Audit

1. Audit Audit, Oxford English Dictionary: • To make an official systematic examination of (accounts), so as to ascertain their accuracy.

2. Audit An environmental audit consists of collecting and assessing audit evidence in order to determine whether or not the audit subject matter conforms with the audit criteria. It is a tool that is used to check whether a company is doing what it should be doing.

3. Audit There are many reasons to conduct an audit and they will be reflected in the scope and objectives of the audit. • Pre-aquisition or conveyance audits • Regulatory compliance audits • Environmental management system audits • Total environmental risk audits • Green audits • Specific topic audits

4. Audit Pre-aquisition or conveyance audits • to determine liability of new acquisitions Regulatory compliance audits • to determine compliance with laws and regulations

5. Audit Environmental management system audits • to evaluate environmental performance and conformance with environmental management system

6. Audit Total environmental risk audits • all the above to give an overview of historical, current and future environmental performance Green audits • all the above plus such organizational aspects such as life cycle assessment Specific topic audits

7. Audit Qualities needed in an auditor: • Independence • Impartiality • Inquisitiveness • Integrity

8. Audit The parties involved in an audit • Auditee - the organization to be audited • Audit team - the group of auditors, or a single auditor designated to perform a given audit. The leader of the team is known as the lead auditor • Client - the organization commissioning the audit

9. EMS Audit ISO14001 - The organisation shall establish and maintain (a) programme(s) and procedures for periodic environmental management system audits to be carried out.

10. EMS Audit to determine whether or not the system • conforms to planned arrangements for environmental management including the requirements of this International Standard; and • has been properly implemented and maintained; and to provide information on the results of audits to management

11. EMS Audit The organisation’s audit programme, including any schedule, shall be based on the environmental importance of the activity concerned and the results of previous audits. In order to be comprehensive, the audit procedures shall cover the audit scope, frequency and methodologies, as well as the responsibilities and requirements for conducting audits and reporting results.

12. EMS audit process • initiating the audit • preparing the audit • executing the audit • audit reports and records

13. Initiating the audit • Define audit objectives • Appoint the lead auditor • Preliminary document review • Appointing the audit team

14. Initiating the audit Define audit objectivesThe first step in the auditing process is to define the objectives of the audit. According to ISO 14011 it is the responsibility of the client (i.e. the organization commissioning the audit) to set the audit objectives.

15. Initiating the audit Appoint the lead auditorThe lead auditor will either be an external auditor or an employee who has been trained to fulfil this role (in many companies this is the environmental manager).

16. Initiating the audit Preliminary document reviewThe lead auditor needs to review the company’s EMS documentation - e.g. environmental policy statements, programmes, records and manuals in order to assess whether or not there is sufficient and appropriate information about the EMS to undertake the audit.

17. Initiating the audit Appointing the audit teamHaving decided that the audit can go ahead, the lead auditor should, if they are needed, appoint other auditors to assist in carrying out the audit. Depending on your company’s approach, the audit team will consist of either external auditors or staff members that have received the necessary auditing training.

18. Preparing the audit • Audit plan • Audit team assignments • Working documents

19. Preparing the audit Audit planThe plan should include, if applicable • the audit objectives and scope • the audit criteria • identification of the organizational units to be audited • identification of those elements of the EMS that are of high audit priority

20. Preparing the audit • the audit procedures to be used • identification of reference documents • the expected time and duration for major audit activities • the dates and places where the audit is to be conducted • identification of audit team members

21. Preparing the audit • the schedule of meetings to be held with management • confidentiality requirements • content, format, structure, expected date of issue and distribution of the audit report • document retention requirements

22. Preparing the audit Audit team assignmentsThe lead auditor, in consultation with audit team, should assign the various members to specific EMS elements or activities and instruct them on the audit procedures to be followed.

23. Preparing the audit Working documentsThe lead auditor needs to coordinate the preparation of the working documents required to undertake the audit: • forms for documenting supporting evidence and audit findings • procedures and checklists used for evaluating EMS elements • records of meetings

24. Executing the audit • Opening meeting • Collecting evidence • Auditing findings • Closing meeting

25. Executing the audit Opening meetingThe purpose of the opening meeting is to: • introduce the members of the audit team to your company’s management; • review the scope, objectives and audit plan and agree on an audit timetable; • provide a short summary of the methods and procedures to be used to conduct the audit;

26. Executing the audit • establish the official communication links between the audit team and your MD; • confirm that the resources and facilities needed by the audit team are available; • confirm the time and date for the closing meeting; • promote the active participation of company staff in the audit; • review relevant site, safety and emergency procedures for the audit team.

