This document discusses how an organization's internal audit division addresses quality management principles. It provides examples of actions taken to demonstrate adherence to each of the eight principles: 1) Customer focus, 2) Leadership, 3) People involvement, 4) Process approach, 5) System approach to management, 6) Continual improvement, 7) Fact-based decision making, and 8) Beneficial supplier relationships. For each principle, it outlines the division's approach and specific initiatives taken to ensure the principle is followed in its auditing practices and processes. The overall intent is to apply a quality management system to the internal audit function to improve effectiveness and efficiency.

1. ISO 9001 : 2000
Management Audit
How “Quality Management Principles” are
getting addressed in our Division

2. Quality Management Principle 1
“Customer Focused Organisation”
Organisations depend on their customers and therefore should
understand current and future customer needs, meet customer
requirements and strive to exceed customer expectations.
Our Actions:
 Involvement of auditees at the time of Audit Planning,
Execution & Report Presentations .Obtaining feedback
from Customers after each audit and incorporating
improvement suggestions in the Audit Processes.
Participation by CAE in Business Planning Meetings to
understand the customer needs. Informal communication
on general feed back by CAE on a regular basis.

3. Quality Management Principle 2
“Leadership”
Leaders establish unity of purpose and direction of the Organisation.
They create the internal environment in which people can become fully
involved in achieving the organistion’s objectives.
Our Actions:
 Clearly laid down written Vision, Mission, Goals,
Charter, Responsibility Statement etc. Leaders’ regular
email ‘communication’ to team members.Championship
on different activities of the Division.Verticals to
achieve indepth audit with building synergy across
Verticals.

4. Quality Management Principle 3
“Involvement of People”
People at all levels are the essence of an organisation and their full
involvement enables their abilities to be used for the organistion’s
benefit.
Our Actions:
 Individual team members ‘Owning’ audit projects ‘Project Owners’ named. ‘Championship’ in different
areas of development. System that enables
ownership & authority at functional levels and need
based intervention by CAE on issues.

5. Quality Management Principle 4
“Process Approach”
A desired result is achieved more efficiently when related resources
and activities are managed as a process.
Our Actions:
 ‘Process approach’ for audit execution by adopting the
Professional Practices Framework given by IIA, Inc.
USA. ‘WEBMARS’ effectively used as an enabler for the
above. GA , TA & SA (related resources ) effectively
interwoven to add value to the Business.

6. Quality Management Principle 5
“System Approach to Management”:Identifying, understanding
and managing a system of interrelated processes for a given
objective contributes to the effectiveness and efficiency of the
organisation.
Our Actions:
 Each auditing process viz. Technical Audit, Systems Audit &
General Auditing well integrated as a total system when
delivering the final products to the internal customers for
achieving effectiveness and efficiency.
 Audit Planning, Execution, Reporting & Knowledge
Management interrelated in the Process SW WEBMARS’.
Trying to bring Risk Asst. as a process which is a part of Audit
System

7. Quality Management Principle 6
“Continual Improvement”:Continual Improvement is a permanent
objective of the organisation.
Our Actions:
 Monthly ‘Kaizen’ System introduced and being implemented .
 Interaction / exchange of audit notes with audit professionals
from outside companies to adopt best practices. ( IFFCO, HCL
TECH. , Sundaram Clayton , KSFC,ITC,Balrampur Chinny,
Oberoi, Thomas Cook )
Trying to build a strong internal library with materials on
Contd

8. Quality Management Principle 6
“Continual Improvement”:Continual Improvement is a permanent
objective of the organisation.
• Our Actions:
 Effective participation in external professional seminars to
improve knowledge.
 Team members active involvement in Professional Bodies as
Leaders. [ Systems Auditor – ISACA,
Tech. Auditor –
ENFUSE , Head of Audit – IIA ]
 Adapted Skills Matrix- Birket et al 1999A for Auditors

9. Quality Management Principle 7
“Factual approach to decision making”
Effective decisions are based on the analysis of data and information.
Our Actions:
 Implementation of Customer feedback matrix
 Quantification of audit benefits - Technical Audit
 Volume of transactions , Value exposure , level of
decentralisation, employee turnover are all some of the data based
criteria in the risk based planning exercise.
Analysis of information regarding the support auditors
during evaluation of the right fit for the job.

10. Quality Management Principle 8
“Mutually beneficial supplier relationships”
Mutually beneficial relationships between the organisation and its
supplier enhance the ability of both organisations to create value.
Our Actions:
 Criteria based selection process for support auditors
 Continuous orientation of internal processes through
effective interactive meetings with these outside teams
 Organising internal seminars with the external support
auditors as resource persons
 Sharing knowledge / facilities such as Division’s Audit

11. Alignment with Corporate Thrust
 Aggressive growth through
ruthless execution
 Go beyond !