10

Auditing
 AUDITING

RULES
Following these guidelines
makes results more useful
to management
by Joe Kausek
In 50 Words
Or Less
• Make auditees feel as if ALL AUDITORS RECEIVE training in the
they’re part of the audit
team. basics of planning, conducting and reporting audits.
• Communicate effective-
ly, develop a verifica-
Unfortunately, this is the only training many ever
tion strategy and don’t receive.
nitpick.
• Avoid findings that don’t I now present 10 rules, or guidelines if you prefer,
affect the system’s
performance, and get
that, if practiced, will significantly improve the effec-
management support tiveness of audits.
by identifying real ef-
fects of findings, using
dollar amounts when
possible.

July 2008 • QP 45
 Rule 1: Make auditees feel like members of the is not only willing, but also enthusiastic about assisting
audit team. Instead of using the opening line, “Don’t in the audit.
worry, we’re not here to audit you, we’re here to audit
the system,” say something like this: Rule 2: Start the evaluation by asking general,
“We’re doing an evaluation of the [blank] process. open-ended questions, then use clarifying ques-
We’re trying to identify any weaknesses in the process tions to fill in the gaps. There are three primary
or opportunities to improve it. To do that, we need your types of questions an auditor can ask during an inter-
help. We’d like you to walk us through the process and view: open-ended, closed-ended and clarifying.
explain how it works. We might need you to answer Open-ended questions have no right or wrong an-
some questions or show us some of the records gener- swers. Auditees are free to respond to the question to
ated. If there is anything that doesn’t work very well or a level and depth with which they feel comfortable.
improvements you feel would make the process better, The auditor gets significantly more information from
we’d like to hear about those, too. If you have any ques- an open-ended question than from a closed-ended one.
tions, please feel free to ask them. OK?” Also, because there are no right or wrong answers, au-
This kind of opening statement sounds much more ditees are generally more comfortable with open-end-
sincere and truly reflects the role of the auditees. It ed questions, assuming the questions address a topic
also makes them members of the audit team, which is or process with which they are familiar.
really what they are. Closed-ended questions elicit yes-no responses or
Note the use of the phrase “the process.” The words specific right-wrong answers. For example, “Is there a
“you” and “your” personalize, and saying something communications log?” will bring either a yes or a no
like, “We’re here to evaluate your process” immedi- response. Likewise, “How often are environmental
ately puts auditees on the defensive by implying that if regulations updated?” will result in a single response
there is a problem, it’s their problem. The words “you” such as “quarterly,” “annually” or even “we don’t.” Only
and “your” should be avoided during audit interviews. one of these is likely to be correct, so the auditee has
Also note the use of the word “evaluate” instead of “au- a greater chance of “crashing and burning” when an-
dit.” The word “audit” will, by itself, make some people swering a closed-ended question.
nervous, as will the use of the word “nonconformance.” Because open-ended questions provide more infor-
For this reason, consider using the word “weaknesses.” mation and are generally safer to the auditee, auditors
The use of this rule should result in an auditee who are advised to use general, open-ended questions that
cover broad sections of the topic being evaluated early
in the interview process. These early responses pro-
Funnel approach / FIGURE 1
vide a wealth of information to auditors and help them
Start with broad, open-ended determine areas that need deeper review.
questions to obtain maximum Assume the auditor asks, “Can you walk me through
information.
this process, starting from a request for a quote and
ending with a contract award?” This is a good open-
ended question with which to start the audit. The
Use clarifying
questions to auditee might, in fact, answer other questions on the
“funnel” down auditor’s checklist in his or her first response to this
to the missing
information question. In that case, all the auditor has to do is ask
and to fill in for the objective evidence to verify what he or she has
the gaps.
been told. If something was left out that the auditor
expected to hear, then he or she can follow with a clari-
fying question, the next type.
Clarifying questions are designed to fill in the gaps.
If the auditee’s initial response revealed nothing about
feasibility reviews, the auditor would ask a clarifying
Use closed-ended questions to
research specific points. question: “I didn’t hear you mention anything about

