INTERNAL AUDITING OF

SA 8000 2014
Learning Objectives
• Plan and conduct internal social accountability audit
• Communicate clearly & effectively with personnel at all levels of the
organization, including workers
• Apply methods and techniques to gather, evaluate objective evidence
to determine the conformance of a system designed to meet the
audit criteria
• Generate accurate, appropriate and comprehensive audit findings
and conclusions
Why Audit is essential?

• A management tool for monitoring and verifying the effective

implementation of an organization’s SA Management System
• To identify areas of conformity and nonconformity against SA 8000
requirements, customer requirements, applicable statutory and
regulatory requirements, and established planned arrangements in
the SA MS
• To provide a systematic discipline for corrective or preventive actions
if actual or potential nonconformities are found
What is Social Responsibility?

• The responsibility of an organization for the impacts its decision and activities
have on society and the environment, through transparent and ethical
behavior that:
• Contributes to sustainable development, including the health and welfare of
society
• Takes into account the expectation of stakeholders
• Is in compliance with applicable laws and consistent with international norms
of behavior
• Is integrated throughout the organization’s practices and operations
Social Audits
• What is an audit?
• Systematic, independent and documented process for obtaining audit
evidence and evaluating it objectively to determine the extent to
which audit criteria are fulfilled
Audits are essential…
… to determine, by an unbiased means and through factual information
on social performance, whether the Social Accountability
Management system is effective in maintaining control by checking
that prescribed objectives are being achieved and the resultant
products and services meet specified customer and regulatory
requirements with respect to Social Accountability
Different types of Social Audits

• 1st Party Audit (Internal Audits)

• 2nd Party Audit (Code of Conduct Audit)
• 3rd Party Audit (Management Systems audit by accredited third
party)
• Announced, semi-announced and unannounced audits

Class discussion: What is the purpose, strength and

limitation/weakness of each audit type?
Important terms and definitions:
Audit
A systematic, independent and documented process for obtaining
audit evidence and evaluating it objectively to determine the extent
to which audit criteria are fulfilled.

Audit Criteria – Set of policies, procedures or requirements used as a

reference against which audit evidence is compared.

Audit Evidence – Records, statements of fact or other information,

which are relevant to the audit criteria and verifiable.
Important terms and definitions:

Audit findings – results of the evaluation of the collected audit

evidence against audit criteria

Audit Conclusion – outcome of an audit provided by an audit team

after consideration of the audit objectives and all audit findings
Auditor – person with competence to conduct an audit

Auditee – organization being audited

Important terms and definitions:
Audit Scope – extent and boundaries of an audit; generally includes a
description of the physical locations, organizational units, activities and
processes, as well as the time period covered.

Audit Program – set of one or more audits, planned for a specific

timeframe and directed towards a specific purpose.
Audit Plan – description of the activities and arrangements for an audit
Audit Methods
• Documents Review
• Interviews / interactions
• Site Observation /Facility tour
InternalSocial Auditors: Core Competencies

Essentially, there are three broad

categories of competency for all
social auditors:

Attitude, Skills, Knowledge

Auditor Attitude Requirements
• Cultural awareness and
sensitivity (e.g. attitude toward
discrimination)
• Evaluating conflicting evidence
• Willingness to engage with
external stakeholders
• Investigative approach
• Neutral attitude toward
management and workers
• Open-minded and as objective
as possible
• Ability to empathize with all
parties
• Professionalism and discretion
• Including appropriate attire and
demeanor
• Ability to lead or be part of team,
as appropriate
Auditor Skill Requirements
• Document review
• Interviewing workers and managers
• Visual inspection
• Physical inspection
• Stakeholder engagement, including
interviews with NGOs and trade
unions
• Evaluating corrective action
effectiveness
• Analyzing the severity of problems
• Verification and validation of
information
• Time management
• Audit planning and coordination
• Researching relevant laws and
collecting data
• Audit report writing
• Writing non-conformances/non-
compliances
• Employing effective sampling
techniques
Auditor Knowledge Requirements
• Relevant UN and ILO • National and local law
Conventions • Trade agreements and treaties
• ISO management system • Local culture and regional issues
principles: ISO 19011:2011
(ISO/IEC 17021) • Audit protocols
• ISO standards e.g. ISO 14000,
ISO 45000
• Relevant Standard or Code of
Conduct
• Relevant industry information
Underlying Problems with Auditor Competencies

Attitude
• Bias toward either management or workers
• Cultural bias toward discrimination
• Unwillingness to investigate below the surface
• Fault finding instead of fact finding
Skills
• Poor interviewing techniques
• Ineffective and inefficient use of time
• Poorly written non-conformances and audit reports
Knowledge
• Misunderstanding of application of law vs. standard/code
• Weak knowledge of specifics steps in audit process
• Not understanding which documents/records shall provide greatest insight
• Lack of awareness on sector specific issues
Responsibilities of the Auditor
• Measure conformity of practice against the requirement of the
standard/code
• Provide clarity to client on intent and meaning of requirements
• Reach conclusions based upon audit evidence
• Document and support all findings
Audit procedure should address the following:
•audit program preparation • conducting audit follow-up and
• assuring auditors’ competence corrective action verification
• assigning roles and • monitoring effectiveness of the
responsibilities for auditors audit program
and audit teams • reporting to Top Management
on the overall results and
• planning and conducting audits achievements of the audit
program
Assigning the Auditors

• Check availability of auditor (must be

independent of area to be audited)
- Brief the auditor on the objectives of the audit
- Define the limits of the area to be audited
- Apprise auditor of any special requirements, e.g.
• follow-up of corrective action, priority areas for
verification, etc.
Tasks of the Internal Auditor
• Obtain and assess evidence in a fair
manner
• Preserve his independence and
integrity
• Be flexible to changing situations
during the audit
• Interact with auditees in a positive
way
• Add value to auditee’s process or
activities
• Perform the audit process fully
and adhere to the
• audit plan
• Arrive at acceptable conclusions
based on audit
• findings and objective evidence
• To stand his ground despite
possible pressure of
• contrary views
Auditor planning for each Audit
• Auditor reads and understands the MS documentation
• and business process
• Communication with the auditee to confirm audit
• schedule
• Preparation of the audit agenda and checklists (should
• reflect Plan-Do-Check-Act approach)
• Auditor checks that his audit kit is complete (with audit
• plan, previous audit reports, forms and note pads,
• references, pens)
Preparing the Checklist of Questions
Check which elements of the Standard apply to the area
• to be audited
• Check key requirements in the document
• Check for any problems which normally are known to
• occur in the process to be audited
• If necessary, ask other people for advice
• Refer to other previous audit checklists/reports
• Sequence questions in a logical way and also to permit
• Plan-Do-Check-Act approach to auditing
Auditor’s Final Check
• Notebook, writing instruments
• Copy of relevant SA 8000 procedure documents
• Copy of audit plan confirmed by the auditee
• Copy of the standard (SA 8000 :2014)
• Copy of Internal Audit procedure, work instructions
• Copy of audit checklist, if any
• Forms for audit findings/report preparation
• Previous nonconformity reports for verification of effectiveness of
corrective actions
The Audit Agenda

• Opening Meeting
• Audit Proper
• Closing Meeting
The Opening Meeting

What to say during the opening meeting?

• Review / discuss the following Opening Meeting agenda for the audit program, to include:

• Objective and scope of audit and audit criteria

• The schedule of events; other arrangements
• Definition of nonconformities, major and minor
• How you will report the audit results
• Confidentiality of audit data
• Resolve any questions and items for clarification from the auditees
•