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CBT 2 - Auditing Techniques

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Course FormatCourse Format

Course is made up of this PowerPoint presentationCourse is made up of this PowerPoint presentation and accompanied by the small questionnaire next and accompanied by the small questionnaire next to you!to you!

Advance through the slideshow as you need by Advance through the slideshow as you need by hitting the hitting the “ENTER” key“ENTER” key on your keyboard! on your keyboard!

You should be able to complete within 2 hoursYou should be able to complete within 2 hours

1.1. Introduction to Auditing Introduction to Auditing (slide 4)(slide 4)

2.2. Preparation of an Audit Preparation of an Audit (slide 21)(slide 21)

3.3. The Audit Process The Audit Process (slide 35)(slide 35)

4.4. The Human Element The Human Element (slide 58)(slide 58)

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Check on yourself

Please read the questionnaire and answer the questions to your best knowledge without consulting this presentation or an instructor.

Be fair to yourself!

Complete it (not more than 8-10 minutes), turn it around and continue here.

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Part 1 - Part 1 - Introduction to AuditingIntroduction to Auditing

At the end of this session, At the end of this session, youyou will: will:

have been introduced to the concepts of auditing;have been introduced to the concepts of auditing;

be able to recognise the different types of audit; be able to recognise the different types of audit;

be able to understand the objectives of auditing;be able to understand the objectives of auditing;

be able to understand some of the terminology be able to understand some of the terminology used; used;

be familiar with ISM certification and auditing be familiar with ISM certification and auditing requirements.requirements.

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What is an Audit?What is an Audit?

A systematic and independent examination A systematic and independent examination to determine: -to determine: -

whether safety/quality activities comply with whether safety/quality activities comply with planned arrangements; planned arrangements;

whether these arrangements are implemented whether these arrangements are implemented effectively; andeffectively; and

are these arrangements suitable to meet the are these arrangements suitable to meet the company’s objectives.company’s objectives.

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AlternativelyAlternatively,,

aan audit can be thought of as n audit can be thought of as a a thorough examinationthorough examination of of the company’s safety or the company’s safety or quality management systemquality management system!!

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What’s in the mind of the Auditor?What’s in the mind of the Auditor?

““is the management system really resulting in the is the management system really resulting in the company operating safe ships and providing a company operating safe ships and providing a quality service to their customers?”quality service to their customers?”

or to put it another way;or to put it another way;

““are the company’s operations safe and healthy?”are the company’s operations safe and healthy?”

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Purpose of the AuditPurpose of the Audit

To compare actual work practices with the written instructions of the company

Any difference between the two is noted as an Audit Finding or Non Conformity

Audit deficiencies must be corrected with a view to continuous improvement..

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a) - a) - Internal Audit -Internal Audit - “Us on Us”“Us on Us”

An audit carried out by a company to An audit carried out by a company to evaluate it’s own performance.evaluate it’s own performance.

A person independent of the area being A person independent of the area being audited should carry out such audits.audited should carry out such audits.

Sometimes called “First Party Audits”.Sometimes called “First Party Audits”.

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b) - b) - External Audit -External Audit - “Us on Them”“Us on Them”

An audit carried out by our company to An audit carried out by our company to evaluate the activities of our contractors, evaluate the activities of our contractors, suppliers and agents, etc.suppliers and agents, etc.

i.e.i.e. Shipmanager auditing Manning Agent Shipmanager auditing Manning Agent or,or, Manning Agent auditing Travel Agent. Manning Agent auditing Travel Agent.

Sometimes called Sometimes called ““Second Party AuditsSecond Party Audits””..

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c) - c) - External AuditExternal Audit - - ““Them on USThem on US””

An audit carried out by a principal on An audit carried out by a principal on our company/ship. our company/ship.

i.e.i.e. Shipmanager by Shipowner, orShipmanager by Shipowner, or

Manning Agent by Shipmanager.Manning Agent by Shipmanager.

Also referred to as a Also referred to as a ““Second Party AuditSecond Party Audit””..

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Third Party AuditThird Party Audit - - “Them on Us”“Them on Us”

An audit carried out by an An audit carried out by an organisation’s regulatory body, class organisation’s regulatory body, class society or other certifying bodysociety or other certifying body..

Performed in order to issue or maintain Performed in order to issue or maintain a certificate of recognition a certificate of recognition or proof or proof that that the company’s safetythe company’s safety // quality quality management system meets stipulated management system meets stipulated and / or contractual and / or contractual requirements.requirements.

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Objectives of a 3rd Party AuditObjectives of a 3rd Party Audit

To maintain recognised certification for the safety/quality To maintain recognised certification for the safety/quality management systemmanagement system (e.g. DOC audit) (e.g. DOC audit)

To obtain proof that the company maintains their quality and safety To obtain proof that the company maintains their quality and safety standards all time (e.g. owners audit).standards all time (e.g. owners audit).

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Depth of an AuditDepth of an Audit

A term used to explain how A term used to explain how thoroughly the auditors will thoroughly the auditors will examine the system being examine the system being audited.audited.

A A system auditsystem audit is usually a is usually a superficial or shallow audit superficial or shallow audit used to get the feel of a used to get the feel of a safety/safety/ quality systemquality system,, whereaswhereas a an n adherence or adherence or compliance auditcompliance audit is a is a full full in- in-depth look. depth look.