46 QP • www.qualityprogress.com
 AUDITING

Clarifying questions are designed

to fill in the gaps in information.
feasibility reviews. Can you explain when they are Although the words are identical in both sentences,
done and who does them?” The clarifying question is the meanings are quite different. In the first example,
used to fill in the gaps or funnel down to the missing the auditee is stating emphatically that this supplier is
(or suspect) information. a good one. In the second instance, the auditee is say-
When used in this manner, open-ended, closed-ended ing this supplier is OK, but there are others that are
and clarifying questions form a strategy for conducting not. Just as important, the auditor is offering to share
interviews we call the funnel approach, which is illus- his or her thoughts on these problems with the auditor
trated in Figure 1. To summarize, the use of the funnel if he or she cares to listen.
approach leads to an efficient audit that covers the maxi- What would happen if the auditor did not pick up on
mum amount in the least time. It is also safer to auditees this subtle but important inflection? He or she would
and allows them to warm up in the interview. probably fail to find the weakness, which is the audi-
tor’s primary responsibility.
Rule 3: Be an active listener. The importance of ac- Finally, provide positive feedback to auditees as
tive listening cannot be overstated. An often quoted rule they respond. Some techniques for doing this are
of thumb is that auditors should spend only 10% of their shown in Table 1 (p. 48).
time talking and 90% listening during an audit.
An alarming statistic provided by research is that Rule 4: Never let the auditee pick the samples.
up to 70% of all communications are misunderstood. Assume you’ve been assigned to audit the purchasing
While many of these miscommunications might have process, and one of the requirements states that any re-
no significant impact during routine interactions, a ceipt of nonconforming material will result in a supplier
miscommunication during an audit can have devastat- corrective action request (SCAR) being issued to the sup-
ing effects on both auditee and auditor credibility. Sim- plier, with a copy of the SCAR and response being placed
ply stated, auditors must be active listeners. in the supplier’s history file. How would you verify that
Active listening involves hearing not only the words the SCARs are being issued as required?
used by the speaker, but also the way the words are Many auditors would ask the purchasing manager
used, and observing the nonverbal cues. The words for examples of a supplier providing nonconforming
themselves convey only a part of the message, some- product. This allows the auditee to select the samples,
times less than 10%, while the nonverbal cues, such which is never a good way to find the weaknesses.
as facial expressions, body language and movements, A better strategy would be to stop by the receiving
possibly contain more than 60% of the overall commu- department on the way to purchasing and note several
nication. This is especially true when trying to gauge instances of incoming product problems using the re-
the truthfulness of a response. ceiving-department records. When the auditor wants to
What do we mean when we say “the way the words verify this requirement during the purchasing-manager
are used”? Say the following two statements aloud, interview, he or she can then specifically ask to see the
placing emphasis on the italicized words in each sen- history files for the suppliers noted during this visit to
tence. Are the meanings the same? the receiving department.
1. I do not know of any problems with this supplier. Auditors should examine each question on their
2. I do not know of any problems with this supplier. checklists and ask themselves, “How will I verify the au-
ditee’s response? Do I know what to ask
for and how I will choose the samples?” If
MORE AUDITING TIPS the answer isn’t evident, the auditor should
Many more articles with suggestions on conducting audits of
ISO 9001 and other management standards can be found at develop a verification strategy and add it to
www.qualityprogress.com. the checklist.

July 2008 • QP 47
 Rule 5: Always try to identify any real effects of their findings with auditees. This is critical when you
your findings, using dollar values when available. think you have found a nonconformance.
One of the things that sets the superstar auditors apart Sharing the finding avoids invalid findings gener-
from their counterparts is their ability to tie findings to ated because of miscommunication. Recall that 70% of
real consequences. They have the ability to transform all communications are misunderstood. A well-trained
the finding from a technical violation into a problem auditor who practices active listening can significantly
that is affecting the organization. They get manage- improve on that percentage. But the fact is, sometimes
ment’s attention. They also get management’s support. we just don’t understand what the other person is try-
Auditors should always attempt to determine wheth- ing to say, or the other person doesn’t understand us.
er a deficiency is having an effect on the organization Sometimes we think we have a nonconformity, but we
and, if so, how much. Here are some examples. Decide really don’t.
which audit findings would most likely prompt a more Here’s an example: Assume the procedure for sup-
supportive reaction from management and more asser- plier evaluation and selection requires joint agreement
tive corrective action. between purchasing and quality assurance before a
• Finding 1a: The control plan being used in final as- new supplier goes on the approved supplier list. The
sembly for part BD459-X2 was obsolete, in violation of auditor previously asked the purchasing manager to
clause 4.2.3 of ISO 9001 and section 4.6 of QSP-QA-02. walk through the process for evaluating and selecting
• Finding 1b: The control plan being used in final as- suppliers. She replied throughout her response, “I do
sembly for part BD459-X2 was obsolete and did not this … I do that … I check this …” Never once did she
contain all customer-required inspections, in viola- ever mention any quality involvement.
tion of clause 4.2.3 of ISO 9001 and section 4.6 of The auditor decides to write up a nonconformance to
QSP-QA-02. It was further noted that 400 units of the procedure requirement for quality assurance partici-
product BD459-X2 were rejected by the customer pation in this process. When the auditor gets to the clos-
in March for the attributes that were missing on the ing meeting, he or she presents the nonconformance, at
control plan. The direct costs associated with reso- which time the purchasing manager and quality manager
lution of this problem were in excess of $200,000. jump up and exclaim, “Quality is involved!”
The auditor responds by noting that never once did
Rule 6: Always confirm your findings with the the purchasing manager mention quality’s involvement, to
auditee. Before leaving, auditors should always share which she responds, “I didn’t know you wanted to know

