What do effective organizations audit?

Question

What will be an ideal response?

Answer 1

A variety of circumstances can initiate an audit. Audit programs may be part of meeting customer contract requirements or government regulations. Audits do not have to have an outside instigator; it is not unusual to see a company utilize internal auditing systems to verify its own performance to key metrics. Audits may also examine aspects of equipment, software, documentation, and procedures. Audits of systems such as material handling or accounts receivable can reveal poor practices that need to be improved. Supplier quality and record-keeping practices can also be checked. Internal and supplier audits allow a company the opportunity to verify conformance to specifications and procedures. Since audits identify opportunities for improvement, companies may perform a product or service integrity audit to verify that the process is performing in an optimal fashion. Using audits to identify process problems reduces opportunities for nonconformities. Whatever the reason, audits provide companies with information concerning their performance, the performance of their product or service, and areas for improvement. Audits help organizations determine the answers to a variety of questions including:

Have value-driven improvements been made?
Have costs of quality been reduced?
Have lead times been reduced?
How do the measures of performance measure up?
Is the company achieving its objectives?
Are the correct procedures being followed?
Are new and more efficient methods of performance documented and used where applicable?
Are records being properly retained and used to solve production problems?
Are preventive maintenance schedules being followed?