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Scope of an AuditScope of an Audit

Refers to the amount of Refers to the amount of the safety/quality system the safety/quality system that should be reviewed in that should be reviewed in order to confirm that order to confirm that activities are in compliance activities are in compliance with company instructions.with company instructions.

This means that individual This means that individual sections of the SMS can be sections of the SMS can be audited onboard ship at audited onboard ship at different times, thereby different times, thereby reducing the workload on reducing the workload on the auditor, and ship’s the auditor, and ship’s staff.staff.

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Maintaining IndependenceMaintaining Independence

It is a requirement in both safety and quality It is a requirement in both safety and quality management, that wherever possible, management, that wherever possible, auditors must be independent of the area auditors must be independent of the area being audited.being audited.

In all cases, an auditor must be properly In all cases, an auditor must be properly trained in auditing techniques and trained in auditing techniques and knowledgeable in the area(s) that they are knowledgeable in the area(s) that they are auditing.auditing.

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ISM Certification RequirementsISM Certification Requirements

Under the ISM Code, the shipmanagement Under the ISM Code, the shipmanagement company is required to obtain a company is required to obtain a Document Document of Compliance (DOC)of Compliance (DOC) which is valid for 5 which is valid for 5 years;years;

Each ship under their management is Each ship under their management is required to obtain a required to obtain a Safety Management Safety Management Certificate (SMC)Certificate (SMC) which is also valid for 5 which is also valid for 5 years.years.

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ISM Auditing RequirementsISM Auditing Requirements for for vesselsvessels

Ships areShips are required to be audited as follows: required to be audited as follows:

internallyinternally - one time in 12 months - one time in 12 months

3rd Party - initially prior to issuing the SMC, 3rd Party - initially prior to issuing the SMC, then between the second and third anniversary then between the second and third anniversary date of issue of the certificatedate of issue of the certificate (intermediate 2.5 (intermediate 2.5

years)years), and finally upon renewal of the SMC after , and finally upon renewal of the SMC after 5 years.5 years.

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Summary of Part 1Summary of Part 1

we have we have reviewedreviewed:: an introduction to the concepts of auditing;an introduction to the concepts of auditing;

recognition of the different types of audit; recognition of the different types of audit;

understanding of the objectives of auditing;understanding of the objectives of auditing;

understanding of the terminology usedunderstanding of the terminology used;;

familiarization with ISM familiarization with ISM on board on board certification certification and auditing requirements.and auditing requirements.

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Take a break, before you carry on! 10 minutes.

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Part 2 -Part 2 - Preparation for the Audit Preparation for the Audit

At the end of this At the end of this partpart, , youyou will have will have reviewed reviewed the preparations that are the preparations that are required in order to ensure that the required in order to ensure that the audit will proceed smoothly and the audit will proceed smoothly and the result will favour the auditeeresult will favour the auditee (that’s (that’s you!)you!)..

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Pre Audit MeetingsPre Audit Meetings

Usually 2 types:Usually 2 types:

1) 1) Senior OfficersSenior Officers andand 2)2) DepartmentalDepartmental

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Senior Officers MeetingSenior Officers Meeting

Called and led by Master;Called and led by Master;

Brief senior officers Brief senior officers regarding depth & scope;regarding depth & scope;

Review & circulate previous Review & circulate previous audit findings;audit findings;

Establish inter-departmental Establish inter-departmental co-operationco-operation,, where where required;required;

Meet at regular intervals to Meet at regular intervals to update progress;update progress;

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Departmental MeetingDepartmental Meeting

Called by Head of Dept following Senior Called by Head of Dept following Senior Officers meeting;Officers meeting;

Brief all crew on scope and depth of audit;Brief all crew on scope and depth of audit;

Allocate tasks, i.e. procedural review, Allocate tasks, i.e. procedural review, verification of records, etc.;verification of records, etc.;

Schedule mock audits to prepare crew; andSchedule mock audits to prepare crew; and

Arrange further Arrange further familiarization familiarization // instruction instruction where necessary.where necessary.

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Previous Audit FindingsPrevious Audit Findings

a) a) If we do not learn the lessons from history, they have If we do not learn the lessons from history, they have a way of coming back around to punish us all over again.a way of coming back around to punish us all over again.

b) b) Findings from previous audits should be reviewed Findings from previous audits should be reviewed firstly at departmental level and once a satisfactory firstly at departmental level and once a satisfactory conclusion is reached, this should be reported at conclusion is reached, this should be reported at managerial level.managerial level.

c) c) Do not underestimate what appears to be a small Do not underestimate what appears to be a small matter left unresolved from the last audit.matter left unresolved from the last audit.

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Procedural ReviewProcedural Review

As an audit is aAs an audit is ann examination to determine that examination to determine that operations comply with planned arrangements and that operations comply with planned arrangements and that these arrangements are implemented effectivelythese arrangements are implemented effectively - -

tthe next logical step is to he next logical step is to review the company’s review the company’s operating proceduresoperating procedures and ensure that crew are aware of and ensure that crew are aware of thesethese and following the company’s instructions. and following the company’s instructions.

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Procedural Review Procedural Review ((cont’dcont’d))

Job DescriptionsJob Descriptions Check accuracy - do the Check accuracy - do the crewcrew actually do what actually do what

their job description says that they do?their job description says that they do?

