Value Added Auditing: The Future of Quality Auditing

Article

Hutchins, Greg   (2002, ASQ)   Quality Plus Engineering, Portland, OR (gregh@europa.com)

Quality Audit Conference Transactions, St. Louis, MO    Vol. 11    No. 0
QICID: 17998    February 2002    pp. 1-21
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Article Abstract

(PowerPoint presentation slides only: 21 slides)

Internal auditing and quality auditing must add value because the board of directors and other stakeholders don't like surprises or risks. They want the auditing process to provide assurance and controls, add value, evaluate and improve effectiveness of risk management processes, and evaluate for compliance when required. There are critical differences between the definition of internal auditing as given by the Institute of Internal Auditors (IIA) and that provided by ISO 9000 for quality auditing. IIA has a business focus stressing added value and risk, whereas ISO 9000 has a compliance flavor. Value added audits focus on efficiency, effectiveness, cost reduction, waste elimination, risk management, and control. There are challenges to be faced in value added auditing, however. They are frequently open to interpretation, require additional auditor skills and process knowledge, and may be inconsistent in application. There has been talk about compliance, internal control groups, ISO 9000, environmental departments, and others being consolidated with internal audit. To date, there has never been a case where internal audit is consolidated into some other group.

Keywords

Stakeholders,Quality audit,Internal audit,ISO 9000,Audits


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