Background information and pre-reading Page 1 of 5

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1 Page 1 of 5 Introduction This document provides a practitioner s guide to audit preparation and conduct. We encourage lead auditors to use this document (but please acknowledge the source) amending it as they wish to take account of their own experiences or any specific requirements. As we said in the book, we welcome constructive feedback from users of this checklist, as we very much intend to incorporate and credit the better suggestions received into future editions of this book. Just as many people have a packing list for their holidays and other travel, where each year they add to their list something they forgot, this has been our preparation list for many years. We use this each time we go to do an audit, and we commend it to you, though of course, it does not claim to be absolutely definitive. You will find lots of tips and suggestions here to think about - whether you are to join (or lead) your first or 1001 st audit. Amongst our suggestions, tips and techniques, you ll find our thoughts on: Preparation of the audit team Personal preparation - visas, jabs, local currency, credit cards Preparation documentation Getting there - transport, accommodation, ticketing Subject preparation - business background, organisation objectives, interview schedule Doing the audit These checklists are provided for the guidance of current and trainee auditors particularly lead auditors. Whilst it is unlikely that any list of this type can be absolutely complete, it does aim to cover many of the main areas, and in turn to give a reasonable assurance that the main additional requirements for team leading (over and above those of the audit team members) have been covered. How the checklist is structured The checklist (and supporting commentary) is divided into three sections: Set-up Stage Conducting the Audit After the Audit Set-up Stage 1. Confirm with Internal Audit Manager the requirement for an audit

2 Page 2 of 5 As a lead auditor, it is essential that the requirement to participate in an audit is confirmed (in writing if possible). You ll need the audit duration and intensity (i.e. number of auditors). If you are providing this service as a contractor, this confirmation constitutes your work order. Another important request at this time is for the draft Terms of Reference (ToR). 2. Confirm the audit dates and duration Confirm the dates / duration for the audit with the nominated individual at the location(s) / process(es) to be audited. If no specific individual is nominated, the site manager (or similar) is likely to be the auditee. We recommend that confirmation of this information is sent to the auditee in writing. Mention the orientation visit if this is required (see 9 below). 3. Identify / select the other audit team members The lead auditor should write to each nominated member of the audit team, welcoming them to the team, briefly describing their involvement, and confirming the dates and duration of the audit. 4. Develop and send pre-audit requests (for information and documents needed in advance of audit) Approximately three months in advance of the audit (or as time allows), request in advance the desired information from the location. This gives time for follow-up at -2 months and -1 month if the required items are not received. We have included an example text, showing what may be useful to request in advance in Appendix 3 of the book, and also as supporting material on the companion website. 5. Receipt of pre-audit documentation When pre-audit documentation arrives, be sure to read it. Check it against the list of information requested, and as necessary, follow up on essential items not received. 6. One month out checks These constitute the final arrangements. Check (for self and audit team): Passports and necessary entry/exit visas (a six-month validity beyond the planned return date is a good standard) Ticketing / travelling arrangements

3 Page 3 of 5 Immunisations, etc some territories require evidence of inoculations at border control (e.g. Yellow Fever) Business travel insurance Accommodation for the duration of the stay the auditee can often recommend suitable, convenient locations; and may also have preferential rates agreed A supply of local currency and an ATM-enabled credit card Availability of translators (where needed) Anti-malarial tablets / other medications Initial meeting point logistics for auditors PPE (e.g. safety shoes, flame-proof overalls, etc.) 7. Send draft ToR (3 A s, reference framework, scope) Send the draft Terms of Reference to the auditee approximately one month before the audit is due to commence. This is an ideal way of confirming the final details of the audit to the location. 8. Sift, and send pre-audit materials to audit team members There is no need to send everything. Choose wisely, and send copies of the information that is most likely to be helpful to the auditors as they start to prepare for this assignment. One month before is an ideal time beforehand. 9. Arrange pre-audit orientation visit to site Within the month before the audit, it is useful for the lead auditor to make a short orientation visit to the location. Conducting the Audit 1. As an Auditor To be as an auditor as described in this book. Lead auditors have the principal responsibility for delivering the overall audit service with a factbased written audit report. The lead auditor is also responsible: 2. As the principal contact between the auditee and the auditors 3. For convening and chairing all meetings of the audit team

4 Page 4 of 5 4. For being the principal presenter at entry and exit meetings / presentations 5. Arranging and conducting no surprises meetings with the auditee 6. For scheduling meetings with auditee s staff, and co-ordinating overall timekeeping 7. For motivating the audit team - coaching / co-ordinating / maintaining team discipline 8. To check / proof read all documentation (e.g. working papers) produced by the team 9. For security of data and materials 10. To decide where the team cannot (sometimes this can be as the casting vote the lead auditor is responsible for the overall audit opinion) 11. To co-ordinate production of the draft report 12. For QA (quality assurance) After the audit The lead auditor takes the following responsibilities following the conclusion of the on-site work, and after the audit team has dispersed: 1. Finalise (having received and taken account of any auditee comments) and submit the final audit report with recommendations to auditee, and others as agreed / required 2. Gather, index and securely archive / securely destroy (depending upon contractual arrangements and/or professional indemnity insurance requirements) audit working papers and other documents 3. Sending letters of thanks (as appropriate) to the auditee and each member of the audit team 4. Arrange for charging or invoicing (as required) for the fees and expenses incurred An excellent lead auditor should also: Regularly back-up all computer and mobile phone data at a secure, out-of-office location

5 Page 5 of 5 Undertake CPD (Continuing Professional Development), and maintain a CPD logbook of developmental training and experience of auditing Provide one-to-one coaching / support / training to their staff Be aware of the need for the provision of professional indemnity insurance. We recommend that this is discussed with a licensed insurance broker Be a member of a recognised auditing organisation (such as the International Register of Certificated Auditors (IRCA) or on an auditor register, such as that maintained by the Institute of Environmental Management and Assessment (IEMA). This latter register was formerly known as the EARA register