Is the person carrying out tasks as allocated or Is the person carrying out tasks as allocated or have some tasks been re-assigned?have some tasks been re-assigned?

Auditors will check regarding understanding of job Auditors will check regarding understanding of job descriptions - ensure that all crew are aware of descriptions - ensure that all crew are aware of theirs.theirs.

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Procedural Review Procedural Review ((cont’dcont’d))

Work Instructions, Record Work Instructions, Record ReviewReview

Are all operations been carried out Are all operations been carried out as per written procedures?as per written procedures?

Is the work recorded correctly, on the Is the work recorded correctly, on the correct form, is it signed and filed correct form, is it signed and filed appropriately?appropriately?

Poor document control is one of the Poor document control is one of the target areas for audit findings. This is target areas for audit findings. This is usually a human failing attributed to usually a human failing attributed to laziness or improper training.laziness or improper training.

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Procedural Review Procedural Review ((cont’dcont’d))

ListsLists (individuals need to prepare themselves – getting (individuals need to prepare themselves – getting organized)organized)

Make a personal list of things that apply to you: Make a personal list of things that apply to you:

- things to check;- things to check;

- things to clarify; - things to clarify;

- details of procedures to brush up on; and- details of procedures to brush up on; and

- prepare for a mock audit, etc.- prepare for a mock audit, etc.

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Mock AuditsMock Audits

Should be carried out Should be carried out on on departmentdepartment basis basis;;

Use senior officers (from other Use senior officers (from other departments) wherever possible;departments) wherever possible;

Make them realistic and take Make them realistic and take them seriously;them seriously;

Audit all staff wherever possible Audit all staff wherever possible - you - you nevernever know who the know who the auditor(s) will select for auditor(s) will select for interview;interview;

Good training toolGood training tool

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Common Audit FaultsCommon Audit Faults

The following is a list of common faults or The following is a list of common faults or failings that are revealed during an audit: failings that are revealed during an audit:

Lack of knowledge of Safety/Quality Policy;Lack of knowledge of Safety/Quality Policy; Not knowing the DP of the company;Not knowing the DP of the company; Inadequate reading of manuals;Inadequate reading of manuals; Improper updating of manuals;Improper updating of manuals; Poor Record Keeping;Poor Record Keeping; No awareness of Job DescriptionsNo awareness of Job Descriptions, and, and

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Common Audit FaultsCommon Audit Faults

Incorrect or not updated Crew Lists;Incorrect or not updated Crew Lists;

Out of date Reference Library List;Out of date Reference Library List;

Lack of Emergency Drills & Exercises;Lack of Emergency Drills & Exercises;

Emergency/After Hours Contact Details not Emergency/After Hours Contact Details not updated;updated;

Communication Records;Communication Records;

No follow up regarding Incident ReportsNo follow up regarding Incident Reports or NC`s or NC`s;;

No attention to Previous Audit Reports; No attention to Previous Audit Reports;

Lack of Crew Familiarisation Training, andLack of Crew Familiarisation Training, and

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Common Audit FaultsCommon Audit Faults

Outdated Vessel Certification Status;Outdated Vessel Certification Status;

No Master’s Reviews;No Master’s Reviews;

Personnel Files maintained incorrectly; andPersonnel Files maintained incorrectly; and

Poor Document Control.Poor Document Control.

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Part 2 Part 2 - Preparation for the Audit- Preparation for the Audit

This session is now complete, This session is now complete, you you have reviewedhave reviewed preparations preparations required in order to ensure that the required in order to ensure that the audit will proceed smoothly and the audit will proceed smoothly and the result will favour result will favour you!you!

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Part 3Part 3 - The Audit Process - The Audit Process

At the end of this presentation, At the end of this presentation, youyou will be: will be:

familiar with the total audit process fromfamiliar with the total audit process from

- scheduling;- scheduling;

- planning & preparation;- planning & preparation;

- performing the audit;- performing the audit;

- reporting audit findings; and- reporting audit findings; and

- following up on audit findings.- following up on audit findings.

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SchedulingScheduling

Determined by: Determined by:

Regulatory (ISM/ISMA) Regulatory (ISM/ISMA) requirements;requirements;

Maturity of the system. A Maturity of the system. A developing system needs to be developing system needs to be audited more frequently; andaudited more frequently; and

Other pertinent factors, i.e. major Other pertinent factors, i.e. major changes to the system, results of changes to the system, results of previous audits, a serious safety previous audits, a serious safety or quality failure or preparation or quality failure or preparation for a new project.for a new project.

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Scheduling cont’dScheduling cont’d

An audit schedule must be established by the person(s) An audit schedule must be established by the person(s) responsible for auditing and circulated to each ship.responsible for auditing and circulated to each ship.

This schedule should show all planned internal and 3rd This schedule should show all planned internal and 3rd Party audits for a 12 month period.Party audits for a 12 month period.

Internal audits should always be planned to take place Internal audits should always be planned to take place at least 2-3 months before a 3rd Party audit so that any at least 2-3 months before a 3rd Party audit so that any problems discovered can be attended to effectively.problems discovered can be attended to effectively.

