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Cause analysis for an Audit Finding - Purchasing Procedure Content

H

Hendel

#1
Dear all,
I'm in kind of negotiation with our ompany's NB regarding the cause analysis of a finding from an annual audit on Purchasing and Supplier evaluation.
The findings is: The procedure in place is not clear that purchasing can only be done from approved suppliers

The "real" cause was inattention when forming the procedure (which was audited for the last 5 years as is...), although it appears in a flowchart as an appendix.

The issue is that the NB do not accept such cause analysis.

Any ideas how to solve it?

Great thanks!
Hendel




 
#2
Re: Cause analysis for an audit finding

Dear all,
I'm in kind of negotiation with our ompany's NB regarding the cause analysis of a finding from an annual audit on Purchasing and Supplier evaluation.
The findings is: The procedure in place is not clear that purchasing can only be done from approved suppliers

The "real" cause was inattention when forming the procedure (which was audited for the last 5 years as is...), although it appears in a flowchart as an appendix.

The issue is that the NB do not accept such cause analysis.

Any ideas how to solve it?

Great thanks!
Hendel




To begin with, the finding reads like an opinion. What's unclear? To whom? The auditor? That doesn't make it something which needs action - other than to ensure competency of the internal auditor when investigating and reporting.
 

dsanabria

Quite Involved in Discussions
#3
Re: Cause analysis for an audit finding

Dear all,
I'm in kind of negotiation with our ompany's NB regarding the cause analysis of a finding from an annual audit on Purchasing and Supplier evaluation.
The findings is: The procedure in place is not clear that purchasing can only be done from approved suppliers

The "real" cause was inattention when forming the procedure (which was audited for the last 5 years as is...), although it appears in a flowchart as an appendix.

The issue is that the NB do not accept such cause analysis.

Any ideas how to solve it?

Great thanks!
Hendel




First - I agree with AndyN... It looks like they (NB) wanted to write you up from an unapproved supplier? or a supplier not on your list?

If that is the case under what clause did they write it up?

To you question - I would play ignorance and add the supplier to your list, update your procedures and train purchasing department to buy only from approved suppliers.

Let us know if you need additional information on handling the NB :2cents:
 
#4
Re: Cause analysis for an audit finding

Dear all,
I'm in kind of negotiation with our ompany's NB regarding the cause analysis of a finding from an annual audit on Purchasing and Supplier evaluation.
The findings is: The procedure in place is not clear that purchasing can only be done from approved suppliers

The "real" cause was inattention when forming the procedure (which was audited for the last 5 years as is...), although it appears in a flowchart as an appendix.

The issue is that the NB do not accept such cause analysis.

Any ideas how to solve it?

Great thanks!
Hendel




It could be useful to have the evidence that NB highlighted to write up this non conformity.
It seems that it could be only a "sensation" and so not a non conformity.
What did the NB auditor evidence with objective data or item that carried to that conclusion?
In any case you should address the issue, if it is "real", by means of method to fix the most probable cause with root cause analysis .
 

Jim Wynne

Staff member
Admin
#5
Dear all,
I'm in kind of negotiation with our ompany's NB regarding the cause analysis of a finding from an annual audit on Purchasing and Supplier evaluation.
The findings is: The procedure in place is not clear that purchasing can only be done from approved suppliers

The "real" cause was inattention when forming the procedure (which was audited for the last 5 years as is...), although it appears in a flowchart as an appendix.

The issue is that the NB do not accept such cause analysis.

Any ideas how to solve it?

Great thanks!
Hendel
Without seeing the document in question, I would say that if there is a nonconformity it's up to the auditor to provide evidence to support it. In this case, one would think that the requirement is to purchase only from duly approved suppliers. In order to fail to meet that requirement, there would have to be evidence of purchase from a supplier that had not been duly approved. The language of the document is irrelevant, and in order for a nonconformity finding to be sustained there would have to be some sort of requirement somewhere stating that the documented procedure must explicitly say that suppliers must be approved.

You might not be in a position to challenge the finding, but part of your response should be that you do take issue with it and that there is no evidence of actual purchase from non-approved suppliers, and thank you very much for pointing out that our procedure would benefit from clarification.
 
#6
Without seeing the document in question, I would say that if there is a nonconformity it's up to the auditor to provide evidence to support it. In this case, one would think that the requirement is to purchase only from duly approved suppliers. In order to fail to meet that requirement, there would have to be evidence of purchase from a supplier that had not been duly approved. The language of the document is irrelevant, and in order for a nonconformity finding to be sustained there would have to be some sort of requirement somewhere stating that the documented procedure must explicitly say that suppliers must be approved.

You might not be in a position to challenge the finding, but part of your response should be that you do take issue with it and that there is no evidence of actual purchase from non-approved suppliers, and thank you very much for pointing out that our procedure would benefit from clarification.
I'd go with this response.
 

somashekar

Staff member
Super Moderator
#7
The procedure in place is not clear that purchasing can only be done from approved suppliers
Evaluate and select suppliers based on the ability to supply products in accordance with your organization requirements. You need to have records of what resulted from your evaluation and selection. You need to establish criteria for selection, evaluation and re-evaluation.

You do not have to write in your procedure anything about approved supplier. There are several ways your purchasing can be established to show that your suppliers are evaluated and selected based upon your determined criteria.

Ask your NB (CB) as to where he is coining that statement from ...
 
H

Hendel

#8
Thanks!
We already supplied such answer but the auditor is not satisfied, pushing us to reveal the root cause of the finding.
Thus, your suggestion would not be acceptable
 
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