Audits – A necessary evil The good news: Identifies gaps Gives an outsider’s view Provides...
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Transcript of Audits – A necessary evil The good news: Identifies gaps Gives an outsider’s view Provides...
![Page 1: Audits – A necessary evil The good news: Identifies gaps Gives an outsider’s view Provides opportunities to improve.](https://reader036.fdocuments.in/reader036/viewer/2022062500/5697c01f1a28abf838cd1e5b/html5/thumbnails/1.jpg)
Surviving Audits -“Don’t be defensive,
take an offensive approach”
Raam Vichare CPPM, CF
DimensionR
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Audits – A necessary evilThe good news:
• Identifies gaps• Gives an outsider’s view• Provides opportunities to improve
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Audits – A necessary evilThe bad news:
• Identifies deficiencies to others• Audit reports with findings – a bad news• Attracts lots of attention from management• Consumes time and budget
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Typical Audit Process:
• Requires preparation time• Requires time during the audit• Don’t know what auditors will be looking for?• Auditors’ bias - based on auditors’ background• Auditor may misinterpret your policies/programs
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How we generally react to the audits:
• We worry • We may have no idea what auditors want• We try to prepare • We turn the data over and hope for the best• When questioned, we become defensive• We hope auditors will have NO findings
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What auditors do:• They are there to find the gaps• Review data/policies/process to “Find”
something• Generally hone-in on some specific area • Start identifying specific areas for Gaps• May make us more defensive
(especially if we know about the Gaps)
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Typical conclusions of Audits:
• Auditors identify “Findings” and observations
• Generally we disagree with their “Findings”
• We usually become defensive
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Typical conclusions of Audits:
• We may try to place blame• Management gets concerned about
audit findings• We go through the exercise of
responding to the audit report
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So what should we do about it?
OFFENSE DEFENSE
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So what should we do about it?
• Accept the audit as “Required” • We know their process, now decide
our process• Get prepared for the audit
Take an offensive approach!!
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Prepare for the audit:• Have your own assessment
• Assessment performed by other department• Assessment performed by property personnel
• Pick assessment topics that are the major concerns
• To your operation• IGO• The hot topics other sites
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Prepare for the audit:• Document
• Observations & Finding• Action plan
• Identify Major Issue• Record them• Develop plans to address them• Identify limitation (in positive notes)• Action Plan & Timeline/milestones• Complete some milestones
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Dealing with Audits:
• Co-operate with the auditors• Be careful with your Dog & Pony show• Always answer the Questions
– No more or No less
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Dealing with Audits:
• Be honest • Select the “Right” spokesperson• Keep the complainers away• Provide additional data, if needed
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Be on the offensive:
• If you know the issues, let them know• Show issues with action plan• It will make issues less sensitive• Reduces them from “Findings” to
“Observations”• They may give you “Positive” credit
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Use Auditors for the wellness of your organization:
• Use Auditors for the wellness of your organization
• If Auditors find important issue, Listen to them
• Better to have “Finding” than be in a newspaper• Use audit to resolve outstanding problems
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Use Auditors for wellness of your organization:
• Remember: Management listens to auditors• Follow-up after the audit• Reply to audit report positively and timely• If you disagree with a specific finding –
• Agree with some part of the finding• Explain disagreement in the courteous language with
additional data• State your plans for addressing part of the findings
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Use Auditors for the wellness of your organization:
• Address all findings & observations• State your corrective action plans• Resolve easy issues and implement them• Include milestones & schedule
• Make sure your Management is informed
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Use Auditors for the wellness of your organization
Avoid the following:• Being too Defensive• Don’t be too disagreeable• Do not hide information• Do not deny the issues identified by audit