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Audit Preparation & PlanningAudit Preparation & Planning

The following functions are handled by the The following functions are handled by the organisationorganisation performing the audit performing the audit (e.g. GL)(e.g. GL)::

Appoint a person(s) to be responsible for the audit;Appoint a person(s) to be responsible for the audit;

Notify the auditee;Notify the auditee;

Agree the audit timetable;Agree the audit timetable;

Identify & obtain all relevant documentation;Identify & obtain all relevant documentation;

Brief audit team members (if applicable); andBrief audit team members (if applicable); and

Develop audit checklists.Develop audit checklists.

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PerformPerforminging of the Audit of the Audit

Can be divided into 5 distinct phases: -Can be divided into 5 distinct phases: -

The Entry Meeting;The Entry Meeting;

The Tour;The Tour;

The Interviews;The Interviews;

Evaluation of the Results;Evaluation of the Results;

The Exit MeetingThe Exit Meeting

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The Entry MeetingThe Entry Meeting

Attended by Auditors and Attended by Auditors and Senior Officers;Senior Officers;

Introduce auditor(s) and Introduce auditor(s) and officers;officers;

Confirm purpose & scope;Confirm purpose & scope;

Review timetable & agenda;Review timetable & agenda;

Summarise audit techniques;Summarise audit techniques;

Address non-conformities;Address non-conformities;

Agree time for Exit Meeting;Agree time for Exit Meeting;

Arrange for escorts.Arrange for escorts.

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The TourThe Tour

Familiarisation;Familiarisation;

Observing safe work Observing safe work practices & procedures;practices & procedures;

Auditor may stop and chat Auditor may stop and chat with working staff - with working staff - remember he’s still remember he’s still auditing!!!auditing!!!

Will look for maintenance Will look for maintenance defects and cross check with defects and cross check with defect reports, etc.defect reports, etc.

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The InterviewsThe Interviews

Conducted following the Conducted following the checklist as a guide;checklist as a guide;

Asks “open” questions, making Asks “open” questions, making the auditee do the talking;the auditee do the talking;

Checking records;Checking records;

Seeking “objective evidence” Seeking “objective evidence” to verify compliance with to verify compliance with written procedures. written procedures.

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- - Open QuestionsOpen Questions

Usually beginUsually beginss with the words with the words “how”, “what”, “when”, “why”, “how”, “what”, “when”, “why”, “who” or “where”;“who” or “where”;

Makes the auditee talk, allows the Makes the auditee talk, allows the auditor to gather objective auditor to gather objective evidence regarding evidence regarding compliance/non compliance with compliance/non compliance with procedures.procedures.

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- - Objective EvidenceObjective Evidence

Can be defined as: Can be defined as:

““information, records or statements of fact information, records or statements of fact that are based on the auditor’s observation, that are based on the auditor’s observation, measurement and/or test and which can be measurement and/or test and which can be substantiated (proved)”;substantiated (proved)”;

Used to support the Auditor’s findings, Used to support the Auditor’s findings, strong objective evidence is very difficult to strong objective evidence is very difficult to dispute.dispute.

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- - Closed QuestionsClosed Questions

Questions that generate a “yes” or “no” Questions that generate a “yes” or “no” answer;answer;

ee.g. Do You?, Have You?, etc;.g. Do You?, Have You?, etc;

Rarely used in auditing as answers do Rarely used in auditing as answers do not provide auditor with sufficient not provide auditor with sufficient objective evidence.objective evidence.

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- - Rule of ThumbRule of Thumb

Good auditors only Good auditors only talk for 25% of the talk for 25% of the interview;interview;

They listen for the They listen for the remaining 75% - remaining 75% - that means that means youyou as as auditee auditee do the do the talkingtalking..

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Evaluation of the ResultsEvaluation of the Results

This is where the auditor(s) This is where the auditor(s) consider and evaluate the consider and evaluate the evidence generated during the evidence generated during the audit.audit.

Objective evidence of a departure Objective evidence of a departure from company procedures, from company procedures, documented requirements and/or documented requirements and/or other applicable documents can other applicable documents can be considered as valid be considered as valid justification for an audit finding.justification for an audit finding.

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- - Audit FindingsAudit Findings

May also be referred to as May also be referred to as Non-Conformities;Non-Conformities;

Should be brought to the Should be brought to the attention of the person attention of the person being interviewed at the being interviewed at the time of discovery;time of discovery;

Must be reported formally Must be reported formally at the at the closingclosing meeting on a meeting on a Finding or Non Conformity Finding or Non Conformity Report.Report.

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- - Audit FindingsAudit Findings

Can be categorised as follows: Can be categorised as follows:

MajorMajor - where the company’s instructions have clearly - where the company’s instructions have clearly not been correctly followed or ignored and this omission not been correctly followed or ignored and this omission potentially potentially threatens the safetythreatens the safety of the ship, or the of the ship, or the crew, or the environment;crew, or the environment;

or group of similar findings within the same element that or group of similar findings within the same element that lead the Auditor to believe there is a serious problem;lead the Auditor to believe there is a serious problem;

i.e. document control failures on the bridge, with i.e. document control failures on the bridge, with personnel records and maintenance records;personnel records and maintenance records;

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- - Audit FindingsAudit Findings

Categorized as follows: Categorized as follows:

MinorMinor - a single or minor lapse of discipline or - a single or minor lapse of discipline or control that does not pose any serious or immediate control that does not pose any serious or immediate danger, nevertheless, improvement is required; anddanger, nevertheless, improvement is required; and

ObservationObservation - a comment on an existing condition - a comment on an existing condition with regards to the overall improvement of the with regards to the overall improvement of the system - given as advice only, corrective action is system - given as advice only, corrective action is advisable but not mandatory.advisable but not mandatory.

