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 First Party Audit

 Also termed as Internal audit conducted by,


or on be-half of organization itself for
management review(internal purpose)
 Second Party Audit
 External to organization i.e., Auditing
undertaken by one organization upon other
organization to establish a confidence in
their ability to meet ones requirements
 Third Party Audit
 Audit undertaken by independent authorities
like Accredited certification bodies etc…
 Auditor : Person with competence to
conduct audit
 Audit team: One or more auditors
conducting an audit , supported if needed
by technical expert. Note:(i) audit team leader is one of the audit member.(ii) Audit
team can include auditor -in –training.

 Audit Scope: Extent and boundaries of


Audit.
 Competence: Demonstrated personal
attributes and demonstrated ability to apply
knowledge and skills.
Criteria of Audit team leader

 Based on the auditee, Lead auditor is


appointed by the Certification body.

 When Joint audit is conducted, prior to


audit auditing organizations decide
mutually on specific responsibilities and
authorities of the team leader for audit.
I )Overall Objective of audit program
 Audit scope, Audit objectives and Audit
criteria is defined between the audit client
and audit team leader in accordance with
audit program procedure. Any changes of the
same should be agreed to by same parties.

II) Feasibility of Audit


 Sufficient and appropriate information
obtained to plan audit.
 Adequate Cooperation from auditee and also
adequate item and resources.
III) Selecting Audit team

1. If single auditor all duties is performed by


him.
2. Based on size of audit team, following to
be considered
 Audit objective , scope and criteria and

estimated duration of audit.


 Audit is combined or joint.

 Statutory, regulatory, contractual and

certification applicable.
 Ability of audit team to work together.
3. Establish Initial Contact with auditee
• Establish communication with auditee
• Confirm authority to conduct audit

• Make necessary arrangement for audit,

request relevant documents, including


records.

As discussed in points I ,II and III are the


preliminary roles performed before the
audit begins .
1. Prepare On-site Audit activities
(a) PrepareAudit Plan
 Audit plan is prepared which include the scope,
objective of audit.
 Identification of functional unit and process to be
audited in organisation.
 Roles and responsibility of audit team member is
assigned.
 Identify auditees representative for audit and
reporting language is set.
 Matter related to confidentiality is discussed.
 Audit follow up action
(b)Assigning work to the Audit Team
 TeamLeader, In consultation with team, should assign to each
member resposibility for auditing the function, sites etc..

( c) Prepare work document


Audit team member should review to the information relevant
to audit assignments and prepare work documents.
2. Conduct On-site Audit Activities
(a) Conduct opening meeting
To confirm audit plan, confirm communication
and opportunity for auditee to ask question
(b) Communication during audit- exchange data
amongst team member of audit.
(c) Roles and responsibilities of observer and
guides – They should be assist the team on
request of audit team leader.
(d) Collect and verify Information- For appropriate
sample Audit evidence to be recorded.
(e) Generate audit findings – Generated based on
audit criteria . Findings can be Conformaties and
Non conformaties.
(f) Prepare Audit conclusions – Review audit findings, as
per appropriate data collected and discuss audit follow-
up.

(g) Conduct closing meeting – Its chaired by audit team


leader. Concluded by presenting audit findings such that
its understood and acknowledged by the auditee.
Time frame the auditee to present corrective and
preventive action plan.

3. Preparing , approving and distributing the audit


report
(a) Prepare audit report – Team leader is responsible to
prepare and contents of audit report.

(b) Approving and distributing the audit report –


the report should be approved and then issued within the
agreed time period.
4. Completing Audit – Its complete when all
activities of audit plan has been carried
out and approved report is distributed.

5. Conduct audit follow-up – Audit may


indicate corrective and preventive or
improvement action plan as applicable.
I Overall Objective of audit program
II Feasibility of Audit
III Selecting Audit team

1. Prepare On-site Audit activities


2. Conduct On-site Audit Activities
3. Preparing , approving and distributing the audit report
4. Completing Audit
5. Conduct audit follow-up