Auditting Basics

Petroleum Development Oman
PD Portfolio-A
Auditing basics
A guide to new Auditors
Prepared by :
Vaithiyanathan Balan,PDTQ12
Introduction
Audit is a systematic, independent and documented process for obtaining
objective evidence and evaluating it objectively to determine the extent to
which the audit criteria are fulfilled-ISO 9000-2015
What does it mean-

Systematic – Follows a sequence of process. Planning the audit, executing and closing.
(notify, opening meeting, executing, findings evaluation, report and closeout).
Independent- external to the system, in our case external to contractor
organization(GPS/TRE).
Documented process- follows procedure, ToR, Audit reports, NCRs are records issued .
Objective evidence-data supporting the compliance to requirements. Records like data
sheet, specification etc.,
Objective evaluation-evaluation based on data and facts ,not by assumptions or
judgements
Audit criteria-set of reference documents
e.g- Contract C31/1164,CQP,DEPs,PDO specifications etc.,
Audit scope- scope covered by Audit,for e.g Engineering,procurement construction.,
etc.,
Auditee-Organization, department, discipline being audited.
Principles of Audit
There are 7 principles ,these principles should help
to make the audit an effective and reliable tool, by
providing information on which an organization can
act in order to improve its performance. Adherence
to these is principles is a pre requisite.
 Integrity
 Fair presentation Audits are not
evaluation of
 Due professional care individual
performance ,
 Confidentiality all about the system
performance
 Independence
 Evidence based approach
 Risk based approach
Audit team roles
Lead Auditor: Auditor:
• Perform Audit within their assigned scope
• Leads, plans and drives audit
• Review/Interview auditee
preparation; • Explain auditee about the findings
• Generates ToRs, notification and • Collate findings at the end of audit
arrangements with audit sponsor • Provide audit findings to lead auditor
and auditees for agreement; • Supports Audit report preparation
• Develops the interview schedule • Make a judgement on technical findings
with the auditee; related to their area of expertise.
• Leads audit execution activities,
conducts audit opening / exit
meetings,
• Organize and direct audit team
members
• Consolidate and evaluates Findings
and opinions, including all objective
evidence
• Lead team in reaching conclusions
• Prevent and resolve conflicts
• Prepares and issues report;
Auditing process
Audit process consists following
Review of document
-specification, drawings,data sheet, Purchase order etc.,
Observe an activity-
-Observe an activity performed by auditee-how to access LKB,
how to validate a inhouse developed XL based calculation sheet
etc.,
Interview
-Interview auditee to explain a process, to confirm a requirement
etc.,
Audit Outcome
Outcome of an audit categorized as below.
• Positive finding-better practices
• Compliance- meeting the requirement
• Non compliance- not meeting a specified requirement
• Observation -potential non compliance or near miss.
• Opportunity for Improvement- recommendations
to improve the process/system.
In PDM Quality management system
Non compliances are issued as Quality incident report
Observations are issued as Negative Jawda card
Opportunity for improvements (OFI) are issued as QTBT JCs
Positive findings are issued as positive Jawda card.
Non conformance(NC)
Non conformance- not meeting a requirement
Examples
• For Protective Applications, the ingress protection class of
actuators shall be IP67/IP67M, as a minimum as per Cl 2.6.3 of
DEP 32.36.01.18 is a requirement a lesser IP(IP 65)is non
compliance.
• Vendor selected outside PGSC without any prior approval is a
non compliance to cl 3.8 of SP1171 requirement.
• Change of MOC from MSR without deviation approval.
any non conformance always mandatorily reported
against a specific requirement –specification and
clause reference.
Observation
Observation-potential Non conformance (Near
miss). If we are not detect early and treat them
they may lead to a non conformance at a later
stage.
Examples:
• Increased number of document review cycle
• Action register/TQ register are not updated
but actions closed
• Mismatch in data between valve data sheet
and valve GA drawing approved.
Opportunities for improvement
• Opportunities for improvement –
recommendations to improve the
performance by using better ways to perform,
Do’s &Don’ts
Don’t Do’s
• Put your assumption into the • Ask questions politely
questions or the auditee • Progressively note down the
process, all requirements shall observation during audit.
be based on a • Discuss about your findings at the
procedure/specification. end of audit with each auditee.
• interfere while other auditor is
interviewing an auditee during
joint audits
• Issue nonconformance without
discussing with auditee.
References
• Terms of Reference-ToR
• ISO 19011-2018 - Guidelines for auditing
management system
• PR-1866 ver.4 - Quality Audit procedure

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What does it mean-

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