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The The ExitExit Meeting Meeting

Attended by Auditors and Attended by Auditors and Senior Officers;Senior Officers;

Lead Auditor presents Lead Auditor presents overview of the audit;overview of the audit;

Introduce any findings;Introduce any findings;

Auditee may at this time Auditee may at this time dispute a finding;dispute a finding;

If agreeable, auditor may If agreeable, auditor may downgrade or cancel finding.downgrade or cancel finding.

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The The ExitExit Meeting cont’d Meeting cont’d

Master to sign to acknowledge Master to sign to acknowledge finding - this finding - this DOES NOTDOES NOT signify signify acceptance;acceptance;

If available, auditor will If available, auditor will present formal audit report;present formal audit report;

Master and Company must Master and Company must agree on most suitable form agree on most suitable form of corrective action - this is of corrective action - this is then passed to Auditor for then passed to Auditor for approval.approval.

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Auditor’s RecommendationsAuditor’s Recommendations

Auditees will usually ask the auditor for a Auditees will usually ask the auditor for a recommendation on correcting the finding;recommendation on correcting the finding;

Auditors are not required to reply; andAuditors are not required to reply; and

Any recommendation from the auditor Any recommendation from the auditor must be taken as personal advice - not must be taken as personal advice - not necessarily the advice of the organisation necessarily the advice of the organisation conducting the audit.conducting the audit.

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The Follow UpThe Follow Up

Master & Company must determine & implement Master & Company must determine & implement Corrective Action;Corrective Action;

Auditor may require to verify effectiveness of Auditor may require to verify effectiveness of corrective action in order to close out finding corrective action in order to close out finding report;report;

May take the form of a “mini audit” focusing on May take the form of a “mini audit” focusing on the deficient areas.the deficient areas.

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The Follow UpThe Follow Up

If the corrective action is effective, the finding If the corrective action is effective, the finding is closed; is closed;

If not, a new finding report will be issued by If not, a new finding report will be issued by the Auditor and the Company must review the the Auditor and the Company must review the corrective action taken;corrective action taken;

Only when the corrective action is acceptable Only when the corrective action is acceptable will the auditor finally close out the finding.will the auditor finally close out the finding.

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The Audit ProcessThe Audit Process

This presentation is complete, during This presentation is complete, during this presentation, this presentation, youyou have have reviewedreviewed::

the total audit process from scheduling;the total audit process from scheduling;

- planning & preparation;- planning & preparation;

- performing the audit;- performing the audit;

- reporting audit findings; and- reporting audit findings; and

- following up on audit findings.- following up on audit findings.

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Take a break, before you carry on! 10 minutes.

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Part 4 - Part 4 - The Human ElementThe Human Element

At the end of this session, At the end of this session, youyou will will have been introduced to the human have been introduced to the human elements that form an integral part elements that form an integral part of the audit process.of the audit process.

This includes differences in This includes differences in personalities, the importance of personalities, the importance of knowledge, the effects of body knowledge, the effects of body language and common sins language and common sins committed by auditees.committed by auditees.

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Human InteractionHuman Interaction

Different types of audits Different types of audits create different pressures create different pressures on auditor/auditee.on auditor/auditee.

External & 3rd Party External & 3rd Party audits put a distance audits put a distance between auditor/auditee; between auditor/auditee; whereaswhereas

Internal audits may Internal audits may involve interaction with involve interaction with close work colleagues.close work colleagues.

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What is the objective of the audit?What is the objective of the audit?

To verify that To verify that allall work practices are in work practices are in compliance with the documented safety compliance with the documented safety management system; and;management system; and;

If notIf not, highlight areas where improvements , highlight areas where improvements are required;are required;

Therefore it is important not to let personal Therefore it is important not to let personal feelings reduce the effectiveness of the audit, feelings reduce the effectiveness of the audit, or damage the harmony of the working or damage the harmony of the working environment.environment.

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Please RememberPlease Remember

It is always the system that It is always the system that is being audited;is being audited;

- - notnot the individual the individual crewmembercrewmember ! !

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Potential Danger AreasPotential Danger Areas

Can be divided into three areas: Can be divided into three areas:

Attributes and Personality of the Auditor;Attributes and Personality of the Auditor;

Attributes and Personality of the Auditee; andAttributes and Personality of the Auditee; and

The knowledge base of the Auditor. The knowledge base of the Auditor.

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Attributes and Personality of the Attributes and Personality of the AuditorAuditor

Can also be divided into six areas: Can also be divided into six areas:

a)) Fail the Auditee; Fail the Auditee;

b) ) The “autocratic” Auditor;The “autocratic” Auditor;

c) ) The “wish to be friends” Auditor;The “wish to be friends” Auditor;

d)) The “untrusting” Auditor; The “untrusting” Auditor;

e)) The “tired” Auditor; and The “tired” Auditor; and

f) ) The ‘busy” Auditor.The ‘busy” Auditor.

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a) Fail the Auditee) Fail the Auditee

The purpose of the audit The purpose of the audit is to determine is to determine compliance, not to find compliance, not to find non-compliance at any non-compliance at any cost.cost.

