HOW WORKABLE IS VIRTUAL AUDITING?

Technology has evolved every sector in an admirable manner. Nothing is different when it comes to running an audit.

Audits have evolved into a versatile and cost-effective option as remote or virtual auditing. There is no denying that on-site audits are way more feasible that lets things to be analyzed on a real-time basis. But the advantages of virtual auditing have made many adopt it in this era. So how workable are virtual audits and what preparations are required?

GHMC Private Limited is here to enlighten the concept of virtual auditing you. So read on.

Precondition

For many organizations, the standard type of audits and inspections are on-site or traditional face-to-face audits. These types of audits that happen on-site involves Auditors or Inspectors to be present on site. They conduct reviews and assessments to check compliance with standards, regulations, and guidance. They also check the adherence to requirements and specifications as per required standards. They evaluate processes and system performances by examining the adequacy and effectiveness of the Quality Management System in an organization. Later they inform the conformance to the auditee. Auditors also conduct site tours to evaluate production or manufacturing processes on actions. This is a vital step for the manufacturing and production industry. But what if the circumstances aren’t favourable for a site visit?

Virtual Audit- The overview

As the name goes, audits that are conducted virtually or remotely are known as virtual audits. Though conducted remotely, the purpose remains the same which is to check if the business operations stay in compliance with the safety and quality standards.

Virtual audits is a feasible option when off-site access is restricted or not possible due to some circumstances. In this mode of audit, all details remain the same as the traditional on-site audits.

Audit leaders across the globe are finding digitalisation immensely beneficial. Speed, broader stakeholder involvement and robust and centralized reporting are some of the perks that attract auditors to transform themselves into virtualisation.

Perks of virtual audits

To be precise, audits have become more dynamic, improved and efficient. Here, the goal of audits is met in a better and enhanced way. Let’s elaborate:

• Cost-effective

The majority of the businesses allocate limited budgets for their audit programs. With virtual audits, they get the same efficiency as on-site audits but in a more affordable manner.

• Access to clients around the world

Take our instance here. With remote audits, we being located in Surat can offer our services pan-India. We deliver more responsive audits without bearing the cost and time required for commuting. In other words, remote audits have amplified our reach.

• Enhance the number of audits

Again synonymous with the above point, auditors can enhance the frequency of audits conducted through remote audits. At times, auditors may have to visit a site multiple times which can be arranged effortlessly through this new model of the audit.

• Improved and efficient audits

Just as in any profession, if the time spent commuting is saved and used to give more value, the efficiency of the work also enhances. The auditor can dedicate their time to improving the standard of the audit programme by reviewing audit documentation, outline audit outcomes etc.

Preparations to run a successful virtual audit

Through advance and careful planning, remote audits can be conducted smoothly. Preparation is the key here. Here are some points to keep in mind:

• A checklist can be provided and shared to keep the auditee aware of the documentation and procedure involved.
• The Auditee must prepare the required information and provide easy access to the same. Be it remote or offline, to pass an audit, one must be prepared.
• A video meeting must be arranged well ahead of the audit where both parties can discuss the preparations in detail.
• An electronic portal must be decided where all the information and documents will be shared. An alternate method, if the portal fails to work must also be considered.
• If desktop sharing is a requirement, then proper tools must be decided to conduct the same.
• The time of audits and working hours should be clearly stated and well-adhered to avoid juggling between other work and create inefficiencies.
• All the portals and technology used to support the audit has to be tested prior.
• The audit can be split into one or more sections
• Conduct mock remote audits internally. So you know where to act and how?

Incorporate Right Technology

Investing in proper tools will eliminate distance problems. Auditing is a process that involves continuous connecting and collaboration. Screen sharing, recording of meetings, whiteboard tools etc. will support both parties to build a rapport which is crucial in successful auditing. Auditors can provide beforehand information about conducting successful remote audits. All the manual process must be eliminated. Organisations must have cloud-based automated systems that can accelerate the virtual audit cycle and free up the teams from the pressure of manual editings and reporting.

Technology can be both challenging as well as a solution. Remote audits rely completely on the technology  and its availability. Technology used must be to support the audit in possible ways. From interactive conversation to being able to review documents and data, technology must help in easy conduct of the remote audits.  The commonly used virtual meeting apps are Zoom, Skype, WhatsApp or WeChat. A stable Internet connection and a reliable programme is also vital for face-to-face interaction and remote site visits.

Success tips to note:

• Auditors can work at their best if the site is familiar to them.
• Upfront planning is the key here.
• Unhindered virtual connectivity with a plan B
• Go for live videos
• Open, closing and daily briefings must be conducted through web meetings.

There are roadblocks for any organisational processes. Nothing is different when it comes to remote audits. Major barriers that any company may have to face while conducting a virtual audit could be the issues with technology, lack of trust, unavailability of the process owners and insufficient auditor training and experience.

Some of the questions that an auditee may have in their mind before conducting the remote audit could be:

• What does their audit process look like?
• What type of service do they offer?
• What are their strategies to help you reach the objective of an audit?

An auditor must make sure to encourage open communication with the auditee and clear these queries.

Curious to know if there are any internationally accepted guidelines to conduct remote audits? Well yes. Follow the list below:

• ISO 19011:2018 Guidelines to Auditing Management – Annex A1
• The Use of ICT for Auditing/Assessment Purposes
• Management of Extraordinary Events or Circumstances
• IAF ID12:2015 Principles on Remote Assessment
• Industry guidance from oversight bodies ( )

Virtual auditing – The future

With gaining traction, virtual audits truly have a great future. Be it on-site or off-site audits, planning and communication are the basic factors to strengthen the overall audit performance. But as per the past circumstances, we had seen how virtual audits came as a rescue and helped in maintaining business continuity by ensuring the operations function as per the required standards of safety and quality. Well, the question about, if on-site audits will be replaced by on-site audits or not is still unclear. But as per the current specifications in the Guidelines for Auditing Management Systems, there is a clear attestation of a gradual movement towards a virtual auditing approach. We must be glad that this pandemic has paved a way in testing this model, learn how it works, and understand how to make it better.