Positive feedback examples / TABLE 1

Method Examples Advantages and applications
Verbal door-openers • “Very good.” Short, nondisruptive; does not stop the flow of information
Short phrase interjected as auditee • “Excellent!” from the auditee, but encourages auditee to continue to
responds. provide information; should be used liberally during interviews.
• “Please continue.”
Nodding your head You have to visualize this one. Same advantages and applications as the verbal door-openers.
Echoing • Material resource planning Normally causes the auditee to expand on the echoed topic
Short repeat, in the form of a system? without causing too much disruption in the communication
question, of the topic the auditee • Online learning? coming from the auditee.
mentioned on which the auditor
wants more information. • Universal waste?
• Job hazard analysis?
Reflecting “Sounds pretty tough. How has Indicates to the auditee that you care, and tests your
Reflecting back the emotion it affected your department?” understanding of their emotions; especially useful when
displayed by the auditee. pursuing resource issues and their impact.

Paraphrasing “Let me make sure I’ve got this Somewhat disruptive because the auditee must stop talking
Summarizing, in the auditor’s own straight …” while the auditor summarizes; critical tool for testing auditor
words, the content of an auditee’s understanding of what he or she has been told; should always
response. be done after long responses and to confirm a finding.

48 QP • www.qualityprogress.com
 AUDITING

what everybody did. I only thought you wanted to know Rule 9: When citing areas of strength, be specific.
what I did.” At this point, you slink down in your chair, Shouldn’t the auditor give credit where credit is due? Yes,
and in your best Rosanne Roseannadanna-Gilda Radner the auditor should always note superior performance,
“Saturday Night Live” voice meekly say, “Never mind.” especially when it represents what is a truly best prac-
Sharing the finding with the auditee before you tice. But the rule for doing so is this: Be specific. When
leave, or even as it is identified, gives the auditee the giving praise, it is critical that you pinpoint the specific
chance to correct any misconceptions that could lead practices that are praiseworthy.
to an invalid finding. It protects you—the auditor. Rarely will an auditor have sufficient time to com-
Sharing the findings also reinforces the concept that pletely and in great depth evaluate an entire system or
the auditor and the auditee are on the same team. The process to the point of being able to say the whole thing
auditor should be willing to share the findings with the is really great. Instead, indicate exactly what you found to
auditee as a sign of courtesy and respect. be superior. Maybe it was the control of electronic docu-
mentation or the methods used to communicate changes
Rule 7: Don’t go looking for nits. Don’t write up to document users. Do not make general statements.
nits. What’s a nit? A nit is any finding that is administra-
tive in nature and could never have any real impact on Rule 10: Feed the auditor. Apart from auditors being
the performance of the management system. Examples food motivated, there are some issues relating to lunch
of nits are obvious typographical errors, blank fields that need to be worked out, especially when conducting
not marked “N/A” for “not applicable” when there is off-site audits. The foremost of these issues is whether to
no requirement or practical reason to do so, and ad- go out to lunch or have it brought in.
ministrative oversights that are obvious and easily cor- Auditees will often invite the auditors out to lunch.
rectable. The lead auditor must weigh accepting this offer
Since nits are sometimes violations of requirements, against the demands of the audit.
even if trivial, how does an auditor avoid writing them Most auditors have a working lunch, where they
up? The short answer is, don’t go looking for them. discuss what’s been found so far, what needs to be
Focus on significant requirements, problem areas and reviewed in more detail and how they might want to
performance. Do not focus on, or even look for nits. adjust the afternoon’s schedule. Many also take the op-
portunity to begin their audit write-ups. None of this
Rule 8: Provide sufficient background informa- can be accomplished when the audit team goes out to
tion in your write-ups to allow the auditee to lunch.
understand both what was found and what the In addition, it might be hard to go out and get back
requirement is. Auditors must always remember in less than an hour. For these reasons, most auditors
who they are writing the nonconformance report for. prefer that lunch be brought in. Of course, for internal
It is not for the audit program manager and not for the audits the issue is normally moot: The auditor is on his
other auditors. It is for the auditee manager or process or her own.
owner who will have to take corrective action.
The manager or owner might not have been pres- Results: Practicing these 10 simple rules, or guide-
ent when the deficiency was found. This means the lines, will help you achieve more effective and efficient
write-up must be clear and directly traceable to the audits, while helping to provide a more positive image
requirement that was violated. The description of the to all those involved. QP
deficiency must leave no doubt as to what the problem
was or why it is considered a violation.
By including information relating to the number of de-
JOE KAUSEK is president of Joe Kausek & Associates.
ficiencies or sample size, for example, the auditee man- He earned a master’s degree from Point Park College
in Pittsburgh and is a senior member of ASQ and a
ager can determine whether the violation was an isolated certified Six Sigma Black Belt. He wrote two books for
occurrence, in which case the action will be to correct it, ASQ Quality Press: Environmental Management Quick
and Easy: Creating an Effective ISO 14001 EMS in
or a systematic weakness that warrants significant effort Half the Time and The Management System Auditor’s
for root-cause determination and elimination. Handbook.

July 2008 • QP 49