It is not true to say that “the more It is not true to say that “the more non compliances found, the more non compliances found, the more effective the audit”.effective the audit”.

If the auditee is compliant, the If the auditee is compliant, the auditor should say so and auditor should say so and document such a result. A positive document such a result. A positive result is good for company morale.result is good for company morale.

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b) The “autocratic” Auditor) The “autocratic” Auditor

Some auditors view the audit Some auditors view the audit process as their right to give process as their right to give orders and recommend orders and recommend changes to procedures.changes to procedures.

This is more common during This is more common during internal audits where office internal audits where office staff maybe used as auditors.staff maybe used as auditors.

Good auditors listen, if they Good auditors listen, if they are constantly giving orders are constantly giving orders and making changes - they and making changes - they cannot be listening cannot be listening effectivelyeffectively..

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c) The “wish to be friends” Auditor) The “wish to be friends” Auditor

In some cases the auditor In some cases the auditor may wish to be friends with may wish to be friends with everyone.everyone.

They see the audit as a They see the audit as a possible means of damaging possible means of damaging such friendships by exposing such friendships by exposing possible weaknesses.possible weaknesses.

As a result, difficult or As a result, difficult or searching questions are not searching questions are not asked, leading to an asked, leading to an ineffective auditineffective audit..

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d) The “untrusting” auditor) The “untrusting” auditor

Some auditors are convinced Some auditors are convinced that all auditees are trying to that all auditees are trying to hide something, this attitude hide something, this attitude results in mistrust and results in mistrust and suspicion.suspicion.

Such auditors are not listening Such auditors are not listening effectively as their time is spent effectively as their time is spent searching for hidden meanings.searching for hidden meanings.

A good auditor compiles objective A good auditor compiles objective evidence through interview, evidence through interview, supported by documented records. If supported by documented records. If the auditee complies, they comply.the auditee complies, they comply.

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e) The “tired” auditor) The “tired” auditor

Auditing like many jobs Auditing like many jobs can become tedious and can become tedious and repetitious.repetitious.

Beware of auditors who Beware of auditors who have become tired and have become tired and are auditing are auditing automatically.automatically.

Such an auditor has lost Such an auditor has lost interest and cannot interest and cannot carry out an effective carry out an effective audit.audit.

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f) The ‘busy” auditor) The ‘busy” auditor

These usually appear during These usually appear during Internal Audits.Internal Audits.

As a co-worker, the auditor has As a co-worker, the auditor has other responsibilities and may other responsibilities and may postpone the audit because of postpone the audit because of other commitments;other commitments;

Similarly, during your audit, Similarly, during your audit, they may be distracted and they may be distracted and constantly taking breaks to constantly taking breaks to attend to other things.attend to other things.

This gives the impression that This gives the impression that the audit is not important.the audit is not important.

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What to Do?What to Do?

If during any audit you observe any of If during any audit you observe any of the danger areas just mentioned, you the danger areas just mentioned, you should: should: Bring it to the attention of your head of dept or the Bring it to the attention of your head of dept or the MasterMaster who should then:who should then:

If an internal audit, request the company to review If an internal audit, request the company to review the selection of their internal auditors;the selection of their internal auditors;

If an external or 3rd Party audit, advise your If an external or 3rd Party audit, advise your company management, who will in turn, advise the company management, who will in turn, advise the organization carrying out the audit.organization carrying out the audit.

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Attributes and Personality of the Attributes and Personality of the AuditeeAuditee

There are usually 2 different types of There are usually 2 different types of problem auditees: problem auditees:

a)) The “aggressive” Auditee; and The “aggressive” Auditee; and

b)) The “disorganised” Auditee. The “disorganised” Auditee.

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a) The “aggressive” Auditee) The “aggressive” Auditee

Many people, particularly Many people, particularly management, have difficulty when management, have difficulty when another person asks searching another person asks searching questions regarding their work.questions regarding their work.

The audit is seen as a threat to The audit is seen as a threat to their competence and/or ability their competence and/or ability and the auditor is viewed as a and the auditor is viewed as a policeman or spy.policeman or spy.

There may also be strong negative There may also be strong negative feelings towards the quality/safety feelings towards the quality/safety management system, usually management system, usually resulting from a lack of training.resulting from a lack of training.

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b) The “disorganised” ) The “disorganised” AuditeeAuditee

Auditees who are uncomfortable with Auditees who are uncomfortable with the audit process may use many tactics the audit process may use many tactics to postpone or delay their interview in to postpone or delay their interview in the hope that the auditor will move on.the hope that the auditor will move on.

Not being available at the agreed time;Not being available at the agreed time;

Being interrupted by telephone calls or Being interrupted by telephone calls or other crewmembers;other crewmembers;

Engaging the auditor in idle Engaging the auditor in idle conversation; andconversation; and

Offering a banquet style lunch with Offering a banquet style lunch with alcohol.alcohol.

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Do these tactics work?Do these tactics work?

NONO!!Auditors are well aware of such tactics and are Auditors are well aware of such tactics and are trained to deal with them.trained to deal with them.

They only create a negative impression of the They only create a negative impression of the auditee; and auditee; and

The auditor will need to stay around longer to The auditor will need to stay around longer to complete their task, thereby giving them more complete their task, thereby giving them more opportunities to discover non-conformities.opportunities to discover non-conformities.

