Let’s Start With Some Definitions
According to the Oxford English Dictionary there are essentially two types of audits:
- Audits
- 1. “Conduct an official financial inspection…”
- 1.1 “Conduct a systematic review of…”
The latter is of interest here as, whether the topic is environment, health & safety (EHS) or transportation of hazmat/dangerous goods; we aren’t generally in the business of inspecting financial issues.
To expand, in the context of auditing in the non-financial context, a more relevant definition was provided in the classical (some things never grow old!) handbooks authored by Greeno et al:
“Auditing in general is a methodical examination -involving analyses tests and confirmation- of local procedures and practices where the goal is to verify whether they comply with legal requirements, internal policies and (or) accepted practices. Auditing differs from assessments in that it requires the collection and documentation of competent and sufficient evidence rather than opinion based purely on professional judgement.”
-[Greeno, J.L.; Hedstrom, G.S. & DiBerto, M.: “Environmental Auditing: Fundamentals & Techniques”, 2nd Edition, 1987- Center for Environmental Assessment- Arthur D. Little Inc.]
This contrasts with an assessment:
“Assessment: An appraisal of procedures or operations based largely on experience and professional judgement.”
-[Greeno, J.L.; Hedstrom, G.S. & DiBerto, M.: “The Environment, Health, & Safety Auditor’s Handbook”, Center for Environmental Assessment- Arthur D. Little Inc., 1988 –p.163,164.]
Although assessments may enter into the audit process, they should not be a substitute for the more objective evaluation that an audit provides.
Non-financial audits range from basic “compliance” audits -to establish that policies, procedures and practices are in place to meet the requirements of laws and/or corporate standards- to wider ranging activities expected from industry standards (e.g. ISO-type) encompassing a demonstration of continuous performance improvement in areas of stewardship, sustainability and culture.
Effective Audits
Effective audits are done following a protocol based on the reference standards (laws, policies, etc.) forming the foundation of the topic under review. Checklists assist in ensuring adequate coverage of the elements evaluated by the auditor. The annotated checklist is the primary resource in producing a status report at the end of the review. A consistent format of reporting conclusions, based on the protocols and checklist, assists in follow-up. This allows identification of areas subject to improvement or “back-sliding” from one audit to the next.
Auditors rarely have the luxury of verifying every single item of evidence and so must incorporate sampling techniques and interviews with personnel to obtain sufficient understanding of the operation. The evidence thus gathered supports the findings/recommendations that the auditor includes in the final report.
The Auditor
Auditors must have a good understanding of the subject matter in the underlying standards/regulations being evaluated in the audit. In addition, it is desirable for the auditor to have a sufficiently open mind to recognize the effectiveness of alternate processes (analogous to the Equivalency Certificate/Special Permit approach in DG/Hazmat regulations) to achieve compliance outside of the traditionally accepted modalities.
So whether it’s to avoid falling afoul of regulations, to improve performance/community standing or gain confidence of business partners/customers, auditing can help with confirmation of the path an organization is on- or provide direction to map out the right road.
* [Title reference] Along with and “That’s my BMW outside- and it’s paid for.” and “Your cheque is in the mail” (does anyone use cheques- or mail- these days?!), a wag once added:
“I’m the Auditor & I’m here to help you.” – “I’m the facility manager & I’m glad to see you.”
ICC provides comprehensive workplace and transportation based audits. To schedule your plant audit, or to find out more information, call one of our customer relations centers today: 888-442-9628 in the US or 888-977-4834 in Canada.
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