27. Executing the audit Collecting evidenceSufficient audit evidence should be collected to be able to determine whether or not your EMS conforms to the EMS audit criteria through: • interviews • examination of documents • observation of activities and conditions

28. Executing the audit Information gathered through interviews should be verified by acquiring supporting information from independent sources, such as observations, records and results of existing measurements. Non verifiable information should be identified as such. Indications of non-conformity with any EMS audit criteria should be recorded.

29. Executing the audit Auditing findingsHaving collected the audit evidence, the audit team needs to review it in order to determine instances where the EMS does not conform to the audit criteria. Non-conformities should be documented in a clear, concise manner and supported by audit evidence.

30. Executing the audit The audit findings should be reviewed with the person responsible for the EMS with a view to obtaining acknowledgement from him/her of the factual basis of all findings of non-conformity.

31. Executing the audit Findings of conformity can also be documented, if within the agreed scope of the audit. However care needs to be taken that no absolute assurance of conformity is given or implied.

32. Executing the audit Closing meetingPrior to preparing the audit report, the audit team should hold a meeting with those responsible for the functions audited.

33. Executing the audit The main purpose of this meeting is for the team to present the audit findings with a view to ensuring that they are fully understood and to obtaining an acknowledgement of the factual basis of the findings.

34. Executing the audit The closing meeting is an opportunity to resolve any disagreements between the auditing team and the MD. The final decision on the significance and description of the findings rests with the lead auditor.

35. Audit reports and records • Audit report preparation • Report distribution • Audit completion

36. Audit reports and records Audit report preparationThe audit report is prepared under the direction of the lead author, who is responsible for its accuracy and completeness. The topics to be addressed in the report should be those determined in the audit plan.

37. Audit reports and records Any changes to these topics which are desired at the time of preparation of the report should be agreed by the all the parties concerned. The audit report should contain the audit findings (or a summary of these findings) with reference to supporting evidence.

38. Audit reports and records Subject to agreement between the lead auditor and your MD, the audit report may also include the following: • the identification of the organization audited and of the client • the agreed objectives, scope and plan of the audit

39. Audit reports and records • the agreed audit criteria including a list of reference documents against which the audit was conducted • the period covered by the audit and the date(s) the audit was conducted • the identification of the audit team members

40. Audit reports and records • a statement of the confidential nature of the report contents • the distribution list for the audit report • a summary of the audit process including any obstacles encountered

41. Audit reports and records • audit conclusion i.e. EMS fully conforms/does not fully conform with audit criteria and has/has not been properly implemented and maintained. The audit report should be dated and signed by the lead auditor.

42. Audit reports and records Report distributionThe audit report should be sent to the MD by the lead author. Distribution of the audit report should be determined by the the MD in accordance with the audit plan. Audit reports are the sole property of the company and confidentiality should be respected and appropriately safeguarded by the auditors and all recipients of the report.

43. Audit reports and records The audit report should be issued within the agreed time period in accordance with the audit plan. If this is not possible, the reasons for the delay should be formally communicated to the MD and a revised issue date established. All working documents, and draft and final reports pertaining to the audit should be retained by agreement between the the MD, the lead auditor and in accordance with any applicable requirements.

44. Audit completion The audit is completed once all activities defined in the audit plan have been concluded.

45. EMS Audit Components • Objectives and scope • Objectivity, independence and scope • Due profession care • Systematic procedures • Audit criteria, evidence and findings • Reliability of audit findings and conclusions • Audit report

46. Objectives and scope An audit should be based on objectives defined by the client. The scope of the audit (i.e. its extent and boundaries) is determined by the lead auditor and must be adequate to meet the audit objectives. The objectives and scope of the audit should be communicated to the auditee prior to the audit.

47. Objectivity, independence and scope An environmental audit should be as objective as is possible. In order to ensure this, the members of the audit team should be independent of the activities they are to audit. If an internal audit is being performed (i.e. the audit team consists of employees of the company being audited) then none of the audit team members should be accountable to those directly responsible for the subject matter being audited.

48. Objectivity, independence and scope The audit team members should, of course, have the knowledge, skills and experience necessary to carry out the audit. Guidance on these matters is provided in ISO 14012, the international standard on qualification criteria for environmental auditors.

49. Due profession care When conducting an audit, auditors should exercise the care, diligence, skill and judgement expected of any auditor in similar circumstances.

50. Due profession care The audit team/client relationship should be one of confidentiality and discretion. Unless required to do so by law, the audit team should not disclose information/documents obtained during the audit or the final audit report to any third party without the approval of the client. The audit team should follow procedures that provide for quality assurance.