Virtual Audit by Internet or Electronic Communication - Do you have any success?

[Govind]

With the current advancement in communication technology including “Webex” meetings, call conferences, Web camera, etc,we are thinking about an option called "virtual Audit" for select processes.

Auditing of the following areas that typically require interview, verification of documents and records
Example:
Contract review process
Document and Data control
Purchasing
Corrective and Preventive action,
Control of Quality records
Internal Quality auditing
Training
Above mentioned processes can be performed through Virtual auditing. Although one would argue, there is no substitution for face-to-face contact communication. However, if an audit is going to involve interview, verification of documents and records*, Virtual audit should be more flexible and economical. Any disagreement?
(*Assuming documents and records are electronically stored,can be opened up on the screen during a "Webex" meeting)

There are areas like design, manufacturing, calibration, Control of Non conforming goods, storage, handling, etc which will require a site visit and face to face communication by the auditor. These areas require auditor to closely observe the process on top of reviewing the documents.

There are potential cost savings in terms of Auditor travel, boarding & lodging. Also provides a flexibility of time between auditors and auditees.
At the same the effectiveness and integrity of the audit should not be compromised.

Have any one tried this Virtual approach to Auditing? Any challenges, obstacles, lesson learned?

Thanks,
Govind.

 

[Claes Gefvenberg]

Hello, hello... This is interesting... Ok, I'll bite

I don't suppose this is much of an option for IA's but: If your auditee is a long journey away and proper communication tools as well as necessary data are available: Whyever not? The communication tools would have to be very good though: We have, not state of the art, but pretty good video conferencing equipment available. Imo it is adequate for meetings, but not for an audit.

Call me old fashioned (I think I am in some ways), but I still want to be there... If the tools improve, as I'm certain they will eventually, I'm prepared to change my mind. Not yet though...

That said however, we do examine most, if not all the examples you mentioned via the network, not as audits per se, but in preparation for more "traditional" audits. the data goes into our checklists... I am a strong believer in being well prepared for audits.

All things considered: Not yet as far as I am concerned, but I see nothing wrong with the idea as such.

/Claes

 

[Govind]

When there was just 1 reply in a whole week I thought this “Virtual audit” concept is not known to many of our members or most of us think that this is not practical.

I was actually very surprised to come across with this Chapter in the Book called "Management Audits" by Allan J Sayle. Chapter 16- Page 327-333- Auditing and Cyber space. Third edition 1997.
This book is talking about this concept almost 7 years back. Imagine the technology growth in the last 7 years. This concept should be even more wide spread in these last 7 years.
This chapter is talking exactly about this thread topic!

The author says as the Outsourcing business increase, the auditing using non face-to-face audits will also start to increase. He relates this increase due to increasingly paperless documentation across various organizations. He also provides the audit protocol for such audits.
Look like many have already thought about this concept and some are already practising!

Govind.

 

[M Greenaway]

I personally feel that you would get a 'better' audit by seeing the process itself, rather than reviewing the record which in effect is all you would probably be doing.

I do think however that the IT systems can be well used to fool proof the process itself, such that they force the process to be done correctly - hence no need for audit (of the process that is).

 

[Govind]

I personally feel that you would get a 'better' audit by seeing the process itself, rather than reviewing the record which in effect is all you would probably be doing.

I do think however that the IT systems can be well used to fool proof the process itself, such that they force the process to be done correctly - hence no need for audit (of the process that is).

More and more organizations are moving heavily into electronic documentation, and MRP/ERP systems that mistake proof many processes.
External (third party auditors) will start to pay more emphasize on process effectiveness. Decide to perform every alternate surveillance using "virtual approach" gradually move to visits during Renewal only….this day is not far off.
Some day in the near future, I will pull out this thread from the Elsmar archive and share the story as to how we thought face-to-face audit is "better" approach. Iam one of the people who also believe that face-to-face audit is "better". However, the advancement in technology and processes will break all the barriers.
Govind.

 

[db]

The three methods of determining objective evidence are:

a) interviewing You could do this through web, and even the phone. However, in both cases there are limitations that would not be present with face-to-face audits.

b) examination There are many ways to do this, including shared directories, and intranet access to documents, and records. However, there is little opportunity to discover things that not within the confines of what you have access to.

c) observation This is almost impossible (I think) unless you are present with the auditee, in the auditee's environment. I have found a lot of things just through observation during an audit. During an audit of contract review, you see a form on the desk that is not in your document control structure. If you don't see it, it can never be discussed.

I would feel mighty uncomfortable with auditing off-site, regardless of the activity I'm auditing. Not only that, but auditees will never offer bribes over the web!

 

[jaimezepeda]

How would you calibrate the medium and infrastructure used to conduct the virtual audit?

 

[RoxaneB]

How would you calibrate the medium and infrastructure used to conduct the virtual audit?

Why would you need to?

 

[Govind]

How would you calibrate the medium and infrastructure used to conduct the virtual audit?

Jamie,
Your question is giving room for various assumptions until you get back and provide us with clarity. Iam assuming that you are using the term "calibrate" in the context of "standardize"?

Either way, Iam not sure what to answer. The medium and infrastucture is dependent on the "objective of that virtual audit". If you needed only interview by conference call and no need for a visual media, then all you need a telephone line. If you needed to look at an area where the nonconformace has occured in a part, you may prefer a video conferencing facility.
If you can expand your question, we have better opportunity to clarify.
Govind.

 

[jaimezepeda]

I was thinking along the lines of a WebEx session.

Sometimes during these WebEx sessions some of the information is dropped by the connection. I guess I would want to ensure that I was hearing and seeing everything that was taken place.