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The Knowledge Base of the The Knowledge Base of the AuditorAuditor

Any auditor must have a good knowledge of the Any auditor must have a good knowledge of the safety or quality standard, the written procedures of safety or quality standard, the written procedures of the Company and the nature of the business of the the Company and the nature of the business of the Company. Without such knowledge, the auditor may: Company. Without such knowledge, the auditor may:

Place incorrect level of importance on an aspect of Place incorrect level of importance on an aspect of the the standard or procedure, i.e. incorrect grading;standard or procedure, i.e. incorrect grading;

Ask questions outside the scope of the audit or Ask questions outside the scope of the audit or the the responsibilities of the auditee; andresponsibilities of the auditee; and

Ask questions or accept answers that cause the Ask questions or accept answers that cause the auditee doubt the competence of the auditor.auditee doubt the competence of the auditor.

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The Knowledge Base of the The Knowledge Base of the AuditorAuditor

During internal shipboard audits, During internal shipboard audits, it is possible for the auditor to it is possible for the auditor to behave as a “technical inspector” behave as a “technical inspector” and not as a someone trained in and not as a someone trained in auditing skills.auditing skills.

This is particularly prevalent This is particularly prevalent where the audit is carried out by a where the audit is carried out by a Superintendent, and Superintendent, and the audit the audit degenerates into a technical degenerates into a technical inspection/discussion rather than inspection/discussion rather than an audit of the safety an audit of the safety management system. management system.

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The effects of Body LanguageThe effects of Body Language

One of the most important yet underestimated One of the most important yet underestimated tools at the disposal of an auditor or auditee.tools at the disposal of an auditor or auditee.

All people master body language without All people master body language without knowing it and it is a very international knowing it and it is a very international language.language.

Crossing of arms and legs is a sign of being on the Crossing of arms and legs is a sign of being on the defensive, disinterested or displeased;defensive, disinterested or displeased;

Leaning forward denotes hostility; andLeaning forward denotes hostility; and

Leaning back denotes superiority, confidence and Leaning back denotes superiority, confidence and dominance.dominance.

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How do we communicate?How do we communicate?

Research shows that the total impact of Research shows that the total impact of a message is about: a message is about:

7% verbal (words only);7% verbal (words only);

38% vocal (tone of voice and inflection); and38% vocal (tone of voice and inflection); and

55%55% non-verbal non-verbal (expressions and actions). (expressions and actions).

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Try ThisTry This

Emphasize the world in Emphasize the world in boldbold type, see how the meaning type, see how the meaning changes: -changes: -

II did not say he stole the money. did not say he stole the money.

I I did notdid not say he stole the money. say he stole the money.

I did not I did not saysay he stole the money. he stole the money.

I did not say I did not say hehe stole the money. stole the money.

I did not say he I did not say he stolestole the money. the money.

I did not say he stole I did not say he stole thethe money. money.

I did not say he stole the I did not say he stole the moneymoney..

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What other non-verbal signals do we What other non-verbal signals do we use?use?

I don’t know!I don’t know!

Very easily communicated;Very easily communicated;

Other ways include scratching your Other ways include scratching your chin, staring into space, looking chin, staring into space, looking down or not responding to a down or not responding to a question.question.

If an auditee is unsure of the If an auditee is unsure of the information required, do not use information required, do not use body language. State clearly that body language. State clearly that you are not sure but redeem the you are not sure but redeem the situation by showing the auditor situation by showing the auditor where in the company manuals, the where in the company manuals, the information is located.information is located.

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I I kknownow

Once again, easily interpreted;Once again, easily interpreted;

Other ways include smiling and Other ways include smiling and widening of the eyes;widening of the eyes;

Auditors like confident answers.Auditors like confident answers.

Confidence comes from having a Confidence comes from having a good working knowledge of the good working knowledge of the safety/quality management safety/quality management system.system.

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I’ve made a mistakeI’ve made a mistake

Humans make mistakes, no Humans make mistakes, no one is perfect;one is perfect;

Auditors accept honest Auditors accept honest mistakes, do not attempt to mistakes, do not attempt to cover up by being dishonest;cover up by being dishonest;

If you make a mistake, admit If you make a mistake, admit it then give the auditor the it then give the auditor the correct answer or show them correct answer or show them the objective evidence that the objective evidence that they require.they require.

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Anger or FrustrationAnger or Frustration

Not always against the auditor;Not always against the auditor; May surface due to external May surface due to external

reasons but do not allow reasons but do not allow auditor to see that there maybe auditor to see that there maybe problems onboard the ship or problems onboard the ship or with the Company - they do not with the Company - they do not need to know about them.need to know about them.

May give cause for concern May give cause for concern regarding management style or regarding management style or the leadership ability of the the leadership ability of the officers.officers.

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ShockShock

Audits can be stressful and auditees Audits can be stressful and auditees should not become emotional;should not become emotional;

Other ways include change of skin Other ways include change of skin colour, i.e. turning white;colour, i.e. turning white;

Closing Closing meetings are particularly meetings are particularly stressful. Auditees should accept stressful. Auditees should accept justified findings, continuous justified findings, continuous improvement benefits all improvement benefits all concerned.concerned.

Do not be argumentative, you don’t Do not be argumentative, you don’t make any friends this way.make any friends this way.

