audits Page 6 of 21 SA-MAGE-PQP-08

MOHAMMED A. AL QURMAN GENERAL CONT. EST. Doc. No.: SA-MAGE-PQP-08

Category 3: Non-compliance of minor significance:

Guide: System or procedures not adequately documented or implemented but

Observation are general remarks or comments that may be incorporated into

2.5.6 Closing Meeting:

▪ Present an objective summary of the audit

2.5.7 Audit Reporting:

Internal Audits Page 7 of 21 SA-MAGE-PQP-08

MOHAMMED A. AL QURMAN GENERAL CONT. EST. Doc. No.: SA-MAGE-PQP-08

▪ The auditee names and internal department

2.5.7.3 Audit report shall be numbered consecutively.

Internal Audits Page 8 of 21 SA-MAGE-PQP-08

MOHAMMED A. AL QURMAN GENERAL CONT. EST. Doc. No.: SA-MAGE-PQP-08

▪ Audit report status log

2.5.8 Audit Follow-up & Close out:

Internal Audits Page 9 of 21 SA-MAGE-PQP-08

MOHAMMED A. AL QURMAN GENERAL CONT. EST. Doc. No.: SA-MAGE-PQP-08

• Audit Arrangement Record (attachments No. 4.1 Form No. QP-IA8-QA/001)

Internal Audits Page 10 of 21 SA-MAGE-PQP-08

MOHAMMED A. AL QURMAN GENERAL CONT. EST. Doc. No.: SA-MAGE-PQP-08

Attachment No. 4.1 Form No. QP-IA8-QA/001

AUDIT ARRANGEMENT RECORD

Proposed nature of Audit: Areas to be examined and agenda

Audit Team and their Allocation

For ______________________________ For ______________________________

Internal Audits Page 11 of 21 SA-MAGE-PQP-08

MOHAMMED A. AL QURMAN GENERAL CONT. EST. Doc. No.: SA-MAGE-PQP-08

Attachment No. 4.2 Form No. QP-IA8-QA/002

CORRECTIVE ACTION REQUEST

Project / Area Audited: __________________________ CAR No.: ____________________

Signature of Auditor: ____________________________ Date: ___________________________

For For

Project / Area Audited: ______ CAR No.:

Signature of Auditor: __ Date: _

Signature of Auditee: __ Date: _

Signature : ___ Date:

Signature of Auditor: _____ Close Out Date:

Project: ________ File Reference:

Audit No.: ______ Date of Audit: _

Project: _______ File Reference: _

Audit No: ___ Date of Audit:

Type of Audit: _ Report No: _____

Page of ____

Originator’s Signature: ______ Date

QC Supervisor’s Signature: ____ Date

Name: _________________ Signature: Date: _

Name: _________________ Signature: Date: _

Name: _________________ Signature: Date: _