Top 3 Issues with Audit Programs | Plexus International

Summary

In this video, the top three mistakes in internal audit programs are discussed. The first mistake is having an audit program that doesn't evolve with the organization, leading to outdated audits. The second is selecting auditors without the necessary technical skills to drive real change. Lastly, not using product audits to guide system and process audits is highlighted as a significant oversight. The video emphasizes the importance of aligning audit programs with organizational changes, technical competence of auditors, and leveraging product audits for a more effective audit strategy.

Takeaways

• 📈 The top mistake in internal audit programs is having a static audit schedule that doesn't adapt to the organization's changing needs.
• 🔄 An effective audit program should be dynamic and reflect the pulse of the organization, adjusting to new developments and information.
• 🛠️ Auditors must possess the appropriate technical skills to identify and address the root causes of organizational issues.
• 👨‍🔧 It's crucial to select auditors who are competent in the technical aspects relevant to the organization's challenges.
• 🚫 Avoid sending auditors who can only superficially assess issues; they should be able to drive meaningful change.
• 📊 Product audits are critical as they provide direct insights into how well systems and processes perform and align with customer expectations.
• 🔑 The product should be central to guiding system and process audits, ensuring that audits are relevant and impactful.
• 💡 For strategic planning of audit programs, consider industry standards like AS9100 and other management tools.
• 🌐 Visit plexusintl.com for more content on systems, core tools, and business management strategies.
• 🔄 Recap: Ensure audit programs are adaptable, auditors are technically competent, and product audits are prioritized.

Q & A

What are the top three mistakes commonly made in internal audit programs according to the transcript?

The top three mistakes are: 1) Not having an audit program that adapts in time with the organization, 2) Choosing auditors without the appropriate technical aptitude to make real change, and 3) Not driving system or process audits by using the product.

Why is it a mistake for an audit program to remain static over time?

An audit program that remains static does not reflect the dynamic changes in the organization, which can lead to overlooking new developments and risks, thus failing to provide timely and relevant audits.

What is meant by the audit program needing to 'beat in time with the pulse of the organization'?

This means that the audit program should be flexible and responsive to the organization's changes, such as new program launches or issues like non-conforming product escapes, to ensure it remains relevant and effective.

Why is it important for auditors to have the appropriate technical aptitude?

Auditors with the right technical skills can better identify and address the root causes of issues within the organization, leading to more effective audits and real change.

How can auditors lacking technical aptitude hinder the audit process?

Auditors without the necessary technical knowledge may only be able to superficially assess issues, failing to provide meaningful insights or recommendations for improvement.

What role should the product play in driving system or process audits?

The product should be central to driving system or process audits as it directly interacts with the customer and provides an indicator of how well the system and its processes perform.

Why is it a mistake not to use the product to determine process and system audits in the schedule?

Not using the product in this way can lead to audits that are disconnected from customer needs and the actual performance of the organization's processes, reducing the value of the audit findings.

What are the consequences of an audit program that does not adapt to organizational changes?

An inflexible audit program may miss critical risks, fail to address emerging issues, and ultimately provide an incomplete or outdated view of the organization's compliance and operational effectiveness.

How can an organization ensure that its audit program is in sync with its operational pulse?

By regularly reviewing and updating the audit schedule to reflect new initiatives, changes in operations, and emerging risks, ensuring that audits are timely and relevant.

What steps can an organization take to improve the technical competence of its auditors?

Organizations can provide ongoing training, encourage professional development, and hire or assign auditors with relevant technical expertise to enhance the audit program's effectiveness.

How can an organization leverage its product to enhance its audit program?

By incorporating product audits into the schedule, focusing on customer interactions and feedback, and using product performance data to identify areas for audit focus and improvement.