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LaughterLaughter

Beware of innocent comments Beware of innocent comments intended to be humorous;intended to be humorous;

Be especially careful regarding Be especially careful regarding religion or politics, unless you religion or politics, unless you know the auditor well;know the auditor well;

It is very difficult to recover a It is very difficult to recover a situation after saying something situation after saying something foolish and then expecting an foolish and then expecting an auditor to take you seriouslyauditor to take you seriously;;

There is a time and place for There is a time and place for humour and a carefully selected humour and a carefully selected joke can be used as an joke can be used as an icebreaker.icebreaker.

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CriticizingCriticizing

A very common mistake A very common mistake made by auditees;made by auditees;

Do not criticize the Do not criticize the company, shore staff, other company, shore staff, other crewmembers or the crewmembers or the management system in management system in front of the auditor;front of the auditor;

Lack of commitment is a Lack of commitment is a management failing and is management failing and is easily detectable and easily detectable and considered serious.considered serious.

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Superiority ComplexSuperiority Complex

Does not encourage a spirit Does not encourage a spirit of openness and of openness and continuous improvement;continuous improvement;

Senior management Senior management display the characteristics display the characteristics of a dictator where only of a dictator where only their opinion counts;their opinion counts;

Middle management Middle management blindly follows in fear; andblindly follows in fear; and

Often noticed on ships with Often noticed on ships with mixed nationality crewsmixed nationality crews

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Common Auditee SinsCommon Auditee Sins (Mistakes)(Mistakes)

Lack of understanding of the Lack of understanding of the system;system;

Lack of understanding of the Lack of understanding of the audit process;audit process;

Lack of preparation for the Lack of preparation for the audit;audit;

Attempting to delay or distract Attempting to delay or distract the auditor;the auditor;

Being uncooperative, late or Being uncooperative, late or keeping the auditor waiting;keeping the auditor waiting;

Being evasive or dishonest;Being evasive or dishonest;

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Common Auditee SinsCommon Auditee Sins (Mistakes)(Mistakes)

Offering information that is not Offering information that is not asked for, required, or that is asked for, required, or that is outside your area of outside your area of responsibility;responsibility;

Being critical of company Being critical of company management and/or the management and/or the management system; andmanagement system; and

Bringing personal issues or Bringing personal issues or grievances into the audit.grievances into the audit.

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Tips for a Successful AuditTips for a Successful Audit PREPAREPREPARE;;

Arrange a tour of the vessel. Arrange a tour of the vessel. Highlight location of toilets, Highlight location of toilets, emergency exits, smoking/no emergency exits, smoking/no smoking areas, work area for smoking areas, work area for auditor(s) use, use of cellular auditor(s) use, use of cellular phone, camera, etc.phone, camera, etc.

Prepare PPE for the auditor(s) in Prepare PPE for the auditor(s) in advance. If the auditor(s) need advance. If the auditor(s) need to change, prepare a spare to change, prepare a spare cabin;cabin;

Check for any food preferences;Check for any food preferences;

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Tips for a Successful AuditTips for a Successful Audit

Advise the ship’s voltage; Advise the ship’s voltage; Introduce the auditor to the Introduce the auditor to the

crew to encourage co-crew to encourage co-operation;operation;

Arrange a guide to accompany Arrange a guide to accompany the auditor at all times;the auditor at all times;

Keep to the audit timetable. If Keep to the audit timetable. If this is not possible, advise the this is not possible, advise the auditor of proposed changes;auditor of proposed changes;

Maintain a high standard of Maintain a high standard of housekeeping at your place of housekeeping at your place of work;work;

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Tips for a Successful AuditTips for a Successful Audit

Answer only the question that is Answer only the question that is asked, do not be over asked, do not be over communicative;communicative;

Ask the auditor to repeat or re-Ask the auditor to repeat or re-phrase the question if you do phrase the question if you do not understand;not understand;

Lead the auditor where possible. Lead the auditor where possible. If not specified, select the most If not specified, select the most competent staff to be audited;competent staff to be audited;

Accept findings where justified. Accept findings where justified. Argue your case only when Argue your case only when you’re sure.you’re sure.

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Tips for a Successful AuditTips for a Successful Audit

If the auditor will stay onboard If the auditor will stay onboard overnight, prepare a cabin with overnight, prepare a cabin with clean linen, towels and soap, clean linen, towels and soap, etc.etc.

Give necessary SMS shipboard Give necessary SMS shipboard familiarization & keep a record;familiarization & keep a record;

Ensure that the auditor is made Ensure that the auditor is made aware of alarm signals and aware of alarm signals and muster stations;muster stations;

Advise auditor of ship’s meal Advise auditor of ship’s meal times, etc.times, etc.

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Part Part 3 - The Human Element3 - The Human Element

The final session has been The final session has been completedcompleted!!

You have reviewedYou have reviewed the human elements the human elements that form an that form an integral partintegral part of the audit of the audit processprocess..

This included differences in This included differences in personalities, the importance of personalities, the importance of knowledge, the effects of body language knowledge, the effects of body language and common and common mistakesmistakes committed by committed by auditees.auditees.

With the knowledge you have now, With the knowledge you have now, please take the questionnaire and check please take the questionnaire and check on all questions again!on all questions again!

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We hope you will find this course useful and the content will help you to prepare for the next forthcoming audit!

If you have any comments please write them down and send them to the HSC Crew Operation Manager!

Thanks for participating and we wish you always safe sailings!

F i n a l l y